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  1. 1. Human Resource Development 1
  2. 2. Definition of HRD • A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands.
  3. 3. Emergence of HRD • Employee needs extend beyond the training classroom • Includes coaching, group work, and problem solving • Need for basic employee development • Need for structured career development
  4. 4. Relationship Between HRM and HRD • Human resource management (HRM) encompasses many functions • Human resource development (HRD) is just one of the functions within HRM
  5. 5. Primary Functions of HRM • • • • • • • Human resource planning Equal employment opportunity Staffing (recruitment and selection) Compensation and benefits Employee and labor relations Health, safety, and security Human resource development
  6. 6. Secondary HRM Functions • Organization and job design • Performance management/ performance appraisal systems • Research and information systems
  7. 7. HRD Functions • Training and development (T&D) • Organizational development • Career development
  8. 8. HR’s strategic role • • • • Employees as organisation’s assets Driving business strategy Spanning organizational functions HRD Deliverables: – – – – Performance Capacity Building Problem solving/consulting Org. change and development
  9. 9. Strategic HRD • Integration of HRD with strategy formulation and implementation • Long-term view of HR policy • Horizontal integration among HR functions • Vertical integration with corporate strategy • SHR as core competitive advantage
  10. 10. Firm Capitals • Human Capital – Knowledge, skills, abilities of individuals • Social Capital – Relationships in social networks • Structural, cognitive, relational dimensions • Intellectual capital – Knowledge and knowing capability of social collectivities • Procedural/declarative; tacit/explicit; individual/social • Value and Uniqueness of capitals
  11. 11. Multiple Roles for HR (Ulrich, 1997) Future/Strategic Focus Mgmt of SHR Processes Mgmt of Firm Infrastructure Mgmt of TransFormation/Change People Mgmt of Employee Contributions Day-to-day/Operational Focus
  12. 12. Definition of HR Roles Role/Cell Deliverable/ Outcome Metaphor Core Activity Mgmt of SHR Executing corp. strategy Strategic Partner Aligning HR and bus. Strategy Mgmt of Firm Infrastructure Building an efficient infrastructure Administrative Expert Reengineering org. Processes Mgmt of Employee Contributions Increasing employee commitment and capability Employee Champion Providing resources to employees Mgmt of Transformation/Cha nge Organizational renewal Change Agent Managing transformation and change, 12
  13. 13. Importance of Human Resources • Human resources are an important part of the value chain • They can be unique, and thus a source of core competence in an organization • If a core competence is related to HR, then HR can contribute to competitive advantage 13
  14. 14. Strategic Analysis of HR: Purpose • People related strategies may be important to new strategy (for example, a change in the way the organization does business) • In today’s technologically complex business world, analysis of existing human resources is important in order to determine what options are available • The network of people within an organization and their relationships with people can be an important part of strategy
  15. 15. HR and Sustainable Competitive Advantage • In some industries, people are the most important factor in success - advertising and creative development - leisure and tourism - management consulting - hospitals and medical professions • The adaptability of people to changing environments is an important skill • “The ability to learn faster than your competitors may be the only sustainable advantage” – Arie De Geus, former head of planning at Royal Dutch Shell
  16. 16. Challenges for HRD • • • • • Changing workforce demographics Competing in global economy Eliminating the skills gap Need for lifelong learning Need for organizational learning
  17. 17. Competing in the Global Economy • • • • • • 17 New technologies Need for more skilled and educated workers Cultural sensitivity required Team involvement Problem solving Better communications skills
  18. 18. Need for Lifelong Learning • • • • • 18 Organizations change Technologies change Products change Processes change PEOPLE must change!!
  19. 19. Training and Development (T&D) • Training – improving the knowledge, skills and attitudes of employees for the short-term, particular to a specific job or task – e.g., – Employee orientation – Skills & technical training – Coaching – Counseling
  20. 20. Training and Development (T&D) • Development – preparing for future responsibilities, while increasing the capacity to perform at a current job – Management training – Supervisor development
  21. 21. Organizational Development • The process of improving an organization’s effectiveness and member’s well-being through the application of behavioral science concepts • Focuses on both macro- and micro-levels • HRD plays the role of a change agent
  22. 22. Career Development • Ongoing process by which individuals progress through series of changes until they achieve their personal level of maximum achievement. – Career planning – Career management
  23. 23. Learning & Performance By Permission: Naughton & Rothwell (2004)
  24. 24. Critical HRD Issues • Strategic management and HRD • The supervisor’s role in HRD • Organizational structure of HRD
  25. 25. Strategic Management & HRD • Strategic management aims to ensure organizational effectiveness for the foreseeable future – e.g., maximizing profits in the next 3 to 5 years • HRD aims to get managers and workers ready for new products, procedures, and materials
  26. 26. Supervisor’s Role in HRD • • • • • Implements HRD programs and procedures On-the-job training (OJT) Coaching/mentoring/counseling Career and employee development A “front-line participant” in HRD
  27. 27. Organizational Structure of HRD Departments • Depends on company size, industry and maturity • No single structure used • Depends in large part on how well the HRD manager becomes an institutional part of the company – i.e., a revenue contributor, not just a revenue user
  28. 28. HRD Organization in a Large Company
  29. 29. Sample HRD Jobs/Roles • • • • • • Executive/Manager HR Strategic Advisor HR Systems Designer/Developer Organization Change Agent Organization Design Consultant Learning Program Specialist
  30. 30. Sample HRD Jobs/Roles – 2 • • • • Instructor/Facilitator Individual Development and Career Counselor Performance Consultant (Coach) Researcher
  31. 31. HR Manager Role • Integrates HRD with organizational goals and strategies • Promotes HRD as a profit enhancer • Tailors HRD to corporate needs and budget • Institutionalizes performance enhancement
  32. 32. HR Strategic Advisor Role • • • • Consults with corporate strategic thinkers Helps to articulate goals and strategies Develops HR plans Develops strategic planning education and training programs
  33. 33. HR Systems Designer/Developer • Assists HR manager in the design and development of HR systems • Designs HR programs • Develops intervention strategies • Plans HR implementation actions
  34. 34. Organization Change Agent • • • • Develops more efficient work teams Improves quality management Implements intervention strategies Develops change reports
  35. 35. Organization Design Consultant • Designs work systems • Develops effective alternative work designs • Implements changed systems
  36. 36. Learning Program Specialist • • • • Identifies needs of learners Develops and designs learning programs Prepares learning materials and learning aids Develops program objectives, lesson plans, and strategies
  37. 37. Instructor/Facilitator • Presents learning materials • Leads and facilitates structured learning experiences • Selects appropriate instructional methods and techniques • Delivers instruction
  38. 38. Individual Development and Career Counselor • • • • Assists individuals in career planning Develops individual assessments Facilitates career workshops Provides career guidance
  39. 39. Performance Consultant (Coach) • Advises line management on appropriate interventions to improve individual and group performance • Provides intervention strategies • Develops and provides coaching designs • Implements coaching activities
  40. 40. Researcher • Assesses HRD practices and programs • Determines HRD program effectiveness • Develops requirements for changing HRD programs to address current and future problems
  41. 41. Implementing HRD Who should take responsibility? How should needs be identified? Whose interests should they serve? What activities should be used? Will they ‘add value’? How does HRD relate to business goals?
  42. 42. Implementing HRD A systematic training model
  43. 43. A systematic training model • • A systematic training model Essential prerequisites for any effort to implement a training model are a consideration of budgets, attitudes, abilities and culture or climate. • A key requirement of training activity is that it is relevant and reflects the real world. • Bramley (1989) advocated turning the four stages of the training model into a cycle in which evaluation occurs throughout the process, with an emphasis on managers taking responsibility for the transfer of learning. • In this way the model is made effective rather than mechanistically efficient.
  44. 44. An integrated approach •An integrated approach highlights key interdependencies within organizations, such as the link to strategy, the role of line managers and the emergent features of learning. •A policy of HRD has to be translated into the structures, systems and processes that might be called a learning climate. •At the heart of the learning climate lies the line manager-employee relationship. •A number of roles have been associated with managers to support this, including coaching and mentoring.
  45. 45. Implementing HRD
  46. 46. Implementing HRD
  47. 47. Implementing HRD
  48. 48. Challenges for HRD • • • • • Changing workforce demographics Competing in global economy Eliminating the skills gap Need for lifelong learning Need for organizational learning
  49. 49. Competing in the Global Economy • • • • • • New technologies Need for more skilled and educated workers Cultural sensitivity required Team involvement Problem solving Better communications skills
  50. 50. Eliminating the Skills Gap • Example: In South Carolina, 47% of entering high school freshmen don’t graduate. – Best state is Vermont, with 81% graduating • Employees need to be taught basic skills: – Math – Reading – Applied subjects • Need to improve U.S. schools!
  51. 51. Need for Lifelong Learning • • • • • Organizations change Technologies change Products change Processes change PEOPLE must change!!
  52. 52. Need for Organizational Learning • Organizations must be able to learn, adapt, and change • Principles: – Systems thinking – Personal mastery – Mental models – Shared visions – Team learning
  53. 53. A Framework for the HRD Process HRD efforts should use the following four phases (or stages): • Needs assessment • Design • Implementation • Evaluation (“A DImE”)
  54. 54. Training & HRD Process Model
  55. 55. Needs Assessment Phase • Establishing HRD priorities • Defining specific training and objectives • Establishing evaluation criteria
  56. 56. Design Phase • Selecting who delivers program • Selecting and developing program content • Scheduling the training program
  57. 57. Implementation Phase • Implementing or delivering the program
  58. 58. Evaluation Phase Determining program effectiveness – e.g., • Keep or change providers? • Offer it again? • What are the true costs? • Can we do it another way?
  59. 59. HR Audit
  60. 60. Definition • The HR audit is a type of functional audit. Thus, as a first approach, HR auditing consists of diagnosing, analyzing, evaluating, and assessing future lines of action within the framework of HRM. • HR auditing is a basic tool for the management of a company. Its objective is not only the control and quantifying of results, but also the adoption of a wider perspective that will aid in defining future lines of action in the HRM field. • Thus, HR auditing must perform two basic functions [Cantera, 1995]. First, it must be a management information system whose feedback provides information about the situation in order to facilitate the development of managing processes or the development of HR. On the other hand, it must be a way of controlling and evaluating the policies that are being applied, as well as the established processes.
  61. 61. Cont’d • The human resources audit is a periodic expertise performed within the administration of the human resources, which includes monitoring and collecting the information, its analysis and assessment on this basis of the efficiency on which the organization uses the human resources, with the purpose of improving continuously the performances and the work satisfaction of the employees. • The purpose of this work is to have guidelines for the appraisal of the HR function, which is in itself the basis for the auditing process. • The objective is to set conceptual limits for its content and to present the different approaches with which the HR audit can be presented.
  62. 62. Purpose of H.R. Audit 1. To examine and pinpoint strength and weaknesses related to H.R. areas and Skills and Competencies to enable an organization to achieve its long-term and short-term goals. 2. To increase the effectiveness of the design and implementation of human resource policies, planning and programs. 3. To help human resource planners develop and update employment and program plans.
  63. 63. Need for H.R. Audit Top Management saw solutions to their problems, issues and challenges in HRD to face business competition and to achieve organizational goals.
  64. 64. The Scope of Human Resource Audits Whenever the H.R. Audit it taken up, the scope is decided. Audit need not be exhaustive, but should be focused on particular function of H.R.M. such as Training and Development, Performance Appraisal, Compensation, etc.. However, the objective and approach of H.R. Audit, more or less, remains the same, regardless of scope. – Audit of Corporate Strategy Corporate Strategy concerns how the organization is going to gain competitive advantage. – Audit of the Human Resource Function Audit touches on Human Resource Information System, Staffing and Development, and Organization Control and Evaluation. – Audit of Managerial Compliance Reviews how well managers comply with human resource policies and procedures. – Audit of Employee Satisfaction To learn how well employee needs are met. 64
  65. 65. Approaches to HR Auditing • Walker [1998] differentiates between two approaches relative to HR auditing: those centered in the function’s internal aspect, and those centered on the external aspect. • From an internal perspective, as in any strategic function, there is a trend of valuing its actions as a result of the activities undertaken and its costs. In this way, the department’s capability would be judged on its ability to supply certain services to the organization at the lowest possible cost. Under this approach, the operational measurements traditionally used are those which refer to quantity, quality and reliability, or cost and speed, therefore placing the focus on activities, costs, or productivity ratios. • From an external perspective, if it is understood that the ultimate appraisal of the effectiveness of HR is based on their impact on the company’s results, then the measurements should include results obtained outside the function. • Another well-known classification of HR audit approaches, which is used to structure the present work, is the difference between three focuses, which are the legal audit of performance or conformity, the operative or efficacy-based audit, and the strategical audit.
  66. 66. Cont’d The audit should verify if the firm’s policies, practices, and documents regarding employee hiring, retention, discipline, termination, and postemployment are both fair and legal [Higgins, 1997]. According to Nevado [1998, p. 49], the basic functions of the audit of conformity or of performance as an element of HR auditing are threefold. The first function is examining to see if the firm is fulfilling all its administrative social obligations, as well as those relative to the collective rights of its personnel. The second is to study the relationship between the employees and the firm based on the legal statutes. The final function is verifying if the firm fulfills its financial obligations (for example, social security payments), as well as its informative ones.
  67. 67. Approaches • The legal approach centers on finding out if the company is complying with the current labor laws. Presently, it focuses mainly on the evaluation of the company’s efforts in the prevention of work-related risks. • The function approach analyzes the application of different HR policies. Several measurement systems have been presented with the same basic ideas, which include the study of planned measures, the method of implementation, and the results obtained. Yet, these two approaches are limited to the operational and tactical fields, and do not evaluate if HRM supports or aids in the achievement of the company’s strategy. • This is why the strategic approach has been developed as a means of determining if the HR function is a source of competitive advantage for the company.
  68. 68. Approaches to conduct HR Audit 1. Self – directed surveys. 2. Task Forces within the organisation. 3. Out side Consultants.
  69. 69. Benefits of A Human Resource Audit • Identifies the contribution of the personnel departments to the organization • Improves professional image of the personnel department • Encourages greater responsibility and professionalism among members of the personnel department • Clarifies the personnel department’s duties and responsibilities • Finds critical personnel problems 69
  70. 70. HR Audit Implementation Pattern a. b. c. d. e. HR Strategies HR Styles and cultures HR Structures HR Systems HR Competencies
  71. 71. Human Resource Strategy The process of determining and articulating the organizations : vision, mission, values, goals and objectives, and its internal and external environments and then formulating plans to attain outcomes consistent with the above; then implementing those plans. It is the pattern of planned human resource deployments and activities intended to enable the organization to achieve its goals. Focus: To provide competitive advantage
  72. 72. Human Resource Strategies 1. 2. 3. 4. 5. 6. 7. Communication strategies Commitment, ownership, accountability Quality Customer satisfaction Cost reduction Developing entrepreneurial spirit Culture building exercises
  73. 73. Human Resource Systems Human Resource functions are carried out through its systems and sub systems. 1. Career Systems: Manpower planning, recruitment, career planning, succession planning, retention 2. Work Systems: Role analysis, role effieciency, performance plan, performance feedback and guidance, performance appraisal, promotion, job rotation, reward
  74. 74. Human Resource Systems 3. Development System: Induction, training, job enrichment, self learning mechanisms, potential appraisal, succession development, counseling, mentor system. 4. Self Renewal System: Survey, action research, organizational development interventions, organizational retreats. 5. Culture Systems: Vision, mission, values, communication, social environment, task forces, small groups.
  75. 75. Human Resource Structure A structure provides a convenient way of organizing several related variables as a single unit. HRM dept in line organization HRM dept in functional organization HRM dept in line and staff organization HRM dept in divisionalized organization structure HRM dept in a matrix organizational structure
  76. 76. Components of Human Resource Structure • Span of control • Authority and power structure • Accountability
  77. 77. HR Competencies 1. 2. 3. 4. 5. 6. Competency is a combination of skills, job attitudes and knowledge which is reflected in job behavior that can be observed. Communication competency Global awareness competency Self management competency Change management competency Human resource competency Leadership and team management competency
  78. 78. HR Audit Methodology & Issues 1. 2. 3. 4. 5. 6. Individual interview method Group interview method Workshop method Questionnaire method Observation Use of secondary information
  79. 79. Individual Interview Method: Top level management and senior managers are interviewed, individually. It helps in following: A. Knowing their thinking about future plans and opportunities available for the company. B. Knowing about their expectations from the H.R.Audit. C. Getting sensitive information pertaining to working styles and culture. Union leaders, departmental heads, some strategic clients and informal leaders are also interviewed, individually. In case of small companies, manned by professionals, interviews can be extended with selected employees from different levels and functions.
  80. 80. Group Interview Method Group interviews and discussions with the employees and/or executives of large companies for H.R. Audit, facilitate collection of information about effectiveness of existing systems. COMPOSITION OF GROUP: 1. Ideally, the group should be of 4 to 8 persons. 2. Group should consists of same or similar level of employees from cross functional areas. 3. In case of large organisation, group interviews for each functional area can be conducted, separately.
  81. 81. RELAVANT QUESTIONS THAT ARE ASKED IN INDIVIDUAL AND GROUP INTERVIEWS 1. What do you see as the future growth opportunities and business directions of the company? 2. What skills and competencies does the company have which you are proud of? 3. What skills and competencies do you need to run your business, or to perform your role, more effectively at present? 4. What are the strengths of your HRD function? 5. What are the areas where your HRD function can do better?
  82. 82. Cont’d 6. What is good about your HRD subsystems, such as: • performance appraisal, • career planning, • job rotation, training, • quality circles, • induction training, • recruitment policies, • performance counseling, • worker development programmes, and • HRD departments? 7. What is weak about them? What can be improved? 8. What changes do you suggest to strengthen HRD in your company? 9. What do you think are the ways in which line managers 10. can perform more developmental roles?
  83. 83. Workshop Method 1. In some cases of H.R. Audit, instead of Individual and Group Interviews, Workshop Methods i.e. Large Scale Interactive Process (LSIP) is conducted, as under: 1. 30 to 300 participants can be asked to gather in a room. 2. They are divided in small groups. 3. They are asked to work either around Systems, Subsystems or around different dimensions of HRD and do SWOT Analysis. 4. All the groups thereafter give presentations. 5. The H.R. Auditor compiles the views of all groups, makes own observation, conclusions and prepares a report. 6. The H.R. Auditor announces the audit Results before submitting the report to top Management. LSIP WORKSHOP FOR HRD AUDIT ON PERFORMANCE APPRAISAL SYSTEM
  84. 84. Relevant Questions Asked In a Workshop 1. What are the three good things in your performance appraisal system? 2. What is the one thing you would like to change in your performance appraisal system? 3. How would you critically evaluate the job rotation in your company? 4. What are the strengths and weaknesses of your training policies and practices? 5. What three objectives would you use to describe the promotion policies as they exist in your company?
  85. 85. Questionnaire Method Feed back about various dimensions of HRD, including the competency base of HRD staff, the styles of line managers, the implementation of various HRD systems, etc are obtained through a detailed questionnaire from individuals or groups for H.R. Audit. This method helps in benchmarking. The process is as follows: 1. Detailed questionnaire is prepared by H.R. Auditor. 2. Individuals or groups are asked to assemble in a room or hall are explained objective and process of HR Audit. They are then given questionnaires. 3. They submit the questionnaire, duly filled in, to the HR Auditor. 4. The HR Auditor compiles the feedbacks, makes observations, conclusions and recommendations. 5. Audit Results are informed to the Participants before the report is submitted to the top management.
  86. 86. Observation In addition to following the said methods, the HR Audit, needs to undertake following to assess the extent to which a congenial and supportive human welfare-oriented climate exists in the company: 1. Visit workplace, plant, machinery room, canteen, toilets, training rooms, hostels, hospital, school, living colony, etc., as applicable. 2. Observations can be made through a checklist.
  87. 87. Use of Secondary Information ANALYSIS OF SECONDARY DATA: This can provide an insight into the HRD assets and liabilities of the company. For example in the are of training, it may reveal as to whether employees are given training systematically or otherwise, the cost involved for training, the age group of employees attended training programmes, the purpose of training the employees etc.. ANALYSIS OF REPORTS, RECORDS, MANUALS AND OTHER PUBLISHED LITERATURE: Study and analysis of said documents help in assessing the strengths and weakness of HRD.
  88. 88. Balanced Score Card Approach 4 perspectives on the balanced scorecard The four perspectives are: • Financial perspective - how does the firm look to shareholders? • Customer perspective - how do customers see the firm? • Internal perspective - how well does it manage its operational processes? • Innovation and learning perspective – can the firm continue to improve and create value? This perspective also examines how an organisation learns and grows.
  89. 89. Score Card Approach For each of four perspectives it is necessary to identify indicators to . measure the performance of the organisations Financial Perspectives • • • • • • • • • • Return on investment Economic value added Operating cost management Operating ratios and loss ratios Corporate goals Survival Growth Process cost savings Increased return on assets Cost reduction
  90. 90. Score Card Approach Customer Perspectives • • • • • Number of complaints Average time to process orders Response time Reliability New skills acquisitions
  91. 91. Score Card Approach Internal Perspectives • • • • • • • Efficiency improvements in individuals & groups Reduction in unit costs per person Improvements in morale Increase in individual capacity utilisation Increased productivity % defective output per dept Amount of reworking
  92. 92. Score Card Approach Innovation & Learning Perspectives • • • • • • • Number of new products Amount of training Number of strategic skills learned. Number of employee suggestions. Extent of employee empowerment Employee coaching Performance enhancers in learning
  93. 93. Writing H R Audit Report OBJECTIVE: 1. TO HIGHLIGHT AREAS THAT NEEDS IMPROVEMENT. 2. TO BE ACTED UPON. PURPOSE: TO HELP THE TOP MANAGEMENT AND THE HRD STAFF TO RECOGNISE AND RETAIN THE COMPANY’S STRENGTHS. POINTS TO REMEMBER FOR WRITING REPORT: A. SIMPLE LANGUARE SHOULD BE USED. B. IT SHOULD BE SHORT AND PRECISE. C. BULLET FORM HIGHLIGHTING THE STRENGTHS A WEAKNESSES,SHOULD BE USED.
  94. 94. HR Audit Report EXECUTIVE SUMMARY CHAPTER-1 INTRODUCTION CHAPTER-2 CURRENT STATUS OF THE HRD FUNCTION; SOME FACTS. CHAPTER-3 GENERAL OBSERVATIONS CHAPTER-4 CAREER SYSTEMS CHAPTER-5 WORK PLANNING CHAPTER-6 DEVELOPMENT SYSTEM CHAPTER-7 SELF-RENEWAL SYSTEM CHAPTER-8 HRD CULTURE CHAPTER-9 HRD FUNCTION TABLE AND APPENDICES
  95. 95. 1. Introduction BRIEF DESCRIPTION ABOUT: • COMPANY LOCATIONS, PRODUCTS AND SERVICES, MANPOWER, TURN OVER, AND MAIN CONCERNS AND TOP MANAGEMENT. • DATE AND REASON FOR UNDERTAKING THE AUDIT. • METHODOLOGY ADOPTED FOR THE STUDY: DETAILS OF SAMPLES, AND AUDIT METHODS USED: * Questionnaires administered, * Number of individual interviews, * level-wise records and reports examined, * Group Interviews, etc.. • HRD SYSTEMS (various sub-systems of HR audit; etc.)
  96. 96. 2. Current Status of The HRD Function DETAILS ABOUT HRD FUNCTIONS: • STRUCTURE AND STAFFING OF HRD FUNCTION, • HRD DEPARTMENT’s THRUST AREAS AND OBJECTIVES, • HIGHLIGHTS OF EXISTING HRD SYSTEMS AND SUB-SYSTEMS: - Performance Appraisal, - Potential Appraisal, - Career Planning, - Mentoring, - Training, - Job rotation, - Quality circles, etc. • STRENGTHS AND WEAKNESSES OF THE HRD FUNCTION. • HRD NEEDS: AN OVERVIEW – Broad highlights of the areas that need attention.
  97. 97. 3. General Observations • SALIENT FESTURES OF THE COMPANY OBSERVED BY THE AUDITORS VIS-À-VIS PRESENT COMPETENCIES AND FUTURE POTENTIAL, ENCOMPASSING FOLLOWING DIMENTIONS OF HRD: * Competence Building, * Culture Building, * Commitment Building. • PRESENT AND FUTURE BUSINESS CONCERNS - HIGHLIGHTS, • CONPETENCIES AND COMPETENCY REQUIREMENTS FOR FUTURE, • GENERAL OBSERVATIONS ABOUT COMPETENCIES FOUND. • GENERAL OBSERVATIONS ABOUT THE COMPETENCY PROMOTING MECHANISMS, • COMMITMENT AND MOTIVATIONAL PATTERNS, • COMMITMENT-AND MOTIVATION-PROMOTING MECHANISMS, • WORK CULTURE AND ORGANISATIONAL CULRURE, • CULTURE-BUILDING MECHANISMS - A BRIEF ABOUT IMPORTANCE OF THE ABOVE 3 COMPONENTS FOLLOWED BY GENERAL STRENGTHS AND WEAKNESSES OF THE COMPANY RELATING TO HR AREAS, COVERING THE FOLLOWING, CAN BE GIVEN: * Impact of existing situation in the industry on HRD Culture of the organisation; Technological Innovations, Customers expectations, Leadership change or change of Management or any thing affecting HR function. * Any excellent or weak parts of the HRD function. * The general Strengths and Weaknesses of the Company.
  98. 98. 4. Career Systems FINDINGS OF THE AUDIT ON THE FOLLOWING SHOULD BE INCLUDED: • IMPORTANCE OF THE FOLLOWING, • MANPOWER PLANNINGF AND UTILISATION - Strengths, Weaknesses and Recommendations. • RECRUITMENT – - Strengths, Weaknesses and Recommendations. • POTENTIAL APPRAISAL AND FAST TRACK - Strengths, Weaknesses and Recommendations. • CAREER PLANNING AND DEVELOPMENT - Strengths, Weaknesses and Recommendations. • SUCCESSIONAL PLANNING - Strengths, Weaknesses and Recommendations.
  99. 99. 5. Work Planning • INTRODUCTION (Concept of work planning and the component of systems) • CONTEXTUAL ANALYSIS -Strengths, Weaknesses and Recommendations. • ROLE CLARITY -Strengths, Weaknesses and Recommendations. • PERFORMANCE APPRAISAL SYSTEM -Strengths, Weaknesses and Recommendations.
  100. 100. 6. Development System • INTRODUCTION AND COMPONENTS • INDUCTION TRAINING -Strengths, Weaknesses and Recommendations. • TRAININGAND LEARNING SYSTEMS - Strengths, Weaknesses and Recommendations. • PERFORMANCE GUIDANCE AND DEVELOPMENT -Strengths, Weaknesses and Recommendations. • WORKER DEVELOPMENT -Strengths, Weaknesses and Recommendations. • OTHER MECHANISMS OF DEVELOPMENT -Strengths, Weaknesses and Recommendations.
  101. 101. 7. Self-Renewal System • INTRODUCTION • ROLE EFFICACY -Strengths, Weaknesses an Recommendations. • ORGANISATION DEVELOPMENT -Strengths, Weaknesses and Recommendations. • ACTION ORIENTED RESEARCH -Strengths, Weaknesses and Recommendations.
  102. 102. 8. HRD Culture • INTRODUCTION • HRD CULTURE -Strengths, Weaknesses and Recommendations. • VALUES - Strengths, Weaknesses and Recommendations. • QUALITY ORIENTATION -Strengths, Weaknesses and Recommendations. • REWARDS AND RECOGNITION -Strengths, Weaknesses and Recommendations. • INFORMATION -Strengths, Weaknesses and Recommendations. • COMMUNICATION -Strengths, Weaknesses and Recommendations. • EMPOWERMENT THROUGH PARTICIPATION, DECENTRALISATION, SHOPFLOOR COMMITTEES, ETC. -Strengths, Weaknesses and Recommendations.
  103. 103. 9. HRD Function • GENERAL OBSERVATIONS • INDUSTRIAL RELATIONS AND HR -Strengths, Weaknesses and Recommendations. • PERSONNEL POLICIES AND HRD -Strengths, Weaknesses and Recommendations. • HRD FUCTION – STRUCTURE -Strengths, Weaknesses and Recommendations. • HRD DEPARTMENT - COMPETENCIES - Strengths, Weaknesses and Recommendations. • HRD STRATEGIES -Strengths, Weaknesses and Recommendations. • HRD ACTIVITIES AND PRIORITIES -Strengths, Weaknesses and Recommendations
  104. 104. AUDITING PROCESS: STEPS IN H.R. AUDIT Auditing process varies from organizations to organizations. Generally involves following STEPS: STEP ONE: Briefing and Orientation: Key Staff Members meet: i. To discuss particular issues considered to be important. ii. To chart out audit procedures, and iii. To develop plans and program of audit. STEP TWO: Scanning material information: Scrutiny of all available information pertaining to personnel, personnel handbooks and manuals, guides, appraisal forms, computer capabilities and any other related information.
  105. 105. Cont’d STEP THREE: Surveying employees: a. Interview with key managers, functional executives, Top functionaries in the organisation and employees Representatives, if necessary. b. The purpose is to pinpoint issues of concern, Present strengths, anticipated needs and managerial views on human resources. STEP FOUR: Conducting interviews: I. What questions to be asked, are developed during scanning of information. II. It is better for H.R. Audit, if clarity about the key factors of H.R.M. selected for audit and the related questions that need to be examined.
  106. 106. Cont’d STEP FIVE: Synthesising: The data gathered is synthesized to present the a. Current Situation. b. Priorities. c. Staff pattern, and d. Issues identified. STEP SIX; Reporting: 1. The results of the audit are discussed with Managers and Staff Specialists, in several rounds. 2. Important issues are identified for inclusion in the formal Report.
  107. 107. Challenges for HR Department in Carrying Out HR Audit Globalization Involves • New Markets • New Products • New Mindsets • New Competencies • New Ways Of Thinking
  108. 108. Cont’d H. R. DEPATMENTS WILL NEED TO CREATE MODELS AND PROCESSES FOR ACHIEVING: • GLOBAL ACTIVENESS • COMPETITIVENESS • EFFECTIVENESS
  109. 109. Cont’d VALUE CHAIN FOR GLOBAL COMPETITIVENESS AND HR SERVICES BUILDING CUSTOMER-RESPONSIVENESS ORGANISATION THROUGH: Innovation Faster Decision Making Price or Value Advantage Effective linking with Suppliers
  110. 110. GROWTH OF ORGNIZATION • By increasing customers • By mergers • By acquisition • By joint ventures
  111. 111. Cont’d An HR audit can be used by an organization for multiple purposes. Some of the more common reasons are: – To identify and address HR-related problems. – To seek out HR-related opportunities. – To conduct due diligence for mergers and acquisitions. – To support initial public offerings.
  112. 112. Cont’d This audit serves as an examination on a sample basis of practices and systems for identifying problems and ensuring that sound accounting principles are followed. Similarly, an HR audit serves as a means through which an organization can measure the health of its human resource function. Organizations undertake HR audits for many reasons: • To ensure effective utilization of human resources. • To review compliance with laws and regulations. • To instill a sense of confidence in the human resource department that it is well-managed and prepared to meet potential challenges and opportunities. • To maintain or enhance the organization's reputation in a community.
  113. 113. THE AUDIT PROCESS The HR audit process is conducted in different phases. Each phase is designed to build upon the preceding phase so that the organization will have a very strong overview of the health of the HR function, at the conclusion of the audit. These phases include: • Pre-Audit Information: This phase involves the acquiring and review of relevant HR manuals, handbooks, forms, reports and other information. A pre-audit information request is forwarded to the client who compiles the necessary information for review by auditors. • Pre-Audit Self-Assessment: In order to maximize the time spent during subsequent portions of the audit, a pre-audit self-assessment form, if sent to the client can be of use. The self-administered yes/no questionnaire asks a number of questions about current HR policies and practices.
  114. 114. PREPARATION FOR AN AUDIT • • • Auditor engagement: If external firm carrying out the audit, it is preferable to set terms in writing defining and agreeing on scope .If using internal resource it is better to appoint them formally with clarity on scope and select persons who are non political or those who are not high on hierarchy. Also, if internal persons are auditing there must be training in auditing. Documents, manuals, handbooks, forms and reports auditor must have access to relevant information contained in employee files and other confidential documents of the organization. Auditors must be given unrestricted access to records, once they sign agreement for confidentiality. Data gathering: Completion of a self-assessment questionnaire significantly expedites the audit process and allows for better audit planning. On-site access: The on-site portion of the audit is the most critical.
  115. 115. KEY AREAS • On-site Review: This phase involves an on-site visit at the client's facility interviewing staff regarding HR policies and practices. A very in-depth HR audit checklist is completed. • Records Review: During the on-site visit, a separate review is conducted of HR records and postings. Employee personnel files are randomly examined as well as compensation, employee claims, disciplinary actions, grievances and other relevant HR related information are checked. • Audit Report: The information gathered is used to develop an HR audit report. The audit report categorizes action needs into three separate areas. The areas that are urgent and important (UI), not urgent needs but important (NUI), not urgent but not important needs (NNI)), and important opportunities needs (IO). As a result of this scheme of classification, managements can prioritize their steps.
  116. 116. Cont’d The critical areas • The comprehensive HR audit covers all areas of HR management like recruitment practices, training and development, compensation and benefits, employee and union relations, health, safety and security, miscellaneous HR policies and practices-welfare, strategic HR issues, manpower planning/budgeting. • Besides classifying needs in each of the above areas, the HR audit also cites relevant laws, cases and research to support the recommendations.
  117. 117. How does an organization use HR audit results? Since the HR audit results are classified, an important aspect is already taken care of. Critical needs should be the first ones to be addressed. Organizations generally have three options for dealing with audit results. • Use the HR audit as a blueprint or action plan for addressing HR needs. • Address as many needs as possible using the organization's internal expertise and resources. • Contract out those need areas where internal expertise and resources are not available or do not fit in the core competencies of the organization.
  118. 118. Knowledge Management
  119. 119. Knowledge Management • Process to help organization identify, select, organize, disseminate, transfer information • Structuring enables problem-solving, dynamic learning, strategic planning, decision-making • Leverage value of intellectual capital through reuse
  120. 120. Knowledge • Data = collection of facts, measurements, statistics • Information = organized data • Knowledge = contextual, relevant, actionable information – – – – – – – Strong experiential and reflective elements Good leverage and increasing returns Dynamic Branches and fragments with growth Difficult to estimate impact of investment Uncertain value in sharing Evolves over time with experience
  121. 121. Knowledge • Explicit knowledge – – – – Objective, rational, technical Policies, goals, strategies, papers, reports Codified Leaky knowledge • Tacit knowledge – – – – Subjective, cognitive, experiential learning Highly personalized Difficult to formalize Sticky knowledge
  122. 122. Knowledge Management • Systematic and active management of ideas, information, and knowledge residing within organization’s employees • Knowledge management systems – Use of technologies to manage knowledge – Used with turnover, change, downsizing – Provide consistent levels of service
  123. 123. Organizational Learning • Learning organization – Ability to learn from past – To improve, organization must learn – Issues • Meaning, management, measurement – Activities • Problem-solving, experimentation, learning from past, learning from acknowledged best practices, transfer of knowledge within organization – Must have organizational memory, way to save and share it • Organizational learning – Develop new knowledge – Corporate memory critical • Organizational culture – Pattern of shared basic assumptions
  124. 124. Knowledge Management Initiatives • Aims – Make knowledge visible – Develop knowledge intensive culture – Build knowledge infrastructure • Surrounding processes – Creation of knowledge – Sharing of knowledge – Seeking out knowledge – Using knowledge
  125. 125. Knowledge Management Initiatives • Knowledge creation – Generating new ideas, routines, insights – Modes • Socialization, externalization, internalization, combination • Knowledge sharing – Willing explanation to another directly or through an intermediary • Knowledge seeking – Knowledge sourcing
  126. 126. Approaches to Knowledge Management • Process Approach – Codifies knowledge • Formalized controls, approaches, technologies • Fails to capture most tacit knowledge • Practice Approach – Assumes that most knowledge is tacit • Informal systems – Social events, communities of practice, person-to-person contacts • Challenge to make tacit knowledge explicit, capture it, add to it, transfer it
  127. 127. Approaches to Knowledge Management • Hybrid Approach – Practice approach initially used to store explicit knowledge – Tacit knowledge primarily stored as contact information – Best practices captured and managed • Best practices – Methods that effective organizations use to operate and manage functions • Knowledge repository – Place for capture and storage of knowledge – Different storage mechanisms depending upon data captured
  128. 128. Knowledge Management System Cycle • Creates knowledge through new ways of doing things • Identifies and captures new knowledge • Places knowledge into context so it is usable • Stores knowledge in repository • Reviews for accuracy and relevance • Makes knowledge available at all times to anyone Disseminate
  129. 129. Components of Knowledge Management Systems • Technologies – Communication • Access knowledge • Communicates with others – Collaboration • Perform groupwork • Synchronous or asynchronous • Same place/different place – Storage and retrieval • Capture, storing, retrieval, and management of both explicit and tacit knowledge through collaborative systems
  130. 130. Components of Knowledge Management Systems • Supporting technologies – Artificial intelligence • Expert systems, neural networks, fuzzy logic, intelligent agents – Intelligent agents • Systems that learn how users work and provide assistance – Knowledge discovery in databases • Process used to search for and extract information – Internal = data and document mining – External = model marts and model warehouses – XML • Extensible Markup Language • Enables standardized representations of data • Better collaboration and communication through portals
  131. 131. Knowledge Management System Implementation • Challenge to identify and integrate components – Early systems developed with networks, groupware, databases • Knowware – Technology tools that support knowledge management • Collaborative computing tools – Groupware • Knowledge servers • Enterprise knowledge portals • Document management systems – Content management systems • Knowledge harvesting tools • Search engines • Knowledge management suites – Complete out-of-the-box solutions
  132. 132. Knowledge Management System Implementation • Implementation – Software packages available • Include one or more tools – Consulting firms – Outsourcing • Application Service Providers
  133. 133. Knowledge Management System Integration • Integration with enterprise and information systems • DSS/BI – Integrates models and activates them for specific problem • Artificial Intelligence – – – – Expert system = if-then-else rules Natural language processing = understanding searches Artificial neural networks = understanding text Artificial intelligence based tools = identify and classify expertise
  134. 134. Knowledge Management System Integration • Database – Knowledge discovery in databases • CRM – Provide tacit knowledge to users • Supply chain management systems – Can access combined tacit and explicit knowledge • Corporate intranets and extranets – Knowledge flows more freely in both directions – Capture knowledge directly with little user involvement – Deliver knowledge when system thinks it is needed © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, 9-134
  135. 135. Knowledge Management Valuation • Asset-based approaches – Identifies intellectual assets – Focuses on increasing value • Knowledge linked to applications and business benefits approaches – – – – – Balanced scorecard Economic value added Inclusive valuation methodology Return on management ratio Knowledge capital measure • Estimated sale price approach
  136. 136. Metrics • Financial – ROI – Perceptual, rather than absolute – Intellectual capital not considered an asset • Non-financial – Value of intangibles • • • • • External relationship linkages capital Structural capital Human capital Social capital Environmental capital
  137. 137. Factors Leading to Success and Failure of Systems • Success – – – – – – Companies must assess need System needs technical and organizational infrastructure to build on System must have economic value to organization Senior management support Organization needs multiple channels for knowledge transfer Appropriate organizational culture • Failure – – – – System does not meet organization’s needs Lack of commitment No incentive to use system Lack of integration
  138. 138. OD – Interventions
  139. 139. Definition of Interventions • An intervention is a set of sequenced and planned actions or events intended to help the organization increase its effectiveness. • Interventions purposely disrupt the status quo.
  140. 140. Characteristics of Effective Interventions • Is it relevant to the needs of the organization? – Valid information – Free and Informed Choice – Internal Commitment • Does it transfer competence to manage change to organization members?
  141. 141. The Design of Effective Interventions • Contingencies of Change Situation – – – – Readiness for Change Capability to Change Cultural Context Capabilities of the Change Agent • Contingencies Related to the Target of Change – – – – Strategic Issues Technology and structure issues Human resources issues Human process issues
  142. 142. Intervention Overview • Human Process Interventions • Techno structural Interventions • Human Resources Management Interventions • Strategic Interventions
  143. 143. Human Process Interventions • • • • • • • • Sensitivity training Grid training Process Consultation Team Building MBO Coaching Training and Development Organizational Confrontation Meeting
  144. 144. Techno structural Interventions • Structural Design • Downsizing • Reengineering • Employee Involvement • Work Design
  145. 145. Human Resources Management Interventions • Goal Setting • Performance Appraisal • Reward Systems • Career Planning and Development • Managing Work Force Diversity • Employee Stress and Wellness
  146. 146. Strategic Interventions • Integrated Strategic Change • Mergers and Acquisitions • Alliances and Networks • Culture Change • Self-designing Organizations • Organization Learning and Knowledge Management
  147. 147. Sensitivity Training – T groups • Kurt Lewin & friends – 1946 • Development of “T group” • Stranger lab – people from different organization. • Cousin lab- same, but various departments • Family lab – “Back home” people in situations and problem
  148. 148. T group training Stranger lab: • Intentional lack of directive leadership, formal agenda and power / status. • It creates behavioural vaccum. • It facilitates rich projections from behaviour. Cousin lab: • Trainer becomes open non – defensive, empathetic and minimally evaluative way. • Feed back received about impact of other group members
  149. 149. Grid Organization Development • Activities developed by Robert Blake and Jane Mouton, which constitute a six-phase change model involving the total organization. Internal resources are developed to conduct most of the programs, which may take from three to five years to complete. 1. Managerial grid: The model starts with upgrading individual managers' skills and leadership abilities, 2. Team work development: moves to team improvement activities, 3. Intergroup development: then to intergroup relations activities. 4. Developing ideal strategic corporate model: Later phases include corporate planning for improvement, 5. Implementing ideal strategic corporate model: developing implementation tactics, and 6. Systematic critique: finally, an evaluation phase assessing .change in the organization culture and looking toward future directions.
  150. 150. Survey Feedback • Activities that rely on questionnaire surveys to generate information that is then used to identify problems and opportunities. Groups analyze the data regarding; their performance and design action plans to correct problems. 1. Data collection 2. Feedback of information 3. Follow up action
  151. 151. Process Consultation • Activities that "help the client to perceive, understand, and act upon process events which occur in the client's environment.'" . • These activities perhaps more accurately describe an approach, a consulting mode in which the client gains insight into the human processes in organizations and learn skills in diagnosing and managing them. • Primary emphasis is on processes such as communications, leader and member roles in groups, problem solving and decision making, group norms and group growth, leadership and authority, and intergroup cooperation and competition. '
  152. 152. Process consultation -Contd… 1. 2. 3. 4. 5. 6. Initiate contact Define relationship Select the setting & method Gather data & make diagnosis Intervene Reduce involvement & terminate ( look for future approach / development)
  153. 153. Team-Building Activities • Activities designed to enhance the effective operation of system teams. • These activities focus on task issues such as the way things are done, the skills and resources needed to accomplish tasks, the quality of relationship among the team members or between members and the leader, and how well the team gets its job done. • In addition, one must consider different kinds of teams, such as formal work teams, temporary tasks force teams, newly constituted teams, and cross-functional teams.
  154. 154. Life cycle of team • • • • • Forming Storming Norming Performing Adjourning
  155. 155. Stages of Group Development E X H I B I T 8–2
  156. 156. Effective teams • • • • Skills & Roll clarity Supportive environment Super – ordinate goals Team rewards
  157. 157. Team building process • • • • Problem sensing Examining differences Giving & receiving feedback Developing interactive skills – Constructive behaviour – Negative behaviour • Follow up action
  158. 158. MBO • Peter Drucker coined in 1964. • It is a comprehensive managerial system that integrates many managerial activities in a systematic manner, consciously towards effective and efficient achivement of organizational objectives”.
  159. 159. MBO – Process
  160. 160. • After appraisal • Recycling Objective setting Action planning Performance review
  161. 161. Education and Training Activities. • Activities designed to improve individuals' skills, abilities, and knowledge. Several activities are available and several approaches possible. • For example, the individual can be educated in isolation from his or her own work group (say, in a T-group consisting of strangers), or one can be educated in relation to the work group (say, when a work team learns how better to manage interpersonal conflict). The activities may be directed toward technical skills required for performing tasks or may be directed toward improving interpersonal competence. • The activities may be directed toward leadership issues, responsibilities and functions of group members, decision-making, problem solving, goal setting and planning, and so forth.
  162. 162. Coaching and Counseling • Activities that entail the consultant or other organization members working with individuals to help • (a) define learning goals, • (b) learn how others see their behavior, and • (c) learn new behaviors to help them better achieve their goals. A central feature of this activity is non evaluative feedback others give to an individual. • A second feature is the second exploration of alternative behaviors.

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