Comparison b/w HRM & HRD

Dimensions HRM HRD

 Status An independent function with An integrated system consisting
independent sub-function of interdependent sub-system
A service & reactive Function A proactive function
 Orientation

Seeks to improve the Seeks to develop the total

 Aims
efficiency of people & organization its culture
administration
 Incentives
Salary & economic rewards Focus
used on challenges, creativity
& motivation
Only of HR Manager Of all the managers
 Responsibility

 Morale
Improved satisfaction & Improved performance as the
Productivity
Relationship Morale as the cause of cause of improved satisfaction
improved performance
 Case Study
Mariam has been a data processing supervisor for two years. She is in the
process of selecting a candidate for a programmer trainee position she has
created. Her plan is to develop the trainee into a system analyst within two
years. Since this is a fast track, she needs a candidate whose aptitude and
motivation is high.
Fourteen candidates applied for the job in the employment section of the
human resource department. Six were women, eight were men. An employment
specialist screened the candidates for mariam using a carefully prepared
interview format that included questions to determine job-related skills. Six
candidates, three women and three men, were referred to mariam.
Mariam then conducted structured, in-depth interviews and further
narrowed the selection to one woman and two men. Her boss, a company vice-
president, agrees with her judgement after hearing mariam’s description of the
candidates. However, mariam’s boss feels particularly unsure of the abilities of
the female candidate. From the selection interview, past job experience and
education, there is a no clear indication of the candidate’s ability to perform the
job. the vice-president is insistent that Mariam should screen the candidate with
a programmer aptitude test devised by a computer manufacturing firm. The test
had been given four years ago and some of the most successful current analysis
had scored high on it.
Mariam went to the human resource department and asked them to
administer the test of the questionable candidate. The human resource manager
informed her that the company policy had been to do no testing of any kind
during the last two years. Mariam explained that the request had come from a
vice-president and asked that she be given a decision on her request by Friday.
 Case Study- 2
Rane is a Branch Manager of a reputed Bank and has earned a reputation for
efficient operations. Recently, a divisional manager telephones Rane that a new
Branch Office was to be opened in another city. The divisional manager also
informed Rane that senior management is highly pleased with the way his
branch office has been functioning in the past and would like him to recommend
someone from his office for promotion as Branch Manager to manage the new
Branch.
Rane started analysis of his subordinate staff to determine who might
make a good manager. He has narrowed his choice down to two persons within
his office: Ms. Anita and Mr. Malla. Both Anita and Malla are young persons in
early Forties. Each has a management degree from reputed institutes. Anita
usually seems more effective and tactful when dealing with customers. Both
have low absenteeism record and either one would probably make a satisfactory
manager for the new branch of the bank.
Rane has an impression that most people prefer male supervisors and
women generally are not really interested in career and as manager might
develop aggressive female tendencies. As such Malla may be an effective
manager in a new work place. Hence he recommended Malla for promotion as a
branch manager in the bank’s new branch.

Questions:-
1) If you were Rane, whom would you recommend as head of the new Branch?
Give arguments in favor of your recommendation.
2) As HR Manager, how would you handle Anita’s feelings of being ignored?
Human Resource Development

HRD is an organized learning experience

aimed at matching the organizational need
for Human Resource with the individual need
for career growth and development.
 HRD Model
Human Resource Development Plans

Individual Organizational
Development Development
Plans Plans

Knowledge, Work Culture,

Skills & Organization
Attitude Change etc

Trained & Developed Employees

Healthy Organizational Climate

Organizational Effectiveness
 HRD in Indian Industry
 Private Sectors
 L&T
 Asian Paints
 Voltas etc

 Public Sectors
 BHEL
 SBI
 Indian Oil etc
 Career Planning

Career Planning is the systematic process

by which one selects career goals and path
to these goals.
 Career Planning

and

Manpower Planning
 Career Planning
and
Succession Planning
 Succession Planning

Succession Planning is the process of

ensuring that qualified persons are available
to assume key managerial positions
whenever these fall vacant due to untimely
death, premature firing, resignations and
retirements.
 Important Terminologies

 Career Goal
 Career Path
 Career Progression
 Career Counseling
 Mentoring
Objectives of Career Planning
 To attract and retain right type of persons in
the organization
 To map out careers of employees suitable to
their abilities and willingness
 To provide guidance and encouraging
employees to fulfill their potentials
 To achieve higher productivity and
organizational development
Process of Career Planning
Identifying individual needs and aspiration

Analyzing Career opportunities

Identifying Match and Mismatch

Formulating and Implementing strategies

Reviewing Career plans

 Essentials of effective Career
Planning
 Top Management support
 Expansion
 Clear Goals
 Motivated and Hardworking Staff
 Proper Selection
 Fair Promotion Policy
 Internal Publicity
 Continuity
 Career Development

Career Development is essential for

implementing Career Plans.
Process of Career
Development
Career Need Assessment

Career Opportunities

Need-Opportunity Alignment
Individualized Techniques
Performance Appraisal
MBO
Career Counseling

Monitoring career Moves

 Case Study- 3

Rajan has been employed for six months in the

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

2) If Rajan is inadequately trained, how would

you go about introducing a remedial training
programme?

3) Should you supervising him more closely? Can

you do this without making it too obvious to him
and coworkers?

4) Should you discuss the situation with Rajan?

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

 Higher performance
 Optimum use of resources
 Morale justification
 Understanding of human factors
 Approaches to Human
Relations

 Negative Approach
 Natural approach
 Positive approach
 Components of Human
Relations

Work Environment Leader

Work Work Group

 Techniques of Human
Relations
 Integration
 Employee Participation
 Congenial work Environment
 Open Communication
 Adaptive Leadership
 Resolving Conflicts
 Conditioning Behavior
 Personnel Counseling
Collective Bargaining
 “Collective Bargaining refers to a process
by which Employers on one hand and
representatives of Employees on other,
attempt to arrive at agreements covering the
conditions under which employees will
contribute and be compensated for their
services.”
Types of Collective Bargaining

 Distributive Bargaining
 Integrative Bargaining
 Attitudinal Bargaining
 Intra-organizational bargaining
 Objectives of Collective
Bargaining
 To maintain cordial relations between
Employer and the employee.
 To ensure the participation of trade Unions in
industry.
 To promote Industrial democracy.
 To avoid the need for government
intervention as collective bargaining is a
Voluntary process.
Employee Empowerment
 “Empowerment is any process that provides
greater authority through the sharing of relevant
information and the provision of control over
factors affecting job Performance.”
- John Newstrom and Keith Devis
 Elements of Empowerment

 Self-competence
 Meaningfulness
 Impact (Influence)
Approaches to Empowerment

 Helping employees achieve Job Mastery

 Allowing more Control
 Providing successful Role Models
 Giving more support
 Importance of Empowerment

 Knowledge Workers
 Cut throat competition
 Speed and flexibility
 Globalization
 Barriers to Empowerment

 Incongruent organizational culture

 Love for authority
 Fear of retribution by superiors
 Fear of a retribution by subordinates
 Dependency of subordinates
Participative Management
 “Participation refers to the mental and
emotional involvement of a person in a group
situation which encourages him to contribute
to group goals and share in the responsibility
of achieving them.”
- Keith Device
 Degrees of Participation

 Communication
 Consultation
 Code-termination
 Self management
 Objectives of Worker’s
Participation in management

 Economic Objective
 Social Objective
 Psychological objectives
 Importance of Worker’s
Participation in management

 Mutual understanding
 Higher productivity
 Industrial harmony
 Industrial democracy
 Less resistance to change
 Creativity and innovation
 Forms of Worker’s
Participation in management

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

Guide for behavior

CORE VALUES
Transparency
Fairness
Accountability
Responsibility
Four corporate governance ethical
values (“RAFT”)
1. Responsibility
“The board should assume responsibility for the company’s assets
and actions and be willing to take corrective actions to keep the
company on its strategic path.”
2. Accountability
“The board should be able to justify its decisions and actions to
stakeholders affected by the company and give account to those
stakeholders who require the board to do so
3. Fairness
“In its decisions and actions, the board should ensure that it gives
fair consideration to the interests of all stakeholders of the
company.”
4. Transparency
“The board should disclose information in a manner that enables
stakeholders to make a meaningful analysis of the company’s
actions.”
“Ethics of governance” — Five ethical duties of
directors are grounded in the four corporate
governance values

1. Conscience
“A director should act with intellectual honesty in the best interest
of the company. Conflicts of interest should be avoided.
Independence of mind should prevail to ensure the best interest of
the company and its stakeholders are served.”

2. Care
“A director should devote serious attention to the affairs of the
company. All relevant information required for exercising effective
control and providing innovative direction to the company need to
be acquired.”
3. Competence
“A director should have the knowledge and skills required for
governing a company effectively. This competence should be
developed continuously. Willingness to be regularly reviewed for
competence is a prerequisite.”
4. Commitment
“A director should be diligent in performing director’s duties.
Sufficient time should be devoted to company affairs. Effort needs
to be put into ensuring company performance and conformance.”
5. Courage
“A director should have the courage to take the risks associated with
directing a successful sustainable enterprise, but also the courage to
act with integrity in all board decisions and activities.”
 Case Study- 4
Ramesh, AGM, Materials, is fuming and fretting. He bumped
into Kailash, G.M. Materials, threw the resignation letter on his
table, shouted and walked out of the room swiftly.
Ramesh has reason for his sudden outburst. He has been
driven to the wall. Perhaps, details of the story will tell the
reasons for Ramesh’s is bill and why he put in his papers, barely
four months after he took up his present assignment.
The year was 1995 when Ramesh quite the prestigious
SAIL plant at Vishakhapatnam. As a manager material, Ramesh
engaged powers------- he could even place an order for materials
worth Rs. 25 lakh. He needed nobody’s prior approval.
Ramesh joined a pulp making plant located at Harihar in
Karnataka, as AGM Materials. The plant is a part of the
multiproduct and multi plant conglomerate owned by a
prestigious business house in India. Obviously, perks,
designation and reputation of the conglomerate hired Ramesh
away from the public sector steel monolith.
 When he joined the eucalyptus pulp making company, little
did Ramesh realize that he needed prior approval to place an
order for materials worth Rs.12 lakh. He had presumed that he
had the authority to place an order by himself worth half the
amount of what he used to do at the mega steel maker. He
placed the order; materials arrived, were received, accepted and
used up in the plant.
Trouble started when the bill for Rs. 12 lakh came from the
vendor. The accounts department withheld payment for the
reason that the bill was not endorsed by Kailash. Kailash refused
to sign of the bill as his approval was not taken by Ramesh
before placing the order.
Remesh felt fumigated and cheated. A brief encounter with
Kailash only aggravated the problem. Ramesh was curtly told
that he should have known company rules before venturing.
Remesh decided to quit.
Questions:-

1. Where have the system gone wrong?

2. Was it really Ramesh’s mistake? It so was
there any solution?
3. Does the company have an orientation
programme? If yes, how effective is it?
4. If you were Remesh what would have you
done?
Absenteeism
 Absenteeism
Absenteeism means the failure of a worker
to report for work when he is scheduled to
work.

Number of mandays lost due to absence

Absenteeism = X 100
Number of mandays scheduled to work
Absenteeism in India
 Causes of Absenteeism
 Nature of work
 Poor working conditions
 Sickness
 Accidents
 Lack of interest
 Absence of housing and transport facility
 Poor management system
 Lack of regular leave arrangement
 Rural ties
 Alcoholism and gambling
 Other causes
 Control over Absenteeism
 Proper hiring
 Good working conditions
 Housing and transport facility
 Safety programmes
 Incentives
 Effective supervision
 Disciplinary actions
 Regular leave provisions
 Employee counseling
 Proper records
MORALE
 Morale

A mental condition or attitudes of

individuals and groups which determines their
willingness to cooperate.
Importance of Morale
 Factors influencing Morale
 Nature of work
 Working Conditions
 Supervision
 Interpersonal relations
 Management policies
 Personal factors
 Measurement of Morale

 Observation
 Attitude or Morale surveys
 Interview Method
 Questionnaire Method
 Company Records and Reports
 Measures for Building high
Morale
 Proper work environment
 Job security
 Sound compensation system
 Sound promotion Policy
 Creation of whole jobs
 Job enrichment
 Grievance procedure
 Suggestion schemes
 Employee counseling
 Worker’s participation in management
 Impact of Morale on
Productivity

High Productivity

High Morale Low Morale

High productivity High Productivity

High Morale Low Morale

High morale Low Morale

Low Productivity Low Productivity

Low Productivity
Job Satisfaction
 Job Satisfaction

Job Satisfaction is the end feeling of a

person after performing a task.
 Determinants of job
Satisfaction
 Environmental Factors
 Job content
 Occupational level
 Pay and promotion
 Work group
 Supervision
 Personal factors
 Age
 Gender
 Education level
 Marital Status
 Experience
 Theories of Job satisfaction
 Need fulfillment theory
 Equity theory
 Two factor theory
 Discrepancy theory
 Equity-discrepancy theory
 Social reference group theory
 Measurement of job
satisfaction

 Job Satisfaction Index (Hoppock)

 S-D (Satisfaction - Dissatisfaction) by
Pestonjee
 Job
 Management
 Social Relations
 Personal Adjustment
Counseling
 Counseling
 Counseling is the mean by which one person
helps another through purposeful
conversation.

 Counseling is a method of identifying

practical solutions to life or work related
problem.
 Essential Elements

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

 Directive
 Non-directive
 Co-operative
Employee Health
 Working conditions affecting
health
 Cleanliness
 Lighting
 Temperature and ventilation
 Freedom from noise
 Dust control
 Working space and seating arrangement
 Occupational hazards

 Chemical substance
 Biological hazards
 Environmental hazards
 Atmospheric conditions
 Protection against health
hazards

 Preventive measures
 Curative measures
Statutory provisions concerning
Health
 Cleanliness
 Disposal of waste
 Ventilation and temperature
 Dust and fumes
 Artificial humidification
 Overcrowding(14.2 cubic meters)
 Lighting
 Drinking water
Employee Safety
 Employee Safety

An Industrial Accident is “an occurrence in

an industrial establishment causing bodily
injury to a person which makes him unfit to
resume his duties in the next 48 hours.”
- the factories act 1948
 Records and measurement of
accidents

No of injuries x 10,00,000
Accidents frequency rate =
Total no of men hours worked
 No of men day lost x 10,00,000
Accidents Severity rate =
Total no of men hours worked
Causes of industrial accidents
 Unsafe Conditions
 The job itself
 Work schedules
 Psychological conditions
 Machinery and equipments
 Unsafe acts
 Miscellaneous causes
Measures to ensure Industrial
safety
 Safety policy
 Safety committee
 Safety engineering
 Guarding of machines
 Material handling equipment
 Safety devices
 Plan maintenance
 Safety education and training
 Role of government (Safety and Health Accidents
reduction Plans)
 Safety provisions under the
Factories Act
 Fencing of machinery
 Work on or near machinery in motion
 Employment of young persons on dangerous Machines
 Striking gears and devices for cutting off power
 Self-acting machines
 Casing of new machinery
 Prohibition of employment of women and children near cotton
openers
 Hoists and lifts
 Lifting machines, chains, ropes and lifting Tackles
 Revolving machinery
 Pressure plant
 Floors, Stairs and means of access
 Excessive weights
 Protection of eyes
 Precautions against dangerous fumes
 Precautions regarding the use of portable electric
lights
 Precautions against explosive or inflammable dust,
gas etc
 Precautions in case of fire
 Safety officers
Employee welfare
 “The efforts to make life worth living for
workmen.”
- Oxford Dictionary

“ Labor welfare means anything done

for the comfort and improvement,
intellectual or social, of the employees
over and above the wages paid which is
not a necessity of the industry.”
- Arthur James Todd
Importance of Employee
Welfare
 Agencies of Employee Welfare

 Central Government (Acts like Factories Act, Mines Act etc)

 State Government
 Employers (Like TISCO, SAHARA etc)
 Trade Unions (Ahmedabad Textile Labor Association, Mazdoor
Sabha etc)
 Other agencies (Social Service League, Seva sadan Society, the
Depressed classes Mission Society)
 Types of Welfare Services

 Intramural
 Extra-mural
 Hosing
 Education
 Transportation
 Recreation
 Consumer cooperative stores
 Statutory provisions
concerning employee welfare
 The Factories Act,1948 (First Aid Box, rest room, Lunch room on 150 workers,
Ambulance & Welfare Officer on 500 workers, canteen on 250 workers, Crèche on 30 women
workers)

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

 The Mines Act,1952 ( crèche for 50 workers, rest room, Lunch room on 150
workers, canteen on 250 workers )

 The Contract Labor (Regulation and Abolition)

Act,1970