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World over distance Education is fast growing mode of education because of the unique benefits
it provides to the learners. Universities are now able to reach the community which has for so
long been deprived or higher education due to various reasons including social, economic and
geographical considerations. Distance Education provides them a second chance to upgrade their
technical skills and qualifications.
Some of the important considerations in initiating distance education in a country like India, has
been the concern of the government in increasing access and reach of higher education to a larger
student community. As such, only 6-8% of students in India take up higher education and more
than 92% drop out before reaching 10+2 level. Further, avenues for upgrading qualifications,
while at work, is limited and also modular programs for gaining latest skills through continuing
education programs is extremely poor. In such a system, distance education programs provide
the much needed avenue for:
Increasing access and reach of higher education;
Equity and affordability of higher education to weaker and disadvantaged sections of the
society;
Increased opportunity for upgrading, retraining and personal enrichment of latest
knowledge and know-how;
Capacity building for national interests.
One of use important aspects of any distance education program is the learning resources.
Learning material provided to the learner must be innovative, thought provoking,
comprehensive and must be tailor-made for self-learning. It has been a continuous process for the
University in improving the quality of the learning material through well designed course
materials in the SIM format (self-instructional material). While designing the material, the
university has researched the methods and process of some of the best institutions in the world
imparting distance education.
Making a pyramid system for almost all courses, in which a student gets flexibility of
continuing higher education in his own pace and per his convenience. Suitable credits are
imparted for courses taken during re-entry into the pyramid as a lateral entry student.
2.
Relaxed entry qualifications ensure that students get enough freedom to choose their
course and the basics necessary for completing the course is taught at the first semester
level.
3.
4.
Learning materials and books have been remodeled in the self-Instructional Material
format, which ensures easy dissemination of skills and self-learning. These SIMs are given
in addition to the class notes, work modules and weekly quizzes.
5.
Students are allowed to take a minimum of 240 hours of instruction during the semester,
which includes small group interaction with faculty and teaching practical skills in a
personalized manner.
6.
Minimum standards have been laid out for the learning centres, and a full time counselor
and core faculty is available to help the student anytime.
7.
There is a wide network of Regional Learning and Facilitation Centers (RLFC) catering to
each zone, which is available for student queries, placement support, examination related
queries and day-to-day logistic support. Students need not visit the University for any of
their problems and they can approach the RLFC for taking care of their needs.
8.
Various facilities like Free Waiver for physically challenged students, Scholarship scheme
by the Government for SC/ST candidates, free bus passes for PRTC buses are available to
students of the University.
The university continuously aims for higher objectives to achieve and the success always gears us
for achieving the improbable. The PTU distance education fraternity has grown more than 200%
during the past two years and the students have now started moving all across the country and
abroad after completing their skill training with us.
We wish you a marvelous learning experience in the next few years of association with us!
DR. R. P. SINGH
Dean
Distance Education
Dr. S. K. Salwan
Vice Chancellor
Dr. S. K. Salwan is an eminent scientist, visionary and an experienced administrator. He is a
doctorate in mechanical engineering from the IIT, Mumbai. Dr. Salwan brings with him 14 years
of teaching and research experience. He is credited with establishing the Department of Design
Engineering at the institute of Armament Technology, Pune. He was the founder-member of the
integrated guided missile programme of defence research under His Excellency Honourable Dr.
A.P.J. Abdul Kalam. He also established the high technology missile centre, RCI at Hyderabad.
He has been instrumental in implementing the Rs 1000-crore National Range for Testing Missiles
and Weapon Systems at Chandipore, Balance in a record time of three years. He was director of
the Armament Research and Development Establishment, Pune. Dr. Salwan has been part of
many high level defence delegations to various countries. He was Advisor (Strategic project) and
Emeritus Scientist at the DRDO. Dr. Salwan has won various awards, including the Scientist of
the Year 1994; the Rajiv Ratan Award, 1995, and a Vashisht Sewa Medal 1996, the Technology
Assimilation and Transfer Trophy, 1997 and the Punj Pani Award in Punjab for 2006.
HUMAN RESOURCE
DEVELOPMENT
MBA-532
This SIM has been prepared exclusively under the guidance of Punjab Technical University (PTU)
and reviewed by experts and approved by the concerned statutory Board of Studies (BOS). It
conforms to the syllabi and contents as approved by the BOS of PTU.
Mapping in Book
Section I
HRD: Concept, benefits, pre-requisites, its distinction
from HRM, HRD as a total system, modern HRD
mechanisms, HRD in India.
Development: Analyzing the role for development.
need,
and
Unit 3: Management
Developments
(Page 21-29)
Section II
Performance appraisal: Concept, need, objectives,
methods, obstacles, designing effective appraisal system,
performance appraisal in Indian organisations.
Potential appraisal: Concept, need,
requirements of a good appraisal system.
procedures,
Section III
Quality of work life (QWL): Meaning, origin,
development, and various approaches to QWL,
techniques for improving QWL. Quality Circles: concept,
structure, role of management, quality circles in India.
Management of careers.
Contents
Section-I
UNIT 1
Introduction
HRD Concept
Features of HRD
Benefits of HRD
Pre-requisites for HRD
HRM and HRD
Summary
Keywords
Review Questions
Further Readings
UNIT 2
Introduction
Systems Approach to HRD
Mechanism or Sub-systems of HRD
HRD Movement in India
Role of Development in Organization
Summary
Keywords
Review Questions
Further Readings
UNIT 3
MANAGEMENT DEVELOPMENT
Introduction
Concept of Management Development
Need of Management Development
Methods of Management Development
Summary
Keywords
Review Questions
Further Readings
UNIT 4
Introduction
Meaning and Role of Training
Training Need Assessment
Organizing Training Programmes
Summary
Keywords
Review Questions
Further Readings
13
21
31
UNIT 5
Introduction
Types and Techniques of Training
Evaluation of Training Programmes
Summary
Keywords
Review Questions
Further Readings
41
Section-II
UNIT 6
PERFORMANCE APPRAISAL
Introduction
Concept of Performance Appraisal
Need and Objectives of Performance Appraisal
Methods of Performance Appraisal
Human Resources Accounting
Limitations/Errors in Performance Appraisal
Improving Performance Appraisal
The Post Appraisal Interview
Designing Effective System
Summary
Keywords
Review Questions
Further Readings
UNIT 7
POTENTIAL APPRAISAL
Introduction
Concept and Need of Potential Appraisal
Procedures of Potential Appraisal System
Summary
Keyword
Review Questions
Further Readings
UNIT 8
JOB ENRICHMENT
Introduction
Job Enrichment Concept and Principles
Steps in Job Enrichment
Nature of Job and Job Redesign
Summary
Keywords
Review Questions
Further Readings
53
69
75
Section-III
UNIT 9
85
Introduction
Quality of Work Life Meaning and Development
Approaches to Quality of Work Life
Techniques for Improving the Quality of Work Life
Summary
Keyword
Review Questions
Further Readings
UNIT 10 QUALITY CIRCLES
93
Introduction
Quality Circles Concept and Significance
Structure and Management of Quality Circles
Quality Circles in India
Summary
Keyword
Review Questions
Further Readings
UNIT 11 MANAGEMENT OF CAREERS
Introduction
Important Terms in Career Planning
Career Stages
How do People Choose Careers
Career Anchors
Career Planning
Career Development
Career Management
Succession Planning
The Indian Scenario
Succession Management
Summary
Keywords
Review Questions
Further Readings
103
SECTION-I
Unit 1
HRD: Concept and Benefits
Unit 2
HRD as a Total System
Unit 3
Management Development
Unit 4
Training: Meaning, Role and Needs
Unit 5
Training: Methods and Evaluation
Unit 1
HRD: Concept
and Benefits
Notes
Unit Structure
z
Introduction
HRD Concept
Features of HRD
Benefits of HRD
Summary
Keywords
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
Importance of HRD
Pre-requisites for its success and also be aware of the differences between HRM and HRD
Introduction
The introduction of modern technology necessitates modification in the method of
producing goods and services with the help of new and improved tools of machinery,
new techniques o utilizing machines and equipments, new materials, alteration in the
production design and so on. Since the structure, the organization and the concepts of
work are affected, it becomes difficult for the working force to appreciate the
consequent improvement of tools and techniques unless their relationship with the
work is understood and known properly. Hence, technological change results in
decline of less skilled occupations and growth of more skilled occupations as well as
less physical effort of persons due to better concentration and knowledge of work in
many jobs and occupations. But in some new jobs and occupations serious shortages
of qualified persons with improve knowledge and skills has become a menacing
problem. As such, it gives rise to imbalances in jobs and occupations in the
establishments. A great care is therefore needed to compact these imbalances
otherwise the fruits of technological advancement can hardly be enjoyed by the
society.
Technology brings along with it a new style of life; it is not possible to build up an
infrastructure of technology on the plinth of traditional skills, attitudes, norms and
values. The character of technological changes today raises simultaneously more
serious problems of adjustment in a large number of areas of mans existence than it
has in the past. A high level of aspiration, rational interest, a dynamic personality and
an open society are, therefore, quite imperative for technological revolution in the
developing countries like India.
Punjab Technical University 3
Human Resource
Development
Notes
One of the most talked about subjects in corporate circles, in recent times, is how to
optimize the contributions of human resources in achieving organizational goals and
objectives. An efficient and satisfied workforce is the most significant factor in
organizational effectiveness and managerial excellence. Systematic investigations in
industrial and service organizations have revealed that though individually our
workers are as knowledgeable and efficient as their counterparts elsewhere thanks
to the sophistication in technical training and selection methods used their collective
efforts often fall short of corporate expectations. While part of this shortfall may be
due to inadequate commitment and motivation, environmental pressures, attitude of
trade unions etc., the contribution of management policies and practices in relation to
human, technical and material resources is no less significant.
Experiences in business and service organizations however, indicate that
managements, comparatively speaking, bestow more time and attention to policies
and systems relating to production, technology, investment, inventory, marketing,
etc, than to human resources. Therefore, notwithstanding proven strengths in
technical, financial, marketing and materials areas many organisations are not able to
achieve as much productivity and effectiveness as they were capable of. Despite
swearing by the importance of human resource, man-management problems in these
organisations seem to attract much more attention in crisis times than during peace.
Compulsions of modern business environment are, however, promoting corporate
managements to systematically review their current attitudes, beliefs and policies
towards human resources as it contribute most significantly to the survival and
growth of organizations.
HRD Concept
HRD is the process of helping people to acquire competencies. HRD is concerned with
an organized series of learning activities, within a specified time limit, designed to
produce behavioral change in the learner. From the organizational context, therefore,
HRD is a process which helps employees of an organization to improve their
functional capabilities for their present and future roles, to develop their general
capabilities, to harness their inner potentialities both for their self and organizational
development and, to develop organizational culture to sustain harmonious superiorsubordinate relationships, teamwork, motivation, quality and a sense of
belongingness. There are a lot of misconceptions about training, education and
development functions vis--vis HRD. Essentially, HRD activities are designed to
make people effective in their present job position, which is a part of the training
function. But when the focus is on a future identifiable job it becomes a part of the
education function. For future unidentifiable jobs, i.e., to develop capabilities for a
future position or new activities within the organization, which are not very specific
at the present stage, it becomes a part of the development function.
The burgeoning Human Resources Field in India is throwing up numerous business
models and conflicting facts with the result that HR has become hard to define. It
has come to mean diverse things to diverse businesses. Productivity, growth, talent
retention, all falls under its purview.
The concept of HRD is not yet will conceived by various authors though they have
defined the term from their approach as it is of recent origin and still is in the
conceptualizing stage. HRD is not training and development. But many personnel
managers and organizations view HRD as synonymous to training and development.
Many organizations in the country renamed their training departments as HRD
departments. Surprisingly, some organisations renamed their personnel department
as HRD departments. Some educational institutions started awarding degrees and
diplomas in HRD even though the concept is not yet crystal clear. Leonard Nadler
4 Self-Instructional Material
Notes
It is often said that an organizations most important assets are its people, however,
this does not stop many organizations failing miserably to get the best out of their
employees. The challenge of having the right people in the right place with the right
skills and attitudes, people who are willing and able to work to their best to achieve
the objectives of the organization, and all at an affordable cost, is common to all
organizations.
The times are changing and there is an increasing need to cope with the ever changing
forces of competition, the technological onslaught and the growing realization of
knowledge management. In this scenario the survival and growth of organizations
depends on being able to build and maintain a long-term relationship with the major
stakeholders. This is essentially possible by creating a win-win situation for booth the
organization and the stakeholders. With this in mind, organizations are increasingly
focusing, and rightly so, on the management and development of human resources.
The human resource of an organization, which is one of the most important
stakeholders, is not only the beneficiary but also one of the critical doers. This has led
to a growing awareness that the productive utilization of human resources is the key
to overall organizational success. Whether one succeeds, or whether one becomes one
of the best managed organizations or whether one exists at all depends on the overall
management of human resources and the human resource strategy an organization
adopts.
Features of HRD
Some of the important features of human resource development are mentioned here
for better clarity of HRD and its importance.
z
It sets a target in the growth and therefore exploits future opportunities even in
advance making the approach scientific and self-generic.
Human resource development brings about job enrichment with better planning
and evaluation.
Punjab Technical University 5
Human Resource
Development
Notes
Human resource development (HRD) has become an evolving concept for building
work force performance to meet the needs of an organization. The essential elements
of HRD are 1. on-going assessment of work force competency needs, 2. activities to fill
those needs employee education and training, organization development, quality of
work life programs, or other efforts to serve the needs, and 3. evaluation to
determine whether the intended purpose has been met. Developing the competence
and productivity of the work force, in reality, is a multi-faceted and direct
responsibility of management. The quality of human performance is integral to the
quality of organization success. And while line management must bear a direct
responsibility, HRD success is heavily dependent upon effective use of the growing
body of available know-how. The prudent manager would do well, in his or her own
interest to get the best available professional HRD support to help build human
performance.
Many companies big or small across the world are all groping for answers to the
fascinating question of how retain the talented people. The rather rhetorical question,
however, set the thinking process of people at the helm of affairs and now convinced
about one golden rule in management organizations may invest billions in processes
and technology, but what differentiates between good companies and great ones is
their willingness to care for people. So what is it about these accompanies that attracts
and retains talented people?
McKinsey consultants, who wrote the famous book The War for Talent, have
explained the core elements that make up a winning employee value proposition
(EVP). An EVP, they say, is like the companys customer value proposition; it is the
compelling answer to the question, why would a talented person choose to work
here? Each companys EVP will be different, but these are the core elements that
managers look for exciting work, a great company, attractive compensation and
opportunities to develop. A few more perks will not make the difference between a
weak EVP and a strong one. Understanding this is important, as several research
studies have shown that 90 per cent of Indian companies have talent retention
problems. Make no mistake that most companies are willing to pony up the money
for people development, as it is crucial to their success. Most also believe they are
doing everything possible to improve performance. But the problem is that most also
make the mistake of seeing employees as a mass and assume that policies and
processes aimed at the mass will take care of the personal issues as well.
Employees are continuously helped to acquire new competencies through
performance planning, feedback, training periodic review of performance, and
assessment of the developmental needs, and creation of development opportunities
through training, job rotation, responsibility definition and such other mechanisms.
Benefits of HRD
There is nothing more exciting, more challenging, than dealing with the strategic
dimensions of the Human Resource and its Development. The new economic
environment has compelled the leaders and managers of organizations to look
outwards to understand the rules of survival in their business; and beyond mere
survival to set their organizations on the path of prosperity and growth. Alvin Tofler
in his famous book Future Shock very rightly states: Change is the process which
pervades our life and it is important to look at it closely, not merely from the grand
perspectives of history but also from the vantage point of the living, breathing
individuals who experience it. What drive the business in the next millennium are
financial resources, information technology and above all, the human element.
Anybody who can marshal and master these three forces will be the leader in the
6 Self-Instructional Material
corporate sector. In any area that does not require physical manufacturing, those who
have the people strength and knowledge will lead from the front.
As organizations increasingly operate globally and work to remain competitive, they
have realized that the one factor that can give them sustained advantage is their
people. This is reflected in the fact that all over the world organizations are
transforming the management of their human resources.
Notes
Many organization heads say most HR departments fail to measure the effects of
people development programmes on the bottom line leading to a common impression
that HR is nothing but a sinkhole of costs. But in reality, it is not true. This happens
because of lack of proper understanding of the concepts of HRD and its
implementation. HRD approach is not simply recruitment and selection, the major
part of it development of the competencies of the people to meet the present and
future challenges in the competitive world. The importance for HRD in the corporate
sector is increasing and every body recognized its role and importance. Lot time and
money is being spent for proper implementation of the HRD concepts.
The specific benefits of the HRD are:
1.
2.
It creates a climate for employees to discover, develop, and use their knowledge
for the betterment of the organization.
3.
4.
5.
It creates an environment for better and cordial relationship among the people.
6.
7.
There is strategic approach for every aspect and there is greater chance of success.
Human Resource
Development
Notes
cultures alien to our own. Far more natural and relevant to the Indian culture, and its
own value systems, is the paternalistic approach, which can be seen in several families
run businesses. In essence, this is an extension of the joint family concept, which has
been part of our social fabric for countless generations.
An effective HRD system is perhaps the most important element in organizational
effectiveness, which not only ensures present performance but also long-term survival
and growth of the organization. While every other resource like technology, capital
assets and even finance can be bought if one is willing to pay the right price, the only
resource that cannot be bought is motivated human resources. Motivated people will
have to be developed and nurtured by managerial competence.
HRD acts as a catalyst in several organizational processes aimed towards keeping the
organization profitable and alive. It is an attempt to develop the entire human
resource available within the organization to its full potential. It is essentially an
enabling process and hence should be less visible and more effective. The level and
nature of investments an organization makes on development of human resources
directly indicates the level of commitment and the seriousness with which the issues
of HRD is looked at in that organization. HRD should aim at maximizing the
effectiveness of all the employees both the unionized as well as managerial cadres.
Even though there is an enhanced awareness amongst various industries about the
importance of HRD, the efforts are focused only on the supervisory level. The impact
of HRD so far on the worker level is very insignificant. It is necessary to deglamorise
HRD to a large extent so that its role can also be extended to improve the effectiveness
of the worker category. Without a capable and highly motivated and committed
workforce any amount of effort towards improving the effectiveness of supervisors,
in isolation, may prove to be futile.
If HRD is to aim at playing a pivotal role in improving productivity and
competitiveness of the organization, it should have a meaningful human resources
management system as its base. It should cover the different aspects of the role of
HRD manager its roles in strategic planning, performing, developing, motivating,
processing, change agent and enabling. If HRD has to play a meaningful role in the
companys effectiveness, it should begin with the business plan of the company.
Unfortunately, many organizations in the country do not have even a short-term
business plan. And even when it does have a business plan, HRD has no role to play
in evolving the plan.
In the absence of such a linkage, HRD cannot perform a meaningful role in key
activities like manpower planning, career planning, and succession planning and
management development. It will then be reduced to a ritualistic role more of an
activity oriented function than a result-oriented function within the total organization.
One has only to check as to how any HRD personnel ever participate in the strategic
planning exercise of a company. This is one of the reasons why HRD professionals do
not get the kind of attention they deserve. The importance of HRDs involvement in
the companys total planning activity is very vital.
8 Self-Instructional Material
Notes
Human Resource
Development
Notes
Student Activity
Assume that you are a HR manager, how can you professionalize the
traditional organization by giving importance to human resource in the
organization.
Summary
Experiences in business and service organizations however, indicate that
managements, comparatively speaking, bestow more time and attention to policies
and systems relating to production, technology, investment, inventory, marketing,
10 Self-Instructional Material
Notes
Keywords
Human Resource Management: Activities designed to provide for and coordinate the
human resources of an organization.
Human Resource Development: It is a process by which the employees of an
organization are helped to help themselves and the organization.
HRD Concept: HRD is the process of helping people to acquire competencies.
HRM Approach: HRM is a strategic approach to the acquisition, motivation,
development and management of the organizations human resources.
HR Function: The HR function in an organization is an all-encompassing function.
HRM Functions: Human resources management deals with procurement, development,
compensation, maintenance and utilization of human resources.
Scope of HRD: The scope of HRD invades into all the functions of HRM.
Human Resource
Development
Notes
Review Questions
1.
2.
3.
Further Readings
French Wendell L: Human Resource Management AIPD, Chennai, 1997
Werther William B, Jr and Keith Davis: Human Resources and Personnel Management, McGrawHill, Inc, New Delhi, 1993
Bhattacharyya, Dipak Kumar: Human Resource Management, Excel Books, Delhi, 2006
Sharma, AM: Personnel and Human Resource Management, Himalaya Publishing House, Mumbai,
2005
Saiyadain Mirza S: Human Resource Management, TMH, New Delhi, 1988
Dwivedi, RS: Managing Human Resources Personnel Management in Indian Enterprises, Galgotia
Publishing Company, New Delhi, 2001
12 Self-Instructional Material
Unit 2
HRD as a
Total System
Notes
Unit Structure
z
Introduction
Summary
Keywords
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
Introduction
Today, the HR function has a more strategic role. A changing business environment
can influence the outcome of current operations, stakeholders and corporate strategy
as a whole. The HR function plays an important role in viewing and integrating
business opportunities, stimulating employees, developing employee strengths and
creating corporate teams that share the companys vision and translate this concern
into profit.
For employers the value of the HR function lies in the bottom line. Greater
productivity, higher quality, better customer service, positive employee relations and
lower costs are among hundreds of factors that typically contribute to higher profits.
Such factors are often directly improved by innovative and effective HR practices.
Historically, businesses would account for HR functions as an expense and learning
as a depreciable asset. Today when we are talking about value addition from every
process and function, HR is viewed as an investment that can lead to future
exponential gains, which was not the case earlier. What underpins the success of
organisations is their ability to add value to the inputs they use. Adding value in this
sense is the central purpose of business activity. A commercial organization, which
adds no value whose output is worth no more than the value of its inputs in
alternative uses has no long-term rationale for its existence. Many surveys have
revealed that the managements perceive that the value addition by the HR function in
their organization will increase in the future.
Human Resource
Development
Notes
between
human
resources
activities
and
14 Self-Instructional Material
Staffing
Organization improvement
Notes
Human Resource
Development
Notes
defined in terms of values and norms. The instruments available for an organization
are put into sub-systems and become HRD systems or sub-systems. Some of the subsystems of HRD are mentioned here.
Training
Performance appraisals
Potential appraisals
Communication
Organizational Development
Role clarity
Team building
16 Self-Instructional Material
Notes
The detailed discussion of the each of these subsystems will be taken in the
consequent lessons. The sub-systems can be grouped for administrative convenience
and also to ensure synergy in terms of value. For example, induction training and
training get normally grouped to form the training system. The training system
attempts to ensure that the instrument of training is used efficiently, cost-effectively,
appropriately and not misused. It becomes a system by formulating its own
objectives, elements, inputs, output and process. It is the inputs and the output of the
systems/sub-systems that link it to the other subsystems.
Human Resource
Development
Notes
took its own time to respond to the changes. Even when it did, one could argue that it
was not so much as a strategic change of direction but as a panic response to certain
economic realities which pushed the country on to the edge of bankruptcy. Farreaching changes are being contemplated in managing human resources. The 50s and
60s, the halcyon decades of socialism, put emphasis on employment, welfare and
growth and the commanding heights of economy were to be captured through the
public sector. Government and the public sector became the biggest employers and
they account for over 60 per cent of employment in the organized sector today.
Massive amounts were invested in Human Resource Development, almost as an end
in itself. While the government loaded more and more social, economic and political
objectives on PEs, the employees within sought expansion as a means of their own
personal growth in career and prospects. The upshot of all this is that HRD as a
movement began in the public sector land the decline of the latter, which is high in
the agenda of new economic policies, may halt the momentum. Indian managers must
demonstrate that they can take honest hard work from a well paid, qualified and
secure workforce.
In India, a professional outlook to HRD began only in 1970s, even though the HRD
processes might have existed to some extent in India earlier also. Larsen and Toubro
was the first company to design and implement an integrated HRD system. Later on,
this professional outlook to HRD spread to other organisations in the country. State
Bank of India the single largest Indian bank and is associates decided to use the
Integrated HRD systems approach and decided to create a new HRD department.
Since then, by the mid-80s a large number of organizations in India had established
HRD departments. By the mid-80s, HR had become an accepted role and most
organizations had changed their personnel, training and other related functions to
HRD. Some had differentiated human resources development from human resources
departments and some had not. However, HRD has come to mean new expectations,
a new body of knowledge and a new function. Number of leading educational
institutes came forward to start courses on HR/HRD and research degrees. Number
professional bodies shifted or started focusing on HRD philosophy in the country.
Demand for Human resource specialists has increased in industry and other
organisations with rising complexity in managing people. Understanding the people
on the job has assumed centre stage of late. This is due to the need of employers to
keep the workforce satisfied for improving productivity and eliminating loss of manhours for any reason, whether due to work stoppages of any kind or even due to
accidents. Development of the service industry like hotels, tourism, education and
entertainment, etc., has also resulted in the demand for trained HR managers. Entry of
MNCs into the country resulted in intense competition for the Indian industry and
CEOs are attaching more importance to people management. People power being
considered the fountainhead of all ideas; organisations are making better use of
human resource for competitive advantage.
and without. To cope up to the global standards and keep pace with them, Indian
corporation need to understand and invest in R&D. HRD department has to create the
appropriate climate for R&D to function effectively. HRD professionals should visit
scientific institutes and make regular presentations on the company, its R&D facilities
and career opportunities. HRD plays a crucial linking role in convincing top
management as well as keeping communication channels open between them and the
R&D professionals. Flexi-timing and other informal rules are created to give them
enough room. HRD may conduct regular interviews with professionals and analyze
their thought trends regarding the company and its work atmosphere.
Notes
The corporate mission is like a standard for the organization and the effective
organization tries to get all its employees to take pride in it. HRD department has a
major role in formulating the corporate mission. Through tier-by-tier exercises, they
collect information on values, attitudes, aspirations and ambitions of employees about
the company. HRD department, which has the requisite peoples knowledge and
tools, has to make an important contribution in this planning exercise. HRDs role in
an organization is multifaceted. The top management of the company is also a part of
the human resource. HRD prepares people not only to handle their tasks effectively
but also to represent the organization to the outside world in professional or social
capacities. HRD plays a vital role in choosing and placing the right candidate with
right capabilities, which leads to higher productivity. HRD also creates mechanisms
for identifying ineffective employees and developing them. HRD managers play
different roles like planning, decision-making, leadership, coordination and other
behavioral ones for the growth and development of the organization.
Student Activity
Take any organization and discus its HRD mechanisms and their contribution
for the organizational effectiveness.
Summary
With the HR function moving from its former labour-relations role to become a true
business partner and the need to balance its day-to-day responsibility with the key to
become strategic partners in corporate management, a critical need has emerged. That
is to develop a new set of competencies for HR professionals. HRD is concerned with
the peoples dimension in the management of any organization. HRD is a continuous
process comprising the function of acquisition, development, motivation and
maintenance of human resources. The objective of any HRD system and process is to
build a proactive organization and create an enabling environment that seeks not to
respond or react to change but to create change and dynamism. When activities are
related, a system exists. A system consists of two or more parts working together as
an organized whole with identifiable boundaries. The purpose of any HRD system is
broadly to build the competencies and/or commitment of individuals, dyads, teams
and the entire organization as a whole through a variety of instruments.
HRD in India has a rich history and has come a long way in the last two decades.
Liberalization of the economy and its movement towards globalization has brought in
new challenges for Indian business in terms of business strategies, technology, and
quality concerns cost of effectiveness, management systems, and so on. All these, in
turn, have brought new challenges for the human resource function. If HRD was
promoted as a responsibility of CEOs and the top management in the eighties, it has
become a business necessity in the nineties. In the post-liberalization period, with
several businesses being threatened by global competition, the focus of HRD has
shifted to establishing direct links with business improvement. Hence, business
Human Resource
Development
Notes
survival has become a significant and a non-negotiable goal and all HRD efforts have
to be redirected towards business goals.
Keywords
Open system: An open system is one that is influenced by, and is constantly
interacting with, its environment.
System thinking: System thinking is base on the principles of synthesis rather than
analysis.
Analysis: Analysis is the process of braking down a problem into its most elementary
parts.
Solutions: Solutions are then found to each individual part.
Process: A process is an identifiable flow of interrelated events moving toward some
goal, consequence, or end.
System: On the other hand, is a particular set of procedures or devices designed to
control a process in a predictable way.
HRD Techniques: Techniques of human resources development are also called HRD
methods, HRD instruments, HRD mechanisms or HRD sub-systems.
Training: Training is linked with performance appraisal and career development.
Performance and potential appraisal: If the performance of people is to be enhanced,
their performance needs to be periodically evaluated.
Rewards and recognitions: Recognizing and awarding employee performance and
behavior is an important part of HRD.
Career planning: The HRD philosophy is that people perform better when they feel
trusted and see meaning in what they are doing.
Organization Development: This function includes research to ascertain the
psychological health of the organization.
Employee welfare and quality of work life: Employees at lower levels in the
organization usually perform relatively monotonous tasks and have fewer
opportunities for promotion or change.
Review Questions
1.
2.
3.
4.
Further Readings
Bhattacharyya, Dipak Kumar: Human Resource Management, Excel Books, Delhi, 2006
Sharma AM: Personnel and Human Resources Management, Himalaya Publishing House, Mumbai,
2005
Saiyadain Mirza S: Human Resource Management, TMH, New Delhi, 1988
Dwivedi, RS: Managing Human Resources Personnel Management in Indian Enterprises, Galgotia
Publishing Company, New Delhi, 2001
20 Self-Instructional Material
Unit 3
Management
Development
Management Development
Notes
Unit Structure
z
Introduction
Summary
Keywords
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
Basic concepts, and the need for development and also know the various methods of
development
Introduction
The managers or executives are the most important and valuable assets of an
organization. Their development has become one of the most important and complex
tasks of human resource management. Since World War II, tremendous emphasis has
been laid on the development of executive talent in the field of management. The
dramatic change in the area of management development has been named as
Management Revolution. It has now been well recognized that qualified executives
needed throughout the industry and trade do not just emerge from labour force
without consciously planned action on the part of the organization. Good
organizations select the talented employees and develop them to have adequate
inventory of management skill for use in the future to achieve the desired objectives
of the organization.
The process of development and training are often confused. Training means learning
the basic skill and knowledge for a particular job or a group of jobs and there is no
choice with the employer whether to train or not. The only choice is that of the
method to be employed. It occurs as a result of controlled external stimulation but
development takes place when the individual is internally motivated. Development
means self development and organization is only to provide the necessary conditions
for the development. The initiative for development would be taken by the individual
himself. Moreover, it develops the overall personality of the individual while on the
other hand; the training programme seeks to develop the skills and knowledge for a
particular job.
The planning of management development programmes deserves the utmost
attention. At the very outset, objectives of the programme should be defined.
Specifically, these programmes purport to bring managers up-to-date in respect of
Punjab Technical University 21
Human Resource
Development
Notes
22 Self-Instructional Material
developed and anticipated changes in the organizations management team. The total
management development process is being explained here:
1.
2.
3.
4.
5.
6.
7.
8.
Management Development
Notes
To improve the overall knowledge and conceptual and decision making skills for
managers
To create and provide the various opportunities to satisfy the executives career
ambitions
To make the executives up to date with the latest knowledge to avoid the
obsolescence
To broaden the outlook of the executive regarding his role position and
responsibilities
Human Resource
Development
Notes
meet the emerging challenges of the market-led economy. Employers have felt the
need to educate their contemporary managers on how to be effective on the job to
meet ongoing challenges. Some organizations like Wipro, the computer giant have a
detailed leadership; development programme for its potential managers, to convert
them into more successful managers. Some of these managers also take up positions
as CEOs in industry. Management development is taken as an essential strategic
function of contemporary CEOs and directors of organisations in the best interest of
the business of the company. People are treated as the most valuable capital of every
organization. Managers, being the active components in organizational strategy,
exploit and integrate the competencies skill, knowledge, technology, and
brand/operational systems to organizational benefit. And, in order to define, create
and harness the resources, a manager needs to have a combination of personal
competencies of a high order. Creating or developing the combination of
competencies is the function of management development.
Organisations need managers of a certain type with certain skills and competence,
which are normally acquired through proper training and developmental
interventions. Entrepreneurs look for candidates who can fit into the job. It is quite
possible that those who have come up through their own efforts/personal
trait/experience may be able to partially meet the specifications of the job, in the
context of the contemporary search for talents. The search for talents is like a war on
talents and employers want to take the best of the lot. The situation is highly
competitive. In the backdrop of the contemporary competitive market scenario, it only
goes to establish that a managers position calls for technical knowledge/skill and so
certain competencies can be acquired through training and management development
related activities to fill in the gaps. Managers, therefore, definitely need to bridge the
gaps; to enrich their experience and give them the training needed to perform as
effective managers. Managers are professionals and for that they need professional
training and expertise.
Some of the specific reasons for the management development programmes are:
z
Needs Assessment
Every organization has physical, financial, and human resource needs. Needs relate to
what the organization must have to achieve its objectives. A fundamental need of any
organization is the need for an effective management team. One method of meeting
this need is the use of a well-organized management development program.
However, before management development activities are undertaken, the specific
development needs of the managers in the organization must be determined. Thus
needs assessment is a systematic analysis of the specific management development
activities the organization requires to achieve its objectives. The management
development needs of any organization result from the overall need of the
organization and the development needs of individual managers.
Basically, four methods exist to determine management development needs: training
needs survey, competency studies, task analysis, and performance analysis.
z
24 Self-Instructional Material
Task analysis is concerned with what tasks are required in performing the
managerial job.
Management Development
Notes
2.
3.
Human Resource
Development
One advantage of job rotation is that the trainees can see how management
principles can be applied in a cross section of environments. Also, the training
is practical and allows the trainee to become familiar with the entire operation
of the company. One serious disadvantage of this method is that the trainee is
frequently given menial assignments in each job. Another disadvantage is the
tendency to leave the trainee in each job longer than necessary. Both of these
disadvantages can produce negative attitudes.
Notes
4.
Special projects and committee assignments: Special projects require the trainee to
learn about a particular subject. For example, a trainee may be told to develop
a training program on safety. This would require learning about the
organisations present safety policies and problems and the safety training
procedures used by other companies. The trainee must also learn to work and
relate to other employees. However, it is critical that the special assignments
provide a developing and learning experience for the trainee and not just
busy work.
Committee assignments, which are similar to special projects, can be used if
the organization has regularly constituted ad hoc committees. In this
approach, an individual works with the committee on its regularly assigned
duties and responsibilities. Thus, the person develops skills in working with
others and learns through the activities of the committee.
5.
6.
b) Off the Job Methods: Off the job methods adopted for management development
programmes are as follows:
26 Self-Instructional Material
1.
Lectures: Under this method, the lectures of experts and scholars of different
fields are organized from time to time. Executives of the enterprise are asked
attend these lectures and if they have any problem on any point, these
problems are also solved by these experts and scholars.
2.
Meetings and conferences: This is a very popular method adopted in India for
executive development. Under this method, the meetings and conferences are
organized. The problems related to a particular field of managerial activities
are discussed and all the efforts are made to find out a solution to these
problems.
3.
Special courses: Under this method, some special courses are admixture for the
development of executives. These programmes may be arranged by the
company itself or by the Universities or by any management institute. Some
executives are sponsored to attend these courses. They attend the classes in
which a particular field of activity is taught to them and group discussions on
the topics are also organized.
4.
5.
Case study method: Under this method, the managerial executives are assigned
the particular cases to study. They study these cases and learn to face the
particular situations. This method increases the power of observation among
managerial executives.
6.
7.
Role Playing: In this method, participants are assigned different roles and
required to act out those roles in a realistic situation. The idea is for the
participants to learn from playing out the assigned roles. The success of this
method depends on the ability of participants to assume the roles realistically.
Videotaping allows for review and evaluation of the exercise to improve its
effectiveness.
8.
9.
Management Development
Notes
Human Resource
Development
Notes
represents fair cross section of the executives life of the country covering all
sectors and functional areas. The groups are given assignments prepared
beforehand to be submitted within a specified date and time. Each executive
in the group is appointed leader of the group for the performance of the given
task by rotation. The report prepared and submitted by the group is
circulated among the members of the other groups for cooperative study and
critical evaluation. The leader of the group is required to present the views of
his group in the joint session and justify the groups view in case of any
queries or criticism. The syndicate method is suitable for the development of
executives who are already in the positions of responsibility and are marked
out for assuming top position or near the top position in business or public
services.
Student Activity
Take an organization in which you are familiar and identify the various
techniques used for management development and critical analyze them.
Summary
The dramatic change in the area of management development has been named as
Management Revolution. It has now been well recognized that qualified executives
needed throughout the industry and trade do not just emerge from labour force
without consciously planned action on the part of the organization. Management
development is more future oriented, and more concerned with education, than is
employee training. By education, we mean that management development activities
attempt to instill sound reasoning processes, i.e., enhance ones ability to understand
and interpret knowledge rather than imparting a body of serial facts or teaching a
special set of motor skills. Development, therefore, focuses more on the employees
personal growth. Successful managers have analytical, human, conceptual, and
specialized skill.
Employers have felt the need to educate their contemporary managers on how to be
effective on the job to meet ongoing challenges. Some organizations like Wipro, the
computer giant have a detailed leadership; development programme for its potential
managers, to convert them into more successful managers. Management development
should be designed, conducted, and evaluated on the basis of the objectives of the
organization, the needs of the individual managers who are to be developed and
anticipated changes in the organizations management team.
Management development programmes should be carefully evaluated with a view to
determining effective methods, procedures and devices. Attempts should be made to
assess the extent to which these programmes have accomplished the objective and
needs. After the companys needs have been assessed and its objectives stated,
management development programs can be implemented. A large variety of methods
of executive development have come into limelight these days. The selection of the
method depends upon the philosophy of the management. Broadly, these methods
are classified into two categories: a) On the Job methods and b) Off the Job methods.
In the Indian industry, the focus in management development programmes for senior
executives is on leadership development and equipping them with the necessary
vision, skill and knowledge needed for managerial positions. Managers are trained to
develop competence in problem solving, decision-making, human relations and so an,
to groom them to meet the challenges of existing and future roles.
28 Self-Instructional Material
Keywords
Management Development
Notes
Case study: It refers to diagnostic and problem solving study of usually a written
description of some event or set of circumstances on organizational problems
providing relevant details.
Concept of Management Development: The training and development plans aimed at
developing talents to perform effectively in the present and future higher levels on
more challenging work situations.
Management Development Process: Management development is concerned with
developing the experience, attitudes, and skills necessary to become or remain an
effective manager.
Need of Management Development: In their search for building competitive
advantage corporate bodies, today, underpin their core competencies.
Needs Assessment: Every organization has physical, financial, and human resource
needs.
Job Rotation: Job rotation is designed to give an individual broad experience through
exposure to many different areas of the organization.
Multiple Management: Under this system a junior board of young executives is constituted.
Role Playing: In this method, participants are assigned different roles and required to
act out those roles in a realistic situation.
In-basket technique: The in-basket technique simulates a realistic situation by
requiring each participant to answer one managers mail and telephone calls.
Syndicate method: In this method, 5 or 6 groups consisting of about 10 members are
formed. The groups are known as syndicates.
Review Questions
1.
2.
3.
4.
Further Readings
French Wendell L: Human Resource Management, AIPD, Chennai, 1997.
Werther William B, Jr and Keith Davis: Human Resources and Personnel Management, McGrawHill, Inc, New Delhi, 1993
Dwivedi, RS: Managing Human Resources Personnel Management in Indian Enterprises, Galgotia
Publishing Company, New Delhi, 2001
Ajay Sing and others: Synergizing HRD Interventions, Challenges and Initiatives, Excel Books, 2001,
New Delhi.
Unit 4 Training:
Meaning, Role
and Needs
Notes
Unit Structure
z
z
z
z
z
z
z
z
Introduction
Meaning and Role of Training
Training Need Assessment
Organizing Training Programmes
Summary
Keywords
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
The ways the training needs are being assessed and also learn the ways of organizing
training programmes
Introduction
After liberalization, there is focus on developing creativity and evolving quality
culture among employees through training in corporate India. In todays rapidly
changing technological society, organizations are increasingly recognizing the need
for training their employees to enable them to keep abreast of new information and to
develop new skills. This is especially true at managerial and professional levels,
where personnel are often faced with new problems arising from computerization,
automation, rapid new product development, etc. In addition to on-the-job training
and development, many firms, for example, have run in-company training conference
and seminars provided tuition-refund plans to help finance employees taking jobrelated university courses, and sent managers to outside training programs sponsored
by universities and such organizations as Management Associations. The content of
todays training and developmental efforts is, of course extremely diverse, depending
on the specific needs of the individuals involved.
The effectiveness of career planning in an organization system will largely depend on
the extent to which training and development opportunities are made available to
employees to enable them to realize their growth potential and to make contributions
towards achievement of organizational objectives. Training and development
activities are the main mechanisms through which individuals goals and aspirations
can be integrated with organizational goals and requirements. Such integration can be
achieved only when training and development efforts are linked with the
Human Resource
Development
Notes
Notes
Meaning
Training and development is increasingly recognized, now, as a most important
organizational activity. The beginning of training could be traced to the Stone Age
when people started transferring knowledge through signs and deeds to others.
Vocational training started during the Industrial Revolution when apprentices were
provided direct instructions in the operation of machines. Rapid technological
changes require newer skills and knowledge in many areas. Training has to be
continuously offered to keep employees updated and effective. There are some who
believe that training has unnecessarily been given undue importance and that the
experience on-the-job is good enough to develop necessary skills and efficiency to
perform the job. It is true that training cannot entirely substitute experience, but it has
certain definite advantages over it.
Training may be defined as any organizationally planned effort to change the
behavior or attitudes of employees so that they can perform jobs on acceptable
standards. Training provides knowledge and skills required to perform the job.
Training is a shot-term process utilizing a systematic and organized procedure by
which non-managerial personnel learn technical knowledge and skills for a definite
purpose. Periodic training is often necessary because the nature of ones job may
change to include new responsibilities, performance standards, equipment, or work
methods. Training also gives an awareness of the rules and procedures to guide their
behavior. Training improves the performance of employees on present jobs and
prepares them for taking up new assignments in future.
What todays and tomorrows training programmes must focus on, are soft-skills such
as interpersonal communication, teamwork, innovation and leadership. Most
importantly, the training has to be comprehensive, systematic, and continuous and
should be closely linked to the strategy with which the company is planning to fight
the competition. In the future, it is training that will act as catalyst between people,
between strategy and systems, between customers and the organization.
Objectives of Training
After training needs have been determined, objectives must be established for
meeting those needs. Unfortunately, many organizational training programs have no
objectives. Training for trainings sake appears to be the maxim. This philosophy
Punjab Technical University 33
Human Resource
Development
Notes
To promote the quality and quantity of output, to lower the cost of waste
Training Policy
In considering its training policy the organization will need to ask the fundamental
questions why do we train, what purpose will training serve, who do we train,
when do we train, where will the training take place. In other words, the organization
is asking itself to make a commitment to training, land to ensure that it serves the
purpose of developing the long-term interests of the organization. Too often in the
past training has been seen to have tool little relevance to the real business of the
organization is really about. In order to be really effective training must be relegated
to the corporate plan of the organization; that is, it must be directed to helping the
organization develop its manpower in such a way that short, medium and long-term
objectives can be achieved in an efficient and effective manner.
Training policies, then, need to be developed in line with the human resource
planning activities of the organization; in such a way to gain the support of line
managers; so that the current and future problems of managers and their staff can be
identified and overcome. Consultation with line managers will be vital if any training
effort is to succeed. It is also important to keep at the forefront of thinking and
planning the fact that training will not be the solution to all problems. Too often in the
past, training has been seen as the solution to all ills, from lack of motivation and poor
reward policies, to poor management and outdated technology. Quite clearly training
will not solve all problems, and part of the objective of undertaking a training needs
analysis is to determine not only what can be addressed with training, but also what
can be left to other methods. The following of the steps in planning the training
programme.
34 Self-Instructional Material
Notes
Human Resource
Development
are needed to fulfill these goals. As the organization implements its plans, current
employees will need to be retrained so that they can do electronic instead of
mechanical assembly work. The analysis of the firms business strategies and
objectives helps identify training needs before those needs become critical.
Notes
3.
If the training programme is to remain relevant and viable, then the three kinds of
analyses described above must be carried on continuously. Training programmes
should be reviewed constantly and revised in the light of changes in a companys
resources, objectives, internal climate, and external environment. Further, these
analyses should be integrated in a carefully designed and executed research
programme.
Surveys and/or questionnaires are also frequently used in needs assessment.
Normally this involves developing a list of skills required to perform particular jobs
effectively and asking employees to check those skills in which they believe they need
training. Employee attitude surveys can also be used to uncover training needs.
Usually most organisations bring in an outside party or organization to conduct and
analyze employee attitude surveys. Customer surveys can also indicate problem areas
that may not be obvious to employees of the organization. Responses to a customer
survey may indicate areas of training for the organization as a whole or particular
functional unit.
36 Self-Instructional Material
Notes
Training content: Training contents have purposely been discussed in this section
because mid-course corrections in nature, focus and scope of contents may
require changing course requirements while the training is on. Contents of
training are very much influenced by the purpose and need for training.
Sometimes after the training programme has started the trainer might feel as a
result of experience sharing that the contents should be modified, diluted or made
more comprehensive. Contents would also vary according to the level of
participants in a training programme. At higher levels, conceptual abilities
probably are more important and hence one should focus on theories, frame
works, and concepts.
Sequencing of contents is also very important. If topics of discussion do not seem
to follow some logic land just come in random succession the learning may be
piecemeal land participants may not be able to related one session to the other.
Similarly, the contents should follow simple to complex or from general to
specific logic. In addition, the pace of training should neither be too fast or too
slow. In both extreme cases there might be a loss of interest. Both sequencing and
pace are very important for sustaining the interest and motivation of participants.
2.
Training programmes: The content of the programme also depends on the type of
programme being organized. There are four types of standard training
programmes. Appropriate type has to be selected and administered. They are:
Induction training, the first one, wherein the new recruit is introduced to the
organization, condition of services, rules of behavior, the culture and other
functional activities to create the familiarity of the organization. The other one is
supervisory training in which the existing supervisors are trained for technical
skills, leadership qualities, for handling machines and men. The third one is
technical training. This type of training programme helps in inducting new
entrants to the operational requirements of the unit and in improving the skills of
existing employees for promotions. The last one and very important one is
management development training. This type of training is for managers. These
training programmes emphasize attitudes and values, conceptual knowledge,
analytical abilities and decision-making skills. The purpose is to equip managerial
personnel for management roles.
3.
Implication of the plan: Once the content and type of training programmes
decided, the next and the crucial one is the effective implementation of the
programme. Here number of activities will take place such as selection of trainer,
selection of trainees, identification of venue, training facilities at venue and
Human Resource
Development
Student Activity
Notes
Summary
Training and development activities to be meaningful must be integrated with the
overall human resource development strategy of an organization. Training function,
in fact, is the corner stone of sound management. The complexities of modern
industrialization and technological changes have very much increased the need of
training. It fosters employees self and development versatility. Training is the act of
increasing knowledge and skill of an employee for doing a particular job. The
objective of training is to achieve a change in the behavior of those trained. In the
industrial situation, this means that the training shall acquire new techniques, skills,
problem-solving abilities and develop work attitude. It is expected that the employees
apply their newly acquired knowledge on the job in such a way as to help them in the
achievement of organizational goals.
Training is a vital and necessary activity in all organizations. It plays a large part in
determining the effectiveness and efficiency of the organization. After people are
hired, they must be oriented to the organization and to their jobs; they must also be
trained to perform their jobs. Furthermore, employees must periodically have their
skills updated and learn new skills. The orientation and training of new employees
and the training of long-term employees are major responsibilities of the human
resource department. A carefully designed training programme must take into
account all the phases beginning from organizational analysis through design and
organization of training programme to evaluation of effect of training on the
individual, his performance in the job and overall efficiency of the department and
organization on a whole.
Organization and individual should develop and progress simultaneously for their
survival and attainment of mutual goals. So, every modern management has to
develop the organization through human resources development. Employee training
is the most important sub-system of Human resource development. Training is a
specialized function and is one of the fundamental operative functions for human
resources management. Training is considered to be crucial part in achieving
productivity from the workers. Training helps in producing quality goods and
services, meeting production targets through greater efficiency. Training is imparted
externally and internally.
Keywords
Education: Education is concerned with increasing general knowledge and
understanding of the total environment.
Orientation: The introduction of new employees to the organization, work unit, and
job.
Needs Assessment: A systematic analysis of the specific training activities that the
organization requires to achieve its objectives.
38 Self-Instructional Material
Notes
Training is concerned with increasing knowledge and skill in doing a particular job
and the major burden of training falls upon the business organization in which the job
is located.
Organizational analysis: It involves a comprehensive analysis of organizational
structure, objective, culture, processes of decision-making, future objectives, and so
on.
Task/Role Analysis: This involves a detailed analysis of various components of jobs,
and how they are performed.
Manpower analysis: Here the focus is on individual, his skills, abilities, knowledge,
and attitude.
Training content: Training contents have purposely been discussed in this section
because mid-course corrections in nature, focus and scope of contents may require
changing course requirements while the training is on.
Review Questions
1.
2.
3.
Further Readings
Sharma AM: Personnel and Human Resource Management, Himalaya Publishing House, Mumbai,
2005
Saiyadain Mirza S: Human Resource Management, TMH, New Delhi, 1988
Werther William B, Jr and Keith Davis: Human Resources and Personnel Management, McGrawHill, Inc, New Delhi, 1993
Pareek Udai: Training Instruments in HRD and OD, TMH Publications, Delhi, 2002
Dwivedi, RS: Managing Human Resources Personnel Management in Indian Enterprises, Galgotia
Publishing Company, New Delhi, 2001
Unit 5
Training:
Methods and
Evaluation
Notes
Unit Structure
z
Introduction
Summary
Keywords
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
Introduction
Training has both current and future implications for job success. It is a learning
process, whether its focus is orientation, initial job-skill training, developing employee
potential, or retraining employees because of changes in technology or job
assignments. Training can contribute to higher production, fewer mistakes, greater
job satisfaction, and lower turnover. Also, it can enable employees to cope with
organizational, social, and technological change. Effective training is an investment in
the human resources of an organization, with both immediate and long-range returns.
Regardless of whether raining is called education or job training; learning has to occur
for training to be successful. A basic understanding of the psychology of learning is
necessary for managers to become effective trainers.
Training should be as real as possible so that trainees can successfully transfer the
new knowledge to their jobs. The training situation should be set up so that trainees
can picture the types of situations they can expect on the job. The success of any
training can be gauged by the amount of learning that occurs. Too often, unplanned,
uncoordinated, and haphazard training efforts significantly reduce the learning that
can be expected. After training objectives have been determined and translated into
specific course areas and the trainees have been identified and evaluated,
management will be in a position to decide the overall curriculum, that is, the array of
courses to be offered. In a sense, the curriculum is a sort of grand plan of what
training is to be presented and with what frequency. The type and method of training
Human Resource
Development
Notes
programme has to be decided and also evaluate continuously to improve the quality
of output.
Training is important not only from the point of view of the organization, but also
for the employees. It is valuable to the employees because it will give them
greater job security and an opportunity for advancement. A skill acquired
through training is an asset for the organization and the employee. It can be taken
away only by the complete elimination of the need for that skill because of rapid
technological changes.
The role of the supervisor in training varies with different organizations. In industry,
the personnel department is often charged with the responsibility for training new
employees for there may be a separate training division. In libraries, the student
employee supervisor is usually directly responsible for teaching new employees all
the skills and information necessary to become full contributing members of the
department. Typically, the supervisor is given latitude in developing a training
program as long as the training has the desired results. Frequently, the student
employee supervisor inherits a training program from a previous supervisor who
may no longer be in the department.
There are two types of training which you may use in preparing student employees
for their jobs: off-the-job or vestibule training and on-the-job training.
Vestibule training takes place away from the site where the actual work will be done.
It may take place in a classroom or at a desk away from the workstation. The
advantage is that the new employee is given hands-on experience without
interfering with the flow of work in the department.
On-the-job training is conducted in the department at the actual assigned workstation.
Most library training is done on the job.
Types of training
Human resource skills can be built using different types of training which are briefly
explained below:
a.
42 Self-Instructional Material
acquaint himself with his immediate boss and the persons who will work under
his command. He is also given an organization chart so that he knows his position
in the enterprise in relation to other employees.
b. On- the- job training: This is one of the commonly used types of training. It is
also an effective method of training for the operative personnel. In this method
the worker is trained on the job and at his work place. He gets training under the
same type of conditions in which he will be working later on. The new worker is
generally attached to a superior or a senior worker who will tell him the
techniques of doing that job. When a worker is trained on those very machines on
which he will work, then he will adapt more easily to the new working
conditions.
Notes
Vestibule training/Off-the job training: Off the job or vestibule training can be
given in a number of ways. This method is generally used by government and
public enterprises. A school or an institution is established to provide training to
all types of persons. A programme of raining is designed to suit the needs of jobs
the trainees will occupy. Some times different courses are arranged for separate
groups of employees. Only big enterprises may afford to set up separate schools
but this method is commonly in use in many concerns.
Vestibule training is a particular type of off-the-job training that does not interfere
with actual production. It can be expensive to set up, so make sure there is a large
enough number of trainees to justify its full use.
In vestibule training you set up a training area that simulates the workspace, with
equipment and operating procedures like those found in the actual work
situation, and employ full-time instructors. For example, a vestibule training
facility might simulate the work situation of the cabin crew of an airliner, hotel
kitchen workers, or high-tension-wire workers.
Vestibule training prevents trainees from making costly mistakes or damaging
equipment. It also allows instructors to give more personalized attention to the
learners.
c.
Human Resource
Development
Notes
44 Self-Instructional Material
Notes
2.
3.
4.
5.
6.
Simulation: Most often used for the training of individuals such as pilots, and
cases where a simulation of the work that they are being trained to do enables
trainees to acquire some of the requisite skills in a safe and progressive manner.
Gradually, as their skills develop, they will be introduced to the real thing.
Human Resource
Development
Notes
Simulations will also be used for groups such as the fire brigade, divers, all
branches of the armed forces and others where training closer to the job could be
either dangerous or prove to error.
7.
Action learning: A very useful development tool, often used with decisionmaking managers, a group of whom should meet together on a regular basis to
act as client and consultants to each other. The group members then work
through their won and one anothers problems in a supportive way. It is usual for
the group to be assisted by a consultant who will work on the group processes.
For action learning to work well all group members must be highly committed,
for as a method it is not cheap and can consume considerable amounts of
managers valuable time.
8.
9.
Lecture: Lecture is by far the most widely used technique of training involving
speaking to large number of trainees usually from prepared notes. This is more
appropriate in situations where same information is required to be shared to a
large audience and where there is no time for more participative method. There
are at least two variations of this method, talk and discussion, which allow some
participation of the trainees. Talk involves encouraging trainees to raise questions
thus maintaining interest in the topic. In discussion, knowledge, ideas and
opinions are freely exchanged among the trainees and the trainer.
10. Case studies: This technique, which has been developed, popularized by the
Harvard Business School, USA, is one of the most common forms of training. A
case is a written account of a trained reporter of analyst seeking to describe an
actual situation. Some cases are merely illustrative; others are detailed and
comprehensive demanding extensive and intensive analytical ability. Cases are
widely used in variety of programmes. This method increases the trainees power
of observation, helping him to ask better questions and to look for broader range
of problems.
46 Self-Instructional Material
Notes
Levels of Evaluations
The way in which training is to be evaluated is best considered before training begins
in order to allow design flexibility in evaluating a programs success. Training can be
evaluated at five levels and are briefly discussed below:
1.
Reactions level: At this level the trainee is asked about the training experience
itself, which parts she found useful, which parts less so. The trainee might be
asked to pass judgment on the speakers, the facilities, the organization of the
event and what improvements they might like to see made. However, the
immediate reaction may measure how the people liked the training, rather than
how it benefited them.
2.
Learning level: At this level evaluation requires that the trainees should be tested
on what they have learned as a result of the training. This might be an end-ofcourse test and would aim to assess the degree to which he trainee had acquired
the knowledge, skills or abilities that the training aimed to deliver. Tests on the
training material are commonly used for evaluating learning and can be given
both before and after training to compare scores.
3.
Job behavior level: This level of evaluation considers the degree to which
knowledge and skills acquired in training are used back in the workplace. The
objective of all training must be to influence work place behavior in a desired
way. No matter how successful training appears to be as a result of any
evaluation undertaken at levels one and two; if it does not result in the desired
changes in workplace behavior then it will probably be deemed to have failed.
When evaluating at this level it is important to note that any failure to transfer
new skills at the workplace may not be the fault of either the training or the
trainee.
4.
5.
Ultimate level: Ultimately all training should have some positive effect on the
performance of the organization and the highest level of evaluation will attempt
to assess this effect. However, while it is easy to accept that all training should
make a contribution to corporate success, it is more difficult to measure that
Punjab Technical University 47
Human Resource
Development
Notes
Student Activity
Critically analyzing various methods of training, identify and defend yourself
which technique you will use for the fresh employee.
Summary
Training is important not only from the point of view of the organization, but also for
the employees. It is valuable to the employees because it will give them greater job
security and an opportunity for advancement. A skill acquired through training is an
asset for the organization and the employee. It can be taken away only by the
complete elimination of the need for that skill because of rapid technological changes.
Human resource skills can be built using different types of training such as on-the-job
training, off-the-job training, supervisory training programmes, crafts training etc. On
the job training takes place when the trainee is not removed from the workplace.
Training undertaken in this way has the advantage of being immediately transferable
to be the work situation and is generally considered to be cheap and cost effective. At
the other extreme is off the job training, which occurs when the trainee is removed
from the workplace to attend a training course.
To be justified, training must make an impact on the performance of the employees
trained. But training does not always work, and when it does, it is not always
completely effective. Evaluation of training compares the post-training results to the
objectives expected by managers, trainers, and trainees. Training should be cost
effective. However, careful measurement of both the costs and benefits may be
difficult in some cases. Some of the benefits also are hard to quantify.
Keywords
In-basket: In-basket or in-tray technique refers to simulation of a series of decisions a
trainee might have to make in real life, sifting through a pack of papers and files
containing administrative problems.
Job instruction training: The job instruction training is a form of individual
instruction by supervisors and is similar to coaching.
Coaching: Coaching is again on-the-job training of individual by the supervisor in the
area of specifically defined tasks.
Programmed learning: A form of individual study, the programmed learning is more
suited to meeting the behavioral objective and when non-motor skill or knowledge is
to be learned by a large number of trainees.
Role-playing: The use of role-plays is common where it is considered essential for the
trained to experience the nature of an interpersonal encounter.
48 Self-Instructional Material
Simulation: Most often used for the training of individuals such as pilots, and cases
where a simulation of the work that they are being trained to do enables trainees to
acquire some of the requisite skills in a safe and progressive manner.
Action learning: A very useful development tool, often used with decision-making
managers, a group of whom should meet together on a regular basis to act as client
and consultants to each other.
Notes
Review Questions
1.
2.
3.
Further Readings
Sharma AM: Personnel and Human Resource Management, Himalaya Publishing House, Mumbai,
2005
Saiyadain Mirza S: Human Resource Management, TMH, New Delhi, 1988
Werther William B, Jr and Keith Davis: Human Resources and Personnel Management, McGrawHill, Inc, New Delhi, 1993
Pareek Udai: Training Instruments in HRD and OD, TMH Publications, Delhi, 2002
Dwivedi, RS: Managing Human Resources Personnel Management in Indian Enterprises, Galgotia
Publishing Company, New Delhi, 2001
SECTION-II
Unit 6
Performance Appraisal
Unit 7
Potential Appraisals
Unit 8
Job Enrichment
Unit 6 Performance
Appraisal
Performance Appraisal
Notes
Unit Structure
z
Introduction
Summary
Keywords
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
Components in performance appraisal, need for the appraisal system and the objectives
Introduction
Over the last three decades at least two trends have emerged as major factors in the
performance of organisations in many sectors. These organisations range from the
corporations of business and industry, to the agencies of government, to the nonprofit
and non-governmental organizations of civil society. These trends suggest that
managing human and organizational performance will be central concerns in the
coming decades.
First, the processes and forces of globalization have shrunk the world in ways that
would have been incomprehensible to the most sophisticated managers of four
decades ago- and remain incomprehensible to much of the humanity today. Increase
in the flow of information, ideas, and resources across national and sectoral
boundaries has created interdependencies and demands for mutual understanding,
influence, and learning that exceed the expectations of all but the most radical future
visionaries. Globalization demands more capacity to deal with differences, greater
ability to learn from experience at local, national, and international levels and
enhanced investment in recruiting, coordinating, and developing human resources
from a wide range of backgrounds.
Human Resource
Development
Notes
54 Self-Instructional Material
It is the general tendencies to know what others feel about us but we seldom like
criticism. The objective of appraisal is to derive the point to the appraisee without
inviting his resentment or drawing back into the shell or taking defensive attitude.
Idea is to give him an insight and that too in a way that he takes suitable steps to
improve upon his performance by a constructive motivation. To this extent appraisee
is helped. He would feel himself as a part of the organization and would put in his
best. This insight helps him in changing his attitude and move on to the path of selfimprovement.
Performance Appraisal
Notes
Determining objectives
Decide the reward and punishment systems which reflects the appraisal
Human Resource
Development
Compensation: The first and most common use of appraisal is as a basis for
pay raises. Managers need performance appraisal to identify employees who
are performing at or above expected levels. This approach to compensation is
at the heart of the idea that raises should be given for merit rather than for
seniority. Under merit systems, employees receive raises based on
performance.
2.
3.
4.
5.
6.
Test validations: Appraisals are used as criteria in test validations. That is, test
results are correlated with appraisal results to evaluate the hypothesis that
test scores predict job performance. However, if appraisals are not done
carefully, or if considerations other than performance influence appraisal
results, the appraisals cannot be used legitimately for any purpose.
Notes
Assessment Centres
An assessment centre typically involves the use of methods like social/informal
events, tests and exercises, assignments being given to a group of employees to assess
their competencies to take higher responsibilities in the future. Generally, employees
56 Self-Instructional Material
are given an assignment similar to the job they would be expected to perform if
promoted. The trained evaluators observe and evaluate employees as they perform
the assigned jobs and are evaluated on job related characteristics.
The major competencies that are judged in assessment centres are interpersonal skills,
intellectual capability, planning and organizing capabilities, motivation, career
orientation etc. assessment centres are also an effective way to determine the training
and development needs of the targeted employees.
Performance Appraisal
Notes
Human Resource
Development
Notes
choosing the course of action to be followed by them, they are more likely to fulfill
their responsibilities.
a.
Performance Appraisal
Notes
Investment pattern
2.
2.
Cost of selection
3.
Training cost
4.
5.
Subsistence allowance
6.
7.
8.
Medical expenses
9.
Ex-gratia payments
10.
All these items influence directly or indirectly the human resources and the
productivity of the organisation.
Human Resource
Development
Notes
THRC = Human Resource Investment plus human resource current costs. Human
Resource cost coefficient is computed by taking the share of each class of human
resources in the total human resource cost.
The co-efficient will give idea to the management regarding how the investment in
human resources is spread among various classes of human resources.
Conclusion
The HRA system tries to evaluate the worth of Human Resources of an organisation is
a systematic manner as a whole to the organisation and the society and record them
60 Self-Instructional Material
Performance Appraisal
Notes
Most-Recent-Performance Error
A source of error in performance appraisal is that a rater tends to evaluate a workers
most recent behavior rather than behavior throughout the period since the last
appraisal.
Performance appraisals are usually made every 6-12 months. There is an
understandable tendency to base ratings on the workers most recent behavior,
without considering their performance throughout the period since the last appraisal.
Human Resource
Development
Notes
Memory is clearer for events that have occurred more recently, but recent behavior
may be atypical or distorted by extraneous factors (e.g. illness, marital problems). Or
if a worker is aware that a performance evaluation is due, s/he may strive to work
more efficiently just before the rating.
One way to reduce it is to require more frequent appraisals. By shortening the time
between performance reviews, there is less tendency to forget a workers usual
behavior.
Making supervisors aware of the possibility that this type of error can occur can also
be effective in reducing it.
62 Self-Instructional Material
b. Beliefs: raters beliefs about human nature. These ideas can lead raters to make
evaluations in terms of how they view ppl in general rather than in terms of
specific worker characteristics and behaviors.
For example supervisors who believe that ppl are basically good and trustworthy
may give more generous ratings than those who believe that ppl are mean and
convincing.
c.
Performance Appraisal
Notes
Role Conflict
A situation that arises when there is a disparity between job demands and the
employees personal standards.
Contradiction or disparity occurs between the jobs demands and the supervisors
standards of right and wrong. Role conflict and the stress associated with it may lead
supervisors to give higher-then-justified performance ratings.
2.
developing the ability to define objective criteria for workers behaviors the
standards or average performance levels against which workers can be compared.
Providing Feedback to Raters: The more actively the raters are involved in the
training process, the greater the positive effects. Having raters participate in group
Human Resource
Development
Notes
64 Self-Instructional Material
1.
2.
3.
The interviewer should focus on specific job problems rather than on the
employees personal characteristics.
4.
The employee and the supervisor should establish jointly specific goals to be
achieved in the period before the next appraisal.
5.
The employee should be given the opportunity to question, challenge, and rebut
the evaluation without fear of retribution.
Relevance: Relevance implies that there are clear links between the performance
standards for a particular job and an organizations goals and clear links
between the critical job elements identified through a job analysis and the
dimensions to be rated on an appraisal form. In short, relevance is determined
by answering the question What really makes the difference between success
and failure on a particular job, land according to whom? The answer to the
latter question is simple: the customer. Customer may be internal or external. In
all cases, it is important to pay attention to the things that the customer believes
are important.
2.
3.
4.
5.
6.
Practicality: Practicality implies that appraisal instruments are easy for managers
and employees to understand and use. Any appraisal system is not nearest to the
reality; it will not work and also leads to utter confusion in the minds of both
appraisee and appraiser. So system has to be designed to have its reality and
applicability.
Performance Appraisal
Notes
Student Activity
Human Resource
Development
Notes
Summary
Challenges of managing and developing human performance have a been recognized
as vital for a many years but they have assumed even greater importance in recent
years as attention has shifted to the critical roles that human resources will play in
meeting challenges of the 21st Century. Many people believe that appraisal systems
have created more problems than they have solved; and question their very need in
organisations. Experience has shown that appraisal is not a play safe gimmick. If these
are not handled properly, appraisals can do a lot of damage to an organization in the
areas of employee morale, climate of trust and consequences for employee relations.
In simple words, performance appraisal is the systematic evaluation of the individual
with respect to his performance on the job and his potential or development.
Performance appraisal is concerned with determining the differences among the
employees working in the organization. Generally, the individuals immediate
superior in the organization and who is reviewed in turn by his superior does the
evaluation.
It is an established fact that people differ in their abilities and aptitudes. These
differences are natural to a great extent and cannot be eliminated completely even by
giving the same type of basic education and training to them; there swill be some
difference in the quality and quantity of work done by different employees even on
the same job.
An evaluation to be useful and meaningful, it must be delivered by someone who is
capable of imparting some painful truths. It is important that the judgments being
delivered really do concern performance and do not reflect the personal preferences
and prejudices of the evaluator.
Keywords
Performance appraisal: It is the process of determining how well employees do their
jobs compared to a set of standards, and communicating that information to the
employees.
Performance: Degree of accomplishment of the tasks that makeup an employees job.
Compensation: The first and most common use of appraisal is as a basis for pay
raises.
Placement: Appraisal information also is used for placement decisions.
Training and development: Performance appraisal information also has a training use.
Relevance: Relevance implies that there are clear links between the performance
standards for a particular job and an organizations goals and clear links between the
critical job elements identified through a job analysis and the dimensions to be rated
on an appraisal form.
Performance standards: Performance standards translate job requirements into levels
of acceptable or unacceptable employee behavior.
Sensitivity: Sensitivity implies that a performance appraisal system is capable of
distinguishing effective from ineffective performers.
66 Self-Instructional Material
Performance Appraisal
Notes
Practicality: Practicality implies that appraisal instruments are easy for managers and
employees to understand and use.
Review Questions
1.
2.
3.
4.
Further Readings
Sharma AM: Personnel and Human Resource Management, Himalaya Publishing House, Mumbai,
2005
Saiyadain Mirza S: Human Resource Management, TMH, New Delhi, 1988
Werther William B, Jr and Keith Davis: Human Resources and Personnel Management, McGrawHill, Inc, New Delhi, 1993
Pareek Udai: Training Instruments in HRD and OD, TMH Publications, Delhi, 2002
Dwivedi, RS: Managing Human Resources Personnel Management in Indian Enterprises, Galgotia
Publishing company, New Delhi, 2001
Unit 7
Potential
Appraisal
Potential Appraisal
Notes
Unit Structure
z
Introduction
Summary
Keyword
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
Need for the appraisal system and various procedures in using this system
Introduction
With globalization, even to retain the share in domestic markets, firms have to
become globally competitive. To be in global competition and develop, HR plays a
vital role in molding the people. In this process, the manager has to assess the
performance of an employee continuously and train and develop them to suit to the
future requirements. At the same time, he has to identify the potentialities of the
employees and harness them for organizational development.
Perhaps, one of the most important roles of a manager or a supervisor is to motivate,
encourage, build, train, reinforce, and modify behavior of his subordinates. This can
happen only if there is regular and frequent interaction between the superior and his
subordinate. If the interaction is based on acknowledgement, there should be ample
praise, corrections, comments and suggestions by the supervisor on the tasks performed
by the subordinate. This interaction process can be seen as performance appraisal
because in each interaction process some comments are exchanged on the tasks in hand.
Performance appraisal could, thus, be seen as an objective method of judging the
relative worth or ability of an individual employee in performing his tasks. If objectively
done, the appraisal can help identify a better worker from a poor one.
Through performance counseling, we can identify the potential of the employees
skills and abilities not known and un-utilized by the organization. Potential appraisal
is different from performance appraisal as the latter limits evaluation to what the
subordinate has done on the job, whereas the former on the other hand, seeks to
examine what it that the subordinate can do is. The distinct advantage of a thoroughly
carried out potential appraisal is obvious. The organizations are able to identify
individuals who can take higher responsibilities. It also conveys the message that
people are not working in dead-end jobs in the organization. In this context, it is very
Human Resource
Development
Notes
useful for the motivation and morale of the work forced. On the other hand, if
potential is identified and not used, it can set in lot of frustration among employees.
70 Self-Instructional Material
weaknesses identified, and reasons for any shortfall in performance are examined.
The goal, objectives, and action plan with target dates for future is also worked out.
Potential appraisal means the possibility of career advancement. A dynamic and
growing organization needs to continuously review its structure and systems,
creating new roles, and assigning new responsibilities. Capability to perform new
roles and responsibilities must continuously be developed among employees.
Potential appraisal focuses on identifying the employees likely future roles within the
organization, and can be assessed by observing employees perform different
functions.
Potential Appraisal
Notes
To assess an individual in terms of the highest level of work the individual will be
able to handle comfortably and successfully in future without being
overstretched.
and
assess
impact
of
any
Ability to see the larger picture as well as recognize the need to get into microcredentials.
Human Resource
Development
Notes
and effectiveness unless the human resources are complementary to its operations.
This realization has propelled human resource management as a major field of study
in the recent years. Behavioral scientists who have been examining the concept of
work over the past six decades have been able to get a better insight into the human
behavior at work. Work performed by man is a behavioral manifestation of need
satisfaction. So, performance management is the vital part of HRM activities in which
the people capabilities are identified, harnessed and developed towards the
organizational goals.
It is imperative to say that good performance appraisal and/or potential appraisal
system is a vital one for the success of the organization in the ever- changing
competitive business environment. If we can see some of the companies
performance/potential appraisal systems, we can have a better view how the system
is made.
An Appraisal is not of the performance of the employees but of the individual
potential is the mantra of some of the progressive companies like Philips, Glaxo, and
Cadbury. This is the major difference in the focus of approach in these companies.
Appraising potential is considered a tough practice but with tremendous potential.
Some felt that people are like icebergs. What we see in an employees performance is
only a small part, but his potential, which is hidden, is like an iceberg whose major
part is under the sea and as much, is not apparently visible. The major parts are
attributes of people, which enable them to give their best.
In Cadbury India, Philips India, Glaxo have recently designed their new potential
appraisal system, which involves shifting the focus from performance orientation to
potential-cum-performance system. In Philips, Cadburry, and Glaxo the appraisal
system is integrated to the organizations management development processes. As
such, it is linked to career planning schemes of the companies. Philips India is using
the potential appraisal system of Philips NV Holland, which incorporates a five-point
grading scale inefficient, weak, adequate/good, and excellent. Employees are
appraised on four broad traits, namely, conceptual effectiveness, operational
effectiveness, interpersonal effectiveness, and achievement motivation. The final
grade assessment is based on what is called shared understanding. In such a system,
every employee matters and develops a sense of belonging to the company. Brain
drain will not be a problem in such a company.
In Glaxo, potential appraisal is taken to be a critical activity in management success
planning. The company encourages employees to grow within the company. As part
of its system, the company identifies two potential employees for each of the fifty
important posts. Psychometric personality tests are administered on employees to
identify their capabilities in areas of logic, deduction, and inference. Further, the
superior fills up a section of the performance appraisal form where he indicates his
assessment of the individual traits, like commitment, initiatives, drive, judgment,
leadership, attitude and ethics. These will cross-checks the appraisal about the
individual. All these situations are carefully monitored and appraisal is accordingly
made of individual employees potential for future growth.
To make the good potential appraisal system, we listed the potential attributes and
they are all self- explanatory:
72 Self-Instructional Material
Analytical power
Creative imagination
Sense of reality
Holistic leadership
Conceptual skills
Technical skills
Communication skills
Negotiation skills
Potential Appraisal
Notes
Student Activity
As a student of HRM, you can assess your own potentialities in the everchanging context of business/job.
Summary
Once an employee is selected and trained for a job then management would like to
see how he performs his work. It helps in evaluating the performance of employees
and in assessing the hiring and training methods followed in an organization. The
employees are recruited with some objectives in mind, whether these have been
achieved or not has to be regularly evaluated. Moreover, people differ in their abilities
and aptitudes. Even if the same basic education and training is given to them, these
differences cannot be eliminated.
There will always be difference in the quantity and quality of work done by different
employees even on the same job. Thus, it is but imperative for the management to
know these differences so that the employees having better abilities may be rewarded
and the wrong placement of employees may be rectified through transfers. The
individual employees may also like to know their level of performance in comparison
to the others, so that they can improve upon it. In this context, potential appraisal and
succession planning are crucial functions of human resource management. In making
potential appraisal of managers, levels of talent and ambition have to be clearly
identified. In this process, people potentialities are also be known which can be
utilized properly for organizational development.
Keyword
Potential appraisal: The process of identifying the strength and weakness of the
people to understand their capacity to do the future job perfectly.
Review Questions
1.
2.
3.
Human Resource
Development
Further Readings
Sharma AM: Personnel and Human Resource Management, Himalaya Publishing House,
Mumbai, 2005
Notes
Werther William B, Jr and Keith Davis: Human Resources and Personnel Management,
McGraw-Hill, Inc, New Delhi, 1993
Prem Chadha: Performance Management, Macmillan India Ltd., New Delhi, 2005
Kandula R, Srinivas: Performance Management, Prentice Hall of India, New Delhi
Suri, GK and others: Performance Measurement and Management, Excel, Delhi
74 Self-Instructional Material
Job Enrichment
Notes
Unit Structure
z
Introduction
Summary
Keywords
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
Introduction
Our society is composed of many different kinds of organizations. There is military,
health, religious, political, industrial, governmental, social, and educational
organizations to name just a few. These organizations affect our lives in important
ways. Further, these organisations provide the setting in which most persons spend a
large part of their time working. Realizing the pervasiveness of organisations in our
lives, it is not surprising that behavioral and social scientists have exerted a great deal
of effort in the study of organizations and their processes. Every organization should
have clarity of its objectives to enable the people to have a better understanding.
After having decided on the primary objectives of an organization, it is necessary to
think of various activities that must be carried out to enable the organization to
achieve its overall objectives. To achieve these specific objectives, the employees
should be motivated by providing good jobs after having a better understanding the
nature of people and job. Better job analysis is the important factor in motivating the
people and to increase their productivity. Job analysis involves formal study of jobs. It
attempts to provide information on both the requirements of a job in terms of time for
completion, necessary activities and the expected performance standards on the one
hand, and also the specific technical and behavioral knowledge, skill and attitudes
needed among he personnel to meet those job requirements on the other. One of the
major purposes of carrying out job analysis exercise is to develop appropriate design
of job for improved efficiency and productivity. The search for alternative ways of
designing jobs to counter the dysfunctional consequences of designs based on
traditional principles began with the developments in behavioral sciences and in the
general systems theory.
Human Resource
Development
Notes
The employees should have direct contact and knowledge about the people for
whom his product is meant
Vertical job loading is to incorporate some planning and controlling duties into
the job and
76 Self-Instructional Material
interactions among group members. Team approaches have emerged mostly from
experiments in job design.
Herzbergs theory, which is called the two-factor theory of motivation, led to a
practical programme of using the job as the major medium of developing people and
changing some organizational practices. The practical aspect of intervening in the
organization was called job enrichment. Herzberg also called this vertical loading of
the job. He used the term to indicate the need for providing more motivators in work.
The process of enrichment is the process of providing valuable things to a person. If
an employees job is extended so that he has to do more work, then it is not vertical
loading, but it is what Herzberg called horizontal loading. Vertical loading is the
attempt to provide more and more motivators in a job. Several experiments have been
made in job enrichment. The programme of job enrichment is conducted according to
certain general principles. While taking certain steps it is found out which motivators
are involved in working out a particular recommendation.
Job Enrichment
Notes
Give a person a complete natural unit of work like a module, a division, area, etc.
Make periodic reports directly available to the worker himself rather than to the
supervisor
For job enrichment, appropriate jobs have to select for better results.
Change is a stable one. So start the programme of job enrichment with a belief
that changes made in the jobs will produce good results.
Clear discussion is required on the list of changes that can be made in the job for
its enrichment.
Human Resource
Development
Notes
Also review the list again the remove some suggestions which are too general and
which do not give any specific ideas about how general things can be made
specific.
Review the list again and remove those suggestions which are only concerned
with additional work and which do not fall in the category of motivators.
It is better to start with a small control experiment rather than with the
programme throughout the organization.
We have to prepare ourselves for initial setback in terms of lower production and
some difficulties.
We can also be prepared for the initial negative reaction of the supervisory staff,
including some anxiety and hostility towards the experiment.
Several experiments have been reported from various parts of the world to indicate
how job enrichment helps in improving the motivational level amongst employees
land contributes to their development. Job enrichment uses the job as the main
medium of developing employee competence and the ability of the employees to
share higher responsibility. Job enrichment programme for one job has repercussions
in other jobs also. Once the programme succeeds in relation to one job, it will help to
redefine the other jobs also, particularly those of the immediate supervisor and some
other peer roles.
What is job?
Every job is composed of tasks, duties, and responsibilities. Although the terms
position and job are often used interchangeably, there is a slight difference in
emphasis. A position is a collection of tasks, duties, and responsibilities performed by
one person. A job may include more than one position. Thus, if there are two persons
operating postage meters in a mailroom, there are tow positions but just one job.
Individual responses to jobs vary.
A job may be fascinating to you but not to someone else. It is useful for a manager to
know what effect a job has on different people. Depending on how jobs are designed,
they may provide more or less opportunity for employees to satisfy job-related needs.
78 Self-Instructional Material
For example, a sales job may provide a good opportunity to satisfy social needs,
whereas a training assignment may satisfy a persons need to be an expert in a certain
area. A job that gives you little latitude to do anything your way may not satisfy your
creative or innovative needs. One well respected theory suggests that a job will be
satisfying to the individual doing it when three critical psychological states are
created, such as:
z
The person must feel responsibility for the results of the work.
Job Enrichment
Notes
The person doing the job must have knowledge of results before his or her work will
be satisfying.
Not everyone would be happy as physicians, as an engineer, or as a dishwasher. But
certain people like and do well at each of those jobs. The person/job fit is a simple but
important concept that involves matching characteristics of people with
characteristics of jobs. If a person does not fit a job, either the person can be changed
or replaced, or the job can be changed.
One of the major purposes of carrying out job analysis exercise is to develop
appropriate design of jobs for improved efficiency and productivity. Job design is a
fundamental organizational process with many implications for human resource
management. Job analysis and job design are directly linked to each other. In practice,
most job analyses are performed on existing jobs that have previously been designed.
However, it is not unusual for a job to be redesigned as the result of a recent job
analysis. Job analysis is the details of the tasks and activities to be carried out on a
particular job as also the human characteristics required through examination of interrelatedness of activities, combining them in manageable work units, using inputoutput analysis and matching them with required human skills and motivation in
such a way so as to maximize productivity and human satisfaction.
In recent years there has been significant advancement in our knowledge in this area
and alternative designs of jobs are being introduced in practically all types of
organisations throughout the world. The job design activity is based on certain
principles such broken down the task needs, choosing a best scientific method for task
analysis, standardize the method with specialization, Designing and redesigning jobs
requires cooperation by HR professionals and operating managers.
There are two major components of the responsibilities established through job
design. One component is job content. Job content is the set of activities to be
performed on the job, including the duties, tasks, and job responsibilities to be carried
out; the equipment, machines, and tools to be used; and the required interactions with
others. There are various ways to examine the job content. There are four core job
characteristics are there where we can view the job content. They are skill variety,
task identity, task significance, and autonomy and job feedback. These core job
characteristics can occur in different mixes in different jobs. In turn, these job
characteristics are related to certain individual and organizational outcomes.
The five core job characteristics mentioned above can be measured by the Job
Diagnostic Survey (JDS), a well-researched instrument that has been used in a wide
variety of job redesign projects. The survey is used to determine whether there is a
need to redesign work and whether doing so is feasible, given the existing structure of
the jobs and exiting conditions in the organization. Some of the conditions that need
to be considered are provisions of the labor-management contract; how constraining
the present technology is and how committed the organization is to it; and to what
extent budgeting, auditing, inventory, and other control systems would constrain job
modification.
Human Resource
Development
Notes
The other major component of the responsibilities established through job design is
the set of organizational responsibilities attached to the job, that is, the responsibilities
relating to the overall organization that each employee is expected to carry out, such
as complying with rules and work schedules.
The first objective of job design is to meet the requirements of the organization,
such as high productivity, technical efficiency and quality of work.
The second objective is to satisfy the needs of the individual employees such as
job satisfaction in terms of interest, challenge and achievement.
The next objective is to integrate the needs of the individual with the
requirements of the organization.
Job designed on classical principles to maximize efficiency and to reduce cost lead to
situations where hidden psychological costs are very high, particularly in the present
with heightened awareness, improved education and rising aspirations of the
employees. If jobs fail to provide opportunities for human need satisfaction, a
majority of employees become alienated and frustrated. The alienation and frustration
of employees at organizational level get reflected in such behavior as superficial
attention to work, poor quality-consciousness, loss of interest in work, absenteeism
resistance to change and even sabotage. At individual level, it may result in physical
illness, poor mental health, chronic depression and maladjustment to family and
community life. The psychological and motivational costs monotonous,
unchallenging jobs may well exceed their presumed economic benefits.
The Redesign of Jobs Usually includes such Steps as the following:
z
Combine several jobs into a larger job involving a wider variety of skills.
Allow employees to deal directly with clients, support personnel, and persons
performing related jobs.
Jobs are the link between organizations and their human resources. The combined
accomplishments of all jobs allow the organization to meet its objectives. Similarly,
jobs represent both a source of income to workers and a means of fulfilling their other
needs. For the organization and its employees to receive these mutual benefits, jobs
must provide a high quality of work life. Achieving a high quality of work life
requires that jobs are well designed. Effective job design seeks a tradeoff between
efficiency and behavioral elements. Efficiency elements stress productivity.
Behavioral elements focus on employee needs. The role of HR specialists is to achieve
a balance of these elements. When jobs are under specialized, job designers may
simplify them by reducing the number of tasks. If jobs are overspecialized, they must
be expanded or enriched.
80 Self-Instructional Material
Student Activity
Being a HR student, you redesign of a marketing manager job in the context of
multi-product and multi-location business.
Job Enrichment
Notes
Summary
The primary objective of any organization is to achieve its objectives very effectively
and efficiently to be more competitive always. Every one in the organization should
have clarity about the objectives of the organization. After having decided on the
primary objectives of an organization, it is necessary to think of various activities that
must be carried out to enable the organization to achieve its overall objectives. Job
enrichment movement is a reaction to the excesses of scientific management. In the
early part of this century, scientific management was widely acclaimed as a method of
designing jobs effectively. Job enrichment is an approach for redesigning jobs to
increase intrinsic motivation and job satisfaction. Jobs are enriched by allowing
employees more responsibility, self-direction, and the opportunity to perform
interesting, challenging, and meaningful work.
Advocates of job enrichment predict that if simple, specialized jobs are redesigned to
intrinsically motivate employees, the quality of employee performance will improve,
and there will be less absenteeism and turnover. These predictions have been
supported in many of the studies conducted to evaluate job enrichment programmes.
The implications of job enrichment for employee productivity are less clear, and the
results for studies in which productivity could be measured are mixed. The reduced
labour costs reported in many of the job enrichment studies can probably be
attributed more to these benefits than to higher individual productivity. Job
enrichment is a promising approach for increasing motivation and improving
employee performance, but there are some limiting conditions also.
Identifying the components of a given job is an integral part of job design. Designing
or redesigning jobs encompasses many considerations, and a number of different
techniques are available to the manager. Job design has been equated with job
enrichment, a technique developed by Frederick Herzberg, but job design is much
broader than job enrichment alone.
Keywords
Job: A job is a group of positions that are similar as to the kind and level of work.
Task: A task is an action or related group of action designed to produce a definite
outcome or result.
Occupation: An occupation is a group of jobs that are similar as to the kind of work
and are found throughout an industry or the entire country.
Job analysis: It is a detailed and systematic study of jobs to know the nature and
characteristics of the people to be employed on various jobs.
Job enrichment: It is the process of incorporating motivators into a job situation.
Job design: It is an attempt to create a match between job requirements and human
attributes.
Human Resource
Development
Notes
Review Questions
1.
2.
3.
4.
What do you mean by job and how you redesign the job?
Further Readings
Sharma AM, Personnel and Human Resource Management, Himalaya Publishing House,
Mumbai, 2005
Werther William B, Jr and Keith Davis, Human Resources and Personnel Management,
McGraw-Hill, Inc, New Delhi, 1993
Prem Chadha, Performance Management, Macmillan India Ltd., New Delhi, 2005
Kandula R, Srinivas, Performance Management, Prentice Hall of India, New Delhi
Suri, GK and others, Performance Measurement and Management, Excel, Delhi
82 Self-Instructional Material
SECTION-III
Unit 9
Quality of Work Life
Unit 10
Quality Circles
Unit 11
Management of Careers
Unit 9 Quality of
Work Life
Notes
Unit Structure
z
Introduction
Summary
Keyword
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
Introduction
Various domestic and international competition drive organizations to be more
productive. Proactive managers and human resource departments respond to this
challenge by finding new ways to improve productivity. Some strategies rely heavily
upon employee relations practices. Human resource departments are involved with
efforts to improve productivity through changes in employee relations. Some
successful organisations reported one of the reasons for their success is that by
tapping the ideas and enthusiasm of employees by providing employees with a good
quality of work life (QWL).
Quality of work life means having good supervision, good working conditions, good
pay and benefits. And another interesting one is challenging, and rewarding job. High
quality of work life is sought through an employee relations philosophy that
encourages the use of quality of work life efforts, which are systematic attempts by an
organization to give workers greater opportunities to affect their jobs and their
contributions to the organizations overall effectiveness. That is, a proactive human
resources department finds ways to empower employees so that they draw on their
brains and wits, usually by getting the employees more involved in the decisionmaking process. Perhaps the most crucial role for the department is winning the
support of key managers. Management support particularly top-management support
appears to be an almost universal prerequisite for successful quality of work life
programs.
The management in every organization should sincerely invite their employees to
suggest ways to improve their operation and the quality of their work life, only if
these ideas are received in a spirit of appreciation. The employees should then be
asked to participate in studying the feasibility and recommend appropriate means of
Punjab Technical University 85
Human Resource
Development
Notes
implementing each suggestion that survives such review. The concept of inviting
workers to have choice and influence in all aspects of a task, the setting up of
autonomous work team and providing of open channels of communication at all
levels does mean giving up some of the conventional authority exercised by the
company or union leaders. The quality of life at work probably would then be
enhanced. There are generally two types of workers -some accept the life as they find
it, i.e., a job, which provides a living, is enough. But for some others, taking home a
pay is not all they want a chance for self-fulfillment in workplace. Thus most of the
employees in the organizations want this activity to be conducted, though a few reject
the idea and do show alienation.
Todays aspirations for an improved work life, however, go well beyond continuing
efforts to improve benefits and working conditions. Minority groups have fought for
equal opportunities. Youth has gained greater degree of freedom from parents and
other adult authorities. Citizen groups and environmentalists have called for more
corporate responsibility, at the expense of profits, if necessary. Many companies are
responding with thoughtful plans and tangible actions.
QWL has assumed increasing interest and importance in both industrialized as well
as developing countries of the world. In India, its scope seems to be broader than
much labour legislation enacted to protect the workers. It is more than a sheer work
organization movement, which focuses on job security and economic growth to the
employees.
Notes
More and more employees and managers are interested in and concerned about the
quality of work life, a concept that encompasses the entire range of organizational life
particularly as it is reflected in human resources management. The term quality of
work life aims at changing the entire organizational climate by humanizing work,
individualizing organisations and changing the structural and managerial systems. It
takes into consideration the socio-psychological needs of the employees. It seeks to
create such a culture of work commitment in the organizations, which will ensure
higher productivity and greater job satisfaction for the employees.
There are two ways of looking at what quality of work life means. One way equates
QWL with a set of objective organizational conditions and practices such as
promotion-from-within policies, democratic supervision, employee involvement, safe
working conditions etc. The other way equates QWL with employees perceptions
that they are safe, relatively well satisfied, and able to grow and develop as human
beings. This way relates QWL to the degree to which the full range of human needs is
met. In many cases these two views merge. Workers who like their organizations and
the ways their jobs are structured will feel that their work fulfills them. In such cases,
either way of looking at ones quality of work life will lead to a common
determination of whether a good QWL exists.
According to the American Society of Training and Development, QWL is a process of
work organization, which enables its members at all levels to participate actively, and
effectively in shaping the organizations environment, methods and outcomes. It is a
value-based process, which is aimed towards meeting to twin goals of enhanced
effectiveness of the organization and improved quality of life at work for the
employees. To make it clear, we can say that the QWL is the degree to which
employees of an organization are able to satisfy their personal needs through
experience in the organization. Its main aim is to create a work environment where
employees work in cooperation with each other and contribute to organizations
objectives.
Principles of QWL
QWL influences the productivity of the employees. Researchers have proved that
good QWL leads to psychologically and physically healthier employees with positive
feelings. A number of attempts have been made to identify various dimensions of this
concept. Some have emphasized the improvement in work conditions leading to
better quality of life, while others feel a fair compensation and job security should be
emphasized. Experts identified there are four basic principles, which will humanize
work and improve the QWL.
These are mentioned below:
z
The principle of safety and security has to be provided to employees at the work
place to avoid the fear and stress in the minds of people.
The principle of equity, which tells every one equal under the law as per as
rewards are concerned. Hard work will be considered for rewards.
Human Resource
Development
Notes
Increasingly, people at all levels in the work force have higher expectations about
these principles. In turn, these expectations influence how contemporary
organizations are managed; and particularly how human resources are managed. The
philosophy behind QWL seems to be what is often referred to as the Theory Z
approach to managing, which includes:
z
Consensual decision-making
Individual responsibility
Informal control
The profile of Indian industrial worker has substantially changed over time.
88 Self-Instructional Material
Notes
Human Resource
Development
Notes
Achieving a high quality of work life requires that jobs are well designed. Effective
job design seeks tradeoff between efficiency and behavioral elements. Efficiency
elements stress productivity. Behavioral elements focus on employee needs. The role
of personnel specialists is to achieve a balance of these elements. When jobs are under
specialized, job designers may simplify them by reducing the number of tasks. If jobs
are overspecialized, they must be expanded or enriched.
The quality of work life movement is of recent origin and has a long way to go.
Individual as well as organized efforts are required to improve the quality of work life
for millions of workers in the country. Some of the techniques used to improve the
quality of work life are as given below:
a.
Flexible work schedules: There should be flexibility in the work schedules of the
employees. Alternative work schedules for the employees can be flexi time,
staggered hours, compressed workweek etc.
b. Job redesign: Job redesigning or job enrichment improves the quality of the jobs. It
attempts to provide a person with exiting, interesting, stimulating and
challenging work. It helps to satisfy the higher level needs of the employees.
c.
d. Autonomous work groups: Autonomous work groups are also called selfmanaged work teams. In such groups the employees are given freedom of
decision-making. They are themselves responsible for planning, organizing and
controlling the activities of their groups. The groups are also responsible for their
success or failures.
e.
f.
Student activity
As you are aware that IT sector is developing very fast in India and being
student of HRM, explain the quality of work life in this sector by taking one
popular Indian IT company.
Summary
Human resource departments are involved with efforts to improve productivity
through changes in employee relations. Some successful organisations reported one of
the reasons for their success is that by tapping the ideas and enthusiasm of employees
by providing employees with a good quality of work life (QWL). Quality of work life
means having good supervision, good working conditions, good pay and benefits.
And another interesting one is challenging, and rewarding job. A number of new job
90 Self-Instructional Material
design concepts are being tried as part of productivity management programs. Many
of these include attempts to improve the quality of work life. High quality of work life
is sought through an employee relations philosophy that encourages the use of
quality of work life efforts, which are systematic attempts by an organization to give
workers greater opportunities to affect their jobs and their contributions to the
organizations overall effectiveness.
Notes
To make it clear, we can say that the QWL is the degree to which employees of an
organization are able to satisfy their personal needs through experience in the
organization. Its main aim is to create a work environment where employees work in
cooperation with each other and contribute to organizations objectives.
Workers participation, organizational development, workers welfare and quality
circles are various ways to achieve the ultimate objective of improving the quality of
life. While some of these have borne results and others are still struggling to attain
results, that fact is that concern for improved QWL is of recent origin in India. It still
has a long way to go. While organized attempt to bring about improvements in QWL
for the larger number is the need of the time, attempts by individuals would also
contribute greatly in this regard. Besides the tangible, the QWL is, perhaps, as state of
mind and to that extent, what would improve QWL may vary from person to person.
Keyword
Quality of work life: A movement concerned with the overall climate work and the
impact that the work has on people as well as organization effectiveness.
Review Questions
1.
What do you mean by quality of work life and explain its concepts?
2.
3.
Further Readings
Sharma AM: Personnel and Human Resource Management, Himalaya Publishing House, Mumbai,
2005
Werther William B, Jr and Keith Davis: Human Resources and Personnel Management, McGrawHill, Inc, New Delhi, 1993
Prem Chadha: Performance Management, Macmillan India Ltd., New Delhi, 2005
Kenneth N. Wexley and Andgary A Yulk: Organizational behavior and personnel psychology,
Surjeet publications, Delhi, 1988
Saiyadain, Mirza S: Human resources management, TMH, Delhi, 1988
Quality Circles
Notes
Unit Structure
z
Introduction
Summary
Keyword
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
Introduction
Many organizations have a wide variety of activities aimed at enhancing the quality
of the employment relationship. Some of the programs are formal, such as conflict
resolution procedures or quality circles. Other activities are more casual, such as
organizing and funding an employee picnic. Encouraging a cooperative rather than
adversarial relationship is the goal. The underlying assumption is that such an
atmosphere will better allow employees to perform their jobs and contribute a
creative spark to the organization.
The evolution of quality circles is best understood in the context of the Japanese
system, which is characterized, by a lifetime employment, company-based unions,
and decision-making by consensus; seniority based wage system, and an intensive
and continuous education and training. Quality circles, pioneered by Dr.K.Ishikawa
in the early sixties, helped Japanese industry and business to make a miraculous
recovery from the ravages of the Second World War. And it was a major factor in
transforming its earlier image as producer of substandard products into a leading
industrial country with high productivity and reliable quality.
A typical quality circle consists of members, leaders, facilitators and steering
committee. Members consist of all those who volunteer for the quality circle
irrespective of age, sex or position in the hierarchy. Leader is usually the first line
supervisor or a worker voluntarily chosen by the group. The facilitator is the
programme coordinator usually a senior officer nominated by the management. The
steering committee is an apex body that sets out the goals and provides all
administrative support. Quality circles use certain basic techniques in a systematic
approach to identify, analyze and resolve problems.
Quality circles are different from other approaches of improving quality of work life
as their concentration is essentially on quality improvement. They do not look for
Human Resource
Development
Notes
comprehensive job redesign, though once in a while it might have to be examined and
they do not generally cover the welfare plans.
Bharat Heavy Electricals Limited is the pioneer of quality circle in India. The objective
of quality circle activity in BHEL is to achieve and sustain a reputation for quality at
competitive prices in the national and international markets for entire product range.
In BHEL, there is a separate unit, which coordinates all activities relating to quality
circle. In the process number of organizations started the quality circles. Despite the
extensive experience of quality circle in India very little has been published on the
effectiveness of quality circles in Indian industries when you compare with the
developed countries.
Those who have studied the Japanese version of quality circles would notice the
emphasis on quality circles solving quality control problems because their first
priority in the sixties was to improve the quality image of their products and it was
only in subsequent years that they discovered the capacity of these small groups to
resolve problems concerning productivity, safety, housekeeping etc. Being late
starters, we in India, have benefited from the Japanese experience and have enlarged
the scope of the circle activities in the definition to all work-related problems.
Quality Circles
Notes
Quality circle is a small group of employees in the same work area or doing similar type of
work who voluntarily meet regularly for about an hour every week to identify, analyze and
resolve work-related problems, leading to improvement in their total performance and
enrichment of their work life.
It is necessary to comprehend the significance of every part of this definition to ensure
that it is implemented in right spirit and that the fundamental differences between
quality circles and other techniques that we have so far been used to are clearly
appreciated.
Characteristics of QC
z
Quality circles consist of small groups of people who normally work at the same
place and are doing similar work.
The quality circles identify the problems first and try to find out the solutions
themselves. The solutions are tried and rectifications are made again, if necessary.
The efforts of quality circles are ultimately directed towards quality improvement
on a regular basis. This exercise also helps in improving the performance of
participating persons.
Improvement of productivity
Improving communication
Human Resource
Development
Notes
Structure of QCs
The organizational structure of the quality circles is depicted here from top to bottom
and later follows brief explanation for each level.
Top Management
Steering committee/Departmental committee
Facilitator
Leader/Deputy leader
Member
Non-member
96 Self-Instructional Material
a.
Non-members: Starting from the bottom of the pyramid, the question arises as to
why non-members are included in the quality circles structure. This is so
because, in any work area, all the employees may not initially volunteer to join
quality circles and there would be a few who would prefer, to start with, not to
involve themselves in the small group activities. All the same, such non-members
are important for the success of quality circles. Firstly, whatever solutions the
quality circles may arrive at for any problems identified and resolved, it would be
difficult for them to implement their own suggestions without the cooperation of
the non-members. Quality circle members must take care to ensure that nonmembers do not get antagonized and that no conflicts arise.
Quality Circles
Notes
b. Members: Members are the basic element of the structure of quality circles. There
are varying interpretations as to who is eligible to become a member of quality
circles. To answer this, one should remember that the participative concept was
evolved primarily to afford opportunities to those employees who had never been
considered capable of using their brainpower, had never had the opportunity of
being creative and whose immense potential was thus lying un-harnessed. Those
at different managerial levels could not say that they had been denied such
opportunities. As such, the formal membership of circles is best left open to only
workers from Foremen or Supervisors downwards. In India, like in some other
organisations abroad, some companies mix Executives among circle members and
at times make them leaders too. What the executives and others of Management
have to do is to give the circles every support and guidance they need but they
must do this from the rear and not as members.
c.
Human Resource
Development
Notes
f.
g. Top Management: Though the management at the apex level of any large
corporation does not fall within the formal structure of quality circles, it has an
important role to play to ensure the success of implementation of the concept in
the organization. In the case of a large multi-division corporation, it may be
advisable to constitute of company-wide quality circles committee with the
Managing Director as the Chairman and other Directors and Divisional Heads as
members to take an overview of the operation of the movement in the company
as a whole.
h. Coordinating Agency: While the facilitator nurtures the quality circles in his
section or department, the Coordinating Agency coordinates the activities of
circles throughout the organization. In the coordinating agency, depending upon
the number of circles in operation, full time coordinators have to be nominated.
The department to be nominated for coordination depends on the convenience of
the organization. It may be the personnel department or quality assurance
department or training department. But the formal naming of the department for
the work of coordination is important for institutionalizing the movement, as,
while individuals may get shifted, departments normally are permanent in nay
organization and therefore continuity of the quality circles propagation is assured
by earmarking a particular department for this task.
It has to be emphasized that, as stated earlier, the structure of quality circles as
described above is relevant to large organisations with a large work force where there
is the likelihood of eventually having large number of quality circles. It is not
necessary for small organizations to adopt such an elaborate structure. The suggested
set-up may be simplified suitably as would be adequate to meet their requirements.
But while simplifying the structure as may be warranted by the situation, smaller
organizations have to take care to see that the essence of the quality circles concept is
not diluted and the correct methodology for launching and institutionalizing quality
circles, which is common to all sizes of organizations, is adopted carefully.
The quality circle is not a panacea to solve all organization difficulties. It is one of the
several alternative approaches of human resource management that organizations
may adopt. They have problems and pitfalls. While in the initial phase, there are the
problems of getting started, later is the risk of getting stereotyped, running out of new
ideas and losing the zeal to move forward. However, these problems are not
insurmountable. To bring about desired results, a quality circle programme needs
proper co-ordination and constant support at all levels of the organization. It also
needs skill, knowledge, high commitment, clear understanding, and perseverance of
the participants. Undoubtedly, quality circles hold a great promise, but successful
practice requires a great deal of determination and hard work. After all, in many
organizations, quality circle represent a counter culture and, therefore, need careful
planning and nurturing.
private entrepreneurs and major areas of growth were earmarked for public sector.
The lack of competition from outside world brought a sense of complacency both in
public and private sectors. The consumer has been buying whatever was offered to
him since demand always exceeded supply. The globalization of Indian economy
opened a new chapter in Indian industry. There is now a competition in India for
implementing total quality management and getting ISO 9000 certification. The
impact of poor quality on an organization leads to low customer satisfaction and low
market share, low productivity, revenue and profit, low morale of workforce etc.
Quality Circles
Notes
There is a great deal in common between the nationals of Japan and India. As such, it
stands to reason that any concept or philosophy that takes birth in Japan has a much
greater chance of being more easily adopted in India than in any other western
country. Belonging to the same continent and being Orientals, having similar
traditional values such as respect for elders, affinity amongst family members, similar
religious backgrounds and other common traits, it is easier for the peoples of Japan
and India to understand one other. The concept of quality circles is a result of
Japanese concern for statistical quality control and the establishment of the Union
Japanese Scientists Engineers in 1949. Even though we have similar features with
Japan, it takes decades to implement this concept in our country.
There are accounts of some isolated attempts by some organizations in India to launch
quality circles. Bu either due to incorrect methodology adopted to introduce quality
circles or for other reasons they have been only partially successful. A private sector
firm in Bangalore claims that they have had quality circles in their factory since 1975,
and there may be other organisations as well where the concept has been in operation
for quite some time. But there has not been any organized movement as such, to
institutionalize the concept so that it could become a way of life and be propagated
among all other interested organizations. Bharat Heavy Electricals Limited was the
first to launch quality circles in 1980 at its Hyderabad plant.
The objective of quality circle activity in BHEL is to achieve and sustain a reputation
for quality at competitive prices in the national and international markets for entire
product range. In BHEL, there is a separate unit which coordinates all activities
relating to quality circle. In the process number of organizations started the quality
circles. Despite the extensive experience of quality circle in India very little has been
published on the effectiveness of quality circles in Indian industries when you
compare with the developed countries. The specific objectives in BHEL are as follows:
z
Human Resource
Development
Notes
In BHEL, there is a separate unit, which coordinates all activities relating to quality
circles. After seeing the success rate of quality circles in BHEL, number of other
companies started using quality circles in their organisations. Now in India there is a
good popularity for these quality circles and contributing a lot for the success of the
organization and its growth.
A large number of professional bodies and academic institutions started taking
interest in the philosophy of quality circles and arranged for lecture meetings for their
members on the subject in different centers. Many seminars and conferences dealing
with management subjects included the concept of quality circles for discussion in
their sessions. Many management development institutes such as Administrative
Staff College, Indian Institute of Management and other leading business schools
have started including the subject of quality circles in the curriculum of their senior
executive courses and also awarding degrees and diplomas on this. Quality circles
forums have been started with number of chapters in India and organizing number of
programmes.
Suggestions for making QCs more effective:
z
A variety of suggestions have been given below for ensuring that quality circles
are used effectively in organizations.
Do not expect the quality circle programme to solve all problems in the
organization
Make sure managers realize that any changes will take time.
Student Activity
Based on the knowledge so far you acquired on quality circles, you can
visualize how the quality circles can be used in educational institutions.
Summary
The evolution of quality circles is best understood in the context of the Japanese
system, which is characterized, by a lifetime employment, company-based unions,
and decision-making by consensus, seniority based wage system, and an intensive
and continuous education and training.
Quality circles (QCs) are small groups of employees that meet on a regular basis to
discuss ways in which they can improve productivity and cut costs. Generally a QC is
100 Self-Instructional Material
composed of about ten employees who meet for an hour or so, on a regular basis. The
group members receive data from the group leader, often a manager or supervisor,
and discuss specific work-related issues. A typical quality circle consists of members,
leaders, facilitators and steering committee. Members consist of all those who
volunteer for the quality circle irrespective of age, sex or position in the hierarchy.
Participation in QCs generally is voluntary, but it is common for a high percentage of
employees to participate. Where QCs have been used, workers often have been given
productivity bonuses as a reward for their cost-cutting and productivity ideas.
Quality Circles
Notes
Bharat Heavy Electricals Limited is the pioneer of quality circle in India. Despite the
extensive experience of quality circle in India very little has been published on the
effectiveness of quality circles in Indian industries when you compare with the
developed countries.
Keyword
Quality circles: Quality circles are small groups of employees that meet on a regular
basis to discuss ways to improve productivity and to cut costs.
Review Questions
1.
2.
3.
4.
Further Readings
Prem Chadha: Performance Management, Macmillan India Ltd. New Delhi, 2005
Kenneth N. Wexley and Andgary A Yulk: Organizational behavior and personnel
psychology, Surjeet publications, Delhi, 1988
Saiyadain, Mirza S: Human resources management, TMH, Delhi, 1988
Venkata Ratnam, CS and Srivastava, BK: Personnel management and human resources,
TMH, Delhi, 1991
Unit 11 Management of
Careers
Management of Careers
Notes
Unit Structure
z
Introduction
Career Stages
Career Anchors
Career Planning
Career Development
Career Management
Succession Planning
Succession Management
Summary
Keywords
Review Questions
Further Readings
Learning Objectives
At the conclusion of this unit you should be able to understand:
z
Introduction
A career is a sequence of positions held by a person during the course of a lifetime. It
comprises of a series of work related activities that provide continuity, order and
meaning to a persons life. This is an objective view of a persons career. There is also
a subjective element in the concept of career. A career consists of the changes in
values, attitudes and motivation that occur as a person grows older.
In both the perceptions, the primary focus is on the individual. The underlying
assumption is that a person can shape his destiny through a series of well planned
and well timed, positive moves. However, it must be stated here as a word of caution,
mere planning does not ensure career success. A persons career is shaped by many
Punjab Technical University 103
Human Resource
Development
Notes
Features
Some of the important features of the term career may be stated thus:
a.
A career develops over time: It covers objective conditions (such as job, duties,
responsibilities) and also includes subjective reactions (such as enthusiasm,
boredom, etc.)
b. It is the individual who ultimately must judge the success of his career. He must
set his own criteria for success, and such criteria can be far ranging (e.g., pay,
adventure, working with new people in new environments, helping others, etc.).
c.
d. The typical career of a person today would probably include many different
positions, transitions and organisations more so than in the past, when employees
were less mobile and organisations more stable as employers.
Career: A career is all the jobs that are held during ones working life.
2.
3.
4.
Career paths: These are flexible lines of progression through which employees
typically move.
5.
6.
7.
Career planning: The process by which one selects career goals and the path to
those goals.
8.
9.
10. Career counselling: The process of advising employees on setting career goals and
assisting them find suitable career paths.
11. Career management: It is the continuing process of setting career goals,
formulating and implementing strategies for reaching the goals and monitoring
the results.
104 Self-Instructional Material
12. Mid-career crisis: The period occurring between the mid-thirties and mid-forties
during which people often make a major reassessment of their progress relative to
their original career goals and ambitions.
13. Reality shock: A period that may occur at the initial career entry when the new
employees high job expectations confront the reality of a boring, unchallenging
job.
Management of Careers
Notes
Career Stages
A career, as mentioned above, includes many positions, stages and transitions just as
a persons life does. It can be easily understood if we think of a career consisting of
several stages. Most of us have gone or will go through the undermentioned five
stages:
Exploration
Human Resource
Development
Notes
Reality
My job
conflict.
and
personal
goals
often
Box 11.1: Golden Rules to be kept in Mind While Searching for a Job
1. List all your wins and achievements, then draw a second list from it highlighting
different aspects of your personality. Do not underplay your achievements.
2. Seek help from all your contacts. Asking for help during job hunt is like asking for
directions when you are lost. It is better to ask for directions than to stay lost.
3. Your resume should not be a condensed biographical sketch (nor a razzle-dazzle
document) of your life and work. It must reveal your experiences, diverse skills and
vast knowledge in an appropriate manner.
4. Be ready to respond positively (I can do that) to tricky questions probing your
knowledge and experience in a different area. Having a can do attitude can
sometimes be more important than the actual experience. This way, one is sure to
get at least interesting work where one can learn and get ahead.
5. Be it a war or an interview, before actually going full throttle, one needs to plan and
prepare well and at the same time watch out for the unexpected. The best way out is
to arm oneself with answers for all the possible questions.
6. Try not to be everything in an interview. Most candidates try too hard in an interview
and are very accommodating. Dont be. The most commonly asked question during
interviews is what could you contribute to this organisation? The usual answer
given is whatever you need. This just shows your desperation. Guard against this.
7. Negotiate salary, benefits and working conditions clearly, keeping realistic picture of
your own fair market value and the current economic climate in mind. Most experts
believe that a candidate should guard against winning a salary tug-of-war at the
expense of losing the goodwill of his interviewer.
8. Lost out on a job, no problem. It is always a good idea to call your interviewer and
ask him for feedback on the reasons why you were not hired.
(P. Dalmia CEO, JobsAhead.com; Collectors Series, Business World, 21.1.2002)
Establishment
This is the career stage where one begins the search for work and picks up the first
job. It includes the first experiences on the job, peer group evaluations, personal
tensions and anxieties that confront a person trying to make his mark. This period is
characterised by committing mistakes, learning from those mistakes and assuming
increased responsibilities. One does not reach the summit at this stage as he rarely
gets a chance to handle powerful assignments. It is like going uphill, spending lot of
time and energies all the while. (See Box 11.2)
Management of Careers
Notes
Make yourself visible early: Try a novel tactic, use a stunningly different strategy or
follow a route thats generally avoided by most others. Try anything so as to get
noticed.
Overkill that first assignment: In your first assignment, set impossible targets for
yourself which others cant even think of in their wildest dreams and deliver
results faster than others.
Get the lay of the land: Get as much information as possible about people,
processes and activities in your work spot at an amazing speed and become a
quick and authoritative information source.
Say sure and figure out how later: Management values the new employee who
grabs a challenge and runs with it. Try to get over the hurdles somehow through
a painful process of trial and error and come back with winning solutions
Dare to Change the Entrenched Method: Try to challenge the traditional old ways
of doing things. Stretch yourself to find those creative ways that save lot of
organisational time, energies and resources.
The greatest advantage of the fast start on a new job is the early creation of a
winning mystique. Even if you were a little slow in the beginning, nothing says, you
cant go to work tomorrow morning and act as if it was your first day on a new
job. Better late than never?
Source: W. Ellis, Get off to a fast start in your new Job, Readers Digest, Win@Work, 2001.
Mid Career
Mid career is a stage that is typically reached between the age of 35 and 50. At this
point, one may continue to show improved performance, level off or begin to decline;
you are no longer viewed as a learner. Mistakes committed by you would be viewed
seriously and may invite penalties as well. If you are good enough, you may grow
and turn out good results. If you do not have the same fire in the belly when you
started your career, the best thing would be to hold on to what you have. Technically
speaking, a plateaued career stares at you. Plateauing is a condition of stagnating in
ones current job. Since you are no longer ambitious and are more or less happy with
what comes your way, the organisation can place you on jobs that require experience
and maturity. The organisation cant discount your worth and treat you as deadwood,
Human Resource
Development
Notes
since you still retain the flavour and continue to show reasonably good performance.
But then what would happen to those employees who have lost both interest and
productivity at work? Organisations often show them the door or shift them to less
important jobs.
Late Career
This is the stage where one relaxes a bit and plays the part of an elder statesperson.
For those who continue to grow through the mid-career stage, this is the time to
command respect from younger employees. Your varied experiences and judgement
are greatly valued and your word will carry weight; undoubtedly, you can teach
others and share your experiences with others.
For those who have stagnated or deteriorated during the previous stage, the late
career brings the reality that they are no longer required to run the race and its better
to redirect the energies to family, friends and hobbies.
Decline
During this period a persons attention may turn to retirement. The achievements of a
long career and the frustrations and anxieties that go along with that phase are left
behind. Regardless of whether one is leaving a glorified career or a dismal job, one
has to make adjustments and get along with people and things. (See Box 11.3)
Box 11.3: Adjustments to be made by Retirees
z
Territoriality: The retirees personal turf in the form of office, company, and title is
lost in retirement. Other ways to fill the vacuum must be found.
Goals: Organisations must often shape many of a persons goals. Some people
may find it extremely difficult to set meaningful personal goals after retirement.
1.
Interests: People tend to go after careers that they believe match their interests.
2.
3.
4.
Career Anchors
Just as boats put down anchors to keep them from drifting too far, individuals put
down anchors to stabilise their career choices. Career anchors are distinct patterns of
self-perceived talents, attitudes, motives and values that guide and stabilise a persons
career after several years of real world experience and feedback. According to Schein,
career anchors are difficult to predict ahead of time because they are evolutionary and
a result of a process of discovery. You are not very sure about them until you are
confronted with a choice such as moving to headquarters or start your own business
(e.g., remember Ashok Scoota, who after 20 years of life as CEO in Shriram
Refrigeration, joined Wipro Infotech as President and spent the next 15 years building
it? He quit the job in 1999 to set up a software start up Mindtree when Wipro chief
Azim Premji asked him to move to America). It is usually at such a point that all the
persons past work experience, interests, and orientations converge into a discernible
picture (or career anchor) that helps show what is personally most valuable. Based on
his study of MIT graduates, Schein identified eight career anchors:
a.
Management of Careers
Notes
Managerial competence: People having this drive seek managerial positions that
offer opportunities for higher responsibility, decision-making, power, etc.
Security: If your career anchor is security, then you are willing to do what is needed to
maintain job security (complying with rules and regulations of every kind) a decent
income and a stable future in the form of a good retirement package.
Autonomy: These people seek a career that offers freedom of action and
independence.
f.
Dedication to a cause: If this is your anchor, you focus on a cause that you believe
is important (ending starvation deaths, bringing about word peace, cure for a
disease etc.)
g. Pure challenge: If this is your career anchor, you seek to meet and overcome
difficult barriers or obstacles (scaling a mountain, reviving sick companies etc.).
You basically seek novelty and variety in your work.
h. Life-style: if this is your career anchor, you seek to integrate personal, career and
family goals. You choose jobs that enable you to fit all parts of your life together.
Career Planning
Career planning is the process by which one selects career goals and the path to these
goals. The major focus of career planning is on assisting the employees achieve a
better match between personal goals and the opportunities that are realistically
available in the organisation. Career programmes should not concentrate only on
career growth opportunities. Practically speaking, there may not be enough high-level
positions to make upward mobility a reality for a large number of employees. Hence,
career-planning efforts need to pinpoint and highlight those areas that offer
psychological success instead of vertical growth.
Human Resource
Development
Notes
Objectives
Management of Careers
2.
3.
4.
5.
Meet the immediate and future human resource needs of the organisation on a
timely basis.
Notes
Process
The career planning process involves the following steps:
a.
b.
c.
Aligning needs and opportunities: After employees have identified their needs
and have realised the existence of career opportunities the remaining problem is
one of alignment. This process consists of two steps: first, identify the potential of
employees and then undertake career development programmes (discussed later
on elaborately) with a view to align employee needs and organisational
opportunities. Through performance appraisal, the potential of employees can be
assessed to some extent. Such an appraisal would help reveal employees who
need further training, employees who can take up added responsibilities, etc.
After identifying the potential of employees certain developmental techniques
such as special assignments, planned position rotation, supervisory coaching, job
enrichment, understudy programmes can be undertaken to update employee
knowledge and skills.
d.
Action plans and periodic review: The matching process would uncover gaps.
These need to be bridged through individual career development efforts and
Punjab Technical University 111
Human Resource
Development
organisation supported efforts from time to time. After initiating these steps, it is
necessary to review the whole thing every now and then. This will help the
employee know in which direction he is moving, what changes are likely to take
place, what kind of skills are needed to face new and emerging organisational
challenges. From an organisational standpoint also, it is necessary to find out
how employees are doing, what are their goals and aspirations, whether the
career paths are in tune with individual needs and serve the overall corporate
objectives, etc.
Notes
Career Development
Career development consists of the personal actions one undertakes to achieve a
career plan. The terms career development and employee development need to be
differentiated at this stage. Career development looks at the long-term career
effectiveness of employees, whereas employee development focuses on effectiveness
of an employee in the immediate future. The actions for career development may be
initiated by the individual himself or by the organisation. These are discussed below.
b.
c.
(A. Mittal, Collectors Series, Business World, 21.1.2002 and M.H. McCormack, Building an Army of Allies,
B. Today, 7.4.1999.)
d.
of better pay, new title, a new learning experience, etc.). However, jumping too
jobs frequently (job-hopping) may not be a good career strategy in the long run.
e.
f.
g.
h.
Expand ability: Employees who are career conscious must prepare themselves
for future opportunities that may come their way internally or externally by
taking a series of proactive steps (e.g., attending a training programme,
acquiring a degree, updating skills in an area, etc.).
Management of Careers
Notes
Lacking expectations: People who dont understand what their employer would
expect them to deliver are bound to miss the bus. Always better to read your job
description, identify important tasks to be carried out, seek clarifications from your
boss and deliver things in tune with your bosss instructions.
Waffling: Business respects those who are willing to take tough decisions and deliver
things-right or wrong. People who continually waffle decisions, however, stand out
for the wrong reasons.
Focusing too Narrowly: Inability to develop and adapt is one of the important
reasons for career failures at many levels. By making sure you develop a variety of
widely applicable skills, you can better market yourself to your current employer or,
if need be, to a new one.
Contd.
Human Resource
Development
Covering up: When you commit a blunder the best thing to do is to own up to it and fix
it as soon as possible. Handle it right, and you may even come out ahead of the game.
Source: D.B. Hogarthy, 6 Big career mistakes and How to avoid them, Readers Digest: Wim@Work,
Mumbai, 2001.
Notes
Job posting system: Job posting systems are used by companies to inform
employees about vacancies in the organisation through notice boards,
newsletters and other company publications.
Career ladders and career paths: Career paths and ladders throw light on career
progression and future job opportunities in the organisation. They indicate a
career plan complete with the goal, intermediate steps and time-tables for
realising the goal. Usually career paths for fast-track employees are laid down
in most organisations outlining a series of career moves that these employees
need to initiate in order to reach higher-level positions.
Career resource centre: The career centre is a sort of library in the organisation
established to distribute career development materials such as reference
books, career manuals, brochures, newsletters and learning guides and selfstudy tapes.
Management of Careers
Notes
Several assessment programmes are also used to evaluate the employees potential for
growth and development in the organisation. They include assessment centre,
psychological testing, promotability forecasts and succession planning.
Box 11.6: Career Development Strategies followed by Indian Companies
At the organisation level, let us examine the career development strategies adopted
by three leading companies in India.
Ernst & Young (India)
The global consulting firm uses the same career development methodology in India
that it uses elsewhere. Primarily, it seeks to align individual aspirations with
organisational, business and functional goals, using the formal assessment system to
check for skill gaps and career potential. While designing training tools, things that
are given serious attention are past performance, future potential, the individual skill
sets and competencies of each manager, and the need of the company. However,
the firm often takes the assistance of professional trainers brought in from E&Y
offices worldwide, or relevant institutions to design specific training programmes for
different categories and levels of managers.
Hyundai Motor (India)
Most executives working for this South Korean carmaker, which started operations in
India relatively recently, are middle-level recruits from different industries who have
been chosen on the basis of their track recorda factor whose influence pervades
the companys career development system. The company aims to convert these
managers into achievers for Hyundai, with attributes like mental toughness,
professional competence, and an ambition to advance. The hr department devises
interventions keeping these goals in mind. The hr functionaries are expected to look
at the development process holistically. The company also conducts a three-day
process lab where the system is discussed using case studies.
Seagram (India)
The Canadian liquor major has a career development system that hinges on speedy
induction. Among the inputs given during the induction programme, fitting in with
the organisational culture is critical. The aim is to enable the new entrant to hit the
ground running in terms of performance. The programmes also include sessions on
the history of the organisation, product portfolio, and operations. The programme
includes visits to markets and bottling units and sessions with each functional head.
Human Resource
Development
Notes
Succession planning: This is a report card showing which individuals are ready
to move into higher positions in the company. The HR department keeps
records of all potential candidates who could move into senior positions,
whenever required.
Career Management
Career development, as indicated previously, is the appropriate long-term utilisation
and development of human talent in the work setting. Career management includes
both organisational actions and individual efforts aimed at setting career goals,
formulating and implementing strategies and monitoring the results (Greenhaus). A
balanced approach to career management includes both individual career planning
and organisational initiatives to balance career goals and organisational needs. The
two strategies complement and reinforce each other, if individual employees have not
planned well for their own development, they may not be ready or willing to respond
to opportunities presented through organisational career management activities.
Similarly, no amount of individual career planning and preparation will be effective if
organisational opportunities for career movement are not available. According to
Gutteridge, career development includes both career planning and career
management (See D.T. Hall 1986)
116 Self-Instructional Material
Management of Careers
Notes
Human Resource
Development
Notes
Relations: Relations between the employer and the employee would become
more cordial; employee skills could be used properly; valued employees could
be retained, there will be an expanded image of the company as a people
developer.
Limitations
z
For small units (where there are very few opportunities for the vertical growth of
employees) it is not suitable.
If the organisation fails to focus on any of the career related issues clearly,
problems may crop up (e.g., early career issues, mid career issues, late career
issues, minority groups, dual career couples, failure to match task and
emotional needs, post retirement issues, forced lay-off issues, etc.).
b. Goals: The corporate goals must be laid down clearly. It is not possible to develop
appropriate goals for human resources if you are not very sure about your
journey in the next 5 or 10 years.
c.
d. Placement: Every effort must be made to put employees on jobs that are in tune
with their capabilities. If a talented employee is put on a routine job, he will quit
in frustration.
e.
Career paths: The career paths for different types of employees must be laid down
clearly. Fast track promotions should be available to talented people, seniors
could be used on jobs requiring experience and judgement, juniors could be used
for jobs that demand routine application of rules and procedures, etc.
f.
(immediately after World War II) and have consciously put legal restrictions on
terminations. The extensive use of automation and robotics in the workplace also
contributed to the practice of lifetime employment in Japan. One reason for the
widespread use of such advanced technology is that employees know they will not
lose their jobs. Extensive training is also offered to workers so that they do not leave a
company. Despite lifetime employment, Japanese companies do have a mechanism
for discharge, namely early retirement. Early retirement is given to workers even in
their late 40s if necessary of course backed by attractive severance pay and
benefits.
Management of Careers
Notes
Succession Planning
The absence of a succession plan can seriously hamper the growth prospects of an
organisation. Imagine the disastrous consequences when there is a sudden vacuum at
the top level. There is no one to steer the ship. Critical plans needing immediate action
get postponed. The organisation remains headless and directionless for a while.
Suitable candidates may not be available internally, as no one has been groomed in
the past, keeping such an eventuality in mind. Bringing in outsiders may mitigate the
crisis temporarily but the long-term impact is bound to be negative. Internal forces
may start a rebellion and create tug-of-war situations with frustrating regularity.
Succession planning is: The process of ensuring a suitable supply of successors for
current and future senior or key jobs arising from business strategy, so that the careers
of individuals can be planned and managed to optimise the organisations needs and
the individuals aspirations.
The purpose of succession planning is to identify and develop people to replace
current jobholders in key positions. Through succession planning, companies assure a
steady flow of internal talent to fill important vacancies. Succession planning
encourages hiring from within and creates a healthy environment where employees
have careers and not merely jobs. It helps in identifying human resource shortages
and skill shortages before openings occur. Thereafter, it becomes easy to groom
qualified candidates for future vacancies. The organisation is thus assured of
continuity of operations and better-qualified incumbents.
Preparing a schedule for succession is critical to the success of a company, especially
at the top level. When the baton changes over a period of time, disruption and
dislocation are minimised. Indeed, when a new CEO is meant to consolidate on past
successes, a slow shift is ideal. If qualified candidates are not available within the
company, outsiders can be considered readily for possible openings. Complete
dependence on succession from within or from outside is not desirable. Internal
candidates require a pat on the back when they do well. External candidates are
needed for injecting flesh blood into the company.
Replacement Charts
A succession plan is a plan for identifying who is currently in post and who is
available and qualified to take over in the event of retirement, voluntary retirement,
dismissal or sickness. A typical succession Box shows details of key executives and
brief references to their possible successors (See Table 11.3).
The replacement chart is a visual representation of who will replace whom if there is a
job opening. The various jobs in the finance department reveals the status
of likely candidates who could be considered on the basis of performance and the
opinions by immediate superiors of future success in a new job. The replacement
summary indicates likely replacements for each job and shows their relative strengths
Human Resource
Development
and weaknesses. This can be prepared in a detailed way so as to facilitate the easy
selection of a candidate in case of future vacancies.
Table 11.3: Replacement Chart and Replacement Summary
Notes
Management of Careers
The reasons for the temperamental aversion towards succession planning may be
stated thus:
1.
2.
It is better to weed out all possible successors, so that (the present incumbent) I
can have a smooth run.
3.
Notes
More or less, similar situation prevailed in most private sector companies where
family members have been routinely crowned with top-level positions for a fairly
long time. In a family - managed organisation the joke was that managers came there
vertically but went out horizontally! (not leaving any room for others till they died).
The situation in Thermax, for example, was remedied only recently when Anu Aga
suddenly decided to step down, making way for professional managers at the top.
Thanks to the competition from global giants, many other private sector companies
have realised the importance of professional managers at the top level. To this end,
the CEO-designate (mostly sons and daughters) is not only sent abroad for top-class
training but also made to undergo training at various levels within the organisation
(Apollo Hospitals, Dr. Reddy Laboratories, Bajaj Auto etc.)
Post-liberalisation, of course, many private sector companies have realised the
importance of grooming bright stars well in advance, internally (including the Tatas,
the Birlas, Bajaj Auto, Ranbaxy and many others).
Succession Management
Succession management, an alternative approach developed in the 1990s, is used to
examine existing managerial talent in light of future competencies and future business
needs and challenges. The basic purpose of succession management is to ensure that
the right talent is available when needed and that appropriate development
experiences are provided for higher-level employees. It focuses on creating and
stocking pools of candidates with high leadership potential. To this end, it may even
track non-employees (for example, employees of a competitor) whom the
organisation views as viable candidates should a position open up.
Another difference between succession planning and succession management is the
emphasis put on ensuring that planned training and development actually takes
place. Very often, succession plans do not go beyond identifying potential successors.
The required developmental experience and rich training inputs may not be flowing
in readily. Succession management assures that key people are not just identified but
also nurtured and developed into future leadership roles (both terms, are however,
used interchangeably in this text.
Succession management includes the following activities:
(i)
Identifying the shortage of leadership skills and defining the Requirements: With
a view to identifying the impending shortage of leadership skills, organisations
have to estimate manpower requirements well in advance. HR professionals
generally estimate manpower flows, using various forecasting techniques. In
Human Resource
Development
Notes
respect of a commercial bank, for example skill shortages may arise due to
retirement, resignation, transfer, VRS schemes etc., (given in Figure 11.3).
This has to be followed by a clear-cut workload analysis to define the executive
competencies required at various levels. Competencies may be defined by
focusing attention on the Banks critical success factors and values and the
challenges it expects to face in the next five years and beyond. These would
include, for instance, diversification plans into areas such as insurance, credit
cards, auto finance, consumer finance, housing finance etc., and the competencies
needed to fill the skill shortages. Managerial judgement and a careful study of the
past trends may serve as a useful guide in this regard.
candidates and, at the same, allow the candidates to improve the targeted
behaviours.
The identified high-fliers should be continually challenged and developed with
demanding jobs intended to stretch their leadership competencies and enrich
their experiences. At various levels, conscious efforts must be made to make fast
trackers know how important they are in the organisations future plans. The
organisation should not let talent walk out of the door. Appropriate retention
strategies must be devised in time so that a competitor or a dot.com does not
poach the identified stars.
Management of Careers
Notes
Talk to employees and find what they like best in their company and job.
Experts say people are fascinated by career opportunities, learning
experiences and challenging jobs. Offer these to people and create an
employee-friendly environment.
Get employees connected to the firm. Let them feel that their opinions
matter a lot.
Student Activity
What contributions can a career development programme make to an
organisation that is forced to downsize its operations.
Summary
A career is a sequence of positions held by a person during the course of a lifetime.
People pursue careers to satisfy deeply individual needs.
A career includes many different positions, stages and transitions just as a persons
life does.
Human Resource
Development
Notes
Career planning is the process by which one selects career goals and the path to these
goals. Career planning is not a sure bet, but without it, employees are seldom ready
for the career opportunities that arise.
Career development is a lifelong process of understanding your career preferences;
identifying, obtaining and developing appropriate skills and training for that career
and continually evaluating your career preferences and skills over your working life
to find whether they continue to meet your needs and those of the organisation.
Career development could occur at the individual or the organisational level.
Individuals can push up their careers through performance, exposure, networking,
leveraging, etc. Important organisational career development techniques include
career counselling, job postings, assessment centres, career development workshops,
periodic job changes, etc.
Career management includes both organisational actions and individual actions
aimed at setting career goals, formulating and implementing strategies and
measuring results.
Keywords
Mentor: A person who is higher up the organisation and who can provide career
advice and support to a less senior employee
Career: A sequence of positions held by a person during the course of a lifetime.
Career stages: An individuals career moves through five stages, exploration,
establishment, mid-career, late career and decline.
Career anchor: A concern or value that you will not give up if a choice has to be made.
Career planning and development: A conscious process through which a person
becomes aware of personal career-related attributes and the lifelong series of stages
that contribute to his or her career fulfillment.
Career path: The sequential pattern of jobs that comprises ones career.
Career development workshop: A training programme designed to assist employees
in managing their careers.
Attrition: The loss of employees who quit an organisation for various reasons.
Counselling: The discussion of an employees problem with a view to help the
employee cope with it.
Downsizing: A scaling back of an organisations employment level, usually through
lay offs, attrition and voluntary retirement programmes.
Leveraging: It refers to resigning to further ones career with another employer.
Fast track programme: A programme that encourages young managers with high
potential to remain within an organisation by enabling them to advance more rapidly
them those with less potential
Review Questions
1.
2.
List the pay offs and limitations of career planning. Also indicate how careerplanning efforts could be initiated in a successful way.
3.
Distinguish between:
a.
b.
4.
Examine the need for career planning from the point of view of an individual
employee and the organisation.
5.
6.
Career counselling
b.
Career stages
c.
Career anchors
d.
Career management
7.
8.
What type of information would you seek from the HR department to help you
develop your individual career plan if you were just starting with a large
multinational corporation?
Management of Careers
Notes
Further Readings
French Wendell L: Human Resource Management, AIPD, Chennai, 1997
Werther William B, Jr and Keith Davis: Human Resources and Personnel Management,
McGraw-Hill, Inc, New Delhi, 1993
Bhattacharyya, Dipak Kumar: Human Resource Management, Excel Books, Delhi, 2006
Sharma, AM: Personnel and Human Resource Management, Himalaya Publishing House,
Mumbai, 2005
Saiyadain Mirza S: Human Resource Management, TMH, New Delhi, 1988
Dwivedi, RS: Managing Human Resources Personnel Management in Indian Enterprises,
Galgotia Publishing Company, New Delhi, 2001
Q.1
Q.2
Q.3
Q.4
Q.5
Q.6
Q.7
What do you mean by job and how you redesign the job?
Q.8
What do you mean by quality of work life and explain its concepts?
Q.9
Q.10 List the pay offs and limitations of career planning. Also indicate how career planning efforts
could be initiated in a successful way.
Question Number
Responded
On Page Number of
Assignment
Marks
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Date:_______________
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