HUMAN RESOURCE PLANNING: OVERVIEW-NATURE AND NEED

Human resource planning is the process of anticipating and carrying out the movement of people into, within, and out of the
organization. Human resources planning is done to achieve the optimum use of human resources and to have the correct number
and types of employees needed to meet organizational goals.
Thus, it is a double-edged weapon. If used properly, it leads not only to proper utilization, but also reduces excessive labor
turnover and high absenteeism, and improves productivity.
It can also be defined as the task of assessing and anticipating the skill, knowledge and labor time requirements of the
organization, and initiating action to fulfill or 'source" those requirements. Thus, if the organization as a whole or one of its
subsystem is not performing to the benchmark, in other words, it is declining, it may need to plan a reduction or redeploys its
existing labor force.
On the other hand, if it is growing or diversifying, it might need to find and tap into a source of suitably skilled labor (for example:
GE, the pioneers in BPO industry went for a large scale recruitment while setting up office here in India.).

might counter while doing this process, and finally

What is the latest in HRP (HRP? yes! HRP. It is short for human resources planning! You might come across manpower

planning in some books that is how it used to be. That is why; we need to plan in advance even for procuring human resources,
which in contrast to a general myth are not abundant!! Thus, in the same line, we propose that organization can achieve its goals
effective through effective contingencies of all the HR functions; for example, the structure of an organization and the design of
the job within it affect an organization's ability to achieve only through the efforts of people. It is essential therefore, those jobs
within the organization be staffed with the personnel who are qualified to perform them. Meeting these staffing needs requires
effective planning for human resources
Lets discuss definitions of HRP as given by different experts:
Vetter opines that it is the process by which management determines how the organization should move from its manpower
position to its desired manpower position to carry out integrated plan of the organization. According to Geisler, "Manpower
planning is the process including forecasting, developing and controlling by which a firm ensures that it has

The right number of people,

The right kind of people,

At the right places,

At the right time, doing work for which they are economically most useful".

Features of HRP
Wickstrom very beautifully summarizes the features of HRP, viz.,

Forecasting future manpower requirements, where we use mathematical projections you might have studied in 'business

economics' and 'quantitative techniques' paper, to project trends in the economic environment and development of the industry.
Can you remember one such application???

Making an inventory of present manpower resources and assessing the extent to which these resources are employed

optimally. Procuring competent personnel requires positive recruitment efforts and the development of a variety of recruitment
sources. These sources must consider not only the nature and conditions of the external labor market, but also the presence of
qualified personnel who are available to fill vacancies through internal promotions or transfers. Keep in mind the recruitment
activities is integrated with diversity and equal employment opportunity initiatives. Staffing needs must be anticipated
sufficiently in advance to permit the recruitment and development of fully qualified personnel.

Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of
requirements to determine their adequacy, both quantitatively and qualitatively; and

Planning the necessary programmes of requirement, selection, training, development, utilization, transfer, promotion,
motivation and compensation to ensure that future manpower requirements are properly met.

So what do you surmise (figure out) the salient features of HRP from the various definitions?
I think:
1.

It's a systematic approach. Why??? 'cause it

ensures a continuous and proper staffing. It avoids or checks on occupational imbalances (shortage or surplus) occurring in any
of the department of the organization.

2.

There is a visible continuity in the process.

Very true!! See the Wickstrom definition.

3.

There is a certain degree of flexibility. That is,

it is subject to modifications according to needs of the organization or the changing circumstances. Manpower plans can be
done at micro or the macro levels 3depending upon various environmental factors.
Thus, we can summarize that -" HRP is a kind of risk management. It involves realistically appraising the present and anticipating
the future (as far as possible) in order to get the right people into right jobs at the right time". (Reiterating the view of Geisler).
Why HR Planning?
You know the answer!
You all must have understood the importance of planning in general. In designing an environment for the effective performance of
individuals working together in groups, a manager's most essential task is to see that everyone understands the groups purposes
and objective and its methods of attaining them. If group effort is to be effective, people must know what they are expected to
accomplish. This is the purpose of planning! It is the most basic of the managerial functions (refurbish the text on POSDCoRB!).
It bridges the gap from where we are to where we want to be. It makes it possible for things to happen which would otherwise not
happen.
Thus, in the context of Human Resources, planning is a must 'cause (here I can enumerate many! But, I expect you come up with
explanatory example for each. Right??)

Ensures optimum use of man (woman, too nowadays?) power and capitalize on the strength of HR. The organization can have
a reservoir of talent at any point of time. People skills are readily available to carry out the assigned tasks, if the information is
collected and arranged beforehand.

Forecast future requirements (this is done by keeping track of the employee turnover.) and provides control measures about
availability of HR labor time. If, for example the organization wants to expand its scale of operations, it can go ahead easily.
Advance planning ensures a continuous supply of people with requisite skills who can handle challenging jobs easily.

Help determine recruitment/induction levels. Let me explain this with an example: you as a manager want to determine what
kind of induction the organization will require at such an such date. If you have a ready HR plan, you will have fairly good idea
what kind of people are being recruited and at what position. Thus you can successfully plan your induction level.

To anticipate redundancies/surpluses/obsolescence. Remember Geisler and Wickstrom's definition??

To determine training levels and works as a foundation for management development programmes

Know the cost of manpower if there is a new project is being taken up, example: in cases of expansions or a new factory, one
would naturally requires more human resources, hence a budgetary allocation can be made in advance for this upcoming
corporate strategic move.

Planning facilitates preparation of an appropriate manpower budget for each department or division. This, in turn, helps in
controlling manpower costs by avoiding shortages/excesses in manpower supply.

Assist in productivity bargaining. For example, if a firm is going fully automated, it can negotiate for lesser workers as
required for the same amount of the job by using the manpower predictions regarding the same. It can offer higher incentives
(VRS) to smoothen the process of voluntary layoffs.

Help assess accommodation requirements (You must be wondering how that can be related to HRP? A good HRP can assist in
solving many problems of the firm, from day to day ones to very strategic ones, too.) for example: an organization decides to
establish its production center in a remote area, an accurate HR plan can help it to decide how many people will be required
there, and thus start the process of establishing a township for them in advance. The physical facilities such as canteen, school,
medical help, etc., can also be planned in advance.

Management decisions. Now!! Lets see how this can happen. Example, suppose the question is to outsource an activity or not?
An HR manager knows what is the distribution of workflow, and whether the present available staff can accomplish these. If it
is realized there is no one available for the job in question, and training cost is coming out to be more or in some cases the skill
is not going to be of much use, then such activities can be subcontracted or outsourced. Right? Is it clear?

In addition, HRP (as already pointed out) prepares people for future challenges. The stars can be picked, mentored and kept ready
for leading positions in future. All MNCs have such policies and programmes (Wipro InfoTech has a leadership development
programmes), where a "hot list" of promising candidate are assessed and assisted continuously for future management positions.
This selection is possible only through a thorough HR plan.

An organization may incur several intangible costs as a result of inadequate HRP or, for that matter, the lack of HRP. For example,
inadequate HRP can cause vacancies to remain unfilled. The resulting loss in efficiency can be costly, particularly when the leadtime is required to train replacements. Situations also may occur in which employees are laid off in one department while
applicants are hired for similar jobs in another department. This may cause over hiring and result in the need to lay off those
employees to make effective plans for career or personal development. As a result, some of the more competent and ambitious
ones may seek other employment where they feel they will have better career opportunities.
Reason for current interest and importance in HRP?
You all know the challenges the business is facing due to turbulent and hostile environmental forces (e.g. technology, social,
economic and political upheaval) impinging on single one of them.
An excerpt from a statistical report will clarify my point more.
"As per the results of the National Sample Survey conducted in 1999-2000, total work force as on 1.1.2000, as per Usual Status
approach (considering both principal and subsidiary activities) was of the order of 401 million. About 7 % of the total work force
is employed in the formal or organised sector (all public sector establishments and all non-agricultural establishments in private
sector with 10 or more workers) while remaining 93% work in the informal or unorganised sector. The size of the Organised
Sector employment is estimated through the Employment Market Information Programme of DGE&T, Ministry of Labour. The
capacity of the organised sector to absorb additional accretion to the labour force, taking into account the current accent on
modernisation and automation, is limited.
In other words, an overwhelming proportion of the increase in the labour force will have to be adjusted in the unorganised sector.
About 373 million workers are placed today in unorganised/informal sector in India; agriculture workers account for the majority
of this work force.
Total Labour Force as on 1.1.2000

410 million

Total employed labour force

401 million

as on 1.1.2000
Growth of labour force

1.10 % p.a.

during 1994-2000
Growth of employment

1.05 % p.a.

(1994-2000)
Fully unemployed as on 1.1.2000

9 million

About 41 million jobs seekers (all of them not necessarily unemployed) are registered with the 938 Employment Exchanges
located throughout the country. 72% of the job-seekers registered with the Employment Exchanges are less than 30years of age..
Educated (X standard and above) job seekers constitute about 69% of the total job seekers registered with the employment
exchanges.(contd)
A few important conclusions which emerge from the above report are: Limited demand for unskilled and less skilled labour.

Increase in demand for skilled labour on account of technological development and up gradation and changes in the
organisation of work

Problems in maintaining the continued employability of labour force remember this!

Demand for multi skilling. Some of the important strategies recommended in the World Employment Report are:- Timely
Investment in skill development and training at enhanced level. (Can you link this to an organisation's or an industry's HR plans??)

Enhancement of education and skill level of workers

Responsive training system.

Need for effective partnership of all stakeholders. Take this into account too!!

In addition, decline in the employment growth in the organized sector and its shrinking size in absolute terms, liberalization
induced restructuring exercises by the firms, in both public and private sector, and their introduction of so-called innovations, like
Total Quality Management, Just-in-Time manufacturing, production flexibilities etc., resulting into casulisation of workforce, and
the growth of poor quality employment in the unorganized sector, have posed unprecedented challenges to the Indian businesses.
(point to ponder: what does an organization do in this case, if it is going to need certain class of labor in near future??)
Excerpts taken from: Now you see, what the industry might be facing? These dramatic shifts in the composition of the labor force
will require that managers be more involved in HRP, since such change affect not only employee recruitment but methods of

employee selection, training, compensation, and motivation. Although planning has always been an essential process of
management, increased emphasis on HRP becomes especially critical when organizations considers mergers, relocation of plants,
downsizing, or the closing of operating facilities (which you all keep reading, is the character of the modern times).
Major reasons for the present emphasis on manpower planning include:

Employment-Unemployment Situation: Though from the above excerpt we can construe that in general the number of
educated unemployed is on the rise, there is acute shortage for a variety of skills. This emphasizes the need for more effective
recruitment and retaining people.

Technological Changes: The myriad changes in production technologies, marketing methods and management techniques have
been extensive and rapid (e.g.. introduction of HRIS). Their effect has been profound on job contents and job contexts. These
changes cause problems relating to redundancies, retraining and redeployment. All these suggest the need to plan manpower needs
intensively and systematically.
Organisational Changes: In the turbulent environment marked by cyclical fluctuations and discontinuities, the nature and pace of
changes in organizational environment, activities and structures affect manpower requirements and require strategic
considerations.
Demographic Changes: The changing profile of the work force in terms of age, gender participation, literacy, technical inputs
and social background have implications for manpower planning. The workforce is more diverse than ever before. And the trend
shows it is going to be on the rise even more!!
Skill Shortages: Unemployment does not mean that the labor market is a buyer's market. Organizations have in general become
complex and thus, in turn require more specialist skills that are rare and scarce. The result is more dependency on the
professionals. Thus, problems may arise when such people if they are employees decide to leave or switch to more lucrative
employment or if they are freelancers decide to shift their business somewhere else. Please note that these are example of
implications of what is most happening in the business world today.
Governmental Influences: Government control and changes in legislation with regard to affirmative action for disadvantaged
groups, working conditions and hours of work, restrictions on women and child employment, casual and contract labor, etc. have
stimulated the organizations to become involved in systematic manpower planning.
Legislative Controls: The days of 'hire and fire' policies are gone. Now legislation makes it difficult to reduce the size of an
organization quickly and cheaply, especially in the presence of strong politicalised trade union scenario in India. It is easy to
increase but difficult to shed the fat in terms of the numbers employed because of recent changes in labor law relating to lay-offs
and closures. Those responsible for managing manpower must look far ahead and thus attempt to foresee manpower problems. .
Impact of Pressure Groups: Pressure groups such as unions, politicians and NGO's displaced, from land by location of giant
enterprises have been raising contradictory pressures on enterprise management such as internal recruitment and promotions,
preference to employees' children, displaced persons, sons of the soil etc. remember
the ASSAM TEA case!!!!!
Systems Concept: The spread of systems thinking, the advent of the PC's and the upsurge of people management concept which
all emphasize the planning and having common and transparent personnel records.

Lead Time: The long lead-time is necessary in the selection process and for training and development of the employee to
handle new knowledge and skills successfully.

Thus, HRP is all the more imperative. One needs to think strategically, to be ahead of others in acquiring human resources. Hence
we can now easily come to a conclusion on why HRP is necessary? An attempt to look beyond the present and short-term future,
and to prepare for contingencies, is increasingly important. Some manifestations of this are outlined below.
Jobs often require experience and skills that cannot easily be bought in the market place, and the more complex the
organisation, the more difficult it will be to supply or replace highly specialized staff quickly. It takes time to train and develop
technical or specialist personnel (say, an airline pilot or computer programmer), so there will be a lead-time to fill any vacancy.
The need will be have to be anticipated in time to initiate the required development programmes.
Employment protection legislation and general expectations of 'social responsibility' in organizations make staff shedding a
slow and costly process. The cost must be measured not just in financial terms (redundancy pay and so on) but in loss of
reputation as a secure employer and socially responsible Organization. This, in turn, may make it more difficult to recruit labor
in times or skill areas where it is required -and may even alienate customers and Potential customers.
Rapid technological change is leading to a requirement for manpower which is both more highly skilled and more adaptable.
Labor flexibility is a major issue, and means that the career and retraining potential of staff are at least as important as their

actual qualifications and skills. They must be assessed in advance of requirements. (In fact, 'train ability' as a major criterion for
selection is one of the most popular innovations of the HRM era of personnel management.)
In term of international markets, the scope and variety of markets, competition and labor resources are continually increased by
political and economic moves such as the unification of Germany, the opening of Eastern Europe and continuing progress
towards European union.
Computer technology has made available techniques which facilitate the monitoring and planning of manpower over fairly
long time spans: manipulation of manpower statistics, trend analysis, 'modeling' and so on.
From the above discussion we get to the following conclusion.
'Manpower planning has maintained its imperatives for several reasons: (i) a growing awareness of the need to look into the future,
(ii) a desire to exercise control over as many variables as possible which influence business success or failure, (iii) the
development of techniques which make such planning possible.'
Levy, Corporate Personnel Management

This lesson deals with planning for the human resources that you all prospective organizers will need in the future!! In
earlier lessons, we have stressed that everything and everyone is a part of a bigger system, that is, they are interrelated and
interdependent. Any discussion on the description of Human resources planning must, therefore, begin on a level one step higherwith the overall strategic plan of the organization. What I want to stress is going to be summarized as follows:
So lets refurbish the last semester's knowledge in a capsule manner!!
Shall we?
Strategic planning can be defined as the process of identifying organizational objectives and the actions needed to achieve those
objectives. It involves analyzing such areas as finance, marketing, and even human sources to determine the capacities of the
organization to meet its objectives.
"It involves devising a picture of how the organization will look in three or five years time, and how it can reach that state during
that time period. Common items for consideration include, for example: Anticipated financial situation (turnover, gross and net
profit, return on investment); intended product markets and market share; Desired output and productivity; Changes in location
and opening of new plants or outlets; employee numbers." -Penny Hackett, Success in Personnel Management
Thus human resource is one element of the overall corporate strategy or plan, and the two are mutually inter-dependent. If the
corporate plan envisages a cut in output, for example, or the closure of a particular plant, then the human resource plan will need to
consider redeployment of staff, redundancies and so on. If the corporate plan specifies a move into a new product market, the
human resource plan will have to source the required labor from outside or within the organization, through recruitment or
training.
You will understand this more from a real live Example:
Example: Wipro InfoTech: You see 3-4 years back when the concept of SAP and CRM had emerged strongly, Wipro too decided
to implement SAP. So it formed a team of its own employees selected from each functional department, trained them from Siemen
and with the help of SAP consultants, the team designed and implemented the same. So you see, the organization decided to recruit
internally. This way the skill remained within the company and the same team after the initial phase of design trained all the rest of
the employees (in batches) on how to use this system. After the system was implemented fully, the team was disbursed and
reassigned roles. Only a few remained as a troubleshooting team.
But you as student should keep in mind that the availability of labor resources in turn, can act as a constraint on, or spur to, the
achievement of corporate goals. If there are skill shortages and employees cannot be recruited, plans for expansion may have to be
curtailed. The availability of multi-skilled or expert teams, on the other hand, my inspire innovative strategies for growth and
change. So you get the concept of organization being systemic in nature!
Some of the links between business strategy and human resource planning are illustrated in the below Table.
Business

HR implications

What business are we in? What people do we need?

Culture and value system How do you change?
Appropriate
Who will we need in future?

Inappropriate

What systems and procedures

might be developed?
How far related to existing
use of (e.g. skills base)
Strategic direction
New businesses New markets
Strengths
HR?
Weaknesses
Opportunities market?
Threats
Critical success factors

How far do these depend on employees, rather than other factors?

This, I think you already know. Let us understand the relationship with the help of a diagram.

The process of strategic planning can be thought of as circular in nature. Figure below shows, the process begins with identifying
and recognizing the philosophy and mission of the organization.

You do need to know that the first step in this process addresses the most
Fundamental questions about the organization:

Why does the organization exist?

What unique contribution does it make?

What

are

the

underlying

values

and

motivations of owners and key Managers?

Once you identify the philosophy and mission of the organization, the next thing you require analyzing the environment in
which the organization exists. This scanning is especially important when rapid changes are occurring, such as in the last
several years. Remember the advent of the dot.com era.
Now, when the philosophy and the mission are clear to us, we need to scan the environment in which the organization desires to
exist or already exist. HR managers do need the results of

Who are the competitors? What recruiting approaches are

environmental scanning. For example, some question might

T

be:

competitors currently using to attract scarce specialties? How are

competitors using different welfare and motivational programs, example housing societies, stock options? Will a new product
under development require more number to produce the same and that to with different knowledge and skills? Answers to these
questions illustrate that HR managers must be able to predict what capabilities employees will have, to implement the business
strategy.
Thus such external environmental factors, that is, workforce patterns and conditions, social values and lifestyles, and
technological developments are considered.
If you have completed this step, lets us proceed to the next step.
But you all know that external and internal factors are equally important to provide a composite view. Thus, in the light of the
existing as well as impending external forces, an internal assessment is made of what the organization can do before a decision
is reached on what it should do.
Internal strengths and weaknesses must be identified in light of the philosophy and culture of the organization. In HRP context,
relevant factors to be considered will be current workforce skills, retirement patterns, and demographic profiles of current
employees and similar items that relate to human resource capabilities.
The purpose is to forecasting organizational capabilities and future opportunities in the environment to match
organizational objectives and strategies. The development of strategies and objectives often is based on a SWOT analysis,
which examines the strengths and weaknesses of the organizations internally, and the opportunities and threats externally.
(Remember???)
The purpose of the SWOT analysis is to develop strategies that align organizational strengths with opportunities externally, to
identify internal weaknesses to be addressed, and to acknowledge threats that could affect organizational success. Returning to
our examples, do a SWOT of your own profile as well as the foundation.
The final step requires developing specific plans to identify how strategies will be implemented. Develop the specific plans of
each example. Details of the plans will form the basis for implementation and later situational contingencies and modifications.
Now you know, what you need to do for the best of placement or rather fulfill your mission in life!!!!! The two sets of plans will
be discussed in the class.
Like all plans, the HR plans need constant monitoring, adjustments and periodical updating to keep up with the dynamic internal
as well as external environmental forces. What do you think could be the factors hindering or speeding you progress as planned??
Remember, the force field analysis. Thus, now you have a clear understanding how strategic planning process is circular.
This can understood in the following manner too.
Here you find the relation more clear. We have the overall corporate strategy that enables the strategist and the HR manager to
formulate the HR objectives. This in turn, give the base to the manager to plan out the annual HR related programmes broadly,

like labor requirements, recruitment, selection etc. This is further detailed into stepwise and time bound operational plans, such as
whether it would be internal recruitment or external, when will the selection start, do internal recruitees need to be trained for the
proposed project (depending upon the corporate strategy). It is only when the HR plans are accurately converted into
"implementables" that is, into the operational plans that the success is sure to come.
Last but not the least, to remain alive and performing, the feedback cycle is a must at every stage. You will observe that all the sub
systems here are interrelated and interdependent.
Organizational Strategy and Human Resources
The most prevalent practice in the business world you will observe is to develop business strategies based on the areas of strength
that an organization has. Hamel and Prahalad, the creator of the concept of core competencies opined that it is core strength that
gives the competitive advantage or an edge to an organization. "A core competency is a unique capability in the organization that
creates high value and that differentiates the organization from its competition."
Human Resources as a Core Competency It is certain that organizations' human resources differentiate them from their
competitors. Many organizations enhance its value in the business and create an edge by focusing on the human resources.
Organizations, which follow this principle, are as diverse as Federal Express, Shoppers' Stop, and Infosys, Tata group, CNBC.
"The sig-nificance of human resources as a core competency was confirmed in a study of 293 US firms. The study found that HR
management effectiveness positively affected organizational productivity, financial performance, and stock market value."
But at this stage you might put up a question on how to bring out an organization core competency. Some ways that human
resources become a core competency are through:

Attracting and retaining employees with unique professional and technical capabilities,

Investing in training and development of those employees, and

Compensating them in ways that keep them competitive with their counterparts in other organizations.

I came across a very beautiful instance, which I will share with you that shows the value of a human resource.
Several years ago, United Parcel Service workers went on strike. In offices around the country, customers feared that the brownshirted UPS drivers, whom they had grown accustomed to, were not working. Fortunately for UPS, its drivers, and their customers, the strike was settled relatively quickly.
An-other illustration: Smaller, community-oriented banks have the people advantage over the bigger and more technology driven
banks. And this led to more business. The reason being as many customers have opined, "you can talk to the same person," rather
than having to call an automated service center in another state. This is the power of people!!
Resource-Based Organizational Strategies

Now let's find out if one has an in depth knowledge of the existing human resource, (remember the internal and external
scanning?) how it helps in formulate appropriate strategies. There has been growing recognition that human resources
contribute to sustaining a competitive advantage for organizations. Jay Barney and others have focused on four factors that are
important to organizational strategic accomplishments. Those factors, called the VRIO framework, are related to human
resources as follows:

Value

Rareness

Imitability

Organization

What do each stand for?

1.

Value: Human resources that can create value.

Who are these people?? Such people do not when in external and internal threats and opportunities. Thus they tend to be better
and objective decision makers and since they can easily handle all stresses, they are more creative.
2.

Rareness: how unique is the human resource

available in the organization that is, the special capabilities of people in the organization. This can be developed and preserved by
the organization itself by providing requisite training and development, so that they stand out from the rest. The moment one
organization wins the image of having and promoting individual development, it will automatically attract and retain employees
with scarce and unique knowledge, skills, and abilities.
3.

Imitability: It is strategically important to have

a unique set of Human resources, one that no one especially a competitor can easily imitate.

Southwest Airlines, Disney, and

Marriott Corpo-ration each have created images with customers and competitors that they are different and better at customer
service. The cut and paste system in HR culture doesn't work.
One needs to start afresh to get the edge in HR and this is possible on when the corporate culture and objective include these
factors. Remember, an organization is a system comprising of subsystems; so if there is change anywhere, it affects the rest!
4. Organization: The last but not the least, human resources must be organized in order for an entity to take advantage of the
competitive advantages just noted. This means that the human resources must be able to work effectively together, and have HR
policies and programs managed in ways that support and encourage the same, so that the people working in the organization have
a clear contingency between their effort and the rewards and other HR policies This will automatically reinforce the desired
behavior!!!!
Thus we can conclude that VRIO framework provides a foundation for HR management where people are truly seen as assets, not
as expenses. It also means that the culture of the organizations must be considered when developing organizational and HR
strategies.
This for your further understanding the relationship between corporate environment and formulation of an HR strategy.
Organizational Culture and HR Strategy
"Organizational culture is a pattern of shared values and beliefs giving mem-bers of an organization meaning and providing
them with rules for behaviour." These values are inherent in the ways organizations and their members view themselves as, define
opportunities, and plan strategies. Much as personality shape an individual, organizational culture shapes its members' responses
and defines what an organization can or is willing to do. Refer to your OB course!
The culture of an organization is seen in the norms of expected behaviors, values,
Philosophies, rituals, and symbols used by its employees. Culture evolves over a period of time. The more the people share the
same experiences and practice stronger and dominant is the culture; and hence there will be more stability.
A relatively new firm, such as a business existing for less than a year, probably has not developed a stabilized culture.
"Managers must consider the culture of the organization to develop more compatibility between the strategies and the culture. If
there is high compatibility, the strategies hold a better chance during implementation. Numerous ex-amples can be given of key
technical, professional, and administrative employees leaving firms because of corporate cultures that seem to devalue people and
cre-ate barriers to the use of individual capabilities. In contrast, by creating a culture that values people highly, some corporations
have been very successful at attracting, training, and retaining former welfare recipients."-Mathis and Jackson.
Organization/Industry Life-Cycle Stages and HR Strategy
The culture of an organization also affects the way external forces are viewed. One culture can view one event as threatening
whereas another culture views risks and changes as challenges requiring immediate responses. You can go back in history to
support this phenomenon such as liberalization of Indian market. Different companies had different reaction. Take inclusion of
different professional services under the service tax slab. (Refer to news dated 9/12/03). The cultures, which view each
development in the environment as a challenge, are the one to survive and exploit the opportunity. Thus this gives them a
competitive advantage, especially if it is unique and hard to duplicate. This is especially true as an organization evolves through
the life cycle in an industry.
Each organizations in an industry go through an evolutionary life cycles, and the stage in which an organization finds itself in an
industry affects the human resource strategies it should use. &

For example, the HR needs of a small, three-year-old high

technology software firm will be different from those of Infosys or NIIT. The relationship between the life cycle of an
re
O organization and HR management activities is profiled in
g Embryonic. High risk and entrepreneurship pervades this N stage. Since there is a limited finance available, everything is
done on a need base. For example the recruitment method chosen will the cheapest of all. The aim is get the best out the least.
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more

market

factors.
problems

correlation.

Thus
The
because
Exten-sive

efforts

are

put

increasing

demands.

investment

in

in

to

Thus

counter

forthcoming

here

will

competitive

planning

facilities.

all

organization

recruitment,

career

operation

in

and

Planning

is

look

pay

development,
of

problems

of

for

more

packages,
and

utmost

investing

marketing
importance

and

here

at

this stage
One thinker has very aptly put it- " It is also important to have HR plans, and planning processes, rather than just re-acting to
immediate pressures."
2.Shakeouts-

This

stage

is

whereas

some

will

survive

vanish

from

the

competition

planning.

There

merger

with

chance

to

and.

the

as

illustrate

how

the
The

has
by

of

in

rest.

It
service

attracted

many
a

is

hefty

going
providers

will

valuable
and

be
human

luxurious

this

last

by

such

and

this

in

Yahoo
the

forth-

of

the

rest

or

scenario

versus
to

to

businesses

providers
times

MNTL

decide

Internet

current

and
strategic

exploit

in

see

the

providers.

to

India
can

ground

may

service

Microsoft,

best

devising

ones

growth

proper

who

growth

You

lose
lack

company

Internet

occur.

service

to

successful

rapid

will

due

explosive

happening

versus

competition.
force

The

shakeouts

years

Reliance

and

Rediffusion,

telecommunication
Reliance

bigger

by

some

some

consolidations

firms

and

be

earn.

the

coming

will

characterized

the
a

one

hell

shakeout
resources
compensation

of

the

a
rest.

in

its

plans

and

policies. Competition is tough!!!

But the cost has to be monitored and balanced through proper mix of short and long-term incentives. Thus HRD is focused on
high potential ones. Talk of talent management!!!! (A very
invigorating article can be read in INDIAN MANAGEMENT, a
journal published by AIMA.)
3.

Maturity- The main feature of this stage is

STABILITY. Size and success enable the organization to develop even more formalized plans, policies, and procedures. HR
activities seem to expand whether you talk of rewarding the employees through compensation, career development, or HRD.
Compensation programs become a major focus for HR efforts, and they are expanded to reward executives as well. Like the
Eischers, Godrej, the Tatas.
4.

Decline- The organization in the decline stage

faces resistance to change. For example, in India the textile industry firms had to reduce their workforces, close plants, and use
their accumulated profits from the past to diversify into other industries in 1980s and 1990s. Therefore you will observe when you
closer and study these firms that some tried hard to revive its operation through technological and productivity -enhancement and
different cost-reduction programs. Going back to our example workers reacted in case of close downs and layoffs, by trade union
activities. But then, many a times shut down are imperative thus it does lead to attrition. But better practices to be followed as in
the case of banks, is providing the VRS schemes.
This was a really enlightening study. But the question must be arising in your mind why are we discussing this? 'Cause we need to
understand where one firm stands in the evolutionary stage to formulate the right kind of strategies.
Linking Organizational Strategies and HR Plans
Thus, we may conclude from this detailed reading that strategic planning must include planning for human resources to carry out
the rest of the plan.
We already have an idea how a business strategy can mould HRP. Lets us conclude this with an example. Suppose, a large bank
like the Standard Chartered or Citibank want to be the market leader in India and abroad. Since today's world is characterized by
boundary less business, it can start by plans, which focus on two main issues:
(1)

To adopt a global focus and

10

(2)

To improve service. (What do you think they

would do to accomplish this?)

An organization can use basically two kinds of strategies. They are:
(1)

Cost-leadership and

(2)

Differentiation.

Hence each strategy evolves certain HR needs and to fulfill these needs different approaches are available. A contingency needs to
be developed for the best fit. For instance, the first strategy may be appropriate in a relatively stable business environment. It
counters competition through its low price and high quality of product or service. The cost-leadership strategy requires an
organization to "build" its own employees to fit its specialized needs. This approach requires a longer HR planning horizon. When
specific skills are needed for a new market or product, it may be more difficult to internally develop them quickly

11

But if the company faces a dynamic- turbulent and hostile

environment characterized by constant changes then the second

>
z
R

r
e
strategy will be more apt. For example, the software industry. Then one
needs to be more proactive and innovative and thus keep searching for
new products and new markets. Keep in mind that the two are not
mutually exclusive, be-cause it is possible for an organization to pursue
one strategy in one product or service area and a different one with others.
In contrast to the cost leadership strategy, here the HR planning is likely
to have a shorter time frame, and greater use of external sources will be
used to staff the organization.
Thus from the discussion, we can conclude that HRP and

-----------------------

Corporate planning become effective when there is a reciprocal

and interdependent relationship between them. As, James

Walker, a noted HRP expert, very aptly have put it, "Today,

virtually all business issues have people implications; all human

resource issues have business implications."

12

LESSON 3:
HUMAN RESOURCE PLANNING:
HR Planning
PROCESS, METHODS
AND
Process
TECHNIQUES

>z
R

re c/a O
Learning Objectives

70

The Process of Human Resource Planning

n re c/a
p

Forecasting

r-

nature,

factors,

techniques and approaches

>ZZ
Z

Demand

Forecasting

Supply:

techniques

2=

nature,

Determining

Manpower Gaps
Barriers to HRP
Managers follow a systematic process or a model when planning for

Suggested readings
We have already touched on this earlier in the first
lesson. All expert agree on one thing that there is
no fixed or standard procedure as such, but a
general outline that has to be kept in mind while
planning for human resources.
Keith Davis has rightly pointed out, "An
organization should identify their short-run and
long-run

employee

needs

examining

their

corporate strategies". This statement helps us

understand that one should always adopt a
situational approach to be more effective. Another
most important conclusion (that I keep insisting!!)
is that it is the corporate strategies and objectives

You as the student at the end of the lesson, should

be able to:
a. Discuss the reasons for formal human
resource planning.

planning

process

(as

discussed in class). Understand what goes into

each

step

of the planning process.

planning begins with considering the organizational objectives and

strategies. Then both external and internal assessments of HR needs
and supply sources must be done and forecasts developed. Key to
assessing internal human resources is having solid information,
which is accessible through a human re-source information system
(HRIS).
Once the assessments are complete, forecasts must be developed to
identify the mismatch between HR supply and HR demand. HR
strategies and plans to ad-dress the imbalance, both short and long
term, must be developed.

the various kinds of plans that one can construct which tend to put a
boundary on the exact steps to taken. For instance, an organization
can have:
Company level plan

methods

Job level
This is in contrast to the
National level plan
Sectorial level plan
Industry level plan,

available

for

forecasting demand
for human resources.
d.

13

touched on this when doing the lesson 2. The process of the HR

Departmental level plan

b. Describe the steps involved in the HR

the

You will notice that the process is familiar to you. We have already

Before we outline the broad step in HRP, it is thus important to view

that set a planning horizon.

c. Recognize

HR. the following figure will illustrate the same.

which are handled by the respective governments of the country.

These last three plans provide an environmental constrain on the
first three if you go by environmental factors we discussed in the
earlier lesson. Similarly one has long-range plans and short range

Describe the options available for follow-up

plans. The long range plans go side by side with the corporate

action. Understand when each option is

strategic planning, such as planning for five-ten years hence;

appropriate.

whereas the short range plans point out job openings must be filled

over a
oneyear
time
frame.
Anothe
r
import
ant
questio
n

that

comes
to
mind is
who is
respon
sible

Let us now discuss each element separately. In each

part we will cover the following:

hn

Full

iq

time

Human Resources Planning Model

ue

Part-

The Human Resource Division in consultation

with other corporate heads usually prepares the

summarize

plans. The responsibility and accountability for

manpower

manpower aspects of various divisions is on their

keeping

al

gro

data

wth

long-run

respective heads. They should undertake their

objectives and broad

Ma

own appraisals of future needs in such a way as to

organizational

nag

provide a concrete basis for organization-wide

interests in mind.

em

forecasting and planning. The Human Resource

ent

Division must offer counsel and advice to various

measure performance

divisional heads and coordinate the various

against the plan and

los

manpower estimates from time to time. Prof.

keep top management

oph

Geisler outlined the responsibilities of Human

informed about it.

Resource Department in respect of manpower

planning thus:

for

this
proces

and

Monitor

Provide

research

and

effective

and set objectives.

and

for

manpower

ves are
respon
sible
for
manpo
wer
plannin
g, as it
is one
of the
import
ant
factors
influen
the
success
of

an

organiz
ation.

14

REDUCTI

ONS

( SURPLU

S)

Layoffs

Retirem

ent

FORECA

ST

PP

SUPPLY

INTER

NAL
A Staffing

tables

Markov

analysis

Skills

inventorie

Managem

ent

inventorie

Replacem

ent charts

UI

Successio

n planning

key

NS

elements of the process

ID

are

ER

AT

demand for labor,

IO

NS

analysis, and

tre

Pr

nd

demand considerations.

od

ana

A careful attention given

uct

lysi

to each step is beneficial

/se

to top managers and

rvi

Ma

EXTERN

supervisors to meet their

ce

requirements.

nag

AL

staffing

de

eria

Demograp

Each of these elements

ma

hic

can be blended with the

nd

(S

esti

changes

mat

Education

Or

of

ga

workforce

niz

Del

Labor

ati

phi

mobility

on

tec

Governme

E)

nt policies

the

three

Forecasting

the

Performing a supply
Balancing supply and

overall process in the

following manner.

cing

Recalls

Thus,

executi

organizational

planning.

level

phi

proper

base

Assist and counsel operating managers to plan

s.
Top-

time

Collect

demand
Once

the

a. The approach of how

>

Corporate

strategy

and

based-

objectives

are

qualitative

re

clear, estimates of

qualitative,

c/

demand

supply

made
help

the estimation are to be

important

Forecasting demand
A key component of HRP
is forecasting the number
and

type

of

people

be

considered, whether we

with

the

organizational objectives.

are

projecting

Since it's an open system

wastage or redundancy

that we exist in, a variety

or

or

of organizational factors,

or

including

com-petitive

strategy,

technology,

of

certain
and
When

formulated,

the

labor

costs

absenteeism
labor turnover,
c. Frequency

of

the

difference
SLong Range

needed

to

meet

structure,

and

determined. This
difference

is

Manpower

exercise

productivity

can

rate of changes and

labor.

human resources

matching estimations),

utilization of advanced

planning

and finally,

tech-nology is generally

d. Specific techniques to
adopted

depends

different

(this

upon

the

For

example,

accompanied

by

less

demand for low-skilled

workers

and

more

which

approach adopted) such

demand for knowledge

we will discuss

as time series analysis,

workers.

later in this lesson

markov

Let us consider few of

only which result

analysis,

in

techniques, work load

can

manpower gap.

analysis,

demand

One thing, which

study

you

should

analysis etc.

consider

before

strategies

filling

beginning
process

the

the
of

forecasting:
Always decide on

15

forecasting

be

The

probability
work
analysis,

moment

decided

For

the

example,

liberalization, opening up of banking

sector, capital market reforms, the online trading systems have created huge
demand
during

for

finance

1990-1995

professionals

in

India.

The

demand for certain categories of

employees and skill is also influenced
by changes in political, legal and
social

structure

in

firms

an

economy.

employing

latest

software

etc.,

have

last

couple

of

years.

edged weapon and hence, its

behind

are

and

Technology, however, is a double-

purpose

There

changes,

Competition.

the

influence the demand for

close this gap!!

technical

technicians and engineers during

(that is, dealing with:

to

and

greatly enhanced the worth of

gap. The whole

is

developments, Political, legal, social

automobiles,

termed as known
as

Economic

technology in construction, power,

Inventory by
occupational
categories
skills,
Demographic
characteristics

between them is

sources

Likewise,

Net New Human

Resource
Requirement
Leading to action
plg. For
Recruiting &
Selection Needed
personnel

Objectives &
Plans

l.External environmental challenges

These challenges arise from three

can

each projection is

forecasting.

b. Basic factors to be

methods.

supply

and

approaches

or

and

you

upon

job

the main factors, which

help

us

forecast

of

human

resources

in

an

organization.

We

can

categories

the

have

easily

these

factors in three different

sources

smooth

viewed clearly from the

towards

predict.

For

computerization
Banks,

example,
programs

Railways,

Post

in
and

Telegraph Departments may reduce

demand in one department (book
keeping,

for

example)

while

increasing it in another (such as

computer

operations).

High

technology with all its attendant

parameters, and then it's a

sail to

impact on HR plans is difficult to

that

following slide.

can

be

benefits may compel organizations

to go lean and downsize workforce
suddenly. Employment planning
under such situations

becomes

complicated.
External factors such as business
cycles-economic and seasonal trendscan also play a role. The Internal
Revenue Service, for &

example,

relies heavily on temporary employees

between

Ja

islute results. The

fr ever-

progressing

smoothly

(e.g.,

ua eq g changing

Infosys

organization's

trends in technological advances

financial resources

and so on.

Technologies, Proctor &

b.I

across

c. Workforce factors: Demand is not

come

ry ue environment

in

Gamble, CIPLA, etc)

another example for

only influenced by the above factors

an nt which

an

will always look for

so that you get the

but by the internal in and out flux of

people

point

the employees through retirements,

skills.

clearly!! If Britannia

terminations, resignations, deaths and

a. Organizational

Industries

leaves of absence, etc. These actions

decisions: HR planning

Expects

higher

needs

demand

for

predictable, once you spend more and

account the rest of the

biscuits and bread, the

more time with the organization or a

long-term

plan

certain industry. The above factors will

must take this into

affect how much labor will be

ly organization

A m operates
pr or N contributes
il

to

e this problem.

with

critical

Ltd.

by

employees

become

fairly

w an

Companies

he ar

operating

fields where a

organization's

ta th

large

plans,

of players are

production forecasts and

consideration.

required,

re a

bent

upon

new ventures to be more

Likewise, if it tries to

productivity or work rate of different

tu sc

cutting

each

accurate.

venture

types of employee and the expected

rn ie

other's

throat

For example, estimat-ing

lucrative

volume of business activity. Note that

(with a view to

changes in product or

fields such as milk-

productivity will depend on capital

ar e,

enhance

service demand is a

based

expenditure,

market shares)

basic

confectionary

re ov

often

concern, as is antic-

the

ce id

their

ipating

changes

demand

iv in

workforce.

national

or

ed g

Competition is

fo

beneficial

in

t
an

nc
pr

in

number

their
reduce

to

take

into

strategic

sales

and

forecasting
in

HR

into

other

products,
items

given

the

technology,

expected

work

organization, employee motivation and

skills, negotiated productivity deals

for

people

and a number of other factors.

requisite

Thus, the cost of existing labor -

economics. This enables

skills in those areas in

including overtime, training, benefits

the planning expert to

the next couple of

and so on, will put a financial

customers but

forecast

years

constraint

pr ex

suicidal

production

oc ac

companies

es t

operating

si ap

thin

Such

pr

g. ox

to
for

and
on

margins.

companies

have

necessarily

ati

gone lean' by

on

reducing their

workforce

ra

(e.g.,

th

GE, Tisco etc.)

er

On the other

th

hand,

an

companies that

ab

are doing well

so

and

16

Wipro,

regional

the

requisite
schedules

thereby

estimate

possessing

should

be

on

the

organization's

looked into carefully.

manpower levels.

Furthermore,

There are two approaches to HR

where

extra

plans are changed, the

demand

workforce is needed in

effect of the changes

and qualitative. When concentrating

future.

must

be

estimated.

on human resources needs, forecasting

A community hospital

Proposed

expansion,

is primarily quantita-tive in nature

can antici-pate internal

contraction

changes in technology,

diversification of the

accomplished

organization,

or

organization's

special-ists. Quantitative approaches

administration

to

activities

whether

any

or

will

and,

to

in

forecasting: quantitative

large

organizations,

by

highly

forecasting

is

trained

can

employ

analytical

models,

staffing

obviously affect the

sophisticated

needs, like Max health

demand for labor in

although

care is right now into

general

for

informal as having one person who

while

up

particular skills. This

knows the organization anticipate

operations at Gurgaon

may be estimated by

future

near Delhi. But then

market

Organizational

these are workable only

competitive analysis,

forecast

of

setting

if they are within the

or

research,

forecasting

HR

may

be

as

requirements.
demands

will

ultimately determine which technique

is used. Regardless of the method,

ve forecasting

trend analysis. Second, plot

these forecasting methods

growing family dining

planners

n involve the use of

a historical trend of the

used to be quite high,

chain, each restaurant

many

in statistical

business factor in relation

advances in technology

manager is responsible

times

re mathemat-ical

to number of employees.

and computer software

for

further and

lat techniques;

they

The ratio of employees to

have

forecasts.'

iv are

ap-

the business factor will

sophisticated forecasting

Another

el proaches used by

provide

more affordable to even

forecasting method, the

the

y theoreticians and

ductivity ratio (for example,

small businesses.

Delphi

of

s professional

sales per employee). Third,

Qualitative Approaches

attempts to decrease the

following:

m planners.

compare the productivity

In contrast to quantitative

subjectivity of forecasts

a.

ratio for at least the past

approaches,

by involving a group of

all One example is

or trend analysis,

five years. Fourth, calculate

approaches to forecasting

preselected

ga which

human resources demand

are

and

ni employment

by dividing the business

attempting to reconcile

summarizing

factor by the productivity

the

judgments. Thus a group

za require-ments on
ti the basis of some

ratio.

and

on organizational

human resources demand

individual

s. index and is one

out to the target year.

with

Q of

most

Remember your business

future staffing needs of

process

u commonly

used

economics

an organization. In both

enhance

a approaches

for

Apply all of its knowledge

large

and

small

and

nt projecting

HR

here. It's an Opportunity!!

organizations,

HR

it demand.

Other, more sophisticated

planners may rely on

This method works best

at Following several

statistical planning methods

experts who assist in

in

iv steps

typically

include

or

preparing

dynamic

e does

trend

predictive

anticipate

n
o
t
b
e
n
e
g
l
e
c
t
e
d
,
e

17

or

the

forecasts

the

labor

Finally,

pro-

project

classes???

modeling

multiple

rather

qualitative

less

statistical,

interests,

abilities,

qualitative
technique,

individual

soliciting

and
the

of

decision-making process

employees

is invoked which in turn,

aspirations
the

analyze the

current

and

forecasts

to

staffing

requires a great deal of

orientation

to

coordination

cooperation

satisfactory

for

forecasts.

situation

where

technological

changes affect staffing

techniques.

p First, select an
pr appropriate

mathematical models, with

For

the aid of computers are

forecasts: In this method,

include the use of both

oa business

also used to forecast HR

managers estimate future

quantitative

ch This should be the

needs, e.g.,

human

qualitative

es best

models,

available

optimization

budget

Q predictor
of
ua human resources

planning analysis.

nt needs. Frequently,
ita sales or value
ti added
(selling
ve price minus costs

employment

ap of materials and
pr supplies) is used
oa as a predictor in

combine

ch product,

to

es disposable
to income, and sales,

Whereas

example,

Expert

resource

requirements,

their

experiences

HRP

should
and

approaches.

In combination, the two

approaches

serve

to

complement each other,

relies on a single factor

Management

forecasts

thus providing a more

(e.g.,

are

the

opinions

complete

forecast

by

(judgments)

of

bringing

together

the

sales)

to

analysis

and

Ideally,

judgments to good effect.

more

trend

and

requirements.

predict

needs,

advanced
several

the

methods
factors,

supervisors,
managers,

department

contributions

or

theoreticians

knowledgeable

practitioners.

experts,

of

both
and

such as interest rates, gross

oth-ers

national

about the organization's

Whatever technique one

costs of

future

might utilize, they need

employment

develop

needs. For example, at

to

levels. While the

ing

the

systematically!!

predict

employment
Ripe

Tomato,

demand on
basis
the

Workforc
e analysis
to
determine
the rate of
influx and
outflow of
employee.
It

is

through
this
analysis
one

can

calculate
the

labor

turnover

levels.

A analysis:

factor.

Several

made

employment

go

be

done
HR

rate,
absenteeis
m

rate,

etc.
Qualitative
methods
go a long
way

in

analyzing
the internal
flow
created by
promotion
s, transfers
etc.
b.
Workload

r
c
i >
H
F
O
z
I
AR
B
Ar
1.
2.e
3.
4.
c

n
a
l
y
s
i
s
,

h
O
w

c
h

r
e

o
n

n
r
c

>

l
c

u
l

t
e

t
h

n
u
m
b
e

18

External sources: It is only when the cost of

Is there a need to change workforce

procuring the labour from internal sources is more

structure, knowledge and skills

and also the present staff cannot be spared for the

future assignment, the company can refer to the
external market. For this, they need to keep them-

What is the time

selves updated regularly on what is available now,

span for planning?

what will be available later. Whether the skills

required in future will be easily available or certain
training, for instance need to be incorporated. For

Staff Replacement Approach

example, a company in the present scenario wanting

to start its BPO operations in India may not have

Short

problem which a company 10 years back would have

faces, as there are ample requisite skills available in

SHORT-TERM

the market. Not only skilled labor but also they are

issues based )

HR STRATEGY (Key

motivated to join such company for fast earnings.

Uncertain

Thus, HR planners need to keep themselves abreast

of the

Labor market conditions such as local

employment, trends of

relevant categories of

VISIONDRIVEN

employees, competition for such skills, L availability

of part time labour, migration trends of labor, etc.
p

Therefore to summarize what information should

be available

for a comprehensive the supply

forecast and analysis?

1. The skill base, potential trainability and
current and potential productivity level of the

workforce

in

based)
motivation of the prospective candidates to join the company.
Determining Manpower Gaps
The final stage is to balance out the demand and supply gap. The closer

of

procuring. Now you will see how we can utilize the data we have
collected in the last two stages.
A comparison chart can be developed to find what is available and to

existing work force.

structure

the

terms

existing What is the future

of

organizational
age environment
like

distribution, skills, hours of work, rates of pay

and so on.
3. The possible changes in the productivity,

what extent it can fulfill the demand forecast. This exercise helps us
have an idea of the quantitative and qualitative gaps in the workforce. A
reconciliation of demand and supply forecasts will give us the number
of people to be recruited or made redundant as the case may be. This
forms the basis for preparing the manpower plan.

LONG-RANGE

size and structure of the workforce due to DETAILED HRP

resignations and retirements, promotions and
transfers, absenteeism and other external
factors (economic and cultural), which may
induce such changes.
4. The availability of the relevant skills in the
external labor market for present and future
use. The HR planner will have to assess and
monitor factors such as: market value,
image/preference of the existing labor for the
company,

(Vision

the gap the better it is for the company when it actually goes into

2. The

HRD

In this process a company always needs to keep repeating

this step as it operate in a changing environment. Changes in

product mix, union agreements, and competitive action are some of the
important things that need special attention. The human resource
requirements thus identified are translated into a concrete manpower
plan, backed up by detailed policies, and other human resources
instruments and strategies (for example, recruitment, selection, training,
promotion, retirement, replacement, etc.).
The manpower plan is further divided into the following resultant
operational plans.
Recruitment plan to show how many and what type of people is
required and when they are needed;
Redeployment plan to help chart out the future movement in terms
of training and transfers.

 Redundancy plan will indicate who is redundant,

for periodical checks to

towards

when and where; the plans for retraining, where

incorporate deficiencies

forecasting often to the and

this is possible;

and periodic updating

exclusion of other types of qualitative

of manpower inventory

information.

approaches.

retrenchment, lay-off, etc.

based on training and

4.

6.

Training plan to chart out if a

performance

Conflicting

training is required. If yes, when and to

in the light of changing

which level; whether it will be done in-

circumstances.

house, done in phases or included as

Barriers to HRP:

exist involvemen
of
between short-term and t
long-term HR needs. For operating
example, there arises a managers

part of a formal induction program. This

Planners face significant

conflict

includes the cost and benefit analysis of

barriers while formulating

all the options available.

an HRP. The major ones

and

plans

for

golden

handshake,

reviews,

financial quantitative

Non-

may

are the following:

the renders
pressure to get work done HRP
on time and long-term ineffective.
needs, such as preparing HRP is not

reasons for employee productivity or

1.

people

reducing employees costs through work

People

simplification studies, mechanization,

importance of making HR

productivity bargaining, incentives and

practices future oriented

Many managers are of the department

belief that HR needs can function.

profit sharing schemes, job redesign,

and the role assigned to HR

be

etc.

practitioners in formulation

Retention plan Will indicate reasons

of organizational strategies.

for

Their argument is simple-

on the market as long as needs a cowages and salaries are coordinated

strategies to avoid wastage through

there

competitive.

compensation policies, changes in work

needed.

requirements

package of benefits to them

Productivity

employee

plan

Will

turnover

and

indicate

and

show

improvement

in

question

are

people

Offer

the

when

attractive

between

assuming strictly
responsibilities. Hr

for

greater

an

immediately Successful
because skills are available planning
met

on
These effort
managers fail to recognize the part of
that by resorting to hiring operating
or promoting depending managers
HR
on short-term needs alone, and

working conditions.

to quit when you find them

Check/reviews points The success of

in surplus.

the entire exercise is dependent upon

2.

frequent reviews so that none of the

HR

factors are left out and changes are

perceived as experts in

constantly taken care of the important

handling personnel matter,

thing is to clearly demarcate point

but are not experts in

There is conflict between diagram of

quantitative and qualitative Manpower

managing

approach

long-term
practitioners

are

business. The

personnel plan conceived

and formulated by the HR
practitioners

when

enmeshed

with

organisationalplan,

might

make the overall strategic

plan itself defective.
3.
HR information often is
incompatible

with

the

information

used

in

strategy

formulation.

Strategic planning efforts

have long been oriented

issues

are personnel.

neglected.

Here

5.

another

is

for
HRP.Some Plan
people view HRP as a your better
number game designed to understandi
Lets
track the flow of people ng:
to

departments. discuss to
These people a strictly know how
we
quantitative approach to much
across

the

planning. Others take a have learnt

qualitative approach and till now.
focus

on

individual

employee concerns such as

promotabilty and career
development. Best results
would accrue if there is a
balance

between

the

>z
R

re

C/5

r-

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70

zo

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2=

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JL
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ages,UtilisatLo
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OFUTURE
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deManndT
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Analysis of Labour
'S
Resources Forecast of
supply
BUSINESS
OBJECTIVESO
UTPUT
SALES
I
FORECASTS LABOUR
Recruitment
^anmg

N
G:

and

O
LS
A
N
D

hea
d
or man
UTILISATIO
N
hour

t \ W\
WASTEGE

TE

C
H

ANALYSIS OF

CHANGES IN

EXISTING

HOURS AND EXTERNAL

STOCK CONDITIONS

output per

NI
Q

LABOUR

MARKET

ES

INFLUENCES

Diagrammatic

presentation

manpower planning
L
E

of

Learning Objectives

Demand forecasting is the process of

Human Resource Planning:

estimating the future quantity and

Tools

Techniques

quality of manpower requirement. A

Demand Forecasting-Basic

Knowledge of the present situation

methods

on

>z

re c/a

N
4
:
H
U
M
A
N
R
E
S
O
U

and

Demand

Forecasting-

Statistical

Techniques

manpower

requirement

is

essential if a satisfactory forecast is

to be made. The basis of the

as We have already learnt

n resome of the approaches
c/a and methods of Human

manpower forecast should be the

activity levels for each function and

r- Resource Planning in the

annualbudget
corporate

and

plan,

long

translated

term
into

> Zprevious lesson. Now,let us

department.

discuss more on the Tools

company, the sales budget would be

o and Techniques of Human

translated into a manufacturing plan,

Resource Planning for the

giving the numbers and types of

growing

and

products to be made in each period.

of man power in

From this information the number of

2=

supply

demand

In a manufacturing

the coming future.

man-hours, by skill categories, to set

Manpower

the target for production, would start

Forecasting:

Tools and Techniques

Demand Forecasting

from the production plan setting out

a programme for installing new
machinery. In an insurance company,
forecasts of new business would be

tra r

company,

expected

changes

in

sev labour

force.

Although

of the word, and not merely in the

nsl forecasts would be

productivity or manpower

en such a long period scale is

special and more restricted meaning

ate made

levels

from

yea frightening, it is the one

used in the physical sciences. Even

working

rs, against which decisions for

today it is not limited to the shop

this major

say,

floor, nor even to manufacturing

These could be set out as a

peri managerial manpower have

industry. In one form or another it

crude percentage increase

od to be made.

can be used in any situation wherein

nu despatched. It will

in

wo Basic

m not be unusual if

could be used to adjust the

uld Forecasting Methods

The terms time and motion study

be the manager has to

required manhours for a

ma The

have been given many interpretations

r identify

given level of output or

ke forecasting methods are :

since

of requirements

they might give specific

it

originated by Taylor, was used

instances of cases where in

pos (ii) Job analysis

mainly

the

sibl (iii)

standards,

of

the

arising

d number of orders

changes

int that

methods

are

to

be

o processed,
the assembled

pr without

and

clear

op knowledge

of

in
or

procedures.

productivity

manning

which

for

changes

in,

Demand
basic

demand

(i) Work study techniques

human work is performed.

their

origin.

for

Time

study,

determining
and

time

motion

study,

os corporate

machine, a production line,

e toManagerial/Executive

developed by the Gilbreths, was

als objectives because

clerical section or a sales

thin judgement

employed

tha either

office is to be increased or

k in(iv)

methods. While Taylor and Gilbreth

t nonexplicitly stated

decreased.

ter

Statistical

Techniques

did their pioneering work around the

woor he has not been

Timescale of Forecasts:

ms

Projecting Past Trends

same time, it seems that in the early

ul informed of them.

While

of

in

days greater use was made of time

d Detailed
ha performance targets
ve or objectives must

manpower requirement, it

cha

Employment

study and wage incentive than of

is important for a manager

ngi

or a planner to consider the

ng

to be agreed for each

be level
of
pr management in the

timescale

which

the

forecasts are made. This

enti

will largely depend on the

re

oc company, covering
essall facets of its

nature of the decision to be

Work
stru (i)
ctur Techniques:

ed operation. At each
by stage of preparing

forecasting, budgeting; the

need

prepare

and industry itself. Work study,

the the

expenditure targets up to

qua as the name implies, is the

un business plan, the

de company must take

two

important to consider for

lity study of human work in the

of deepest sense and dignity

rw into

the purpose of a medium

riti available resources

ng of men, materials,

order

and

improvement". Work study,

motion study" but with the work-study

that is, between two to

de money
pa machine.

therefore,

development

and

seven years which opens

relationship

The

up

of

productivity. It is most

application to a very wide of

greater changes resulting

frequently used to increase

range of activities it was machine,

from

there

are

longrange

account

rt constraints
me each
of

the

which
these

forecasting

for

effected for shorter term

to
years

ahead

longrange

the

forecast,

'possibility'
new

is

manpower

largely for improving

(v) Productivity

motion study.

Measurement Method

In the book "Introduction to Work

(vi)

Study" by ILO, defined "work study"

Time series

as
Study

Work study is as old as

to
has

effect
a

direct
with

generic

techniques,

term

for

particularly,

such
method

study and work measurement, as are

used in the examination of human
work in all its contexts, and which
lead

systematically

to

the

investigation of all the factors that

affect the efficiency and economy of
the situation being reviewed in

for years as "time and motive

technique

of
and

of

the is the best

its utilisation
men,

nt. imposes would set

In limits to what it can

the amount produced from

felt by many people that material

policies such as decisions

the older title was both too and money

to make greater use of

a realistically hope to
ma achieve.

resources with little or no

narrow and insufficiently i.e.

apprenticeships

further capital investment.

descriptive.

graduate entrants.

il The planning data

or would refer to
de

As

organisations

preceding paragraphs work

It is
From all the definitions .
and observations made by important

attempt forecasting beyond

study was widely known

the authors, the ultimate to

few

or

given

quantity

discussed

in

of

the

higher

productivity

define

the

term

relationship

over By

Using the helping

exercises as the main basis

As

for their estimates of future

concerned, information on a
item

Productivity.

time.

Productivity is a

Bureau of Labour to

manpower

term that has a

Statistics methods, determi

The starting point in the

number of different

meanings although

determine

it

as

is d
be y

available

from

the s

workstudy based approach

company

system

is usually the sales or

personnel records, the data r

labour productivity possible

output forecasts established

on

or output per man- use

for the planned period. In

supplied by method study, q

hour by dividing compan

order to determine

the

and for the items (f) and u

labour effectiveness

its

manpower that will be

(g) by work measurement. i

in industry.

In a

labour output by resource

required these forecasts is

The production schedules r

broad

sense

the

converted to a production

required to carry out the e

schedule

predicted work load (items d

is

most

commonly
associated

with

can ne

the

its best

total

of

annual y

total

hours s

productivity is the

worked.

ratio of output to

output is the 'real' s

some or all of the

men,

The material

into

item

(e)

can

of
be e

account existing levels of

(a) and (b)) can then be

annual sales, that machine

stock).

worked

resources used to

is,

schedule is then split up

established time standards r

produce the output,

adjusted

a work-

into monthly and weekly

applied to these schedules e

e.g.

corporate

price study is

programmes for the first

in order to ascertain the :

year. To do this following

number of man-hours or

information are obtained :

man-days

Productivity

net

and

(taking

(a)

labour
should

company

requirements.

far

sales s
by

production

out

and a

"output per labour

index. The labour one

hour".

input

Labour

average number of principa

(a)

each class of labour.

employees

Things to be made or done

A very simple example

Productivity

is

of

The

the the
l aids by

required

for

multiplied by the which

(b)

will illustrate the logic of

hours worked

average number of an

The quantity involved

this

Capital

hours

worked organisa

(c)The operations/methods

department estimates that

during the year. tion can

needed to carry out the

its

The

work

following five years will

Productivity
Output

=
Capital

annual improve

production

for

A
the

input

adjusted net sales its

(d)

be 40,000 components per

Material

are divided by the producti

The plant, equipment and

year. Work measurement

man hours for the vity.

tools required

has shown that it takes, on

Productivity

Output - Material

year to give the Many of

input

output

Labour productivity

hour. Productivity compani

quality of labour required

per day.

or

is essential for a es

(f) The time each operation

Therefore

hour" as compiled

prosperous

is expected to take

required are :

by the U.S. Bureau

economy,

of Labour Statistics

prosperous

for many parts of

company,

the

is

prosperous

recognised as one

employee.

of

productivity of all forecast

"output

economy,
the

per

standard

per

man the

currentl
a y

(g)

engaged
a in
manpow
The er

guidelines. Labour

three is influenced s

productivity

is

by work methods, using

determined

by

are

taking the ratio of

employee

results

output to input and

motivation.

of work-

indexing

this

The

The

type

amount

and

to produce 40 components

of

man

-------

(h) How much plant and

man-days

equipment of the types

is

available

1
0
(Compo

(i) How much labour of

nents per

the types and quality

man/day

necessary

available

is

years

Therefor
e

man-

250
(assumed
working
days in a
year)
Thus,

to

fulfil

the

plan for the

production
of

= 4000

40,000

components,

an

average of
16

40,000

labour required

necessary

work studies and the

study

an average, 4 skilled men

(e)

= 16 man
years

Units Produced -7-

approach.

4,000

skilled

men will be
required in
the
department
during

the

following
year.
this

To
figure

would,

of

course,
have to be

added the necessary

maintain

current

adjustment

for

information about

Before analysing the job, it is

determined,

wastage

and

their

necessary to go through files,

allowance has to be added to this

time

content. > z
information R

possibly,

This

absenteeism

gathering process

including

leave

is

time required for the job.

called

'job

Job Analysis
Before

description and job

specification.

>ZZ

annual reports, published

literature on organisation so

re c/a O

It as
comprises both job n re c/a

reserve.

as to get

analysis'.

acquainted with

the major objectives and

activities

r-

of

given

time for all activities has been

to

certain

account

percentage

for

what

an

executive may lose in personal time

(tea,

personal

visitors

etc.)

or

because of fatigue or unexpected

contingencies.

The man-days

organisation and realise how

required for doing both types i.e.,

the

each

routine and nonroutine activities for

executive fit into the total

each executive would be calculated

framework

as under :

first define what are

and 2=
specifications are

the

be

intimately related

jobs historical records would

spent

performed and how

to the preparation

provide the basis for setting

An executive per

the

of inventories of

norms, provided they have

executive

carried out can be

executive

been continuously updated.

divided

and

which form a basis

Assessing

allocated

into

of

Manpower

manpower

planning

can

be

carried

out,

management must
work

to

tasks

to

be

Accurate

job z o

description

activities

of

organisation.

talent,

manpower

planning strategy.

Executive

units, that we called

Pertinent

requirement

jobs.

information

determined

manageable

work

Such

an

the

For many

Executive
manpower
is

mostly

by

job

Total man-days* of Total man-days*

Total

man-days*
=

by each

+ spent by each
Month for all
routine
Activities

per

month

for

executive per
activities
month for non

Routine activities

assignment of tasks

relating

analysis. The job of an

to job is commonly

specific job can be

executive is understood in

(* Each manday consists of six

known

obtained through:

its

hours allowing for personal

design". Once the

Observation

what follows is grouping

jobs

Questionnaire

of

is

Interview

major

to

Checklist

routine or maintenance

department

actively, and nonroutine

calculated.

or

assessing manpower is :

as

"job

have

defined,

been
it

important

Daily Diary
>

Collection

it
of

to

of

creates

greater

understanding

and

proper

perspective;

activities

two

On the above basis, the total

namely

mandays of all executives in a given

into

parts,

adaptive

time and contingencies).

activities.

per
The

month

can

formula

be
for

past & present

common

agreement

Once the total activities of

Total

records/historic

between job holder and

each executive in a given

man-

al

person undertaking the

department

hours of

combination of

task

manpower

enumerated and the time

all

two or more of

planning on the precise

is allocated for each of

executive

these

requirements of the job

them, what is left, is

All these methods

and

normally

adding up those times on

departme

are

required for performing

the daily, monthly or

nt

timeconsuming

them.

quarterly basis whichever

records A

but they are worth

the efforts.

An

important
byproduct
job

of a
analysis

programme is that

of

time

are

The job analysis helps in

is convenient depending

understanding the job of

on the nature of the work

executives and breaking into

of an executive and thus

convenient

integrating

total

time

activities so as to time each

required

for

each

activity and assess the total

executive

groups

of

department.

in

a
Once

given
the

Total executive manpower

in

needed in each department Total

man-hours available per
month
(25
working
days x 6

For

example,

man-hour
of the job. There are two

lead

per day)
different ways of studying

revisions

the

the same job

job analysis

of

considerable

extrapolation, through regression or

the

correlation analysis, to

original

estimates. The managers who

total man-hours per

and motion study.

day of 20 executives

study

in

given

analysing job to find the

way.

department are 140

easiest, most effective and

departmental

(each

most economical method of

should be prepared which

doing it.

would

seven man-hours per

Managerial/Executive

company assumptions about

day). The man-hours

Judgement

future activity levels, which

work

20

The simplest approach to

will affect their departments.

executives per month

manpower forecasting is to

Targets are also set where

will be 140 x 25 =

prepare estimates of future

necessary.

3500. The formula

needs

managers, armed with these

for

individual

executive

actually

spends

of

assessing

is

Motion

to

process

based

on

of

the

opinions

of

set them as targets often

regard forecasts made in this
Guidelines

for

managers

indicate

broad

Departmental

guidelines,

prepare

their

or

line

forecasts to a set format.

This

simply

They are encouraged to seek

requires managers to sit

help at this stage from

down, think about their

=
future workloads and decide
23.3
how many people they need.
1
It can be done both "from
5
bottomup" by asking junior
0
managers to outline their
(25 working days x 6 requirements and passing

personnel, Organisation and

man-hours per day)

these estimates up through

planning

It indicates that there

the hierarchy for collation

consisting

is a need for at least

and comment. Alternatively,

heads.

3 more executives in

a "top downward" approach

reconciles with departmental

the department. A

can

which

managers any discrepancies

given figure has to

company and departmental

between the two forecasts

be rounded off, for

forecasts are prepared by top

and

example,

the

management, possibly based

amended

answer is say 23.6,

on the advise/ information

management for approval.

that implies the need

available from the personnel

This is sometimes called

for

and

"right angle method".

manpower is :

departmental

Total executive

managers.

3500

if

executives.

more
If

the

be

used,

in

organisation

and

Methods,

industrial

engineering departments, to
prepare

company

manpower forecast. The two

sets of forecasts are then
reviewed by a manpower
committee
of
This

submits

functional
committee

the

forecast

final
to top

methods departments. The

Statistical

answer is less than

suggested

Projecting Past Trend in

20, it means

the

circulated downwards for

Employment

is

discussions and thereafter

The most commonly used

overstaffed.

reviewed and agreed with

statistical

Job analysis is often

departmental managers.

manpower forecasting are

confused

with

In both the cases, comment

considered,

ranging

motion study, which

from different levels of the

methods

of

also involves study

managerial chain will often

department

forecasts

are

Techniques

approaches

to
from

simple

econometric models. All of these methods depend

company finds that the number of hours put in by a investment,

for

group of workers bears a strong relationship to the profitability,

their

validity

on

the

assumption

that

sales,

developments in the future will exhibit some

amount of output from the department, or sales, a complexity

continuity with the past. Simple extrapolation

knowledge of future output or sales levels should quality of the product,

assumes that past trends will continue, regression

make possible a forecast of future manpower any

analysis assumes that particular relationships will

requirements. Where only two variables are which may be thought

hold firm and econometric models assume that the

concerned the analysis is known as simple important

basic interrelationships between a whole range of

regression or correlation. Where more than two particular company, in

variables will be carried on into the future.

variables are considered together, the analysis is terms

Extrapolation

known as multiple regression.

Methods of simple extrapolation are concerned

In the figures given below, possible relationships likely building a series

are examined to see whether they might prove of equations, which

with predicting the growth or decline of a single

and

other

in

of

equation

factors
a

single

or

more

time and can thus be simply illustrated in

useful for forecasting from the first, it is clear that together described the
manpower requirements are not closely related to various relationships

graphical

investment. From the second, however, it appears

variable (or set of variables such as a ratio) over

that the number of engineers has in the past been with the help of
closely related to the level of sales. If the econometric models.

Y
As

form.

shown in the

often,
such
relationship appears likely to be continued into the Very
models are based on
Y
Low
future,
simple and multiple
Correl
estimates
of
ation
regression analysis of
manpower
the types described

figure below,
time is taken
on the oy axis
(i.e.
horizontal

1996
1998
2000

axis) whereas

1997
1999

required can be

(Period) Year

derived

above.

from

labour requirements (in man-hours) on the oy.

prediction of sales levels.

MANHOURS

Investment

0
i Projection of Manpower Requirement The

The

method

of

simple

have

practical

such complex models

O
O

Figure-2

Total

for forecasting future

Employees

manpower needs, or

Figure-1

indeed

any

variable,

The possible relationship is useful in forecasting

plotting the past data. In case the trend line slopes

considerable

difficulties. The use of

extrapolation consists simply of extending this line

into the future i.e., line of best fit is drawn after

models

inherent

any trend line which may show itself in such a

diagram.

Econometric

Engineers

first stage in the forecasting process is to identify

scatter

can be worked out

at

the

company level, is still

High Correlation
very much

upwards then labour requirements in future might

other

in

its

be expected to rise, on the other hand the trend

Econometric

infancy

line sloping downwards indicate a fall in future

Models

1968) and the effort

requirement levels.

Econometric
models

Regression and Correlation

This method seek to provide a measure of the
extent to which movements in the values of two or
more variables as for example labour input and
sales are related (or correlated) with each other.
The aim is to predict changes in one variable by
reference to changes in the other or others, where
the future value of these other (or explanatory)
variables are already postulated.

Thus, if a

estimation

for
of

(gascoigne

and cost involved in

S
al
es

building

up

satisfactory model are

manpower requirement differ from the statistical at the moment well

methods. Past statistical data are analysed in the beyond the reach of
hope that it will prove possible to describe most companies.
precisely the relationships between a number of
variables in mathematical and statistical terms. To
portray the relationships between different types of
manpower

requirements

and

measures

of

26

>z
R

re

C/5

>ZI

70

n re

2=

r-

C/5
Productivity

Measurement

Method

for

(ii)

Manpower Forecasting

Average number of employees

This approach is closely related to work study

during a year

method. Both

(iii)

Number

seek to determine the amount and effectiveness of

worked

the human

during a year

content of the work involved in any activity. Work

of

400
Weeks

(iv)

49

Average hours per week

study

involves a thorough analysis of the work process

per worker

40

and seeks to

(v)

establish the man-hours needed per unit of output.

Total hours per worker per year

On the

= 49 x 40 = 1960 man-

hours

other hand, productivity measurement is generally

(vi)

Total manhours per year

more

= 400 x 1960

concerned with the inverse of this ratio i.e. output

= 784,000 man hour

per hour.

(vii)

The use of measures of productivity in manpower

Productivity /Production

forecasting

per man hour

= 2,400,000

seems straightforward enough. Output (measured

say by gross

7,84,000

tonnage or sales) divided by labour productivity

3 units per man-hour.

(output per

Basic Data 2000

= 36,30,000 units

man-hour) gives the number of man-hours

(i)

required to
Q

complete the task. In practice, this method is a

(ii)

different and
V

hazardous one. Accurate measures of productivity

individual company are notoriously difficult to

per

is

cent

Therefore,

in

expected
higher

than

added

to

be

in

value

1994
terms,

it should reach.

obtain even for

P

Productivity
10

in the
L

Target production

3.30 units

the current situation, let alone for the

future. M
w Illustration

(iii) Therefore, required man hours

36,30,000 units

H To forecast manpower requirement in 2000 for an

in 2000
3.30 units

Engineering Company : Production Department.

= 1,100,000 man hours

Basic Data 1994

(i)

Production for the

year

= 2,400,000 units

(iv)
Total hours per worker per year

27

= 1960

(v)

Therefore

(a) a trend could be a gradual and regular increasing or decreasing level

required number of

1,00,000

of employment, probably over some years; (b) cyclical effects which

could be a gradual and repeated upward and downward movement over

men in production dep't.

1,960

a period. This may well be associated with some events such as

Manpower assessment is not only a number game

economic activity in the country; (c) seasonality which may occur one

rather it is a human resources development game.

when more than one time point per annum is recorded. It records the

The earlier concept was that right man for right

different levels of activity between say summer and winter; (d) a step is

job but the present concept is to match

a sudden change in the level of employment which will probably

While assessing

accompany some identifiable change in the environment, such as

manpower requirement, methodology assumptions

decrease/increase in sales or introduction of new machinery; and (e)

should be clearly defined. In the assumption nature of

random fluctuations in a series of changes in levels of employment that

the task, criticality and non criticality of different

do not follow any obvious pattern. In this case "moving average" will

jobs, shift workings, effective, noneffective, set up

help to highlight the trend and suggest the amount of possible error in

time, crew size and composition and skills required

the forecast".

have to be taken into consideration. If all the points

Reference

as mentioned above are considered carefully during

Aloke K. Sen, Human Resouce: Development, Planning & Deployment

the process of manpower assessment, forecast of

C.B. Mamoria and S.V. Gankar, A text book of Human Resource

requirement would be more accurate and realistic.

Management, Himalaya publishing House, 2003. K. Aswathappa ,

Considering the criticality of the jobs, suitable off

Human Resource and Personnel Management: Text and Cases , Tata

and leave reserves can be worked.

McGraw-Hill Publishing Company

Time Series and Trends

Limtied, New Delhi, 2002.

It is necessary to analyse past trends in manpower

Gary Dessler, Human Resource Management, Prentice-Hall of India

activities and sift the significant points while

Private Limited, New Delhi, .

preparing a forecast. This requires an understanding

Charles P. Greer, Strategic Human Resource Manager: A General

of the concept of the time series. A time series is a set

Managerial Application, Pearson Education Asia,

of observed values recorded at intervals of time 'data

2001.

the individual to the job/work.

classified chronologically' for example, monthly

absenteeism rates. The recording of such a casual
relationships between different variables for example,
is there a positive correlation between absence and
age or length of service? Or with prediction of future.
A time series unlike an algebraic curve will not have
a definite predictable state it will vary with
fluctuating data which must be analysed as to their
probable confining or not for making future
forecasting.
Therefore, it is an alternative method to analyse
employment levels over a time and use as a basis for
forecasting manpower levels. This means projecting
the past into the future and then allowing for any
foreseen changes resulting in a change in use of
capital and machinery, change in external economic
climate, internal problems within the organisation
and emergence of competitors.
The employment, when recorded over a period, will
potentially reveal five distinct elements as follows:

28

HUMAN RESOURCE
OBJECTIVES

service is an attractive employer for

LESSON 5 :
PLANNING: HRP AND CORPORATE

Hello students, today lets us discuss the following

article, which gives us an idea how the Practice of

Strengthen

current and potential

leadership

employees.

development and

Purpose
To build a strong Alberta public service.

continuity
succession

human resource plan is done for a public service

The Challenges

company.

Talent Shortages: Significant demographic issues

planning
levels

within a tight labour market impact the attraction

Last Review / Update: 2003-05-28

Globalization and Technological Change: The pace

Corporate Human Resource Plan

of change impacts current and future workforce

for the Alberta public service

accountable

government

and

strong

intergovernmental position in Canada.

Vision
Cabinet has endorsed a vision created by Deputy
Ministers for the Alberta public service:
The Alberta public service is respected for its
attitudes, knowledge and skills, its effective

to

implement
Corporate
Executive

environment directly impacts the management of

approaches.

public

Continue

Fiscal environment: The reality of the fiscal

available resources, implementation options and

the

2.

the public service.

Goal 9: Alberta will have a financially stable, open

in

all

service.

capacity and leadership needs at all levels across

Related Government Business Plan Goal

at

Alberta

and retention of talent within the public service.

2003 - 2006

and

1.

Development.
3. Enhance a culture
of

continuous

Priorities 1-4: Corporate Human

learning

Resource Development Strategy

competency

Priority l: Attracting and Retaining Talent

development.

through

4. Enhance employee

management of public policy, and its dedication to

Objective:

achieving

Develop attraction and retention strategies to

awareness,

effectively position the Alberta public service to

understanding and

respond to human resource needs created by

capacity to deliver

growing competition for scarce human

excellent service.

quality,

affordable

services

for

Albertans.
Achieving the Vision
Deputy Ministers also outlined five foundation
goals that require organizational supports to

Priority

resources.

3:

Strategies for 2003-04

achieve the vision:

Workpl

1.
Promote the Alberta public service as an
Jignment We need to ensure the goals and
behaviours of individual employees
are aligned with department and

organization that provides diverse and challenging

work, with opportunity for ongoing growth and

2.

ent

requirements.

employee

commitment

government goals and values.

Compete We need to make sure
nce

to
the

organization has the knowledge, skills

and abilities to accomplish current

and future business plan goals.

ersatility We need to ensure Alberta public

service employees can adapt to meet

changing needs.
fell-Being We need to ensure the Alberta public

Objecti
Ensure

government goals.
Commitm We need to introduce processes that
build

Health
ve:

development.

Identify

ace

and

address

critical

workforce

Priority 2: Building Leadership Capacity

Objective:
Enhance leadership capacity at all levels of the
Alberta public service through an integrated and

the

public

Strategies for 2003-04

service

continues to build a
positive, healthy work
environment.
Strategies for 200304

coordinated approach that fosters a culture of 1. Develop

implement
leadership, continuous learning, and service
excellence.

Alberta

and

workplace health promotion initiatives across

>z

n re c/a

the public service.

re c/a O

>ZZ

2. Develop and implement targeted initiatives to

support the continuous improvement of the

70

work environment.

r-

2=

Priority 4:

Performance Management/HR

2003-2006 Corporate Human Resource Plan Framework

Planning

Priority 5: Classification/Collective Bargaining

>z

Objective

Objective:

Ensure the management of human resources in the

Provide a strategic approach to dealing with classification issues and

re c/a O Alberta public service is aligned with government

collective bargaining in a manner that is responsive to business plan

and department goals and priorities.

70

needs of the Alberta public service and is compatible with

government's fiscal direction.

n re c/a Strategies for 2003-04

p

r-

>ZZ
z

1. Align employee performance management

Strategies for 2003-04

with government and department goals and

1. Continue conversion of the non-management classification plan

priorities.

to a point rating system.

2. Foster

2=

an

environment

of

ongoing

recognition within the Alberta public service.

3. Align

human

resource

planning

2. Continue to implement Letters of Understanding as negotiated

through 2001 collective bargaining.

with

government and department plans, goals and

3. Conduct collective bargaining on wage opener (2003), master

agreement and subsidiary agreements (2004).

priorities.

POLICY

2003-06

2003-06

roles and how they % of employees who understand how their

OBJECTIVES

fit in.

The Government

GOALS

of Alberta ensures

Alignment:

employees

ensure the goals understand

understand

and

individual

on

employees

their

work contributes

aligned

to

department

achievement

the
of

MEASURES % of

and priorities.
are

work

department

and

contributes

goals.

understand

objectives;

compensates,

need

to

their

The Government of
the

to

attract,

and motivate

and

recognizes

retain a capable

employees

based workforce; and the

contributions

their

business plan goals.

The Government of business

Alberta

their fiscal
to environment.

Align

employee

who performance management with government

government
Employees

on

of

with

government

2003-04STRATEGIES

understand how the and department goals and priorities.

government goals.

rewards

business plan.

2003-06

and behaviours of government goals employees

receive feedback
how

To Employees

work contributes to their department's

Alberta selects and

retains

the

most

suitable individuals
based
competence

on
and

ability to meet the

rganization's needs.

Align

human

resource

planning

with

government and department plans, goals and

priorities.

Commitment:
ensure

To skills

they

will continuity/success

employee need to succeed.

commitment

ion planning at all

to Demonstrated

government goals linkages

and values.

levels

between Alberta

all

relevant

contract

DM

criteria,

and

corporate

human

resource

plan priorities.
To %

ensure

the who

organization

has organization helps

of

employees
report

knowledge, them

their

know

skills and abilities understand

accomplish well

and
how

they

are

current and future performing.

business

plan

goals.

of

employees

who receive timely

recognition

or

acknowledgement
for their work from
their supervisor.
% of managers who

Employees

report

their

employees

have

have skills

to

meet

clear performance current and future

measures

and needs.

expected

Foster

an

outcomes.

environment

of

Employees receive ongoing

formal

and recognition within

informal
recognition

the Alberta public

for service.

their contributions.

Strengthen
Employees identify
and

develop

public

the

leadership
development

Enhance
employee
awareness,
understanding and
capacity to deliver
excellent service.

Competence:

to

the

department human service.

resource plans and

the

in

and

Enhance a culture
of

continuous

learning

through

competency
development.

The

Government different

of

Alberta

with

their

is experiences.

employment

committed

to

the Alberta public

becoming

learning
organization
will

and
create

continuous

Employees

are

satisfied with their

employment in the
Alberta

public

service.

opportunities
its employees.

own

safety

assessment
Government

of

Alberta

provides

safe

work environment
and supports the
well-being

of

employees.
Versatility:

To

ensure

Alberta

public

service
to

can
meet

changing needs.

organizational

report

who

they

are

able to retain the

need.
of Achieve targets
that
promote

current and future Continue

needs.
%
of implement

to

who Corporate
agree they receive Executive
the support they Development.
employees

need in order to Promote

provide
high Alberta

the

public

service. service as an
Development plans organization that
quality

in place for all provides diverse

managers. Suitable and challenging
available
compete

To identified

are work,
to opportunity

with
for

on ongoing growth
and development.

critical Identify and

critical
public service is positions. Number address
an
attractive of work experience workforce

employer
for co-op
and requirements.
ensure the Alberta leadership

current
potential

placements.

employees.

Number

Departments

developmental

anticipate

and moves

for

respond to future (executive

human

Develop

and internship

resource other

needs.

of workplace health
promotion
staff initiatives across
and the public service.

Development plans
in

place

for

Corporate
Movement within Executive
and
departments

across Development
is participants

used to promote %
learning

of

and

implement

managers).

employees

from who are satisfied

Develop

and

implement
targeted initiatives
to

support

the

continuous
improvement
the
environment.

>z
R

re c/a O
as
n re c/a
p

support for their employee safety

learning to meet and well-being.

candidates

Well-Being:

managers

and are able to attract

the talent they

Employee's

adapt

of

talent they need.

well-being.

employees

Employees receive % of managers

for support for their who report they

learning

The

service.

in

of
work

r-

>ZZ
z

2=

Measuring Our Progress

Data sources include the Corporate Employee Survey denoted by * and department reports denoted by **.

MEASURE

2000-01

2002-03

2003-04

RESULTS
RESULTS
ALIGNMENT/COMMITMENT
employees
who 77%
71%

of

TARGETS
75%

understand how the work of

their department contributes
to government business plan
goals.*
%
of

employees

who 81%

75%

82%

understand how their work

contributes

to

their

departments' business plan.*

Demonstrated
linkages Linkages
between department human place

in Linkages

in Linkages in

place

place

Percentage
employees who receive timely recognition or
resource
plans and allof
relevant
acknowledgement for their work from their supervisor.*N/A DM contract criteria and
new measure63%65%COMPETENCE/VERSATILITYPercentage
of managers
who report their employees have the skills to
corporate
human resource
meet current and future needs.*90%
plan priorities.**
80%90% 83%90%
Percentage of employees who 67%
61%
70%
84%Employees' assessment of organizational support for
theirorganization
learning to
meet current/future needs.*79%
report their
helps
67%66%
them know and understand
52%73%
of
how 62%Percentage
well
they
areemployees who agree they receive the
support they need in order to provide high quality
performing.*
service.*N/A - new measure62%64%Development plans in
all managers.**N/A
new measureN/A
new
Numberplace
of for
developmental
17% of Exec.- 11%
of Exec. 5% of- Exec.
measurePlans in place for all managers.Suitable candidates
moves are
for staff.**
Mgrs. on identified
Mgrs.
Mgrs.
available to compete
leadershipN/A
- new
measureN/A - new 10%
measureCandidates
available.
of other 9% of other 5% of other
Mgrs.
Mgrs.
Mgrs.
Development plans in place N/A - new Plans in place Plans
for

Corporate

Development

Executive measure
participants.

for

in

all place for all

participants.

participants.

**
WELL-BEING
critical
positions.
Percentage
of employees 84%
81%

82%

who are satisfied with their

employment in the Alberta
public service.*
Percentage of managers who 53%

63%

65%

54%

55%

604

450+

Unaudited

48.5

report they are able to retain

the talent they need.*
Percentage of managers who 46%
report they are able to attract
the talent they need.*
Number of work experience, 478
coop

and

internship

placements. **
Promote employee
and

well-being:

database

safety 53.8 days

IMAGIS 1.7

4.2 days 11.8 days

1. Work days lost (per 100 claims

33

figures:
2.23

days

61.6 1.6
4.0 days
11.5 claims

person

4.5 days 10.6

years worked - by calendar

claims

year)
2. Lost time claims rate
(per

100

person years worked - by

calendar year)
3. Time lost due to general
illness
(avg.

days

lost

per

employee)
4. LTD incidence rate (new
claims
employees)

34

per

1000

Appendix 1 : Existing Supports and Strategies

and departmental
supports and

>z

CORPORATE SUPPORTS

COMMITMENT / ALIGNMENT

70

corporate supports department implementation strategies

n re c/a are listed below.

1.
Ensure all employees develop performance plans that are
linked to the department's business plan goals.

Performance

r-

Management

2.
Ensure all employees develop and report on meaningful

Framework

>ZZ
z

Existing

DEPARTMENT
IMPLEMENTATION

re c/a O Success in meeting our objectives relies on effective

implementation.

performance measures.

o
Human

2=

Resource

Accountability

3.
Provide

Framework

regular

communication

to

employees

about

government and department priorities and goals.

Responsibilities and Resources for

4.

Managers and Supervisors

Establish recognition programs that address both formal and

Code of Conduct and Ethics

Premier's Award of Excellence
First Choice Flexible Benefits
Management Rewards Strategy

informal recognition initiatives.

5.
Encourage high performing teams to submit applications for
the Premier's Award of Excellence and other prestigious
awards.
6.
Provide information and regular communication to all
employees on the new roles and competency requirements.
7.
Seek feedback from employees on aspects of the work
environment, on a regular basis.

VERSATILITY / COMPETENCE
Alberta

Public

Service

1.

Use

Competency Model Ambassador

competencies as a tool in selection, targeting development, and managing performance for

Program

all employees.

Internship

Program

Learning

Strategy

Corporate

Leadership Development Toolkit

2.

Use

targeted marketing/recruitment strategies to attract new talent to the

Making Service Stronger Booklet

APS.

Career Management Guidebooks

3.

Hire new graduates as interns.

Corporate Executive Development

4.

Participate in work experience and co-op programs from post-secondary institutions.

Senior and Executive Managers'

5.

Introduce targeted learning strategies.

Program

6.

Promote awareness of the Leadership Development toolkit.

Alberta

7.

Provide coaching and other supports for learning and leadership development.

Interchange Program Executive

8.

Provide learning opportunities for employees to enhance service excellence.

Search Program

9.

Facilitate movement of staff within or across departments.

Management

Development

3.

Program

Encourage every employee

to prepare an annual learning plan

4.

leadership continuity strategies.

and report on results.

Employee Assistance Program Employee

Support and Recovery Assistance
Program
Occupational Health and Safety Program
Home on the Job - Telecommuting in the
35
Alberta Government The
Job Share
Guidebook for Employees and
Supervisors

Develop a departmental human resource plan with

WELL-BEING

1. Advise the Human Resources Branch

when employees are away for ten days

>z

or more, as part of the Employee Support

and Recovery Assistance Program.

re c/a O

2. Enforce and reinforce safe work

practices.

70

3. Take steps and involve employees in

n re c/a

resolving health and safety issues.

r-

>ZZ
4.

Accommodate

employees'

needs for workplace flexibility.

5.

Regularly

organizational

assess

the

climate

and

2=

introduce strategies to respond to

employee issues or suggestions.

Appendix 2: Reference Materials

Reference

Source

Corporate Human Resource Strategies

http://www.pao.gov.ab.ca/corporate/index.html

Guide to Human Resource Initiatives in the Alberta Public Servicehttp://www.pao.gov.ab.ca/infocentre/working-ingovt/ hrinitiatives/index.html

Performance Management Framework
Employee Information
Leadership Development Toolkit

http://www.pao.gov.ab.ca/performance/perfmgmt/index.html
http://www.pao.gov.ab.ca/infocentre/
http://www.pao.gov.ab.ca/toolkit/

Responsibilities and Resources for Managers and Supervisorshttp://www.pao.gov.ab.ca/infocentre/hr-guidebook-for-managers-supervisors.pdf Strategic Human Resources Management:
Making Service Stronger Booklet
Resource

Accountability

Framework strategichr-management.pdf
Service Excellence and the Deputy Minister
of Executive Council Service Excellence
Recognition Program Premier's Award of
Excellence
http://www.pao.gov.ab.ca/makingservicestro
nger/
http://www.pao.gov.ab.ca/infocentre/workin
g-in-govt/strategic/

http://internal.gov.ab.ca/s
erviceexcellence/
http://www.pao.gov.ab.ca/
premier

36

Human

>z

LESSON 6:
RELATIONSHIP BETWEEN HRM, HRP AND
HRD

re c/a O

Learning Objectives

analyzed to arrive at definitions, because it is a question of human

70

Relationship between HRP, HRD with HRM

nature.

n re c/a

HRM Functions

Human resource management is an intricate subject either made

Today, let us study the Linkage of HRP and HRD

very simple by zealous and student friendly writers or rendered too

r-

> Z Z with HRM

complex by those caught up in abstruse argument and ideologically

zo

with the help of a Euphemistic table.

slanted polemic. Since the canvas we chose to paint on was vast but

2=

Towards a Geometry of Human Resources

the collage was intricate, we needed to simplify the subject without

Pythagorean thought had long ago demonstrated

oversimplifying it. We had to enable the reader to merge with the

that graphic and symbolic representations aid the

reality in the world of industry and business without letting him get

understanding of many a complex aspect of reality.

submerged by the complex nature of that social reality. Geometry

Indeed, mathematics emerged as a potent language

gave us the necessary locus classicus) theretofore. Including it as a

of science based on that very premise for

part of our larger design, geometry also gave us a locus standi. We

understanding the real world just as metaphysics

too have tried to use numbers, charts, and simple formulae to

had emerged as a powerful instrument for the

explain our argument further. However, we have used our

understanding

Both,

experience in the field of HR in India to rest our logic and forward

mathematics and metaphysics have long used

our argument. In a manner of speaking, we are, (in all humility),

symbols and graphic representations in their own

taking a similar position as that taken by two of the greatest thinkers

way. The oriental notions of mantra, tantra and

of all time, (Marx and Engels in The German Ideology) when they

yantra as well as the Euclidean concepts of

said:

geometry are nothing else but that.

The premises from which we begin are not arbitrary ones, not

In the same vein, one way of understanding the

dogmas, but real premises from which abstraction can only be made

ambit of inquiry that concerns HRM would

in the imagination. They are the real individuals, their activity and

logically be to take recourse to geometry. This is

the material conditions of their life, both those they find already

what we have done. The reader is, at this point,

existing and those produced by their activity. The premises can thus

well within his rights to ask why we chose this

be verified in a purely empirical way

(seemingly) peculiar title for a postgraduate

We too have sought to empirically verify many of our contentions

textbook

management.

and the findings, which have been published elsewhere, are quoted

Perhaps, it is the nature of the subject and the

briefly herein. While we have used a fair amount of quantification in

manner in which we have treated it, that has

the textbook, we have consciously desisted from taking the

caused us to name it so. By way of defense, we

industrial engineering route to HR by counting people. Rather, we

take recourse to Leon Brunschvigc's magistral

have taken the alternative Marxian humanistic route of counting on

edition of French texts entitled Les Grands

people to leverage an organization's core competency to ensure

Eerivains de la France. Nirad C Chaudhuri (1997)

competitive behavior in the domestic as well as the global market.

quotes from it, thus.

All along, we have given primacy to man since we, as HR

The intuition of geometry is anterior to reasoning

professionals, are increasingly dealing with the knowledge worker

and clearer, because it bears on the most simple

in the age of the intellect.

objects - number, space) light, but nowhere, in

Based on our research and the ensuing conclusions drawn we view

contrast) the object is complex, which cannot be

Strategic HRM as a function as if it were a four legged table(see the

on

of

supernatural

human

resources

world.

table below) with a tie bar an a brittle top. Functionally Human

Resour

: This cook care of the optimal allocation and

ces

utilization of the human resource. Hence it was

Manag

concerned with ascertaining the needs of the

ement

organization and establishing ways and means

was

to meet these needs so that the objectives of the

divided

organization are met and production continues

into

unhampered.

five

transfers and resignations were to be dealt with

distinct

by this sub-function. Euphemistic leg 1.

sub

Recruitment,

promotions,

2. Human Resources Administration (HRA): This

functio

took care of the erstwhile Establishment

ns and

function

the

compliance function in others. It had to make

table

sure that all the returns were filled up and

can

submitted to the

thus be
visuali
zed:
Fig:
Our
Euphe
mistic
Table

1. Hu
ma
n
Res
our
ces
Pla
nni
ng
(H
RP)

in

some

parts

and

the

legal

concerned authorities in order and in time.

The tie bar is consequently responsible for the other four legs being stable.

Payroll functions came under the purview of

And only by giving equal weight to each sub-function can the length of the

this sub-function. Peripheral fW1Ctions as

legs be equal and this stability be enriched.

Safety, Canteen, Creche and Conveniences

Since we are dealing with man and his management, the tabletop is as

would also fall under its purview. Euphemistic

brittle as the human mind. If not treated well it will indeed shatter. These

leg 2.

four legs and the tie bar that holds the legs in place, and which together

3. Human Resources Development (HRD): This

prop up a brittle tabletop that is the HRM Function itself. Using this

was the most proactive sub function of the

analogy, we chose the title as "Geometry of HR".

specialization. It began at the level of training

It has been argued all along that HRD, HRP, HRA and HRIS

need identification, conducting climate surveys

cannot be separated from one another and that there is a symbiotic

and actually conducting training programs.

relationship between them. IR or Industrial Relations has always seemed to

Training was an ongoing but short-term

be the odd one out in the scheme of things for the Management School

process while organizational development was

trained HRM expert. This is ironic since all value is created by labor and

goal directed and long term. Both had a direct

capital is nothing but man made aid to production!

role in the organization corporate culture

The tabletop is brittle since we are always dealing with human emotions

building. Euphemistic leg 3.

and sentiments although we approach the same through the human mind.

4. Industrial Relations (IR): This was essentially

Emotions are tender and must be treated with great care. Here the care

related to power relationships between the

exhibited comes from our beliefs and ideology or the subjective notion of

owners of capital and the dispensers of labor. It

value. The process of production ads value and strategic HR helps this

is not a systems concept a fa Dunlop or a

process of value addition. Now we are viewing value in the Classical

process or regulation concept a la Flanders but

Ricardo-Marx-Sraffa sense. Therefore, we are concerned here only with its

more of a power and control concept a la

objective notion. It is after a11 the human being (living labor) that creates

Hyman. Euphemistic leg 4.

all value and (dead labor) is ultimately valorized as capital.

5. Human

Resources

Information

Systems

Going further, Investment is the process of capital creation and

(HRIS): This was the bloodline of the

as any banker like Parvez Balaporia will remind us, is only viable

specialization for it stored information and

when (i) < (r). That is to say, the rate of return is more than the

rendered it easily accessible so that decision

cost of borrowing. Hence exploiting the resources is built into

-making could be facilitated. The key words

the

were

seek to enhance internal customer satisfaction and promote a

balance

between

secrecy

and

transparency. Euphemistic tie bar.

6. Human Resources Management (HRM): This

economist's

paradigm.

Is

HR

really

exploitative

when

&
<
we

healthy work environment? Alternatively, is the exploitation so ^

is the smooth and shining tabletop, which is

subtle that it is not perceived? This takes us into value Based

propped up by the four legs. It is smooth

denoting the fact organizational objectives are

Management.

achieved smoothly. It is shining to denote that

The above notwithstanding, we could emphatically state that the HR expert

there is efficiency in the achievement of these

can and should obviate this problem by ensuring that human development

objectives. It is stable denoting that the

takes place all the time, that value addition is universal and employees are

processes are efficiently utilized for the

proud to belong to the organization. This issue of belongingness, we shall

achievement of these objectives. The shine, the

address later, but for now let it be noted that belongingness means two

stability and the smoothness is maintained by

things: The organization belongs to me and also I belong to this

adherence to values and maximizing on the

organization. This comes from giving respect to the human being even

core competencies. Its brittleness is brought

when differing with his/her views. Concern for the individual is the

about by the fact that we are dealing with the

hallmark of a good leader. The HR expert is above all a leader and a

human being whose subjective self very often

producer of leaders through his facilitation. Once this is achieved, the task

overpowers his objective self in aJi walks of

of converting core competence into competitive advantage becomes

life.

relatively simple.

39

Before we jump to the conclusion that HRM is an

important point to stress is that the responsibility for HRM is M

(or, at

end in itself, let the premise upon which we act be

least, should be) shared by human resource specialists H

made absolutely clear. To the positive economist

agement. How the HRM function is carried out varies from organization to

HRM is a behavioral interpretation of the various

organ-ization. Some organizations have a centralized HRM department with

ramifications brought about by the micro produc-

highly spe-cialized staff, but in other organizations, the HRM function is

tion function. That is taking things a little off the

decentralized and conducted throughout the organization.

and line man-

track. What we say is that the organization is a

The most comprehensive way to present the HRM function is to

microcosm of the larger society and is a part of the

examine the activities carried out by a larger department, such as the

political economy within which it exists. With that

HRM division headed by a vice president depicted in Figure 1-1. HRM

in view we could propose as follows:

can be divided into primary and sec-ondary functions. Primary functions

The HRM function is concerned with the

are directly involved with obtaining, main-taining, and developing

strategic relationship between capital and labor

employees. Secondary functions either provide support for general

under a set of given circumstances and in an

management activities or are involved in determining or changing the

organization

structure of the organization. These functions are detailed below.

having

certain

goals

and

limitations.

Primary HRM Functions

An understanding of the processes of economic

Human resource planning activities are used to predict how changes

development and growth that engulf the larger

in management strategy will affect future human resource needs.

market economy within which the organization

These activities are becoming increasingly important with the rapid

functions, ultimately facilitates the proper

changes in external market demands. HR planners must continually

understanding of this strategic role.

chart the course of the organization and its plans, programs, and

To understand the processes of economic

development and growth one has to have a

actions.

Equal employment opportunity activities are intended to satisfy both

good idea of the political economy within

the legal and moral responsibilities of the organization through the

which

an

prevention of discriminatory policies, procedures, and practices. This

understanding of and the influences brought to

includes decisions affecting hiring, training, appraising, and

bear on the organization by state policy on

compensating employees.

one

exists.

This

includes

capital and labor.

Understanding the political economy of

timely identification of potential applicants for current and future

labor is a precondition of Strategic HR as

openings and for assessing and evaluating applicants in order to

opposed to HR Strategy. We are concerned

with the former. The former integrates HR
within

the

strategy

formulation

make a selection and placement decision.

and

competitive benefits package, as well as incentives tied to individual,

prime mover. The latter merely uses HR as

team, or organizational performance.

one of the many tools that management has

The Relationship Between Human Resource

Management and HRD/Training
function or department. In most organizations,
however, training or human resource development
is part of a larger human resource management
department. Human resource management W
(HRM) can be defined as the effective selection
of employees to best achieve

the goals and strategies of the

organization, as

well as the goals and needs of employees. An

Employee (labor) relations activities include developing a

communications system through which employees can address their

problems and grievances. In a unionized organization, labor relations

In some organizations, training is a stand-alone

and utilization W

Compensation and benefits administration is responsible for

establishing and maintaining an equitable internal wage structure, a

implementation process as its catalyst and

its disposal.

Staffing (recruitment and selection) activities are designed for the

will include the development of working relations with each labor

union, as well as contract negotiations and administration.

Health, safety, and security activities seek to promote a safe and

healthy work environment. This can include actions such as safety

training, employee assistance programs, and health and wellness
programs.

Human resource development activities are intended to ensure that

organizational members have the skills or competencies to meet current

40

and future job demands. This, quite obviously,

In this lesson we have discussed, what is HRD? Its nature and importance.

is the focus of this book.

And also we have discussed the relationship between HRP,

Secondary HRM Functions

HRD with HRM with the help of Euphemistic table.

Other functions that may be shared by HRM units

include the following:

Organization/job

design

activities

are

concerned with interdepartmental relations and

the organization and definition of jobs.

Performance

management

and

performance appraisal systems are used for

establishing and maintaining accountability
throughout the organization.

Research

(including

and
Human

information
Resource

systems

Information

Systems) are necessary to make enlightened

human resource decisions.
Line Versus Staff Authority
One

of

the

primary

components

of

an

organization's structure is the authority del-egated

to a manager or unit to make decisions and utilize
resources. Line author-ity is given to managers
and

organizational

units

that

are

directly

responsible for the production of goods and

services. Staff authority is given to organizational
units

that

advise

and

consult

line

units.

Traditionally, HRM functional units, in-cluding

HRD, have staff authority. In general, line
authority supersedes staff au-thority in matters
pertaining to the production of goods and services.
For exam-ple, suppose several trainees miss
training sessions because their supervisor assigned
them to duties away from the job site. Can the
HRD manager or trainer intervene and force the
supervisor to reassign these employees so that they
can meet their training responsibilities? The short
answer is no. The long answer is that HRD
managers and staff must exert as much influence
as possible to ensure that organizational members
have the competencies to meet current and future
job demands. At times this may require some type
of

intervention

(such

as

organ-ization

development) to achieve a greater amount of

understanding across the or-ganization, of the
values and goals of HRD programs and processes.
Summary

41

LESSON 7:
HRD-CONCEPT, NATURE AND NEED FOR
HRD

taken part in II
companysponsored training

Learning Objectives

these activities under a single label. Rather, they

program,

Human Resource Development-Introduction

can be brought under the umbrella of Human

example, diversity

The

Resource Development

training,

(HRD).

harassment

The human resource development in India is of

awareness

Hello students, till now we were discussing about

recent origin, and the terms gained currency only

prevention,

Human resource planning, you all must be

in the early seventies. In the opinion of Nadler the

career

thinking how human resource development is

term "HRD" was first applied in 1968 in George

development?

different from HRM. Right? So today we'll see

Washington University. It was used in Miami at

what is HRD.

the conference of American Society for Training

experiential

and Development in 1969. According to Nadler,

training

Zntroduction

the term was gaining more acceptances during the

experience,

With increasing global competition, organizations

mid- 1970's, but many used it as a more

as a ropes course

are under tremendous pressure to improve their

alternative term than "Training & Development"

or other outdoor

performance through reduction of cost and in

(58). In the opinion of some management

learning

quality up-gradation. Indian business organizations

professionals, Japan is the first country to begin

experience?

too have now realized that they are now in a more

with HRD practices. "Better People", not merely

open, highly competitive, and market-oriented

better technology, is the surest way to a "Better

type

environment. The three challenges for Indian

Society", is the most popular belief in Japan (59).

planning project or

business organizations are - First, how to

In the opinion of Prof. Udai Pareek, the term was

assessment

maximize return on investments. Second, how to

first used in India in 1972 by the State Bank of

example,

be more innovative and customer driven. Third,

India (60). By the late seventies and early

vocational interest

how to renew and revitalize an organization? In

eighties this professional outlook on HRD caught

inventory?

this context, the most important steps are effective

on to a few

management; holistic development; and optimum

PSUs, namely BHEL, MUL, SAIL, IA, AI & IOC.

organization-wide

utilization of human resources (Jha 1987; Sarathi

L & T and

change effort, for

1987; Maheshwari & Sinha 1991) (55)

TISCO are the first two organizations in the

example,

your

In the past decade something quite different was

private sector to

organization

was

happening in many Indian organizations, calling

begin

with

seeking to change

for a second look at traditional personnel functions

HRD.

Have

and their integration with organizational objectives

You Ever:

move

(Athalai 1987; Singh 1989; Nair & Rao 1990;

trained a new employee to do his or her job

flatter,

(either formally or informally)?

teamoriented

taught another person how to use a new

structure?

definition

of

Human

Resource

Development

Need for HRD

Human

Resource

Development

(HRD)

Silvera 1990) (56). According to Singh & Sen

(1992) (57) several steps were laken, such as,

for
sexual
and
or

gone through an

completed

such

some

career
for
a

participated in an

its

culture

and

toward

more

conceptualisation of employees as resources;

technology, for example, how to conduct an

If you said yes to any

strategic role of personnel functions; greater

effective PowerPoint presentation?

of

attended an orientation session for new

questions, you've been

partnership to line managers in managing human

resources; dovetailing of training with other
personnel

functions;

synthesis

of

different

employees?

the

above

involved in some form

of

human

resource

personnel functions, etc. It is difficult to categorize

42

development. It is often said that an organization is

>z

only as good as its people. Organizations of all

types and sizes, including schools, retail stores,

government

agencies,

restaurants,

and

manufacturers, have at least one thing in common:

they must employ competent and moti-vated
workers. This need has become even stronger as
organizations

grapple

with

the

challenges

presented by a fast-paced, highly dynamic, and

Hu
> man

necessar

reso

y skills

z urce

to meet

re c/a O
as
n re c/a
p

r-

>ZZ
N

learn

deve

current

re lop
c/ men

and

a t
(HR

job

future
demand

increasingly global economy. To compete and

D)

s.

thrive, many organizations are including employee

2=

can

Learnin

education, training, and development as an

be

g is at

important and effective part of their organizational

defin

the core

strategy. It has been estimated that education and

ed as

of

train-ing programs accounted for as much as 26

a set

HRD

percent of the increase in U.S. production capacity

of

efforts.

1995, Alan

syste

HRD

Greenspan, chairman of the US Federal Reserve

mati

activities

Board, stated, "It has become quite apparent that

should

many firms have concluded that it makes more

and

begin

sense to invest in worker train-ing than to bid up

plan

when an

wage scales in a zero-sum competition for the

ned

employe

existing lim-ited pool of well-qualified workers. A

activ

2000 survey of human resource man-agers in large

ities

an

organizations ranked training and development as

desi

organiza

the most important functional area these managers

gned

tion and

had to deal with. This was followed in descending

by

continue

order by recruiting and selection, productivity and

an

through

quality, suc-cession planning, employee

job

orga

out his

satisfaction, compensation, globalization, and

nizat

or

diversity?

ion

career,

to

regardle

prov

ss

ide

whether

its

that

mem

employe

bers

e is an

with

executiv

the

e or a

oppo

worker

rtuni

on

ties

assembl

to

between

1929

and

1982.1

In

all

joins

her

of

an
line.

43

HRD

programs

Rationale of HRD

rly.

Nee

assets

must respond to

Some thinkers object to

Training

d:

which

job changes and

the

'Resources'

is

is a

do not

integrate the long-

being applied to human

oriented

gap

find

term plans and

beings as it is against

and

bet

place

strategies of the

the dignity of man, who

il

generall

wee

for

organization

is actually the user of

it

mentio

to

term

the

the

resources.

with

the

ning in

efficient

and

Other thinkers feel that

current

desi

the

effective use of re-

being

needs.

red

balance

sources.

becomes

resource

Development:

To bring

leve

sheet

acquires

from latent/potential state

ofa

knowledge,

to an

and

compal

attitudes

active

actu

1Y. But

an

state.

al

it is one

it

Unfoldm

level. of It the

ent . In

may

HRD

Education
importa

process

al

it means

Training
assets

acquisi-

Need asor

tion

De-

chapter

provides

brief

history

of

the

human'
a

when

he

certain
skills

and

significant events

useful

&

organisation/ society.

contributing to

contemporary

for

Meaning of Terms:

thought within the

HRD field.
We

briefly

discuss

human

resource

Knowledge:

Range of

information on some
subject.
Skill:

and HRD

some job. It needs

functions,
and

process.

in

doing

practice,

roles,

in

We

addition

also discuss W

to

certification and

knowled

education

ge.

for

HRD

Attitude:
Predominant mode of
thinking & feeling

O
describe several

affecting

criti-cal challenges

behaviou

facing

r.

HRD
E

professionals.

or

process framework
that can

guide

our HRD efforts.

knowledge
a
n
d
s
k
il
ls
t
d
o
a
j
o
b

Education:

Finally, we present
systems

of

professionals.
We then

Systematic
relevant

Expertness

structure,

Training:

transfer

management

<

deals

ensure

This

other

job-

Systematic transfer of

knowledge on some

subject

and

of

p10st
be
Need;
nt

human

wider

velopment
resourc

knowled

Need. es are a

ge, skills

Sign

resourc

and

ifica

attitudes

nce

pro-

to

of

duction

assume

Hu

as well

higher

man

as they

responsi

Res

are

bility.

our

utilisin

Develop

ce

g other

ment is

Dev

resourc

per-son-

elop

es

oriented

men

product

and

ion like

deals

Hu

with

man

materia

predicte

reso

l,

d future

urce

machin

needs.

are

es,

the

money

of

of

44

etc. Any invest-

2. It depends upon the

achievement

ment made on

definition of objectives

production

training

and

which may be called

running

factory.

development of

"learning objectjys:.s?'.

people is sure to

have

symp

co

becom

atheti

ntr

organisation can be seen

ol

Over all supremacy

as a result of cooperation

import

invol

sy

IfHRD schemes have

has to be given to

and hard work at all the

ant for

veme

ste

show the results

clear

the

levels of functioning of an

two

nt of ms

in the years to

objective,

human resource as

organisation.

compe

peopl

come.

The

plan or programme is

given

Any

1ling

results of any

sure to yield better

abov~

investment in developing

busine

work.

HRD

results.*.

___________.Q!l!.

infrastructure of a training

ss

Secon an

. .itself ensures the

institute and its running

reason

dly,

ge

proper eva.l______________

economical ~se of

will, in the years to come,

s.

consi

. H 0!l_9i~plan is done~ we

resources

show

in

Firstly,

derati

th

with

would be able to assess

applying

achieving

higher

compe

on

development of

the effectiveness of the

wis~oIIl_-i!

productivity

and

titions

arises

rat

skill, knowledge

plan. If evaluation is

1-._pTIDinlngfo-r-

profitablity.

in the

from

io

and attitude, the

not

th-

busine

the

of

progress

and

done, the information

jobs~ Hence, any

ss has

impre

ski

development is a

will not work as data

_a_m_o_u!!t

forced

ssive

lle

very

for

efforts

attenti

devel

on

opme

an

plan

scheme
in

or

appear

long

term.

When we deal

3. If

slow

process but not

an

indefinite

process.

The

development of
people

for

modification and
improvement in
skill, knowledge
and attitude has
the

following

characteristics
and hence it is
likely to be a
slow process:
1. It

depends

upon the quality

of train~. How
the HRD effort
will be planned
and

HRD

schemes
implemented.

cut

learning
the

HRD

systematic

and

systematically

improvement

in

The development of peop

Ie is to be viewed properly,
giving weightage to the
culture ofthe organisation
which

people

are

growing. The environment

and cultural values of the
organisation would have a
very significant

bearing

upon people's conviction

whether the development
is

desirable

and

felt

necessary by the people

Aspects

of

HRD
All resources of production
are

important

like

machine, capi-tal, money,

land and building etc. in
order

to

ensure

element

..

of

.ma_n_r

by

e'productn
of

human.resources
will

the

yield-its

appro.pJaH_es_uli.
!l.th~

X~f!I?-.

()Khigher
Y~AJ?!.9f-itability
of the organisatiQ!
h Prospects. and
growth,
andprofltabiliiY-ofan-or-ganisation
maximum
effective

utilisation of such
resources
employed

in the

effort of achieving
company
According

The

achievement

of

huge

its

an

capital

results

Need for HRD-Overview

Organizations need to be
dynamic

and

growth-

oriented to sustain in the

competitive environment.
This

is

possible

only

through the competence of

the human resources. To
cope

with

the

environment,

organizations
review

fast

need

their

approaches

to
HRD

continuously.

HRD is neither a concept

nor a tool, but is an

productivity

on

objectives.

changing

prod~ctivi!

depend

themselves.
!mportant

of

spent.onJraining of

future programmes.

in

of

approach using different

personnel

systems,

depending upon the needs

and

priorities

organization.

of

The

the
basic

assumption is the belief in

human potential and its
development by providing
a suitable and congenial
environment.

to

Dayal and others

(60 A), concern of

for development people,

of

ha

at s
ch

organi

nts in d

zations

scienc un

on cost

e,

ski

of

engin

lle

operati

eering d

ons,

and

jo

sensiti

techn

bs.

vity to

ology. Ne

market

The

deman

new

sy

ds.

produ

ste

These

ction

ms

aspects

techn

re

of

ology, qu

busine

autom ire

ss

ation

ne

cannot

and

be

applic ski

served

ation

lls

withou

of

an

electr

onic

ce

and

full

45

rtain

minimum

the job applica- terms

context,

educational

tions of learning of skill,

(64) also remarks;

qualifications.

that

"HRD

They

can reduce costs, y,

process

improve quality, compet

increasing

within

gradation of skills.

and so forth. It ence,

knowledge, skills,

Thus,

has been rightly self-

capabilities

observed

by awaren

positive

people,

Billimoria

& ess,

decentralizations
of

need

continuous

up

development

of

decision

making,

flatter

and

different

management
practices

than

pote

ati

huma

tas

organised

ntial

on

ks

learning

s for

am

resour of

experience,

their

on

ce

th

own

devel

frame, with an

or

sub

opme

or

objective

of

orga

nt

ga

work

producing

the

niza

uni

(HRD ni

attitude and value

possibility

of

tion

ts

Singh (62) that adjustm

of

people

performance

al

are

essent io

"each

working

at

all

change".

dev

str

ially

being is born as the

levels

in

According to Rao

elop

on

consis m

something

new, environ

business

(67),

men

ting

ay

something

that ment,

undertaking".

organizational

and

of

no

According to Rao,

context, HRD is

purp

con

these

oses

trib

three

be

ute

Cs:

co

Dev

to

comp

ultimately maturit

human ent

never

to

existed and

Khan
is

the
of

all

and

those followed in

before. Each is confide

Verma,

the

born

Khandelwal

past

have

with

the nce. In

and

means

an

time

in

the

process

in

which

the

as zat
n

become necessary

capacity to win in the

Abraham

(65),

employees of an

for

life, each has his view of

HRD is a process

organization are

elop

the

etenci

pl

by which people

continuously

orga

pro

es,

ete

in various groups

helped

niza

fes

comm d

are

planned manner

tion

sio

itmen

to:

cult

nal

t, and st

ure

wel

cultur

in

e. All ect

whi

bei

three

iv

ch

ng,

are

el
y

survival

of

business.

HRD

own

unique Dayal,

initiatives

meet

potentials,

HRD

the need of these

capabilities

business

limitations."

imperatives.

In the opinion of a
Prof.
Ishwar philoso

competence

continuously so as

sharpen

Dayal (63), HRD phy

is an approach rather

to

capabilities

founded on the than as

belief that people a

and

perform

supe

mo

neede

simultaneously

various

rior-

tiv

of progra
growth' given an mme.
environment that HRD is

developing

functions

sub

ati

make

wi

sense of pride in

associated

ordi

on

an

th

them. HRD is an

with

their

nate

and

organ

or

relat

pri

izatio

ax

In the opinion of
Nadler and Wiggs
(61) the ultimate
purpose of HRD
activities

is

make

"to
a

difference" in the
real

world

of

are

and can be

in

seen as

capable

helped

acquire

new

make

more

to

them

self-reliant

Acquire or
their
that

are required to

co
eff

to or

quality,

facilitates

for

approach to the

present

quantity, accuracy

individual

both'

systematic

expected

ions

de

im

and

growth.

future roles;

hips

of

functi

Develop their

em

on

m
eff

costs,

timeliness.

Growth which
therefore, prevent

HRD activities, as

is,

such,

important

expansion

of

people's work -

related

abilities,

general

tea

plo

well.

focused

on

capabilities as

yee

Witho ici

improve quality or

for s
growth
organizational
and
growth.

attainment of both

individuals,

wor

s.

ut

en

quantity,

According

organizational and

so

personal

enterprise in any

to which
Dayal, HRD is to leads to
make a person, a growth.

way. It is the on-

total

reduce

benefit

do

not
costs,
or
the

person in In

this

Nadler
observed,

the

goals.
(66)
"HRD

Furthe

comp

cy.

discover and

and,

r, Rao

etenci

Wi

exploit

coll

(68)

es

th

abor

defines

many

ou

inner

as

to
their

46

commitment,

they may not be

done at all or are

public

sector develop

undertakings, has ment of

successfully

human

done at such a

implemented

slow

that

HRD programme ty.

lose

and

massive

effort

in

the

organization.

an

integrated

(69)

have

cannot

and has achieved Similarl

identified

four

thought

worthwhile

basic partners of

isolation.

results. The basic strategi

development viz.:

According

appropriate

principle of HRD c

(i) the self (the

Rao,

culture,

philosophy is the options

individual);

interventions

of

organizations

belief in - (i) in terms

the

HRD

(i)

cannot last long.

human

superior

Culture

and

relevance.
Without

the

an

provides
sustaining

y,

all

potential of
its busines

&

of others. HRD is
process

they

Pareek

the effectiveness

Rao

pace

its capabili

(ii)

immediate
(boss);

(iii)

HRD

and
of

>z
R

be re
in C/5
O

to as n re
major c/a

are:

Performance and
potential

r-

>ZI
z

2=

satisfactio

types

n,

of

improved

organis

quality,

ations

market

need

image,

compet

etc.) must

ent

first

employ

think

of

ees for

developing

the

its

success

employees'

of their

competenc

internal

ies.

development; (ii) s plans

department

and

appraisal;

force and spirit

Optimum

will

(iv)

the

Career Planning;

and

Similarly,

and

utilization

of remain

organisation. Rao

(iii) Training; (iv)

externa

aE

human resources; unfulfill

&

Organisation

profit

live. It provides

and

observed

development; and

operati

organisatio

the

harmonious

ons. A

n, say a

profit

university

spirit

for

organizations

to

oxygen

(iii)

a ed,

if

Pareek
that

(ii)

Both

human

there are six units

(v)

needed for them

balance between resourc

in an organisation

ment.

10

business strategy es

which

interventions

organis

or

with

may vary from

ation

hospital

HRD. These are: -

one organisation

interest

interested

to

ed

in

survive.

Its

are

HRD not

are

utility comes to

and

concerned

the force specially

strategy,

when

strategic planning availabl

(i)

organizations are

and HRD should e

(employee);

in trouble.

i.e., made

HRD

another

in

a
0

(ii)

depending upon

growin

improving

go hand in hand. implem

role; (iii) dyad;

their needs, based

g,

its

Many people are

10C adapted the ent

(iv)

on

diversif

culture,

not very clear as

leading

inter-team & (iv)

studies.

For

y-ing

must first

to the difference

consultant

the

example,

role

or

think

between HRD and

M.B.

The effectiveness

analysis was the

improv

orienting

personnel

model (68 A) of respons

strategic
ibility

of one unit (foci)

core of its HRD

ing its

its

workin

employees'

management and of both

organization
line

programme

No

g (such

attitudes.

whereas

organization can survive,

as cost

automatically

development.

SBI started with

let alone make a mark, if

reducti

is

being designated

According to this rs and

model, 00 & HRD/P

performance

its

on,

needed

appraisal as the

competent in terms of

reducti

to

HRD efforts may ersonne

tend
to
be l

first

knowledge,

on

mitigat

interventions of

attitudes.

Competent

delays,

e some

wasteful exercise, speciali

if there are no sts. It is

HRD.

employees are as much the

increas

of

Need for HRD

necessity of a non-profit

ed

evil

1. HRD is needed

organisation as of a profit

custom

conse-

to

-making

er

quence

functions. As
result,

personnel

managers

are

as HRD managers
performing
personnel

and

industrial relations
function.

Indian

to

person

reinforce-

non-

them.
Dr. HRD is
Athreya's thus the

Oil Corpn. (IOC),

opportunities

one of the leading

utilize

(v)

organisation.

diagnostic

will contribute to
JOC,

manage

to a
cothe operativ

team;

in

develop

competencies:

employees

are

skills

not
and

organisation.

in

work

of

2. HRD

the

47

of

3.HRD is needed to

tradition-al

carefully

defined

repl

in

industrializatio

bring about system-

method can do

direction, authority

aces

hndian

n. It is common

wide changes:

this.

and control as well

the

Context

knowledge that

Whereas

Executives

as

old

With

the

human

resource

most

appropriate rewards

valu

liberalisati

development

methods

traditional

and penalties that

es

on of the

emphasise rational

by

Indian

behaviour

and

new

economy

achievement of the

one

many

objective.

s.

changes

factory

system

has

traditional

in

of

the

The

dehumanized

(such as training, job-

organisations

and

rotation, etc.) have their

seem

to

various jobs. By

relevance

hold

the

enriching

usefulness, they are by

following

roles

themselves inadequate

values :

The above values when

Peo

are taking

satisfies

to bring about the kind

(i) The

held by themselves lead to

ple

place

their needs of

of system-wide change

important

the

bec

the

advancement,

which is visualised in

human

consequences:

om

corporate

growth,

the concept of HRD. In

relationships

Values

sector.

respect,

traditional

are

those

commands which. once

mo

Many

recognition,

often top management

which

are

internalized, coerce human

re

public

personnel

related

to

behaviour

ope

sector

deskilled

workers'
HRD

self-

creativity

and

autonomy.

and

methods
have

the

following

are

learned

in

specific

in

attitude that all is well

achieving

directions.

n,

enterprises

with themselves, and it

the

(a)

ind

are

development

is only the lower level

organisation

Executives

epe

sold

plans

which

objectives,

remain

unaware

of

nde

private

problems

of

nt,

hands,

Under

career
workers

needs

to

be

generally

being
to

are more or Jess

trained and developed.

i.e., getting

human

assured

about

Such

the job done.

their

subordinates

aut

there

their

future.

these

because

the

latter

hen

increase in

Other

HRD

attitude

makes

programmes

(ii) For

being

is

ineffective because by

effective in

suppress their emotions

tic,

work load,

keeping

the

human

and

cre

ban

interdependent

and

relationships

feelings.

ativ

new

counseling,

interacting higher levels

one needs to

recruitmen

monitoring,

out,

(b)

be

and

t,

quality of work

continue

Decision-making becomes

coll

retrenchm

life, etc. enable

abo

ent

rati

labour,

ve

imposition

in

of

thei

voluntary

retirement

beh

schemes

avi

and so on.

our.

The Tenth

mechanisms
such

as

these

levels

to

remain

disguise

their

more

plagued by forces of

less effective because

rational and

workers to lead

mistrust, jealousy and

there is dropping off of

logical in his

an integrated life

authoritarianism. HRD

experimenta-tion

behaviour

which is mostly

programmes

risk-taking with new

rather

partitioned

about

ideas.

the

by

bring

system-wide

factory

change. They gradually

system into two

enrich the entire socio-

lives:

technical system.

the

than

emotional.
(iii)

(c)Conformity,
and

Human

specially on those who

relationships

are in power, increase.

4.HRD is needed to

life

are

develop

proper

effectively

the

climate

motivated

organisation.

personal life.

the

climate

a
in

organisation: No other

mistrust,

dependence,

organisational
and

and

by

most

HRD develops a new

in

the
It

Need
for
HRD

on

of

Five Year
Plan (2002
2007)

48

recommends
reduction

methods,

in

the

number

of

work

norms,

the customer. The

traditional

technical and managerial

skill sets required

units.

skills

of those heading

'specialist'

heads

functional

departments

and

employee

Unlike

the
of

face.

increa

5.

At this

sing

point,

their

or

the

accou

e
att

government

motivation to face up to

these

employees at the

new challenges. HRD will

differ from the skill

these heads are required to

HRD

ntabil

rate

have to playa very crucial

sets

be generalists who have

mange

ity. In en

annum for 5 years

role

those heading the

r has a

tio

during

the

changes

which

are

working

is, office

critical

count

period.

According

sweeping

through

our

familiarity

on the one hand, space

role to

ry

to

engineering,

streamlining

play.

where

sp

manufacturing

process and paper overhea

4.

the

eci

and marketing.

work

Work

'bene

al

2.

increasing

force

volent ca

empo

autocr te

of

3%

per
plan

if

the

to one estimate 3.5

industry

lakh workers have

successful:

so

1.

far

been

are

organisations:

public

Indian

enterprises.

This

to

prove

Restructuring

retrenched in the
sector

following

Many

companies

restructuring

of

their

departments

functional

required

of

upgradation
with

and
and d

quality,

expense
service s.

are

Emphasis

or-

core

and speed and on These

werme

at' has go

on

number goes up to

ganisation structures by

competency:

the other hand changes

nt: For

been

rie

6 lakh if those who

thinning their management

With the licensing

making

the

the

have left banks and

ranks and expanding their

era coming to an

jobs obsolescent. make

corpor

overw of

other undertakings

spans of control. Seven

end

India,

Many companies workers

ate

helmi

under

layers in the pyramid and

companies

now

which realize that redunda

democ

ngly

or

voluntary

seven direct subordinates

no longer need to

they

racy to

prefer

ke

retirement schemes

for each boss, which used

preemptively

adding value in some

becom

red

rs:

are also included.

to be the historic norm for

secure licenses in

all

style

Wi

Retrenchment

of

many large companies is

diverse

areas

reality

real

th

this magnitude has

becoming a thing of the

unrelated areas to

increasingly

many

empo

th

adversely

past. Now the thrust is to

outwit

outsourcing

compa

werm

the woman workers

flatten

competitors.

but

nies

ent of sp

whose

spans and transform the

There is now a

critical functions. everyw

are

the

eci

in the total work

organisational

perceptible

With

now

work

al

force has now gone

from tall and narrow to

in

vesting

force

cat

down from 11 to

short and wide. Further,

developing

their

is

eo

5.8.

the traditional functional

competency

tions, employees rehabili

emplo

going

gri

departmentalisations

through

can now work in tated

yees

to

es

their homes. Tele through

with

pose a of

work, as it is training

greater

big

authori

challe

or

the change

ty,

nge

ke

and has

expand

for

rs

inconvenience of be

ing

the

su

travelling

their

HRD

ch

job

mana

as

titles

ger.

ph

various

affected

percentage

There

pressure

on

is
the

layers,

expand
pyramid

cast

in

and
their

shift

favour

of
core

mergers

several may

are

not nt

functional places.
are The

the

redunall dant
most workers
the here

advancement

in need to

tele-communica-

be

Indian industry to

around

per-form-produce

manufacturing

quality goods and

marketing are giving place

to professionalise

called, has freed .

provide

quality

to departments focused on

their groups.

them

With

broad classes of products

3.

trouble

increased

or services. These new

Technological

competition there is

departments

changes: Recent

need

hierarchy,

services.

to

become

cost-effective
upgrade

and
work

work,

development,
and

reduce
stress

reward

better

creativity

and increase receptivity to

and

demergers.

Companies

want

spurt

in

computerisation
and technological

long

from

The
to

over brought

distances. about

Companies
also

at

save

can with
on human

and

ysi

49

cally handicapped,

U.S.

women, religious

becoming

minority,

increasingly tied recent

employee

to

turnover.

backward

and

firms

is strategi
es

in

shareholder times.
through Worldw

enduring remedies

attached to the

8(2)

ri

s.

to

organisation)

,198

&

Ta

ranks

7, p.

T.

ta

surprisingly very

28-

V.

will also have to

low

36

Ra

o:

Ed

ra

dysfunctional
They

it

others forming the

value

ever-increasing

expanded use of ide,

sustain conditions

Long-term HRD

proportion of the

share op-tions. To organis

that induce long-

interventions

total work force

cite an instance. ations

term

using behavioural

P.Sa

s.

every

year

as a new chief seeking

commitment and

understanding

rath

Ex

Hi

measures

like

executive

membership

are, therefore, re-

cel

ll

to

Hu

len

new

ma

ce

ub

com-

employee

(ninth)3.

flexi time and tele

assumed office at petitive

behaviour. In a

quired

work are likely to

Eastman

study

of

establish

assume

in

large

companies

work ethics and

thr

lis

greater

Kodak advanta

1993,

he ge

by

7,500

significance. Flexi

received options leveragi

in 13 countries

to build greater

Res

ou

hi

time

to purchase more ng

conducted by the

employee

our

gh

ng

workers to start,

than

Walker

commitment.

ce

Hu

finish

shares of Kodak capital.

Information

Opt

ma

stock, of little or have

CSM Worldwide

research

imi

Network

HRD:

zati

Re

pa

on:

so

ny

An

urc

Lt

inte

d.,

grat

De

.,

ed

vel

app

op

roa

me

ch.

nt:

el

Per

im

hi

son

pro

to

nel

vin

19

90

permits
and

meal

take
breaks

750,000 human

in

own liking within

the stock price learn to

Indianapolis-

Continuous

increased

based

research

is

organisation it has

needed

to

hold on

band subject to a

substantially but to

core time when

potentially worth best

been found that

discover

everyone has to be

$ 13 million to $ talents

although.

in

HRD

in

17 million if it in

respect

of

and interventions.

attendance.

This measure can

did.

help

in

women

workers

to

India

follow

demands

link

family

may s. With
these the

examples

their

the

Companies busines

balance their job

with

the

an

More

no value unless had

time

8.

according to their
flexible

to

and

and loomin

executive g

new
methods

"employees

This is possible

focus" (defined as

only when there

the

to

are

an

oriented

extent

which
organisation

organisations

compensation to prospec

attends

the

pool and share

To-

the production of t of the

needs and wants

their experiences

day,

pro

56.

tele

greater

investor labour

of its employees)

in diverse areas.

8(2)

du

B.N.

work can be of

wealth.

market

India ranks very

cti

Athal

great help to the

7.

tighteni

high (third), but in

198

vit

ai

physically

employee

ng

respect

7,

HRD

handicapped.

retention

p.5-

an

: The

13.

state

co

of the

mp

Ma

art in

etit

hes

India

ive

hwa

nes

demands.
Similarly,

Greater

6.

Compensa

and further,
organis
commitment:

tion

linked

Employee

to

retention

shareholder
value,

Top

management
compensation

in

a-tions
has will be
the hard

been

at

forefront

of pressed
resource to find

human

to

HRD-

of

"employee
as

the

extent to which
employees

55. IN.

Jha:

Quality

is

directly

commitment"
(defined

References

are

behaviourally
interested in and

proportional
to

Human

Resource
Development,
Personnel
Today,

&

50

Development,

India

17(1),1987, P.

Publications,

23-28

1990

- AK.

Singh:

>z

57. Singh (AK) &

Human

Sen (AK): HRD

Resource

Culture

Development

Model, MOl

re c/a O

A 70

n re c/a

Retrospects

Management

and Prospects:

Journal,

>ZZ

In At Dalal &

Vo1.5,

AK

January,

Singh

1st

Research

in

New 2=

Delhi.
p. 113

Human
Development,

58. L.

Nadler:

Gurgaon,

"Defining the

Academic

Field - /s it

Press, 1989

HRD or OD

55. - M.R.R. Nair

or

..

"

& T.V. Rao, (Eds):

TrailJing

&

Excellence

Development

through

Joumal,Publis

Human

hed by ASTD.

Resource

34,

Development.
Improving
Productivity

No.12
(December
1980), p.66

and

Fransisco,

Competitivene

1986, p. 8.

ss. New Delhi,

59. C.R.

Basu:

Tata McGraw

Human

Hill

Resource

publishing

Development,

Company Ltd.

Indian Journal

56. - D.M. Silvera:

of Commerce,

Human

Vo1. XI (Jan-

Resource

June 1987), P.

Development:

150-151

The

1992,

(Eds)

r-

Indian

Experience
(2nd Ed), New
Delhi,

News

51

60.T.V.

Rao

Resources

&

D.F.

Pereira

Development,

Recent

Experiences

&

IBH

Oxford

in

Human
Publishing

Company, New Delhi 1986.

60A. Ishwar Dayal and others: Successful Applications of HRD : Case studies of Indian Organisatiolls, New Concepts, New Delhi,
1996, p 9-10.
61.

Nadler

(Leonard)

&

Wiggs

(Garland).

Managing Human Resource Development: A practical Guide. Jossey -Bass Publishers, San
62.

R.P. Billimoria & N.K. Singh :" Human

Resource Development, Vikas Publishing House Pvt. Ltd, New Delhi, 1985, p.3 .pa
63.

Ishwar Dayal: HRD in Indian Organisations:

"Current Perspectives and Future Issues". Vikalpa, Vo1.14, October-December 1989, P. 9-ISIshwar Dayal, Designing HRD
Systems, New Delhi, Concept, 1993
64.

M.N. Khan; HRD in Model Technological

Structure Indian Journal of Commerce, XL No:ISO-SI, Jan-June, 1987, p.

83
65.

T.Y. Rao, K.K. Verma, A.K. Khandelwal and S.J. Abraham: Alternative Approaches and Strategies of Human Resource

Development ed, Rawat Publication 1988, Jaipur, P. 6- 12. ibid 13. ibid
66.

0p.cit

67.

0p.cit

68.

T. V. Rao: HRD Audit: Evaluating the Human Resource Function for Business Environment, Response Books, New Delhi,

1999, p 17-18
68A. M.B. Atbreya : Integrating the Human Resource
Profession with Business - The challenges Ahead. HRM
'2000: Indian Perspective ed. hy K.B. Akhilesh and D.R.
Nagaraj. Wiley Eastern Ltd., New Delhi; 1990, P-73. (f). Udai Pareek & T.V. Rao : Designing & Managing Human Resources
Systems, Oxford & IBH publishing company, New Delhi, 1981, p. 6-7

LESSON

8:

EVOLUTION

OF

HUMAN

RESOURCE DEVELOPMENT
Learning Objectives

testing procedures. These craft guilds grew to workers

using

Evolution of Human Resource Development

become powerful political and social forces within machines

could

Emergence of Human Resource Development

their communities, making it even more difficult produce more than the

Philosophy of Human Resource Development

for yeomen to establish independent craft shops. skilled

The

By forming separate guilds called yeomanries, the small

Evolution

of

Human

Resource

workers
craft

in

shops

Development

yeomen counterbalanced the powerful craft guilds could. This marked the

While the term "human resource development" has

and created a collective voice in negotiating higher beginning of factories

only been in common use since the 1980s, the

wages and better working conditions. Yeomanries as

concept has been around a lot longer than that. To

were the forerunners of modern labor unions.

today.

understand its modern definition, it is helpful to

Early Vocational Education Programs

Factories

briefly recount the history of this field.

In 1809, a man named DeWitt Clinton founded the possible to increase

Early Apprenticeship Training Programs

first

The

origins

of

HRD

can

be

traced

to

recognized

privately

funded

we

know

them

made

it

vocational production by using

school, also referred to as a manual school, in New machines

and

un-

apprenticeship training programs in the eigh-

York City? The purpose of the manual school was skilled workers, but

teenth century. During this time, small shops

to provide occupational training to unskilled young they also created a

operated by skilled artisans pro-duced virtually all-

people who were unemployed or had criminal significant demand for

household goods, such as furniture, clothing, and

records. Manual schools grew in popularity, the

shoes. To meet a growing demand for their

particularly in the Midwestern states, because they chinists, and skilled

products, craft shop owners had to employ ad-

were a public solution to a social problem: what to mechanics needed to

ditional workers. Without vocational or technical

do with "misdirected" youths.

schools, the shopkeepers had to educate and train

their own workers. For little or no wages, these

Regardless of their intent, these early forms of repair the machines.

occupational training established a prototype for Fueled by the rapid

trainees, or apprentices, learned the craft of their

vocational education.

master, usually working in the shop for several

In 1917, Congress passed the Smith-Hughes Act,

years until they became proficient in their trade.

which

Not limited to the skilled trades, the apprenticeship

education by granting funds (initially $7 million

model was also followed in the training of

annually)

physicians, educators, and attorneys. Even as late

agricultural trades, home economics, industry, and

as the 1920s, a person apprenticing in a law office

teacher training.

could practice law after passing a state-supervised

an important part of each state's public education

exam.

system. In fact, given the current concerns about a

Apprentices who mastered all the necessary skills

"skills gap" (especially for technical skills),

were considered "yeomen," and could leave their

vocational education has become even more

masters and establish their own craft shops;

critical.

however, most remained with their masters

Early Factory Schools

because they could not afford to buy the tools and

With the advent of the Industrial Revolution

equipment needed to start their own craft shops.

during the late 1800s, machines began to replace

To address a growing number of yeomen, master

the hand tools of the artisans. "Scientific"

craftsmen

private

management principles recognized the significant

"franchises" so they could regulate such things as

role of machines in better and more efficient

product quality, wages, hours, and apprentice

production

formed

network

of

recognized

design,

ma~

build,

and

increase in the number

the

tar-geted
8

engineers,

for

value
state

of

vocational

programs

in

Today, vocational instruction is

of

factories,

demand

for

the
skilled

workers

soon

outstripped the supply

of vocational school
graduates. In order to
meet

this

factories

demand,
created

mechanical
machinist

and
training

programs, which were

systems.

referred to as "factory

Specifically,

semiskilled

schools."
The first documented
factory

school,

in

1872, was located at

Hoe and Company, a
New

York

53

manufacturer of printing presses. This was soon

Although both apprenticeship programs and

followed by Westinghouse in 1888, General

factory schools provided training for skilled

Electric and Baldwin Locomotive in 1901,

workers, very few companies during this time

International Harvester in 1907, and then Ford,

offered training programs for the unskilled or > z

Western Electric, Goodyear, and National Cash

semiskilled worker. This changed with the advent

Register.1O Factory school programs differed

of two significant historical events'. The first was re c/a O

from early apprenticeship programs in that they

the introduction of the Model T by Ford in 1913.

tended to be shorter in duration and had a

The Model T was the first car to be mass-produced

narrower focus on the skills needed to do a

using an assembly line, in which production

particular job.

required only the training of semiskilled workers

Early Training Programs for Semiskilled and

to perform several tasks.

Unskilled Workers

The new assembly lines cut production costs

significantly, and Ford lowered its prices, making
the Model T affordable to a

70
n re c/a
p

r-

>
I
zo
2=

much larger segment of the public. With the

gave rise to the ''human relations" movement advocating more

increased demand for the Model T, Ford had to

humane working conditions. Among other things, the human relations

design more assembly lines, and this provided

movement provided a more complex and realistic understanding of

more training opportunities. Most of the other

workers as people instead of merely "cogs" in a factory machine.

automobile manufacturers who entered the market

The human relations movement highlighted the importance of human

used assembly line processes, resulting in a

behavior on the job. This was also addressed by Chester Barnard, the

proliferation of semiskilled training programs.

president of New Jerser Bell Telephone, in his influential 1938 book

Another significant historical event was the outbreak

titled The Functions of the Execu-tive.1 Barnard described the

of World War L To meet the huge demand for military

organization as a SO"...ia1 structure integrating tradi-tional

equipment, many factories that produced nonmilitary

management and behavioral science applications.

goods had to retool their machinery and retrain their

The movement continued into the 1940s, with World War II as a

workers, including the semi-skilled. For instance, the

backdrop.

U.S.

Shipping

Board

was

responsible

for

coordinating the training of shipbuilders to build

warships. To &

facilitate the training process,

Charles Allen, director of training, instituted a fourstep instructional method re-ferred to as "show, tell,
do, check" for all of the training programs offered O
1

by the Shipping Board.* This technique was later

named job

instruction training (JIT) and is still in

use today for training

workers on the job.

One of the by-products of the factory system was

abuse

of

W\Skilled

that human needs are arranged in terms of lesser to greater potency

(strength), and distinguished be-tween lower order (basic survival)
and higher order (psychological) needs. Theo-ries like Maslow's
serve to reinforce the notion that the varied needs and desires of
workers can become important sources of motivation in the
workplace.

With the outbreak of World War II, the industrial sector was once

The Human Relations Movement

frequent

people can be motivated by noneconomic incen-tives. 13 He proposed

The Establishment of The Training Programme

the

Abraham Maslow published his theory on human needs, stating that

workers,

including children, who were often subjected to

unhealthy working con-ditions, long hours, and
low pay. The appalling conditions spurred. a
national anti-factory campaign. Led by Mary
Parker Follett and Lillian Gilbreth, the campaign

again asked to retool its factories to support the war effort. As had
happened in World War L this initiative 1ed to the establishment of
new training programs within larger organizations and unions. The
federal government established the Training Within In-dustry (TWI)
Service to coordinate training programs across defense related industries. 1WI also trained company instructors to teach their
programs at each plant. By the end of the war, the TWI had trained
over 23,000 instructors, awarding over 2 million certificates to

54

supervisors from 16,000 plants, unions, and

held in the late 1970s and early 1980s, discussions centered on this

services.

rapidly expanding profession. As a result, the ASTD approved the tern

Many defense-related companies established their

human resource development to encompass this growth and change. In

own training departments with instructors trained by

the 1990s, efforts were made to strengthen the strategic role of HRD,

TWI. These departments designed, organized, and

that is, how HRD links to and supports the goals and objectives of the

coordinated training across the organization. In 1942,

organization. There was also an emphasis within ASTD (and elsewhere)

the American Society for Training Directors (ASTD)

on performance improvement as the particular goal of most training and

was formed to establish some standards within this

HRD efforts, and on viewing organizations as high performance work

emerging profession. 15 At the time, the requirements

systems.

for full membership in ASTD included a college or

HRD Concept and Philosophy

university degree plus two years of experience in

Zntroduction

training or a related field, or five years of experience

A number of definitions of Training and HRD have been given by the

in training. A person working in a training function or

pioneers of Management Training and Human Resource Development.

attending college qualified for associate membership.

Two of these definitions are given below:

Emergence

Milton Hall defines 'EmployeTraining' as the process of aid-ing

of

Human

Resource

Development

employees to gain effectiveness in their present and future work through

During the 1960s and 1970s, professional trainers

development of appropriate habits of thought and action, , skill,

realized that their role extended beyond the training

knowledge and attitudes. Training aims at increasing the ef-fectiveness

classroom. The move toward employee involvement

With which the functions of an organisation are carried , out by

in many organizations required trainers to coach and

increasing the effectiveness of its personnel.

counsel employees. Training and development (T&D)

competencies

therefore

expanded

to

include

interpersonal skills such as coaching, group process

facilitation, and problem solving. This additional
emphasis on employee development inspired the
ASTD to rename itself as the American Society for
Training and Development (ASTD).

While expressing his views about Training, Lawrance A.Applay,

President of American Management Association, in his book
'Developing Executive Skills' writes, " It is a fact that men and women
cannot be developed by external pressures and influences they can only
be led to develop themselves". '[hey do this . not by concen!!ation on
themselves but by absorption ina task and - a challenge that calls forth
their best effortS';~Moiivated by a management which encourages

The 1980s saw even greater changes affecting the

participation in' a1f phes of

T&D field. At several ASTD national conferences

the job, including planning and which offers all

improved. With regard to develop-ment of

employees

qualified

for

attitudes the following factors are to be given due

adopt positive atti-

development, they turn naturally to the various

impor-tance and consideration, before HRD effort

tude and aptitude

training aids and programmes available.

is planned:-

which

Training and HRD

1. The desired change in attitude should be

motivate a person

The definition given by Milton Hall stresses

positive in nature.

to do things to

development of knowledge, skill and attitude. As

2. Before an effort to improve the attitude of a

far as knowledge and skills are concerned, it is

person is tried or envisaged, the person

possible with planned effort on part of HRD ex-

concerned should agree and have conviction

ecutive. In respect of attitudes, improvements are

that he requires a change in his attitude and

possible only with long range efforts and planned

this is going to prove to his benefit, with

efforts by HRD executive and success in this area

respect of his career de-velopment and success

cannot be much predicted or ensured as it would

in his working life.

employees

full

opportunity,

largely depend on the willingness and readiness of

3. The working conditions and the culture of the

the person, or persons whose attitude is to be

organisation should offer to induce the

works

to

to

meet the desired

standard

of

behaviour

and

output to achieve
the desired targets
of production and
services as-signed
to

his

area

of

working.

55

Significance of Human Resource Development

order to ensure the achievement of production of a

Human resource are the assets which do not find a

running factory. Over all supremacy has to be

place for mentioning in the balance sheet ofa

given to the element of human resource as given

compal1Y. But it is one of the p10st important

abov~ .ma_n_r___.Q!l!.

assets as human resources are a resource of pro-

. .itself ensures the economical ~se of

re c/a O

duction as well as they are utilising other resources

resources by .applying wisoIIlpTIDinlngfo-r-th- ..

70

of production like a material, machines, money

e'productn jobs~ Hence, any

n re c/a

etc. Any investment made on training and

efforts spent.onJraining of human.resources will

development of people is sure to show the results

yield-its

in the years to come. The results of any HRD plan

I?-.OKhigher prod~ctivi!Y~AJ?!.9f-itability of

or scheme appear in long term. When we deal with

the

development of skill, knowledge and attitude, the

productivity

progress and development is a very slow process

depend maximum on effective utilisation of such

but not an indefinite process. The development of

resources employed in the effort of achieving

people for modification and improvement in skill,

company objectives. The achievement of an

knowledge

following

organisation can be seen as a result of cooperation

characteristics and hence it is likely to be a slow

and hard work at all the levels of functioning of an

process:

organisation.

and

attitude

has

the

a m o u!!t of

appro.pJa!J_es_ul~i.!l.th~_X~f!

organisatiQ!h

Prospects.

and

growth,

andprofltabiliiY-of-an-or-ganisation

1. It depends upon the quality of train~. How

Any huge capital investment in developing

the HRD effort will be planned and HRD

infrastructure of a training institute and its running

schemes implemented.

will, in the years to come, show its results in

2. It depends upon the definition of objectives

achieving higher productivity and profitablity.

>z

r-

>ZZ
N

o
2=

which may be called "learning objectjys:.s?'.

IfHRD schemes have clear cut learning
objective, the HRD plan or programme is sure
to yield better results ..
3. If systematic and proper eva.l

.!!()!

l_9i~plan is done~ we
would be able to assess the effectiveness of the
plan. If evaluation is not systematically done,
the information will
. not work as data for improvement in future
programmes.
The development of people is to be viewed
properly, giving weightage to the culture ofthe
organisation in which people are growing. The
environment and cultural values of the
organisation would have a very significant bearing
upon people's conviction whether the development
is desirable and felt necessary by the people
themselves.
Zmportant Aspects of HRD
All resources of production are important like
machine, capi-tal, money, land and building etc. in
56

>z

LESSON 9:

FUNCTIONS OF HUMAN RESOURCE DEVELOPMENT

re c/a O
70

Learning Objectives

n re c/a

Human Resource Development-Functions

Roles of an HRD Professional

r-

>ZI
Z
o
2=

process, conducting general orientation sessions, and

beginning the initial skills training. Skills and
technical training programs then narrow in scope to
teach the new employee a particular skill or area of
knowledge.

Once new employees have become proficient in their

jobs, HRD Activities should focus more on
Today we'll study the functions of management developmental activities-specifically, coaching and
coun-seling. In the coaching process, individuals are
and the role of an HRD professional
encouraged to accept responsibil-ity for their actions,
to address any work-related problems, and to achieve
Human Resource Development Functions
and to sustain superior performance. Coaching
involves treating employees as partners in achieving
Human resource development, as we discussed, both personal and organizational goals. Counseling
can be a standalone function, or it can be one of techniques are used to help employees deal with
personal problems-that may interfere with the
the primary functions within the HRM achievement of these goals. Counseling programs may
address such Issues as sub-stance abuse, stress

department. The structure of the HRD function

and its scope have been shaped by the needs

faced by organ-izations. An ASTD-sponsored
study by Pat McLagan sought to identify
the HRD.
Roles and competencies needed for an effective
HRD function. The study identi-fied four trends
affecting modern HRD:
1. Greater diversity in the workforce.
2. More people involved in knowledge work,
which requires judgment, flexi-bility, and
personal commitment rather than submission
to procedures.
3. Greater expectations of meaningful work and employee involvement.
4. A shift in the nature of the contract SOURCE: From P. A. Me Lagan (1989)_ Models for
between organizations and their employees.

HRD practice, Training and Development Journal,

41:53.
HRD professionals are also responsible for

The ASTD study documented a shift from the coordinating management training and

development programs to ensure that managers

more traditional training and de-velopment and supervisors have the knowledge and skills

topics to a function that included career necessary to be effective in their positions. These
programs may include supervisory training, job

development and organiza-tion development issues as well. The study depicted the relationship between HRM and HRD
functions as a "human resource wheel" (see Figure 1-2). The HR wheel identifies three primary HRD functions: 1) training
and development, 2) or-ganization development, and 3) career development. We will now discuss these functions in greater
detail.
Training and Development (T&D)
Training and development (T&D) focuses on changing or improving the knowledge,
skills, and attitudes of individuals. Training typically involves providing employ-ees the
knowledge and skills needed to do a particular task or job, though attitude change may
also be attempted (e.g., in sexual harassment training). Developmen-tal activities, in
contrast, have a longer-term focus on preparing for future work responsibilities, while also

57

ncreasing the capacities of employees to perform their current jobs.

T&D activities begin when a new employee enters the organization, usually in the form of employee orientation and skills
training. Employee orientation is the: process by which new employees learn important organizational values' and norms,
establish working relationships, and learn how to function within their jobs.The HRD staff and the hiring supervisor
generally share the responsibility for designing the orientation

Organization Development

carrying out the intervention strategy, such as facilitating a meeting of the

Organization development (OD) is defined as the

employees responsible for planning and implementing the actual change

process of enhancing the effectiveness of an

process.

organization and the well-being of its members

Career Development

through

apply

Career development is "an ongoing process by which individuals progress

behavioral science concepts. 00 emphasizes both

through a series of stages, each of which is characterized by a relatively

macro and micro organizational changes: macro

unique set of issues, themes, and tasks. Career development involves two

changes are intended to ultimately improve the

distinct processes: career planning and career management. Career planning

effectiveness of the organization, whereas micro

involves activities performed by an individual, often with the assistance of

changes are directed at individuals, small groups,

counselors and others, to assess his or her skills and abilities in order to

and teams. For example, many organizations have

establish a realistic career plan. Career management involves taking the

sought to improve organizational effectiveness by

necessary steps to achieve that plan, and generally focuses more on what

introducing employee involvement programs that

the organization can do to foster employee career development.

planned

in-terventions

that

18

require fundamental changes in work expectations,

reward systems, and reporting procedures.
The role of the HRO professional involved in an
00 intervention is to function as a change agent.
Facilitating change often requires consulting with
and advising line managers on strategies that can
be used to effect the desired change. The HRD
professional may also become directly involved in

58

There is a strong relationship between career development and T&O

activities.
Career plans can be implemented, at least in part, through an organization's
training programs.
Strategic Management and HRD
Strategic management involves a set of managerial decisions and actions
that are intended to provide a competitively superior fit with the external

environment

and

enhance

the

long-run

re closely is pay linked to individual, team, or organizational

performance of the organization.2 It involves

performance measures?)

several distinct processes, including strategy

re

formulation, strategy implementation, and control.

At the formulation level, top management must

Other work practices and systems (e.g., to what extent is technology or

information systems used to facilitate the work process?)

first asseS6 the viability of the current mission,

The value of this approach lies in looking at the' organization as an entire

objectives,

programs,

system. All of the parts of an organization must work together as a whole to

technology, workforce, and other resources. Then,

reach the goals of the organization. Some of the desired outcomes of such a

they must monitor and assess different external

high perform-ance work system are increased productivity, quality,

environments that may pose a threat or offer

flexibility, and shorter cycle times, as well as increased customer and

potential opportunities. Finally, in light of these

employee satisfaction and quality of work life.23 As one example, Federal

assessments, management must identify strategic

Express uses several different practices-that foster high performance. Much

factors (for exam-ple, mission, technology, or

of their employee training is conducted via inter-active video instruction. A

product mix) that need to be changed or updated.

pay-far-knowledge system has been implemented that rewards employees

The past decade has seen increasing interest,

who have completed the video training and passed job knowledge tests. A

research, and action concerning strategic human

performance management system is in place that allows em-ployees to track

resource management. 1 The emphasis has been on

service performance, and an elaborate information system is used to

more fully -in-tegrating HRM with the strategic

monitor the progress of each item in the FedEx system. All of this is

needs of the organization. To do trust, two types of

comple-mented by a survey feedback process that allows employees to

fit or alignment are necessary. First, as just

"grade" their man' ager's leadership skills and suggest solutions for any

described,

problems they encounter. As you can see, it is the effective synergy of

strategies,

external

policies,

alignment

is

nec-essary

between the strategic plans of the

everything working together that defines high performance work systems.24

organization and the external environ' ment that it

A current challenge (or opportunity) for HRD professionals is to play a

faces. Second, internal alignment is necessary >

within the organization. That is, the strategy of the
organization must be aligned with the mission, z
goals, beliefs, and values that characterize the
organization.22

Further,

there

needs

to

be re
aligrunent among the various sub-systems that c/
make up the organization. Some areas that need to a
more strategic role in the functioning of their organization. Progress has
be addressed include:
been made in moving toward a more "strategically integrated HRD. In

Management practices-how employees are

particular, HRD executives and professionals should demonstrate the
managed and treated (e.g., how much do strategic capability of HRD in three primary ways: 1) directly participating

employees participate in decision making?)

in their organization's strategic management process, 2) providing

Organizational structurehow the organization

education and training to line managers in the concepts and methods of

is

strategic management and planning, and 3) providing training to all

structured

(e.g.,

how

"flat"

is

the

organization's managerial hierarchy?)

employees that is aligned with the goals and strategies of the organization.

Human resource systems-how employees are

First, HRD executives should contribute information, ideas, and

selected,

recommenda-tions during strategy formulation and ensure that the

on

59

trained, compensated, appraised, and so

(e.g.,

how

organization's HRD strat-egy is consistent with the overall strategy. The

HRD strategy should offer answers to the

>z
R

following questions: Are the organization's HRD

particularly to their managers. After restruc-turing, these education

objectives, strategies, poli-cies, and programs

and training programs were completely eliminated. Some have

clearly

Tom

argued that the reason training is frequently the first thing to be cut

performance or budg-ets? Are all HRD activities

or re-duced in times of financial stress is that top executives fail to

stated,

re c/a O consistent

or

see a link between training and the bottom line.30 In contrast, IBM

objectives, policies, and internal and external

has set up a Human Resource Ser-vice Center in Raleigh, North

n re c/a environment? How well is the HRD function

performing in terms of improving the fit between
p
r-

Carolina. The goal was to provide information and high quality

> Z I the individual employee and the job? Are

appropriate concepts and techniques being used to
Z

of technology was put in place to assist Service Center employees.

evaluate and im-prove corporate performance?

intranet (called HR INFO), a call tracking system, and an HR

Tom Kelly, director of worldwide training for

Information System, which employees and managers could use to

Cisco Systems in San Jose, California, states that

view and retrieve HR-related information, as well as process certain

there have been dramatic changes in the HRD field

HR transactions (salary changes, address changes, etc.). However,

since 1999. He adds, "This is our chance to

the key factor in the success of this effort was training. According to

actually achieve strategic partnerships within the

Bob Gonzales and colleagues, "Training Customer Service

o
2=

the

implied

mission,

70

with

merely

organization's

service to over 500,000 active and retired IBM employees. An array

This included Lotus Suite, a Web site within the organization's

organization.
Second, HRD professionals should provide
education and training programs that support
effective strategic management. Training in
strategic management' concepts and methods
can help line managers to develop a global
perspective that is essential for managing in
today's

highly

competitive

environment.

These issues are offered as part of the

organization's

management

development

program. Ac-cording to a 1996 survey of HRD

professionals by Training magazine, approximately 50 percent of organizations provide
training in strategic planning. g Man-agement
education efforts also place a heavy emphasis on
strategic management issues. Increasingly, separate

courses

(or

portions

of

courses)

are

emphasizing strategic HR issues and how these

relate to organizational strategies and outcomes.

Representatives well [was} critical to the Center's suc-cess because

they are the initial point of contact with the customer."J! Service
representatives are carefully selected, and then put through three
weeks of intensive training, including lectures, role playing, and
partnering with an experienced em-ployee. Refresher training is
provided throughout the employee's career, as well as additional
training whenever new programs are offered. This example suggests
how training can be linked to the strategic goals and strategies of the
organization (in this case, a shift to a centralized HR Service
Center). As we will discuss in the later Chap-ter , HRD

Finally, HRD professionals must ensure that all

professionals are increasingly expected to demonstrate that their

training efforts are clearly linked to the goals and

efforts are contributing to the viability and financial success of their

strategies of the organization. While this may seem

organizations. The growing emphasis on strategic HRD is part of

obvious, un-fortunately, it is not uncommon for the

this movement to build a stronger business case for HRD programs

link between training programs and orga-nizational

and interventions.

strategy to be far from clear. As an extreme

example,

medical

Becton-Dickinson,

products

went

manufacturer,

through

major

restructuring in 1983, in re-sponse to a downturn

in its business. Before that they had offered a large
number of training and education opportunities,

The Supervisor's Role in HRD

Supervisors play a critical role in implementing many HRD
programs and processes. As we will emphasize throughout this
book, many organizations rely on line supervisors to implement
HRD programs and processes such as orienta-tion, training,
coaching, and career development. Especially in smaller organiza-

tions, ng department" (or even an HR department),so

The HRD function, like HRM, should be designed to support the

there

organization's strategy. Using the chart from Figure 1, Figure 2

most HRD effort falls upon supervisors and

may bemanagers.

further delineates how the HRD function might be organized within

no

an HRM department. Alternatively,

Organizational Structure of The HRD Function

"traini

Fig:1-2

Fig:1-3
example,

compete

with a line manager

who

wants

to

purchase a new piece

of

equipment?

The

answer is dear: the

executive
Figure 2 depicts how the HRD function might be

with the HRM executive. The HRD executive

organized in a multiregional sales organization. In

often serves as an adviser to the chief executive

this example, the training activities, except for

officer and other execu-tives. The outputs of this

manage-ment/executive

role include long-range plans and strategies,

development,

Me

policies, and budget allocation schedules.

centralized.

One of the important tasks of the HRD executive

Roles of an HRD Professional

is to promote the value of HRD as a means of

An HRD professional must perform a wide variety

ensuring that organizational members have the

of functional roles. A func-tional role is a specific

competencies to meet current and future job

set of tasks and expected outputs for a particular

demands. If senior managers do not understand the

job. We will briefly discuss the roles played by

value of HRD, it will be difficult for the HRD

two types of. HRD professionals: the HRD

executive to get their commitment to HRD efforts

executive/manager and the HRD practitioner.

and to justify the expenditure of funds during

tough

The

HRD

executive/manager

has

primary

responsibility for all HRD activities. This person

must integrate the HRD programs with the goals
and strategies of the organization, and normally
assumes a leadership role in the executive
development' Program, if one exists. If the
organization has both an HRM and an HRD executive, the HRD executive must work closely

times.

Historically,

during

demonstrate

the

benefit

the

organization receives
by offering such a
program.

decentralized, and other HRD activities are

The HRD Executive/Manager

must

financial

difficulties, HRD programs (and HRM, in general)

have been a major target of cost-cutting efforts.
Unless the HRD executive establishes a clear
relationship between HRD expenditures and
organizational effectiveness (including profits),
HRD programs will not receive the support they
need. But how does an HRD executive who wants
to offer a program on stress management, for

Evaluation

data are vital to the

HRD executive when
presenting a case.
The role of the HRD
executive has become
more important and
visible

as

or-

ganizations make the

necessary transition to
a global economy. The
immediate

challenge

to HRD executives is
to redefine a new role
for HRD during this
period

of

edented
According

unprecchange.
to

Jack

Bowsher, former director of educa-tion for IBM,

The learning program specialist (or instructional

when

into

designer) identifies needs of the learner, develops

reengineering, quality im-provement, and strategic

and designs appropriate learning programs, and

planning, they grasp the link between workforce

prepares materials and other learning aids. Outputs

learn-ing and performance on the one hand, and

include program objectives, lesson plans, and re c/a O

company performance and profitability on the

intervention strategies.

HRD

n33

other.

executives"

delve

deeply

The HRD executive is in an excellent

>z
R

70

The instructor/facilitator presents materials and n re c/a

position to es-tablish the credibility of HRD

leads

programs and processes as tools for managing in

Other HRD Roles and Outputs for HRD

experiences. Outputs include the selection of >

appropriate instruc-tional methods and techniques
Z
and the actual HRD program itself ..
zo
The individual development and career
2=
counselor assists individual employ-ees in

Professionals

assessing their competencies and goals in order to

As organizations have adjusted to environmental

develop a realistic career plan. Outputs include

challenges, the roles played by HRD professionals

individual

have changed. Based on

facilitation, and career guidance.

the ASTD study results, Pat McLagan states that

The performance consultant (or coach) advises

contemporary HRD professionals perform nine

line management on appropri-ate interventions

today's challenging business environment. A 1999

Training magazine survey found that the average
salary for U.S. HRD executives was $82,448.

distinct roles, which are described below.

and

facilitates

assessment

designed to improve

struc-tured

sessions,

learning

workshop

individual

and group

include

intervention

The HR strategic adviser consults strategic

performance.

decision makers on HRD issues that directly affect

strategies, coaching design, and implementation.

the articulation of organization strategies and

The researcher assesses HRD practices and

performance goals. Outputs include HR strategic

programs using appropriate statis-tical procedures

plans and strategic planning education and training

to determine their overall effectiveness and

programs.

communicates the re-sults to the organization.

The HR systems designer and developer assist

Outputs

HR management in the design and development of

findings, and recommendations and reports.

HR systems that affect organization performance.

A 1999 article on "hot jobs" in HRD focused on

Outputs include HR program designs, intervention

employees in four jobs where there was a high

strategies, and implementation of HR programs.

demand for HRD professionals. Three of those

The

advises

jobs are found in the list above: instructional

management in the design and imple-mentation of

designer (for consulting firm Arthur Andersen),

change

transforming

change agent (for the city of Carlsbad, California),

organizations. The outputs include more efficient

and executive coach (working as a consultant to

work teams, quality management, intervention

teach "soft" skills to executives). The fourth job,

strategies, implementation, and change reports.

multimedia master, is held by an individual trained

The organization design consultant advises

in instructional tech-nology and graphic design

management on work systems de-sign and the

and involved in designing online learning courses

efficient use of human resources. Outputs include

for an information technology firm in Arlington,

intervention strate-gies, alternative work designs,

Virginia. For more informa-tion on this particular

and implementation.

position and individual, see the nearby box,

organization
strategies

change
used

agent
in

Out-puts

include

research

"Master of Multimedia."

>z

n re c/a

re c/a O

70

>ZZ

r-

designs,

research

r-

Certification

and

Education

for

2=

Professionals

schools of business (or management) offer majors or minors in

One indication of the growth of the HRD field is

HRD, with courses in training and development, organization devel-

the push for professional certifi-cation. According

opment, and career development. The SHRM Foundation has

to a survey of over 1,500 trainers, approximately

recently published a directory of graduate HR programs, and placed

60 percent ex-pressed a preference for some form

this on the SHRM Web site.42 Some psychology departments offer

of certification. This response was probably based

degree programs and courses in industrial and organizational

on an increasing desire to enhance the credibility

psychology and personnel psychology with specific courses in

of the broadening HRD field. For human resource

HRD. In addition to HRD classes, schools of education may offer

management in general, two certification exams

degrees and courses in fields related to HRD, such as educational

are of-fered by the Human Resource Certification

technology,

Institute (in conjunction with the S0-ciety for

organization development.

Human Resource Management). They are called

Another way HRD professionals can keep current is to examine the

the Professional in Human Resources (PHR) and

practices of leading organizations. The ASTD has established a

Senior Professional in Human Resources (SPHR)

Benchmarking Forum for the purpose of identifying and learning

exams. Both exams consist of 225 multiple-choice

about the so-called best practices among member organizations S,)

items that cover various HRM topicS.

38

HRD

these programs tend to reflect the founding professbrs.41 Certain

curriculum

de-velopment,

adult

education,

and

Eleven

that they can be adopted by other organizations. The benchmarking

percent of the PHR, and 12 percent of the SPHR

procesb involves a questionnaire that "helps to define the focus,

exam covers human resource development. To be

criteria, and context for practices, and provides information about

certified, individuals must pass the test and have

the incidents that led. to adoptiI1g

two years of HR exempt-level work experience.

the practices.1/43 The best-practices organizations are selected. at a

Students who pass the test, but lack the work

biaIU1ual meeting of the ASTD and members of the Bench-marking

experience, are certified once they have obtained

Forum. These organizations and a description of their practices are

the relevant work experience. To date, over 43,000

published in ASTD reports and highlighted in the professional

HR professionals have been certified with either

journal Training & Development.

the PHR or SPHR designations.

Over the past decade or more, the HRD profession
has become better con-nected to and involved with
the academic community. Three developments
illus-trate this relationship: 1) since 1990, the
ASTD has co-published the Human Resource
Development Quarterly, an academic research
journal focusing on HRD issues; 2) the ASTD
changed its governance structure to include a
Professors' Net-work and an Academic Relations
Committee; and 3) a new organization has been
formed, the Academy of Human Resource
Development,

to

further

advance

scholarly

research concerning human resource development

issues.
HRD programs at colleges and universities are
most often found in one of three academic
departments: business/ management, psychology,
and education. The Academy of Human Resource
Development lists HRD programs (and links) on
its Web site.40 The content and philosophy of

CHALLENGES
TO
PROFESSIONAL

LESSON 1 0 :
HUMAN
RESOURCE

>
z

DEVELOPMENT

re
c/a

O
7
0

Learning Objectives

High level of HRD Staff teamwork, creativity and nr

The vision of HRD

flexibil-ity, is expected from them.

Problems of HRD

Steps to Gain Top Management Support

Challenges to Organisations and to HRD

Professionals

to

organizations

and

to

HRD

Professional. And at the end of the discussion I

will be giving you a very challenging assignment.

Allowing HRD staff to participate in operations and budget planning .

Using an investment/benefit model to assess the results of HRD and

providing resources for evaluating HRD programmes;

The Organisation shows that it values HRD efforts by:

1. The HRD function must find a place in

3. The HRD function is perceived as ' part of

strategic planning, organ i-sational change,

6. The HRD function is strongly committed

communication

an

Funding and staffing the HRD department at levels that

D

Offering the HRD director the compensation and rank

Placing high-quality professionals in HRD positions and considering

z

Making HRD staff eligible for rewards and recognition.

Using HRD activities to link the cultural segments of the organisation.

The organisation communicates with the HRD Staff by:

Seeking HRD solutions to organisational and individual performance

problems;

Continuing to interact with HRD staff beyond strategic or budget

planning;

diagnose problems and anticipate needs of

human resource develop-ment.

verbal

those positions as career enhancing.

and organisational goals.

5. The HRD function has the ability to

and

< appropriate to the position's level of responsibility.

the business' of the organisation.

4. The HRD function is committed to

written

re

2. The HRD function is perceived as an

internal consmtant to management.

through

& reflect its importance .

corporate mission statement and organisational

culture.

Demonstrating

understanding and acceptance ofHRD terminology.

The Vision of Human Resource

Development

Considering HRD critical to developing and sustaining workforce

competencies;

Thus it is perfectly apt to say that where there is

no vision people perish

Holding all managers accountable for the training, education, and

development of their subordinates.

"MAN IS HALF HIMSELF AND OTHER HALF

IS ITS VISION."

Developing a corporate plan for HRD activities that is monitored by top

Introduction
According To TAGORE

r
>
Z

management;

You will definitely enjoy in doing it while

learning.

The Organisation recognises the business importance of HRD by:

Students, today let us discuss the interesting

challenges

e
c/a

Allowing HRD staff access to senior management and to the

organisation's informal leaders.

to facilitating ful-filment of objectives of line

Problems of HRD and Challenges For Future

and staff Departments.

1. Organisational environment is not generally conducive to the

7. The members of the HRD Staff should

application of the knowledge gained by the trainees in the training

dvelop themselves as experts.

programmes.

2. The training needs are not properly identified.

3. Considerable number of training packages and

14.
>z

10.

Lack of interest in organisation's

The emphasis is on more on-

Managers to develop exper-tise in

the-job training rather

the training methodology in HRD

re c/a

than

staff.

developmeiifof

of audro visual aids, case studies, groupwork

70

employees"to

and project work is rather lim-ited.

n re

higher responsibil-ity or

nationall regional level lags behind

c/a

meet the challenges of

the requirements of the industry ..

change

video-cassates

developed

in

advanced

countries are not of much use to train-ees due

to language and cultural differences.
4. The main stress is on lecture method. the use

5. Training profession is not honoured and career

progression is not lucrative. As such , really

r-

on

the

15.
assume

in

technology/environment.

The

educational

systems

Challenges

on

the

to

dedicated and competent persons are reluctant

> Z

to join the training/HRD department.

11.

HRD Professionals

Lack of expertise in the line

Many challenges face organizations as

6. The internal faculty members on various

subjects donot get interested, within the
organisation a.c; financial and other incentives are inadequate.
7. The external faculty is also inadequate and
generally lack expertness and competence.

Organizations

and

to

supervisors

and

a new century unfolds before us.

2=

engineers for imparting

Michael Hitt and his colleagues have

proper

identified increasing globalization and

training

on-the-job
to

their

subordinates.

the

technolog-ical

revolution

(in

particular, the Internet) as two primary

12.

factors

Rate of technology change

competitive landscape. They suggest a

and advancement in the

number of actions that organizations

world is much faster than

can tab to address the uncertainty and

the rate of technology

turbulence

do not make available adequate resources and

transfer

environment. These actions include,

funds for HRD activities.

understanding among the

developing

developing countries as

effectively using new technology,

the gap is growing.

developing

8. There are inadequate number of advanced

training institutions to cater to various
industrial undertakings.
9. Many organistaion are not HRD conscious and

and

that

make

in

for

the

external

employee
new

new

skills,

organizational

13.

structures, and building cultures that

Lack of interest in the line

foster learning and innovation. These

supervisorslmanagersto

obviously have a great deal to do with

develop

their

human re-source development. We

this

will add to and build upon their list to

subordinates

as

factor has almost no

present

weightage

facing the field of HRD. These

for

,!!Ie

Eromotions_(b_ased on

five

chal-lenges

currently

challenges include:
1. Changing

workforce

demographics,
annual ~______________________
2. Competing in a global economy,
fm-.__________________________
e=

3. Eliminating the skills gap,

aEP!._Cre:

4. Meeting the need for lifelong

.PQrts) ... -

individual learning, and

5. RD will be briefly

to 6 percent of the

that workforce,

organizations

challenges. In addition to retraining

Fa discussed

below

workforce-up from 4

may should continue to provide

the work-force, successful companies

cil and

further

percent in 1995.

pers developmental opportunities

will institute quality improvement

ita amplified in later

Whites will decrease

ist, that will prepare women for

processes

tin chapters.

to

68

as advancement into the senior

efforts

g Changing
or Workforce

from 76 percent

well ranks and provide safe-

programs). The workforce must learn

as guards

to

ga Demographics

The racial/ethnic shift

cul- harassment. Third, the aging

communicate and conduct business

ni The
sat has

will

tura of the workforce highlights

among different cultures and in other

countries. Developing managers to be

percentdown

in 1995.45

workforce
become

not

uniformly

happen
across

the

against

sexual

the importance of creating

in-troduce

(e.g.,

be

high

culturally

change

involvement
sensitive

to

io increasingly more
na diverse, and this

country, but is pre-dicted

inse HRD

that

global leaders has been identified as a

to

most

nsiti recognize and address the

major challenge for organizations in

l trend toward dile versity

will
ar continue.

significantly in the West

vity learning -related needs of

this

and the South. Women

and older workers.

competent managers will be discussed

are predicted to increase

in more in next chapters. Additionally,

ni According to a
ng report by Judy
. and
D'Amico

from 46 percent of the

lang Competing in a Global

uag Economy

workforce in 1995 to

implementing new ways of managing

about

their employees.

Ea titled

Workforce

2020. The biggest shift

ch 2020,

the

diff to compete in a global

eren economy,
many
are
ces. introducing
new
Sec technologies that require
ond more educated and trained
,
workers. In fact, in the
wit United States today, over

economy, they must hire educated

considerable

will

occur

50
be

percent
in

the

age

of

the

of following changes

composition

th are predicted to

workforce.

es occur by the year

older

Americans

e 2020:

make

up

ch

Overall,
a

percentage

African

in

will

greater
of

the

programs

and

As U.S. companies prepare

one-half of all jobs require

decade.

employers

Developing

are

globally

learning

and

Eliminating The Skills Gap

As we discussed, for companies to
compete successfully in a global
workers; however, portions of the U.5.
Public education system are in' need of
reform.

Almost

30

percent of today's high school stu-

55 to 64 are predicted to

the education beyond high"

incr school. Thus, successful

11

increase from about 10

easi organizations

hire

must confront the fact that many

percent of the

percent of the workforce

young adults entering the workforce

an

U.S.

to about 20 percent in

workforce -the

2019, and people aged

th

same

65

ng employees
with
the
nu knowledge to compete in an
mbe increasingly sophisticated
rs market.

eir

1995.

predicted to increase to

of

of living in the world, the Upjohn

over 5 percent of the

wo

Competing in the global

economy will require more

Institute for Employment Research

workforce

men

than educating and training

reports that between 25 and 40 percent

workers

of hourly employees have some basic

all

Americans

workforce. People aged

en

will make up

ge

about

po
te
nti
al
im
pa
ct
on
H

will

as

in

Hispanics
increase

and

older

during

to 14 percent

same period.

of

These

the

are

the

in

trends

have

the

to

must

meet

new

dents fail to graduate, and employers

are unable to meet current job

requirements. Even though the United
States has one of the highest standards

skills deficiency.

workforce-up

several implications for

This skills gap poses serious

they

from 9 percent

HRD

professionals.

consequences for American

operating manuals? Furthermore, how can

in 1995.

First,

organiza-tions

companies. For ex-ample,

new employees tie taught to manipulate

need to address racial

how can trainees learn how

computer-controlled machines if they do

and

to operate new equipment if

not understand basic math? Obviously, tpe

will

Asians
increase

ethnic

prejudices

cannot

read

and

comprehend

business

needed by most employers.

certain

of

participate in a seminar that is being con-

community has a

Among

continuing

education

ducted thousands of miles away. These and

vested interest in

Germany

empha-sizes

courses to maintain their

other different approaches to learning will

educa-tion reform.

vocational education and

certificates. To man-agers,

be discl1ssed in future chapters. What is

There are some

school-to-work

transition

lifelong

may

clear, however, is that whether they use

encouraging

programs, so that school-

include

attending

multimedia or other training approaches,

signs,

age

begin

management seminars that

organizations must

For example, the

apprenticeship programs as

address new management

find a way to provide lifelong learning

Los

Angeles

part of their formal ed-

approaches.

opportunities to all of their employees,

school

ucation. These and other

The challenges to HRD

Facilitating Organisational Learning

system is offering

approaches

be

professionals is to provide a

Organization development scholars such as

discussed in more detail in

full range of learning op-

Chris

Argyris,

employers, stating

next chapters.

portunities for all kinds of

Richard Beckhard, and more recently Peter

re

that if any high

The Need for Lifelong

employees. One way that

Senge,

the

c/

school graduate is

Learning:

some

best-selling book The Fifth Discipline,

found

be

Given the rapid changes

meet-ing this challenge is by

have

deficient in basic

that all organizations face,

establishing

organizations

skills,

as

it is clear that employees

learning centers (sometimes

fundamental

compu-tation and

must continue the learning

on

must be able to learn, adapt, and change.

writing,

process

their

intranet). These centers offer

Senge

school system will

careers in order to meet

a variety of instructional

learning organization must embrace the

retrain

the

these chal-lenges. This need

technolo-gies that can be

following

no

for lifelong learning will

matched to each trainee's

ciples: systems thinking, person mastery,

the

require

unique

men-tal

however.

public

guarantee

to
such

the

graduate
cost

to

at
to

other

children

things,

can

will

throughout

organizations

to

number

learning

organizations

are

multimedia

the

organization's

learning

needs.

author

of

recognized
are

>

that

going

to

make

change,
advocates

they
that

five

if

a
prinmodels,

employer.

make an ongoing invest-

Individual as-sessments can

building shared vision, and team learning.

Other

ment in HRD.

determine

academic

In

industrialized

Lifelong learning can mean

deficiencies

or

gaps

has been tremendous interest in the

nations have made

different things to different

employees'

perform-ance

concept

systematic

employees. For example,

capabilities,

while

organization. For example, a 1995 survey

changes in order

for semiskilled workers, it

pointing out their preferred

of

to bridge the skills

may

learning styles. For instance,

reported that 94 percent of the respondents

gap. For example,

rudimentary skills training

self-motivated

felt that it is

Japan

to help them to build their

found to be deficient in

Germany, two of

competencies.

arithmetic might be trained

important for an organization to become a

the United States'

professional

in

video

learning organiza- E tion, the next chapter

biggest

this learning may mean

program allowing them to

includes a discussion of how macro level

competitors, have

taking

set

organization

educational

continuing

systems that do a
better

and

job

of

involve

more

To
employees,

advantage

of

an

also

employees

interactive

their

in

own

pace:

'HRD

there
learning
executives

transformation

approaches

can be used to help-an

opportunities. This is partic-

could

organization adopt the principles of a

ularly

teleconferencing

important

for

also
tech-nical

provide
facilities

learning organization.

certified professionals who

for

and

re

the

are required to complete a

professional employees to

skills

of

years,

multimedia learning center

education

teaching students
basic

recent

Although

such

principles

Exercise/Assignment
Znterview

emphasize

the

an

HRD

Professional

organizational

Conduct

level, they also

interview with an HRD

have implications

professional, this could be

at the group and

someone working in the

individual levels,

areas

One challenge to

development

HRD profession-

development,

als is to facilitate

organisational development.

the transition of

Some of the questions you

traditional

might ask include

training programs
to an emphasis on
learning
principles

and

tactics, on how
learning relates to

an

of

information

training
,

and
career
or

1. What do they do in their

job?
2. What has changed
in their job over the past
five to ten years? And

performance, and

3. Where do they see

more important1y,

the HRD field going in

on the relationship

the next five to ten

between learning

years?

fundamental

Your instructor will give

change.51 To do

you guidelines as to the

this,

appropriate

length

professionals

format

the

must develop a

document you turn in for

solid

this assignment.

and

HRD

understanding of
learning

theory

and be able to'

devise

learning

tools that enhance

individual
development.
These

concepts

and tools will be

discussed in more
detail

in

the

coming chapters.

for

and
written

>
z

LESSON 1 1 :
APPROACHES
HRD

re
c/a

O
7
0

n Learning
r
e
c/a
p

r
>
Z

Objectives

found in family-managed organisations than in those managed by

Approaches to HRD

paid chief executives. Such organizations have progressive welfare

HRD

in

Indian

practices for employees and their families and a managerial

Organizations-Current

orientation, which can be described as paternal. They follow practices

perspectives and future Issues

that are way beyond what is required by law with respect to matters

Hello students! can any body say what are the

like health, education, housing, retirement benefits and canteen

approaches to & HRD that you think.

E

facilities. J.N. Tata, Shri Ram, Walchand Hirachand, T.V Sundaram

In recent years, HRD has emerged as a distinct area

of concern

Iyengar and a few other industrialists started welfare practices much

in organizations. This paper presents an

overview of HRD

before legislation on these matters was even framed. This approach

practices in a variety of Indian

organizations and identifies areas

emphasizes the salience of extrinsic job factors. Management-

that need

employee

attention of HRD managers and academicians.

Z

TO

relationships

are

generally

informal.

The

senior

management staff attends to the well-being of employees at all levels.

There are three distinctly identifiable approaches

Trust and confidence ' between employees and employer jUe built

among Indian organizations that have formal HRD

through personalized relationships. This often enables managers to

programmes:

practice openness in their relationships. The most important feature in

1. Man-Centred Approach,

such

2. Reciprocal Approach, and

organizations is the confidence the employees have in the chief

3. Selective Approach.

executive. He is a father figure and is' respected by employees at all

Although in practice there are overlaps among

levels. Some typical examples from companies that have followed this

these approaches, this classification Is useful for

style of management are given below:

discussing the various patterns of HRD initiatives.

Man-Centred Approach
Based

on

humanistic

After a prolonged discussion with the General Manager of a company

regarding punishment meted out to some employees, the union leaders

considerations,

HRD

requested the chief executive to intervene and told him that his decision

according to this approach is a philosophy shared

in the matter would be accepted by everyone. The chief executive was

by organizations that believe development of

considered by employees as being impartial and one who would be fair

people to be their primary responsibility. This

to all. He was not perceived as fitting into the managerial hierarchy.

belief governs personnel, welfare and other

The chief executive of an organization was away for about six

organizational policies and practices concerning its

months on an assignment. The employees felt that they owed it to the

employees. Factors such as promoting trust, open

"head of the family" to keep peace in the organization while he was

communication,_Authenticity, the interpersonal

away. On his return. However the employees were anxious to know

relationships, and welfare of employees and their

whether he would come back to the company and give it the same

families are given top priority. Development of

attention he had given earlier as various problems that could threaten

people thus becomes an end in itself in such

the harmony of the or~1zatlon had developed in his absence.

organizations.

When a company was doing poorly. a large number of, employees

The assumption underlying this approach is that

offered to accept a cut in their salaries until profits improved.

improving

and

Accordingly their salaries were cut and were restored only when the

developing him/her is the responsibility of the

company's fortunes improved. The chief executive did not draw any

employer and, therefore, should be pursued as a

salary during this period.

an

employee's

capability

programme. This style of management favours

personalized relationships. It is more likely to be

69

The chief executive of a company believed that

learn his style of managing

mentors. For example. in his personal

poor financial performance of the company was

company affairs (Dayal,

letters

due to inadequate planning. poor assessment of

Srivastava

Alfred.

repeatedly asked him to take necessary

market demand and failure to improve production

1972). The company a1sCI

decisions himself as he was on the site

technology for which however higher management

recruited many people as

and knew the situation best. Mandella.

was responsible. Therefore he decided that

apprentices and the best

chief executive of the successful Birla

workers should not be denied their bonus if they

among them were picked

enterprise, has stated that apart from

had worked as hard as the did in the previous

out by the leader for key

sending

years.

positions

in

the

headquarters, he was totally free to

Organizational Characteristics

organization.

Once

an

manage the plant.

The organizations that successfully use the Man-

employee

became

centered

certain

member of the coterie, he

Symbolic gestures indicative of family-

methods of developing managers who would preserve

was treated more like a

like relationships are built into the social

the system. Some common features of these

family member and less

system of the organization. Organizations

organizations include:

like an employee.

evolve unique patterns to emphasize this

Building a Coterie

Visibility

aspect. Shri Ram, for example, made it a

The chief executive develops a group of people

The leader is visible. He

point

around him who are totally loyal to him and who are

takes regular rounds at the

employees every year because it is an

included in private discussions. The approach adopted

factory and meets a large

important

by Shri Ram of DCM is a case in point. An

number of people during

organization also arranged Ram Lila

examination of Shri Ram's biography and the private

the course of each day. For

celebrations every year where attendance

correspondence

general

instance,

General

was compulsory. The chief executive of

managers at Jay Engineering Works shows how these

Manager

Jay

the 1VS group invites the family

loyal persons were sent to various units of the

Engineering Works, T.R.

members of employees to visit the

organization and groomed for their positions. Shri

Gupta who was groomed

factory

Ram would also discuss various matters of the

by Shri Ram knew most of

employees are also given food packets to

company with his general managers at early morning

the 2.500 employees by

take home. These ritualistic gestures help

walks or at meals. The managers were given

name and visited their

to reinforce family-like affiliations and

opportunities to observe Shri Ram in his business and

houses on festivals' and

paternal

social interactions. They could thus

other special occasions.

organizations.

Autonomy

Welfare Activities

The general manager is not

Many welfare measures for employees

required to explain his

and their families are instituted by some

actions.

little

organizations. In most cases, these mea-

interference with lUs plans

sures are way ahead of the legal

and

is

provisions in such matters. For example.

encouraged to feel more

companies like Tata, DCM. 1VS and

like an owner and less like

Kirloskar

an

introducing many measures for the

Approach

consciously

between

him

follow

and

his

and

the
of

There

decisions.

employee

is
He

in

the

to

T.R.

Gupta,

periodic

Shri

reports

Ram

to

the

Symbolic Gestures

to

celebrate
festival

on

for

special

styles

of

have
and

Holi

with
them.

occasions.

relationships

been

pioneers

organization. In turn, he

security

well-being

develops more managers in

employees and their families.

the pattern set by his

HRD Philosophy

of

his
The

The

in

in
their

70

The

patterns

relationships
work

reflect

HRD

of

organizations

at

special

in

the

relationship

the accountant is no longer

development of people as the most

the

of

important asset for either improving or

sole

repository

built by people at the top with

financial

H information

sustaining organizational performance.

philosophy.

their

as he was in the earlier

The emphasis of the HRD programme

some

there

system.

here

In

the

lies

subordinates.

When

Some

family-

on

developing

roles,

role

organizations,

the

is a change in leadership,

managed

practices

and

realignment in relationships

have

philosophy of HRD

has

problems

effectively.

In

the traditional personnel functions are

are perpetuated by

place.

Sundaram

Clayton.

for

included in the HRD system. This

the managers who

leader' does not believe in this

instance, promotions are

approach assumes that HRD is important

are encouraged to

style

now given on merit and not

for growth of the organization. Since

follow

the

role

management

on seniority.

growth of an organization is linked to

model

of

their

recognize its relevance or

The third difficulty arises

growth' of people. it is in the interest of

virtue,

the

due to changes in the

the organization to develop human

are

aspirations of the young.

resources ..

organizational

rarely sustained. For instance,

The youth in general today

In general organizations take, up HRD at

Globalization, they

when

want

individual

times of diversification. intensive growth

internalize

the

Lala Charat Ram succeeded

recognition

and

and declining profits. The HRD strategy

values and attitudes

his father as chairman of Jay

independence and do not

and the focus of the programme are

of their leaders. The

Engineering

the

like social differentiation

broadly linked to the circumstance of the

entire

organ1zation went through a

and stratification. They are

enterprise. Some examples are given

long

on

below:

is

period of adjustment as he

comfortable with paternal

somewhat akin to

had a very different style of

styles

the

leadership' (Dayal, Srivastava

dependency and prevent

cigarette

and Alfred, 1972).

development

an

products. The company concentrated

&

independent identity. These

on improving its appraisal system and

The second difficulty arises

attitudes

personal

providing training so as to identify

when there is a change in

values often cause conflicts

and rapidly develop managers for

technol-

in organizations based on

new projects.

seniors.

In

the

process

of

process

thus

is

institution-

alized.

This
kind

of

"apprenticeship"
prevailing

in

Japanese
organizations

to

prepare

young

persons

for

pos1t1ons

of

If

of
or

of

does

not

trust

Works,

the

knowledge

perhaps the most

experience,

important

necessitate

difficulty with this

approach relates to

changes
practices,

high

level

rather
and

this

of

create
of

and

styles

of

ITC took up HRD at the time of

diversifying

its

business

manufacturing

to

from
other

Crompton Greaves resorted to HRD

when it faced a slump, in business

comes

projects in new locations. The focus

than

partly from humanistic and

of its programme was role clarity so

may

partly

that responsibility for results could be

perspective
from

business

It

regards

flow

>z

the

vested

70

n re c/a

2=

The

existing social hierarchy. With

re c/aN

the introduction of computers,

71

This

relationships, and in

such

job design, etc. In some cases. most of

and decided to take up additional

recruitment
work

less

relationships, appraisal systems, training,

Reciprocal Approach

in the organisation.
of

that

interests.
in

these

whole

management.

and

strength

more

require
E

change

succeeding

paternal

Problems

leadership

the

handled

ogy. The new technology may

technical

first

take

relationships

responsibility.

The

to

organizations

is

r-

>ZZ

w sal system as

reorganizing.

well.

reorienting

The

programme

L&T

was

their HRD programme.

associated with

Organizational Features

its

The practices followed by

of

organizations for growth of

organizational

individuals

development.

considerably. They range

Job management:

The programme

from job redesign. e.g.

Rot The

at SBI centred

Bharat Heavy Engineering

Several studies show that growth

around training

Corporation

atio individual as a total human

n, being is seen to be the most

and

responsibility for planning

Trai important aim of an HRD

nin programme. In whatever

acquire new' perspectives about his

g, activity the organization

and may be involved. One

relationships. Often the individual

Dat significant output should

a be
growth
and
Ban development of individuals

when he assesses his particular

k. Itwho are engaged in that

is activity. Therefore involve-

other people. Four conditions are

ass ment exercise of discretion

um in performing the job,
ed autonomy, job design. Etc.

growth:

e
n
t
r
e
m
a
n
a
g
e
r
s
.
I
t

r
e
f
i
n
e
d
t
h
e
a
p
p
r
a
i

HRD
at

programme

appraisal

following

its

corporate

Suc A

with

differ

where

and results now rests with

rapid

floor to counseling, job

growth (Silvera.

rotation, training and the

1988: Rao et at.

like. Both in focus and

1988; Rao and

variety

Pereira. 1986).

organization is, designed to

HRD

LIC

serve its own needs and

its

follows an approach that is

HRD

in

each

reorganization

unique.

and

Some HRD practitioners

growth.

have

These examples

systems

which

show that HRD

mainly

functions

in

earlier

most

developed

HRD
include
that

well-developed

organizations is

personnel

part

an

carried out in organizations

overall strategy

(Strauss and Sayles. 1985;

for

Pigors. Myers and Malm

of

improving

departments

its performance;

1959;

it

Athreya suggests that an

is

not

an

development of the system as a

humanistic

simultaneously

and

sustained

nni sharper
ng, perspective.

the employees on the shop

followed

HRD programme should aim at

activities prior to or

reorganization

in

Pla orientation and will have a

Athreya.
consists

1988).

isolated

HRD

programme.

following

L&T. SBI. LIC.

Corporate

ITC and many

Manpower

others took up

Selection, Induction and

comprehensive

Placement, Role Analysis,

programmes for

Appraisal,

12

of

the

elements:
Planning,
Forecasting,

Counseling,

Self-development, Career

review

whole. In this respect organizational

of

HRD

analysis often becomes an important

in

concern for the management. Hence.

cessprogrammes

ion organizations suggest that

Pla three distinct features

a programme

nni differentiate
ng, traditional

from

objective and linkages that enable

personnel

and sustain organizational growth are

growth

HRD

with

fun
ctio
ns
will
be
carr
ied
out

of

the

wit
h a
dev
elo
pm
enta
l

The individual is seen to be

job. Hence development of

individual's

total

capabilities. and not skill

alone assumes importance
in HRD initiatives.
of

the

organization must form an

integral part of an HRD
programme.

Growth

of

individuals without that of

the organization is not
sustainable.

the

occurs when an individual is able to

work, the job, the environment, and
gains fresh understanding of his job
contribution; he also gains new
insights through interactions with
required for fostering individual

Personal desire to grow

Experiencing a wide range of

interactions with people and the
environment

Hence

the

Assimilating this experience to

derive a new meaning of things.

employee in an assigned

growth

as

Processes Znvolved

a total person and not an

The

growth

necessary

that become areas of concern

thes for HRD programmes.
e

individual

relationships and situations

Assessing the results wit~ a view

to

knowing

potential

one's

and

using

ability/
this

in

planning future action.

Briefly, a concern for development
must be generated from within. The
individual should be able to identity
his strengths and weaknesses, his
needs for learning, and how he could
improve

his

capabilities.

The

organization would have to provide

scope for learning; the job should

72

en gths

and,

roles, role relationships,

bei

abl weaknesses. While

representative

ng:

The explicitness of the

interaction among its members

e the

individual

executive systems policy

social

and the values and attitudes that

an would

have

framework to guide all

to

in assume

and

work
organization,

roles,

the

patterns

of

the organization represents.

aspects of work activity

The

cooperation

coping with changes in the environment,

di responsibility

for

and the like. They felt that

among

and

expectations of the new breed of

vi his

the

work

achievement of results

employees, and the need for adjustment

organization is necessary

that the design of the

to rapid changes in technology. Sustained

al would have to be

before

work

leadership of organizations is likely to

to flexible enough to

intervention programme to

promotes.

ex respond

develop

growth,

du work

organization

to

the

rational
taking

up

an

human

pe individual's growth

relationships.

ri needs.

This

me requirement

also

The

two

people

organization

depend on the success of their HRD

The

decision-

programmes.

making and problem-

HRD is also important in the societal

cannot be separated. This

solving

context. Lack of development at work is

point is important when

through

nt suggests that the

developing HRD.

management

wi HRD

programme

Another

th will

be

systems
the

reflected in unsatisfactory re1ationships

conveys

in the family and society. Alienation at

that

its concern for human

work contributes to growing discontent

less

contributes to work culture

growth to individuals

among the young and a feeling of anger

ne effective

if

is the design of work

performance.

for

w opportunities

to

organisation. It should give

HRD is not an isolated

experiences at work are necessary for

ski arrange

work

the employee control over

exercise.

developing

lls, flexibly

are

such aspects of work as

development

rel unavailable.

For

influence results. In such a

programmes are invariably

ati example, it should

Areas of Concern

system

taken up with it. The

on be

to

Considering the importance of HRD for

cooperation also becomes

interdependence

shi redesign work on

organizations, it is necessary to identify

easier. If a person has to

individual

ps the shop floor for

constantly depend upon

work ro~s is not noticed in

at some persons, even

other

many HRD programmes.

wo if such changes are

conveyor belt. he becomes

The

rk, not made for

dependent upon others for

rationalize the work 0f

an all.

results. The socio-technical

organization has, in many

d In Glacier studies
an Brown and Jaques
op (l965)
developed

systems developed during

cases, preceded HRD. This

the past 30 years have been

haS been observed with

extensively used in the

regard

po the

organization

Crompton Greaves, Bank

rtu work

possible

rationale

of

aspect

interdepartmental

units.

as

on

of

work
concepts

of

nit before undertaking

y specific

were

in

others.

to programmes
ass interpersonal

of

SBI. LIC and others.

ess relationships.

The

his work

organization

str covered
en identification

73

of

used

the

reorganization of BHEL.

Organizational
or

other

between

growth

programme

Socio-technical

organization

which

to

Baroda,

SBI,
IOCL

and

to

LIC,
and

established

institutions;

Positive

collaborative

societal

relationships.

the areas or issues that need examination.

Some of these are identified here:
1. What is the difference between
traditional

personnel

functions and HRD? If HRD is

merely

change

in

terminology, the position should be

clearly

stated.

If

the

two are different, the distinction

should

be

highlighted.

Experience shows that even when

HRD

philosophical

Future Directions

reorientation is given to traditional

HRD deserves increased

The initiative for self-

personnel

attention of both managers

development

they do not, o _ their own, lead to

and

development

therefore

the

academicians.

upon

HRD in organizations is

several things the most

necessary for effectively

important

depend

would

among

them

individuals.

functions,
of

An attempt has

2. Is HRD dependent upon

been made in

by HRD Academy at Ahmedabad. Action

OD? If they are linked,

dispersed area? What

research in Life Insurance Corporation is

this chapter to

should they be handled

are the strategies likely

reported later in this book. Management

draw

simultaneously

to be more useful in the

Development Institute, Gurgaon has

sequentially? Would HRD

Indian

undertaken a study of five organizations.

HRD

have less impact if it is not

context?

These

The study shows that some organizations

the

linked to OD? From the

questions would need

have integrated HRD philosophy in their

traditional

literature on HRD. the

serious

management systems, while others have

personnel

difference between HRD

&

programme-based approach. Survey of

and

experimentation

the

difference
between
and

functions.

00

convictions

or

is

not

clear

in

hold the view

(National HRI? Network

managers

that HRD will

Papers, 1989).

academicians alike.

have a greater
impact

3. How should operators in

by

HRD practices in Indian organizations

and

are available in many publications

(Silvera,

re

routine

organizations if

clerical

it

involved in HRD? Does

appropriate entry

distinguished

the nature of their,

from personnel

work

functions. This

motivational factors? Job

intervention? What are

view is based

redesign

the diagnostic tools

on the premise

attempted in some places

for

that HRD has to

but the exercise is difficult

most

be

and time consuming. It is

strategy for HRD?

unlikely

Singh

is

action-

oriented
rooted

and

employees

contain

as

5. How

management identify an

be

point

intrinsic

has

been

that

should

large

for

determining

(1988)

has

Further studies in re

The scope of

redesign exercise. What'

this

HRD is wide

are the other ways of

necessary.

and it would be

adding intrinsic attributes

more

to clerical jobs?

is

separate
The

decision to set
up HRD as a
separate
will

unit
depend

primarily

on

how

the

programme
conceived

is
and

the purpose it
meant to serve.

are

believe

organizations

that
are

more
now

philosophy

concerned with HRD than

in

they were a few years ago.

widely

I think the difficulty is in

spread out organization? If

translating the concept of

the

HRD into a concrete plan

shared

function.

respect

4. How should a common or'

-

develop
a

decentralized,

is

of action. We need in-depth

the

studies and a great deal of

experimentation to evolve

manager has about people,

an appropriate strategy for

what are the most effective

action

ways

Some useful studies are

success

of

HRD

dependent

on

conviction

that

of

developing

these

research studies.

frequently undertake a job

it

would need more evaluative and action

appropriate

problem areas.

effective

and

the

suggested a typology.

organizations

Verma

HRD

will

if

in the

such

Rao,

Khandelwal. 1988). We

on

tasks

1988;

already being undertaken

74

>z

LESSON 1 2 :
ORGANISING
OF

PLANNING
AND
DEVELOPMENT

HUMAN

RESOURCE

re c/a O
70
n re c/a

Learning Objectives

HRD Philosophy

Planning the HRD System:

Perhaps the most fundamental part of an HRD plan is that which

HRD philosophy

deals with HRD philosophy. It represents those basic beliefs, ideals,

r-

Subsystems

principles and views which are held by the management with

>ZI

Objectives

respect to the development and growth of its employees. A well-

Policies

Action plans

2=

established HRD philosophy plays two important functions. First, it

and

gives rise to what one may call 'style of management'. A manager

Organizing the HRD System

develops his practices on the basis of his philosophy. Second, it

Forms of HRD

makes organisational goals more explicit. For example, in

orgnisations that have unshakable belief in the development of

Tasks of HRD Department

HRD-Whose

human potential, though profit may still be the most important goal,

Responsibility?

investment in human resources also becomes a powerful sub-goal.

Attributes

of

Following beliefs are essential for the success of any HRD

HRD

programme.

Manager
Some Do's and Don'ts for HRD

1. Human beings are the most important assets in the

Manager

organisation.

Students, today let us discuss how the HRD system

does

the

Planning

and

Organsing

in

the

2. Human beings can be developed to an unlimited extent.

3. Employees feel committed to their work and the organisation

organisation.

if the organisation develops a feeling of 'belonging' in them.

Planning and Organising The HRD System

4. Employees are likely to have a feeling of 'belonging' in them

In the preceding chapters, we have studied the

if the organisation adequately cares for the satisfaction of their

concept

basic and high-order needs.

and

functions

of

human

resource

development. This chapter describes some aspects

5. Employees' commitment to their work increases when they

related to the planning and organising of the HRD

get opportunity to discover and use their full potential.

system.

6. It is every manager's responsibility to ensure the

Planning The HRD System

development and utilisation of the capabilities of his

Every orgnisation that hires people to carry out its

subordinates, to create a healthy and motivating work climate,

work, whether it be a business, a school, a

and to set examples for subordinates to follow.

government department or a hospital needs a

human resource development plan in which
various phases of HRD work are tied together into
an integrated programme.
The HRD plan must incorporate information on
the following subjects:

HRD philosophy,

HRD sub-systems,

HRD objectives,

HRD policies, and

HRD action plans.

7. The higher the level of a manager the more attention he

should pay to the HRD function in order to ensure its
effectiveness.
8. A healthy and motivating climate is one, which is
characterised by openness, enthusiasm, trust, mutuality and
collaboration.
Guided in its HRD programme by the philosophy and ideas of its
founder Jamshedji Tata, the Tata Iron and Steel Co. is one example
of an ideal HRD philosophy. It believes that it can effectively
discharge its obligations towards its employees only:

awareness of the social responsibility of

By

industry;

real

working conditions, job security, an effective

isti

machinery for speedy redressal of grievances,

and suitable opportunities for promotion and

and

self-development;

gen

By

providing

adequate

wages,

good

By promoting feelings of trust and loyalty

ero

through a humane and purposeful awareness of

us

their needs and aspirations; and

und
erst
and
ing
and
acc
ept
anc
e of
thei
r
nee
ds
and
rig
hts
and
enli
ght
ene
d

By creating a sense of belonging and team-

spirit through their close association with

management at various levels.
Another excellent example of a company's HRD
philosophy is provided by the well-known Indian
Tobacco Co. This company has, from its original
business of cigarettes and tobacco, diversified into
several new areas such as cottage sector products,
edible oils and oilseeds. The group employs over
15,000 people. Following is the company's
statement on its HRD philosophy.

Human Resource Philosophy of hndian Tobacco

HRD Sub-systems

Co.

philosophy

After laying down the HRD philosophy the plan must specify the various

statement of the company lists seven cardinal

sub-systems or mechanisms, which are to be used. We have seen earlier

beliefs as under.

topics that there are 15 sub-systems, which are generally used for purposes

1. Self-managing resource. We believe that the

of HRD. Of these, training is considered to be the most vital sub-system so

human being is a fundamentally different and

much so that many organisations consider it as synonymous for HRD. This,

unique

is

however, is not correct because training alone is not enough to bring about

simultaneously a source, a resource and the end

the desired change in an organisation's culture. It needs to be inevitably

of all economic and social activity. He is the

backed by other sub-systems to produce the desired change.

means as well as the purpose. He is capable,

HRD Objectives

willing, and in the normal course of evolution,

Having described the HRD sub-systems, the next important step is to lay

developing.

down the HRD objectives or goals. These are the ends towards which all

Ltd.

The

human

resource

in

resource

that

he/

she

2. Potential we believe in the inherent potential of

HRD activity is planned. In defining these ends consideration should also

people. There are different kinds and degrees

be given to the objectives of other departments and of the company as a

of potential, which can be developed and

whole and to social objectives. It is bad enough when goals do not support

utilized in the context of task challenges,

and interlock with each other. It is tragic when they interfere

responsibility and commitment.

with each other. What is needed is a 'matrix' of mutually supportive goals.

3. Limitations. We believe that any apparent

In

general,

limitations in people are the result of a variety

efficiency

of circumstances and factors and can be

wages

overcome

for

with

support,

awareness

and

the

and

and

objectives

profits.

working

advancement

The

of

objectives

conditions,

and

self

most

companies
of

economic

improvement.

are

employees
security,
The

service,
are

good

opportunity

objectives

must

correction, following which, the potential has a

be so described that they become 'verifiable' or 'operational'. If

chance to flower again.

there is some way of determing whether and to what extent a

4. Quality of work life. We believe that ITC as a

goal is being realised by a particular sequence of adtivities then

business institution can provide a high quality

the 'verifiability' is to put objectives in quantitative terms. Even

of work life for all its members through

when the objective is highly qualitative and. therefore, cannot be

opportunities for a meaningful career, job

quantified

satisfaction and professional development.

operational sub-objectives, which have some plausible linkage

Through this ITC members will contribute to

to the basic objective. For example. if the objective "to maintain

quality of life in their interface with society.

high morale and better human relations" has a low degree of

5. Meritocracy. We believe that people accept

meritocracy as ajust and equitable system, and
contribute best under conditions of open
opportunities and challenges and different
rewards commensurate with performance.

the

components

in

their

membership of ITC, namely, leadership,

fellowship and peer ship.
7. Actualization. We believe that the design,
implementation and update of human resource
management systems, enhancement of skills
and creation of an enabling climate will
facilitate the self-actualization of us as
individuals and of ITC as a valued business
institution,"

can

be

made

verifiable

by

spelling

out

those
&

verifiability or operationally a few operational sub-objectives

L

may be laid down such as (i) reducing the absenteeism and

p

turnover rate of the organisation, (ii) requiring the various

E

6. Membership. We believe that people can blend

harmoniously

it

supervisory levels to slick to a time-bound procedure of

T

settlement of grievances, and so on. The objective of maintaining high

morale and better human relations would then be measured in terms of
these more tangible criteria.
HRD Policies
The next important part of an HRD plan is that which deals with policies.
These are general statements, which guide thinking and action in decisionmaking. Being only guides to thinking and action in decision- making they
have always room for discretion. Otherwise they would be rules.

Sound HRD policies are an essential base for

sound HRD practice. They provide the base for

agreements

with

the

How should post-training support be

unions. This means that

given?

the organisation agrees

Compensation: On the question of

to hire only the members

compensation the major policy issues

decisions are taken on an ad hoc basis, which

re c/a

of

to be decided are:

results many times in improper emphasis being

recruitment

given to significant characteristics, criteria or

70

members is ruled out.

and to the industry rates, i.e.,

Preview of the job lo be

whether the employees are to be

paid a higher or lower wage level

management by principle as contrasted with

management by expediency. In their absence

>z
R

the

union
of

and
non-

the relation of wages to the market

circumstances of a problem.

n re

HRD policies can be formulated to cover the

c/a

given

following subjects:

r-

Some organisations give

than

community or industry,

to

applicants.

that

prevailing

in

the

Selection.

> Z

an unrealistic preview.

Training

This is not a correct

Compensation.

policy. The applicants

different employees within the

Arrangement for work.

should

company and

Employee services and

2=

about both the positive

Industrial relations.

be

informed

and negative aspects of

Selection: The selection policy of an organisation

their jobs. For example,

should provide clear guidelines on the following

they may be told that

points:

they win be supervised

Reservation of seats for scheduled castes and

quite closely in their first

scheduled tribes,

job or that some aspects

of their jobs will be

Employment of local people or family relations

boring,

or of people working in competing firms,

such

Preference to be given to handicapped persons.

about the

job to the applicants

to be followed in discharging an employee,

does

affect

Role, if any, to be given to the union in the

not

materially
their

job

Expenditure
incurred
This

to

be

on

selection.

may

include

advertisements,
training

and

the relation of wages paid to

recognition

to

differences

be
in

given

to

individual

performance.
Arrangement for work: Here the
employer should formulate policies
about hours of work, number and
duration of rest pauses, vacations and
working conditions.
Employee Service: Here the employer
should

formulate

organising

policies

co-operative

about

societies,

festival celebrations, recreation centres

and sports and family budgeting.
Industrial

Relations:

Here

the

employer should explicitly express the

extent of his faith in collective

acceptance rate.

recruitment and selection of workers. In some

'closed shop' clauses in their collective

on.

unfavorable

information

The basis (length of service or efficiency)

western countries some orgnisations have

so

that the disclosure of

organisation.

and

Researches have shown

Promotions from within or outside the

test,
traveling

bargaining and the right of workers to

decide the union and the union leader
they want. He may also lay down the
organisation policies regarding third
party (e.g .. police) intervention in
industrial disputes.

expenditures.
Training: With regard to

HRD Action Plans

training, the basic policy

In the last stage an action plan must be

issues to be decided are:

prepared for every subsystem of HRD.

How are training needs to be

It must give details about the way the

decided?

sub-system

How

should

training

implemented.

is
It

going
must

to

be

also

give

curriculum be designed?

information about the phases of the

How should follow-uP and

programme and the sources from

evaluation be done?

which it is going to be funded.

Z RD policy with

Schein,

nt corporate policy is

Orgatlisariorlal

eg vital

and Leadership, Boston:

for

ra organisational
tio success.

n policy embedded
corporate

H policy serves to
R attain

(1985)
Culture

Jossey Bass.

HRD

of in

E:

the

Life

Cycle

Culture/Strategy

Stage,
and

^plications for
HRD Activities

more

lic effectively

by

y giving

Cycle

o corporate
w (even

policy

when

it

ly policy

consistent

ac with the policy of

kn the

organisation.

o In fact, the two

wl roles

must

be

ed played
d a parallel process.
th Schein advocates
at a model aligning
int strategic

human

eg resource
rat development with
io life cycle stage of
n an organisation as
of shown in the
H following table:

novel

in the right direction. Organising is, then, a

States it has been estimated

process by which the manager brings order

that less than 20% of HR

out of chaos, removes conflicts between

plans are formulated and

people over work or responsibility, and

integrated with the business

establishes an environment suitable for

Key

strategy
Implications
forof organisations.2 In

teamwork. Implicit also is recognition of

Culture/Strategi

a study
Strategic HRD

the

human factor that jobs (or roles) must be

influence
of
various
of Owner may
not
functions
on
strategic
perceive need
for
decision-making)
Hegarty
HRD
role Limited and Hof-fman found that on
a scale of 0 to 5, Managing
managemen

designed or redesigned to fit people and

Director had the score of3.8,

'
founder
successionMarketing 03.2, Finance
problems of2.8 and HR of less than 2
Outside help not Changes may be
indicating
very
little
valued
unplanned/ad
influence.)
Lack
of HRD may

upon the size of the organization, nature of

Growth

c
High

levels

cohesion
Maturity

procedures and
planning systems
Politics play an

ge simultaneously in

activities

caree
require

exists. Even in the United

of

de develop its own

ies may

clear and thus channelises all human effort

is people) and on the

should

of

sing centred
project/task

and the HRD policy rarely

Dominant

it

in

ure
that
are being tackled
Organi problem-

authority and bounds of discretion more

it does not involve

wi other

enance activhies
may have to
be
more
taken
Readjustment
thinking
changes
appropiate
Diversification
Inertia
may Lack opportunit
necessary

between the corporate policy

On

N in formulating the

accept
rather than
new revolutionary
ways of

the contrary, it makes the individual

te fold role in policy

y must be involved

environment
HRD
Major decisions Reass employees

linkage

ra must playa two-

lic the one hand, it

shed
Maint of

importance,

C mes. To achieve

Po formulation.

people to
Evolutionary

taking 'advantage of creative' talents. On

program-

po HRD department

should be wellas a defence

ement
establi
against a hostile

its

wi and coherence to

or this integration the

organisations
on of values
Needand to
beliefs
get

tion
Line/Staff
Notwithstanding

Life

direction

th HRD

ambiguity and
HRD approaches
HRD
function
Culture may act Manag o

of business
emerge
activities

D organisational
Po objectives

ts may
differences
arise
Institutionahsati

the

(comparing

have to
aggres

Organising

sively

HRD

the

HRD

System

that people must be motivated.

Forms of HRD Organisation
The HRD function in an organisation can
be structured in 4 different ways depending
its

activities,

the

structure

of

the

organisation and so on. These four ways

are:
1. Performing the HRD function through
the existing Personnel Department;
2. Performing the HRD function through

can

be

more

productive and less costly if

important role
it career
has some kind of
Large variety of - Initiation of
organisation structure, i.e., a
cultural
development
changes
activiti formalised
intentional
es
relationship between various
Levels
of Inducting
sub-systems and roles. As
cohesion decline new
believed by some people,
recruits
does
not
Emergence
of Manag formalisation
always make a structure
middle
ement
management
inflexible nor does it make
Tensions/conflic Devel of
the structure incapable for

a separate department;
3. Performing the HRD function through
a committee or a task force; and
4. Performing the HRD function through
the Chief Executive Officer.
If the existing personnel department of an
organisation is already performing the
HRD functions there is no need to create a
separate HRD department. But for the
purposes of role clarity it is worthwhile to
separate

those

individuals

who

are

consideration

functions

given to its size. It is always

function

advisable

the

trebled sufficiently in HRD

doing

department's size small with

skills.

administrative

flat

low

form of organisation for

overall

personnel

profile. All members of the

HRD is likely to be effective

organisation. The system should focus

those

from

who

are

should

to

keep

structure

and

functions. For this

department

may

purpose

designated

as

the

be

performing HRD

be
HRD

HRD

if

and

should

be

This

there

is

must be kept in mind at the time of

designing a new HRD system:
1.
The system's main aim should be the

on

development

improving

of

the

total

organisation's

committee culture in the

diagnostic

and

the

capabilities

and

able

orgnisation

more

commitment

problem-solving

former group can

managers though they may

organisation

be

be given

members

designated as the

different salary grades and

to set aside a good part of

maximum

HRD group within

responsibilities for carrying

their time for HRD work.

employees may be obtained.

the

out specific tasks. This is

2.

But

necessary for keeping the,

In organisations where CEO

The system should take into account

most of the time it

HRD climate envy-free. The

is assigned to perform the

the various contextual factors and the

may be found that

HRD department must have

HRD function, there are two

existing culture of the organisation.

although

direct structural link with

risks.

Under contextual factors we may

existing personnel

the

to

One, the HRD function may

include the size and techno-logy of the

department

has

facilitate easy reporting and

come to be viewed with

organisation, the skill level of its

to

action and to keep the HRD

considerable scepticism by

people, organisation's support to HRD

HRD

function going on even

the lower levels of the

and availability of outside help. A small

functions, it does

when there is a change of

organisation.

the

organisation can combine several HRD

not

headship. The department

CEO'S other activities may

functions into one whereas a large

necessary

should also have strong

leave him with very little

organisation may require each function

competence,

linkages with all its sub-

time for HRD work. In order

to be dealt with separately as a

systems

other

to avoid this risk the CEO

specialised sub-system within the HRD

the

officially

Personnel

Department.

the

the

mandate

perform
have

credibility

the

and

motivation.

chief

executive

and

are

Two,

on

making

open

the

so

that

of

the

In

departments

should appoint some senior

system. Similarly, the type of work

such a case it

organisation.

person as a second man to

being done in the organisation and the

should

In medium-sized and small

took

HRD

technology followed in the organisation

organisations

HRD

activities. He should also

also influence the design of the HRD

function may be assigned

prepare a checklist of HRD

by emphasising some components of

either to

activities

keep

HRD much more than others. For ex-

motivation can be

a committee or a task force

reviewing this list to remind

ample, appreciation of customer needs

acquired

be

remembered

that

although
competence

and
or

in

and

the

the

after

the

and

or to the chief executive

himself of his

may

developed it is not

officer.

HRD duties.

consideration as a sub-system in a

easy

the

the

service organisation but not so in a

credibility. Thus it

Points to be remembered in

credibility of the members,

university or government department.

may

designing a new Human

who

Resource

Development

In organisations where people's skills

System The following points

are low the HRD need to be introduced

to

acquire
become

In

former

are

imperative for an

generally

organisation

with

start

to

case

line

HRD

managers
as

their

slowly.

new

additional

with

bility, is very important for

70

HRD title are a

the effectiveness of the

n re c/a

2=

separate

team,

department

department
being
special

HRD

responsi-

every

is

member of the team should

created

have positive attitude to the

need

to

r-

>ZZ
re c/aN
O

given

Organisation's

determines the

>z

be

special

support

duction

of

favours

informality,

tees for specific time-

function

bound tasks.

system.

m HRD

and

openness, objectivity,

through

this

etc., the same can be

e4. In designing a human

the design of

strengthened by the

the

proposed

Availability of

expert

from

system.

new

system.

resource

development

or

sub-

followed

by

other

functions.
(iv)

system mechanism for

Sophistication

monitoring should also

introducing simple forms of

sub-systems,

planning:

help

3. In designing a human

be

outside

resource development

periodical review may be

some

ensures proper

system

enough

planned for this. Persons

sophisticated forms.

monitoring of

attention should be

from

the system. If

paid

building

may also be taken in the

the

is

linkages between the

review and assessment

being designed

various sub-systems.

effort.

as

These

intervention to

provide feed-back to

i 5. In designing- a human
o resource
development

change

the

sub-

system. it is essential to

existing

counter to the HRD philosophy it

systems. The Human

see

w culture of the

should influence top management

Resource

subsystems

organisation, it

Development system

introduced

is necessary to

in Larsen & Toubro

organisation in stages.

do

perhaps

best

Rushing the introduction

careful

illustrates

the

of all sub-systems in one

planning,

linkages, which need

monitoring

to be created between

effectiveness of HRD.

and follow-up.

the

sub-

Each sub-system should

It

systems of HRD (See

be

helpful to do

Appendix).

For

with sequenced phases

force

example,

the

built one over the other.

analysis of the

Performance

This may include:

facilitating and

Appraisal subsystem

inhibiting

of the organisation is

forces.

linked

Data

the force field

Storage,

Potential

analysis

Appraisal.

been

Planning,

completed,

Training.

forces

Mechanisms

are in favour

commonly

of the change

for

may

linkages

strengthened

feedbacks

while

seuing up of standing

designing the

committees

for

system.

various

purposes

membership

r
o

HRD

an
the

enough

may

be
field

After
has

which

be

For

example, if the
culture of an
organisation

(with

to

linkages
various

various

with

a
d

followed

establishing

and

are

the

sub-

systems and levels of

from

various

for.

other

that

lot

Career
and

provided

functions

its

various
are

into

may

limit

planned

the

the

carefully

phasing: introducing
the sub system in a
parts

of

organisation

the
and

slowly spreading it to
other parts.
(ii) Vertical

phasing:
at

one

or

a few levels in the

organisation

and

expanding\.Ip

or

down gradually.

introducing

more

Tasks of HRD Department

1. The first and foremost task of HRD
department is to come to grips with
the existing philosophy and beliefs
of the top management. If it finds
that these beliefs are running

to change its beliefs.

2. It should apply necessary inputs to
the Personnel Department or the
top management for formulating
the right type of personnel policies.
3. It should inspire line managers to
constantly learn and develop.
4. It should continuously design and
experiment with new methods to
build the right type of HRD climate
and achieve organisational goals.
these goals. Task orientation (in the
form of increased productivity and
profits) should come before human
concern. It is because very few
HRD managers put this emphasis
that the credibility of their effort

5. It should effectively monitor the

working of its various sub-systems
and the state of the organisational
climate by collecting feedback,
organising review workshops and
so on.
6. It should make efforts to win the

(iii)
Functional

by

time

goes down.

introducing the sub

system

after

HRD should not be at the cost of

(i) Geographical

few

fol1owed

phasing:
one

confidence of employee unions by

removing their distrust, fear and
suspicion towards its activities and

in RD manager HRD

management

th

sp is

programmes and so on.

conferences and visiting

To implement

become

the

joint

ire responsibility

of

various

others,
so

attending
much

other organisations. However, he

should not
his

preaching's

to

others

have

th line managers and

HRD

mechanisms,

obsessed with his own

e HRD

personnel.

identify the difficulties

learning that the learning

m While the HRD

experienced in and the

of

the

knowledge of others' functions in 'the

to departments

can

support

organisation begins to

organisation. He should be able to work

w design

and

getting success.

suffer.

must

with others as a team. He should

instru-

To analyse with the help

remember

the

maintain good relations with every

or

of HRD manager the

success of his function

department

for

implications of various

depends more on his

management. This however does not

HRD

correct attitude than on

mean that he should blindly support all

their actions. If he finds any of their

or provide
k ments

fo mechanisms
r use

by

line

needed

for

mechanisms

for

others

in

He
that

its managers, the line

generating a climate of

his

su managers have the

mutuality, openness and

qualifications.

cc responsibility for

trust in the organisation.

es using

these

s. instruments

to

their
H develop
If
R subordinates.
D- the line managers
W do

not

make

ho demands on the
se HRD departments
R and do not take
es follow-up action,
po HRD efforts in an
ns organisation
likely
ibi not

are
to

help

prepared to sacrifice his

them

develop

own personal goals for

problem-solving skills.
To invite outside experts

group goals.
4. He should possess good

experiences in the areas

communication skill to

of HRD and Q.D.

sell his ideas to others in

know

To

about

provide

budget

sufficient

for

HRD

the organisation.

of

HRD

manager
the

must

following

attributes:
1. He should have

sta expert to design

faith in the capacity

nd and

of people to change
and develop at any
stage of their life.

th autonomous

2. He should have

e workgroups,

constant

sta quality

learn

desire

and

and

himself.

system.

common

to

develop
Some

ways

are

He

should

knowledge

of

he

have
the

professional

various

HRD

introduced and implemented.

Some

Do's

and

should

Don'ts

for

HRD

Manager

sight of his mission which is to create a

learning

6. He should be proactive,
i.e.,

Manager

12.

He should have knowledge and

1. The. HRD manager should never lose

5. He should be a good
listener.

purposes.

11.

subsystems, how they are designed,

their

to

HRD

rol review

motivation,

must boldly oppose them.

behaviour.

the

ff appraisal

3. He should have high

others. He should be

wi To

circles,

actions threatening HRD values he

their subordinates and

possess

like

top

understanding of individual and group

HRD

g systems

the

i.e., a desire to help

line

in participatory

including

on-the job coaching to

the
N of
ot managers:

introduce

He should have respect for and

extension

Attributes

th company's

sounding

10.

To provide continuous

lit succeed. Thus it is

y? the responsibility

request

high

credibility.

environment/development

climate in the organisation. Many HRD

take

managers unwittingly allow themselves

initiative in introducing

to be lost in the routine jobs of

and implementing new

recruitment,

ideas.

rewards etc. These functions do satisfy

promotion,

transfers,

7. He should have enough

their ego and power needs but they

patience to wait till his

leave hardly any time for creating

actions bear fruit

proper climate in the organisation.

8. He should be free from

2. The HRD manager should always be

bias. He should soon

on his

shed

employees and the line managers,

his

impressions

feet

the

knowing

may form on the basis of

suggestions and building rapport with

any incidents.

them. Many HRD managers think that

should

problems,

with

about others which he

9. He

their

interacting

inviting

have

their job is simply to launch various

e com-munication

reading,

leadership qualities. He

sub-systems, starting, of course, with

of system,

experimenting,

should be able to lead by

performance appraisal. Once these sub-

showing experiences

personal example so that

systems are introduced they think that

an
H

stress

their job is over. Then they sit back on

their

tables

direct

5. The HRD manager (if he

and indulge in

access to him people

is invited from outside)

all

start

perceiving

the

must

HRD

manager

work

sort

paper

of
work

result

of

his

as

of

his

early

without caring

potential

to know what

promotion and reward.

Unlike other managers

is going on in

They then begin playing

he should not try to

the minds of

on his time, telling him

entrench

employees and

what they feel he should

permanently

line managers.

hear and not what is

organisation. He should

This is wrong.

correct.

Sometimes,

remember that his object

In fact, they

people may even begin

is to develop the right

should

envying his power and

organisational climate to

most of their

may

such a level where his

time

in

the

cooperation

field

to

get

spend

source

for

hold

back
and

withdrawal.

himself
in

the

continuance

becomes

information from him.

unnecessary.

(In

new ideas for

4. The HRD manager

beginning

correcting and

should not overindulge

consultant

may

be

improving the

in introducing HRD sub-

necessary

for

HRD system.

systems at the cost of

successful HRD effort

At Steel Tubes

HRD spirit He must

because he not only

of India Ltd.

always remember that

brings

the

these sub-systems are

him

only the

objectively

selected by

several issues in the

the

means and not the end.

organisation which an

thus

Therefore, they should

internal person may find

emphasising

not be

difficult to do. But in due

the point that

course,

he has to have

unduly

the ability to

example,

take

manager should

organisation

internal people should

him.

not waste his time in

take over.

3. The HRD

collecting

manager

about how

HRD

manager

is

workers.

people

along

with

should

not

stressed.
the

For
HRD

information

allow himself

well the appraisal forms

to

are filled, number of

be

surrounded by

people

sycophants.

Once an HRD

rotated,

manager

people trained. number

is

number

known to have

of

become close

to

programmes

the

chief

executive as a

and so on.

of

organised

the

an external

expertise
but

with

can

confront

the

external

consultant
withdraw

also

should
from
and

the
the

>
z

LESSON 1 3 :
HRD:
THE
INDIAN
EXPERIENCE

re
c/a

O
7
0

n Learning
r
e
c/a
p

r
>
Z

Objectives

Dismissing the academic squabbles over terms like HRD, HRM etc

HRD: The Indian Experience

as mere quibbling with words, Athreya goes on to outline a concept

Integrating HRD with Corporate Plan

and a model of HRD which is based on a firm and unshakeable belief

Few approaches to HRD

in human potential.. "Human Resource Philosophy," he explains, "is

Hello students today shall we discuss the experiences

the most comprehensive umbrella. It is rooted in a belief in human

of HRD in Indian sector.

potential, which can be identified and developed independently, and

by overcoming weaknesses and limitations that human beings have."

Introduction

<

The philosophy is put into practice through Human Resource

L Dr Mrityunjay B Athreya, the Delhi-based

Management, which covers the whole gamut of activities from

management adviser, P

acquisition and development to utilisation of human resources. HRD

has made a significant'

contribution toward s strengthening the

along with Personnel, IR and Welfare functions is part of

image and role of HRD in India. He has-done this not

HRM.

building a new cult, but by de-mystifying the

"The point is that if HR philosophy is widely understood and

subject and disabusing it of the false notions of

dispersed in a company, then you can achieve most of what you want

superior status and infallibility with which many

through the existing structures and the departments of personnel,

theorists have invested it, His emphasis on integrating

welfare, industrial relations and so on. Through an

by

the HRD function with strategic planning has helped

emphasis on the potential of every employee and the possibility of

bring the entire workforce within the operational

developing it through the very process of utilising it, HR philosophy

ambit of human resource development. He is an

provides a self-fulfilling prophecy to the organization. The mere belief in

exception among the experts in advocating a total

potential exerts a tremendous developmental pressure. The nomenclature

Human Resource Management (HRM) approach

really does not matter. It is the commitment to the HR philosophy, which

extending right down to the unionised worker.

is of prime importance.

Athreya does not argue for HRD departments and

Holistic Approach

systems as ends in themselves. The pre-eminence,

In a presentation at the National Conference of the HRD Network, at

which

their

Madras (September, 1987) he elaborated the HRD concept as having to

departments and for themselves, he allots to the

do with living life fully: "The ultimate aim of HRD is the full

goals and mission of the company. In the Indian

participation of the individual in job and life. Modern industry, formal

Oil Corporation, for instance, he helped add

organization, technology and similar impersonal forces may tend to

credibility to the HRD effort by making it

create alienation in the individual. An intense form of this is self-

productivity and task oriented. As he puts it, "My

alienation, where the person is not even aware of die damage his

view has been that because IOC is a commercial

alienation is causing to himself. HRD aims to move executives and

organisation serving the society, on balance if

workmen towards fuller, participation, so that their potential can be

there were to be a competition between task

utilised to the benefit of themselves and the organization."

HRD

practitioners

orientation

and

human

emphasize

task

orientation.

seek

concern,
HRD

for

would
for

the

employees should not be, at the cost of the

company's goal of service to the customers and
society. It is because very few change agents put
this emphasis, that the credibility of the' whole
effort goes down."

This holistic approach is evident in Athreya's recommendation that even

if an HRD Department is created, it should be integrated with the total
Personnel function, with the HRD manager reporting to the Chief of
Personnel. "It should be under an HRM umbrella which covers IR,
Personnel Administration, Training and Development, Manpower
Planning etc." The role of the HRD Department is one of articulating

and disseminating the HRD philosophy throughput

not one of hankering after

fact, being held up by the kind of

the company and creating a climate for self-

top management backing,

assumptions that have percolated from

development and learning. After this first stage, the

as of innovating, widening

them into the ranks of the company." He

HRD Department would get down to creating and

the horizon, raising the

can show how the absence of any HRD

establishing an HRD system which would integrate

sensitivity and awareness

initiative

every wing of Personnel and the line managers.

of top management, which

succession

Mere climate building for HRD can lead to

includes not just the Chief

dehumanizing waste of human potential.

disenchantment, warns Athreya. Therefore it is very

Executive, but members of

Gradually, the change agent has to get

vital that systems should be institutionalized. He

the Board, Divisional and

top management in tune with the new

places strong emphasis on clarifying roles because

Regional Managers etc.

value of HRD so that they come to

this provides for people's aspirations and goal setting.

The importance of this role

believe that HR philosophy is not only an

"We could also include in this goal-setting, a self-

perception cannot be over-

effective business strategy which helps in

development plan. Ultimately all development is self-

emphasized

achieving return on investment, but one

development. It may be stimulated or facilitated. You

managements

to

which brings about a change in the

cannot take the line that over a period of time it will

respond to personnel issues

quality of the transactions in the com-

automatically happen. Another dimension is that self-

from a 'technical' point of

pany.

development is facilitated if the boss himself is

view - as matters to be

Push for Growth Strategies

engaged in self and subordinate development."

fixed,

and

The systems model for HRD designed by

In the ideal situation, Dr Athreya argues that "we

corrected.

Dr MB Athreya calls for more than mere

could ever take the path of the differentiation and

cumulative hangover from

oral commitment from top management.

integration model of Lawrence and Lorsch and say

the days of time and

It makes active involvement imperative.

that over" a five to even year time span the HRD

motion

work

By integrating HRD strategy with the

department may come into being, create a climate and

study,

industrial

corporate plan, the system makes the

systems and go out of existence."

engineering,

scientific

human

This approach explains the emphasis not solely on

top management involvement but on having 'internal
change agents', whom facilitators like him would
support from the outside. The role he envisages for
the internal change agent is

because
tend

repaired
"It

is

studies,

can

cause

gaps,

problems
stagnation

resource

potential

like
and

of

the

management and Theory X

organization a springboard for expan-

approaches.

The

sion,

run

strategies of the company. By developing

theory

people's potential, HRD helps meet" the

manager

needs of the company for the right

all

quantity and quality of key personnel at

assumptions
counter

to

because
thinks

here
HR

the
he

has

the

diversification

and

growth

potential and the talent and

the

the subordinate has all the

activity also provides a push for growth

limitations."

strategies. As he sums it up, "Corporate

right

time.

The

developmental

internal

Development is the balanced synergy of

change agent should first

Strategic Management and Organization

come to grips with the

Development.

assumptions top managers

Strategic Management is the Corporate

have about people and then

Planning System. The key system for

illustrate

Organization Development is Human

Therefore

the

"how

their

The

key

system

for

cherished goals of output,

Resources Development system."

productivity,

increased

His award-winning paper Strategy, OD

turnover and profits are, in

and Systems propounding the Corporate

Development

Administration, Welfare ...

against evil, black against

Pragmatism

Model in India for

because they have

white.

precedence over the academic's tendency

the first time at the

come a long way in their

to finalise and freeze systems models - to

Annual Conference

areas

As a starting point he

complete the circle. Athreya also hastens

of

Indian

Department is a support to

recommends

to point out that it is not as if the systems

Society

for

them by way of confirming

reinforcement of

existing

Training

and

their

introduced are all-useless. Quite often,

the

and

the

positive

HRD

experiences,

the

has

before

obviously

HRD

is

taken

formally

Development

enlarging the scope of their

existing

sub-systems

of

they suffer from an ailment which HRD

(Bhopal, 1980) has

successes through integration

HRD,

followed

by

systems themselves are prone to, after

helped many top

of the existing systems and

introduction of new ones

the initial novelty has worn off : namely,

managements

introduction of new ones.

with a view to integrating

systems neglect and indiscipline. In fact,

understand HRD as

Simultaneously,

the old and the new into a

the more dramatic the pronouncements

manager's efforts should be

total system. He avoids

and HRD formulae, the stronger the

business

directed at increasing HRD

the trap of a closed system;

possibility of their shying away from the

proposition, as well

awareness and skills of the

one that is fixed for all

big, bad world outside and hiding behind

as

entire line management as

times. As he explained in a

the glossy covers of superbly designed

hard-headed

.a humanistic

the

HRD

initiative.

He

also of the trade union leaders

paper

HRD

'reports to the top management'. Athreya

developed

the

and the workers.

Systems presented at the

avoids the common pitfall of putting the

Formal

model

at

the

One of the refreshing aspects

NIPM

at

system on a pedestal' and endowing it

Scottish

Business

of this HRD approach is that

Hyderabad in November,

with godly qualities of omniscience, and

School, Glasgow in

it

is

1984, "There is a widening

validity for all times and in all situations.

1976.

not marred by theoretical

range of sub-systems in

He warns of the danger of systems

posit

HRD. As the conceptual

degenerating into rigid bureaucracies,

knowledge and techniques

malfunctioning

or

advance,

obsolete.

therefore,'

When

the

dichotomies,

which

groundwork

has

HRD

as

He,

advocates

level of corporate

proactive, and Personnel or

systems gain in depth and

informal backup in the form of frequent

strategy

and

IR

new ones are added:" He

and wide-ranging consultations between

management,

the

reactive and useless. He does

then

fairly

boss and subordinate, counseling and

next stage takes the

not divide the world of O1an

comprehensive list of 11

informal exit interviews. He puts a strong

HRD manager on a

management into good guys

sub-systems:

Role

emphasis on review and audit of sub-

round

and bad guys, us and them,

Analysis,

and

systems once every two to three years

canvassing with the

Personnel

Placement, Transfer and

and a total systems audit at least once in

existing Personnel,

approach is more Indian in

Rotation,

five years.

IR

that it

Punishment, Appraisal of

He advises inculcation of six basic skills

departments.

&

Performance and Potential,

to ensure effective implementation of the

Athreya underlines

integrates and amalgamates

Feedback and Counseling,

Human Resource Development system,

the

as

Training and Development,

once a positive organizational climate

Career

Planning,

has been established. These are the skills

Planning,

of Goal Setting, Appraisal, Counselling,

and

role

related

of

the

against

vs

is

getting

superior

as

it

simply

been laid at the

of

because

Conference

inferior,

HRD.

the

His

standard

gave

Selection
Reward

sub-

and

HRD professional

approach

'in complementing

Western logic, which dissects,

Succession

the

dismembers and pits good

Participative-Devices and

Reviewing,

HRD Data Bank.

Development.

existing

practitioners of IR,
Personnel

of

existing

Learning

and

Self-

Athreya's systems model for HRD

includes

linkages with Corporate

Planning and a

Where the predominant trend

adversarial relationship

overall perception of the company as

derived

is towards hi-profile, manage-

has to give way to

a 'collective'.

Manpower

&

realism; and the need of

After pointing out that employees

more

trade unions to maintain

come together in a number of

role of HRD is

bothersome area of HRD for

relations with members

collectives ranging from unions to

to

develop

the worker. "The existing

has to be appreciated.

craft and diploma based collectives,

competencies at

emphasis on HRD is quite

While managements are

social collectives and so on, he makes

all levels, from:

elitist," he says. "In confining

inclined to be obsessed

a case for a broad based company

top management

it to managers we are only O

with

union

collective. In a paper titled HRM for

(sensitivity

scratching the surface. The

intransigence resulting

Industrial Harmony presented at the

only thing to be said for

from

preoccupation

Annual Conference of the National

with monetary rewards,

Institute of Personnel Management at

self-aggrandizement,

Bombay (March, 1985) Dr Athreya

rivalry of leaders etc as

writes, "Perhaps the most important

Forecast.

The

to

stakeholders,

ment oriented HRD,

focuses

on

the

boundary

working

management

that they may become better

etc)

leaders' and

through

middle

and

effective

with managers is
E

hence more

instruments

of

to

single step here is to create a larger

junior

industrial and economic

industrial harmony, Dr

identity for all employees, from the

management to

development. HRD however

Athreya points out the

Chairman to the cleaner, of belonging

workmen

is a total activity for the

additional

blocks

to the company collective. All other

(participative

company and there is a strong

resulting from worker

smaller, specialized identities need not

skills

need

the

alienation (due to the

be submerged in this larger identity.

resources to people lower

urban environment, the

But this larger identity must inspire

organization

down." Dr Athreya in fact

assembly

and inform all other identities. It need

development

made a suggestion at the

monotony and so on),

role, HRD can

AIMA Convention in 1987-

executive

aid the process

88 that managements should

(negative

of

make

etc).

Besides

its

institution

for

line
blinkers
view

of

not be in conflict
with them. Those identities have their
own contribution to make. They can

zero

workers

training

year

and the absence of a

More participation of workers through

covering in its

and instead reallocate the

company strategy for

autonomous workgroups, quality circles,

scope 'business

entire budget for workman

'industrial

working groups on cost reduction,

stakeholders

training.

The

other

by

than

management

year

block

building

the

reallocating

major

and

unions)

harmony'.

short-term

fire-

strengthen .the larger identity."

suggestion

schemes,

consultation

in

In the sphere of trade

fighting approach to IR

decisions affecting shop floor layouts

employees', like

union

only

the

and shutdown, greater emphasis on

dealers,

suggests

balanced

situation,

to

communication, fostering of values -

suppliers,

triangle

of

manager-

confrontation

and

shareholders,

worker relations, member-

appeasement,

divide

customers

trade union relations and

and rule scenarios.

even

management-union

He

communities

relations,

around

and

relations,

he

vitiates
leading

are

among

the

devices

recommended for integration of workers

in the company collective.

Absence of an HRD strategy for the

corporate HR strategy

entire company leads to "a mixed bag of

complement each other.

with

company

individual

The

Relations

offices/plants

relationship needs to be,

and the public at

strengthened;

large.

management-union

which
manager-worker
the

recommends

these

an

Industrial

motivation

or

alienation,

Strategy

growth or regression." A comprehensive

component, within an

HRD strategy should be supported by

HRD systems extending right down to

the workman. It is

be classified in three respects

relationships

important to keep

as follows:

managerial

scanning

the

(1)Emphasis

environment

for

Philosophy

on

and

our

expected of them but for the sake of a

practices

few exceptions, the majority should not

should be governed by

be put in a straitjacket. These stray cases

these' considerations. The

should be handle as cases and in best

personnel practices should

possible

HRD opportunities,

(2)Emphasis

for problems that

Programmes

assume that they are adults

generally do not make a distinction

might be building

(3)Emphasis on Leader

and

normally

between what Is commonly found in

up on the IR scene

Behaviour

behave in ways that are in

India, Class I. U. ill and IV. Organiza-

so

that

responses

on

would

ways.

Such

organizations

new

1 . Emphasis on Philosophy

the pest interest of the

tions such as CMC and Eicher have to

and

Some

corporation. It is possible

review their beliefs and examine the

implications of these beliefs on a regular

organizations

have

initiatives can be

articulated their beliefs about

that

developed as part

people

have

would deviate from what is

basis.

of

operationa1Jzedthem

in

CMC for example do it in

and

their

where they feel help is likewise

strategic

HR

and

some

By

managerial practices in the

management

organization.

clear

Keep their doors open for

approach

corporate planning,

examples of these in our

people to say what they

appropriateness

Mrityunjay

sample are CMC and Eicher.

feel and take corrective

managerial systems.

Athreya provides a

Their practices are people-

measures

2. Emphasis

pragmatic rationale

oriented. The logic of this

necessary. Eicher do it

Programmes

for

section is based mainly on

through carefully planned

Most

humanistic

data from the Project on HRD

employee surveys and use

integrate

movement in man

at the Management Develop-

the data to, evaluate how

initiatives

management.

ment

Gurgaon,

well

Some Approaches

undertaken

operating.

The approaches to

consisting of Ishwar Dayal,

HRD is not seen to be a

the the
problem areas identified employee
by them. ITC had need for morale and
in
managers with diverse trust

HRD are governed

Punarn

programme but a way of

capabilities

by the particular

Kaur, A.K. Sen and Rashmi

life.

diversification

orientation of the

Jain. The findings are briefly

The

management

its

reported In an article by

through

history

the

Sahgal and Jain (1992). Their

organization and covers all

kind of problems

approach will broadly be

employees. HRD in such

initiatives was appraisal initiated

training
and several

that it faces. In our

thus: If we have faith in our

organizations is measured

decentralization

studies

we

have

employees, how should we

in terms of how seriously

found

that

the

treat them? We should share

employees

programmes

vary

our ideas with them, respect

themselves in the affairs of

later

significantly

in

their

and

the corporation and how

significance.
Greaves

integrating

HRD

with

the

and

new

Two

Institute,
by

Sahgal,

team

Parv1nder

opinions

the

senior

superiors E.I.D. Parry

personnel

and

and

consult

planning.

systems

top

individuals

seminars.

wherever

system

sentiment
the

is

pervades
entire

involve

needed. Emphasis in this had

is

on

to

the rehabilitate

of

the the
company
on from a state
of sickness

organizations and felt that

their
HRD building up
with

their managemen
t
were

for

programme.

The

thrust

their

in

initial necessary.
HRD They

of policy
responsibility for results. measures
The programme spread and started
to

all

of intensive
Crompton training
areas

their approach and

sensibilities

give

them

they show responsibility

emphasis. Broadly

freedom

to

decide

upon

for the tasks they perform.

the emphasis may

things

that

concern

them

Employees do not wait for

allow them to be responsible

instructions from higher

for programme
from
geographical dispersal and s
to
emphasized role c1arity higher
and
autonomy
at lower levels

for results and so on. Our

levels - they take decisions

managerial levels.

had

need

of
managemen

t. Their effort was

Involvemen

to create a family-

like

employees

relationship

which

inc1uded

achieve

to create through personal

of

leadership an environment

organization?

and

in which employees could

refers to developing a aspects

the provide

improve their capabilities

way

philosophy of working.

of ment

in

concern for helping

programme

and achieve an impressive

families to solve

was

continui

growth.

their problems such

considered

ng

consisted

as family budgets,

essential by encoura

employees to do what they

alcoholism and the

managemen gement

are capable of doing by

like.

t.

removing

The

to

management

3. Emphasis

clearly

Leader

articulated

on achieve
results.

the goal, but the

Behaviour

programmes

Leader behaviour example

are
is important in any s

achieve

to
.the

Similar

their

and the problems

some

design

got identified. In all

however,

these efforts three

behaviour

aspects

regarded

common:
I1.

The
management
felt

that

at
the literature this is ds
referred to as Pench,
S.N.

and

by
their
and

direction.

work rethinking
This about some

of

4. How

life,

should

effectiveness

of

a the

terms,
of

the
HRD

the
be that
measured? This will initial plan
the
enable the programme has
perspective
to remain dynamic.
The designer of HRD
interventions

has

to

conceptualize

the

organizational

problems

social interventions would

help

to

solve

these

interventions I'i1l have to

problems. In most critical

take

areas

four

aspects

into

consideration:
managerial

practices would create

an

the

intervention

strategies will have to

1. What

environment

of

initiate

simultaneous

individual levels.

organization.

This

The diagnosis of problem

orientation

leadership.

refers to creation of

and the approach to HRD

is necessary

and

HRD environment.

would have to consider the

for

(1990)

organization
al
improvemen
t.

able to transform Sharma

their organizations at

managers

extraordinary IFFCO.
Phulpur.
personal

widely

involvement.

shared faith

Examples

II.

The

by

In

all

capability of

given these
are hat of Russi Exampl
Modi in TISCO es the

employees.

who

in

III.
ve

the

Acti

enthused transfor
pe9ple at all levels mationa
to set high goals of l leaders
are able

2. What

are

the

total

enterprise

though

organizational

planning of action may be

imperatives, which can

carried out in appropriate

best be handled by

stages. Indeed action to

involvement of people.

improve all aspects of the

This

to

organization at one time

of

could, in most cases, be

refers

identification

counter-productive.

priorities.

This does not mean that

should

interventions

totality, and
different
components
of the plan
should
emerge
from and fit
into

the

total
programme.

HRD

the overall plan should be

be

frozen because experience

operating

strategy
would have
to

be

thought
through in
detail.
Understand
ing of both
the concept
and

the

programme

organizational

3. How

the

tion

growth for people in the

transformation

provide ferti11z
detailed studies of er and
leaders who were S.P.

of

action at organizational, Lastly, the

departmental
and implementa

employee-

5ingh Jain at
Bhandarkar National

programme.

the But it is
the necessary

and identl1Y what kind of

practical

of

programme

that

encouraging them in this

In

the Sinha at
central feature' of Western
HRD initiatives. In Coalfiel

obstacles

achievements

programme.

as

enabling

recognizing

as the need was felt

at
leader an
MMTC,

of

lest,

organizational

In S.V.S.
situations, Raghav

strategy

prevent them from doing

purpose developed

are

given of

Their

the

integrated into the work

of

the

system so that they

programme may suggest

become an integral part

changes that can lead to

by
managers in
key
managerial
positions is
necessary.
A

major

difficulty in many

among people. The

organizations

is

most difficult part

that they have a

of implementation

history

in

of

most

>z
R

is re c/a O

confrontation rather

organizations

than

the scepticism that 70

people have about n re c/a

balanced

relationship

or a

strategy

of

intentions

consensus building.

underlying

Consensus on the

programmes.

goals of HRD is

These aspects can

difficult to develop

be

in

through

some

such

handled

continuous

because of mutual

dialogue

suspicion caused by

discussion. It is,

the

of

however,

on

necessary to deal

the part of both the

with these aspects

management

because

confrontation

the

and

union.

At

corporate level this

aspect will have to
receive

special

attention. The other

handicap is that the
goals

of

human

development

are

seen to be abstract
and

seem

unrealistic to many.
It is only through
experience

that

conviction in. the

programme
develops. I think an
experimental
approach

is

necessary for the

programme
mature

to

and

for

conviction about it
to

grow

widely

>
Z
zo

a 2=

organizations

strategy

r-

and

change in the minds of men is possible only through questioning.

Different people in the organization would have different concerns. They would have to be identified. Stme of the common
concerns are likely to be the following:
(i) Need

for

knowing

more

about

the

programme

and

the

rationale
(ii)

Personal anxieties caused by feelings of

inadequacy,
disbelief, distrust and the like.

(iii)

Genuine disagreement with the approach.

(iv)

Organizational

practices

that

discourage

action.
The implementation strategy would have to identify these and
EE other problem areas and effectively deal with them. It w1ll need
E

patience, understanding and perseverance to manage the L

programme. ,
References

W
T

Athreya. M.B. (1988). "Integrated HRD Systems-Intervention Strategies" in Rao. T.V. et al. Alternative Approaches and
Strategies of Human Resources Management. Jaipur: Rawat.
Brown. W. and Jaques. E. (1965). Glacier Project Papers. London:
Hlenemann. Davts. L.E. and Cherns. A.B. (eds) (1975). The Quality of Working L!/e (Vol. 1). New York: Free Press.
Dayal. I. and Dayal. A.K. (1983). Organizing for Management. New Delhi: Concept.
McGregor. D.(1966). Leadership and Motivation. Cambridge.
Ma~ MIT Press.
National HRD Network (1989). "Towards Organizational
Effectiveness." Conference Papers.
Rao. T.V. and Pereira, D.F. (1986). Recent Experiences in Human Resources Development. New Delhi: Oxford &: mHo
Rao. T.V, Verma. K.K. Khandelwal. AK. and Abraham S.J.E. (eds) (1988). Alternative Approaches and Strategies of Human
Resources Management. Jaipur: Rawat.
Silvera. D.M. (1988). Human Resource Development: An Indian Experience. New Delhi: News India.
Singh. J.P. "Choosing Human Resources Development Interventions".
Vtkalpa. January-March. (1989). 14(1): 35-41. .
StrauSs. O. and Sayles. L.R. (1985). Personnel: The Human Problems qf Management. New Delhi: Prentice-Hall.
Trtst. E.L. et at. (1963). Organizational Choice. London: TaVlstock.

91

LESSON 1 4 : HRD IN
INDIAN INDUSTRY

There is also a certain

"preemptive
(Coffield,

Learning Objectives

organizational development (De Simone, Werner, critics

cringe"
1999)

toward

of
any

Article on Emerging HRD in theory and practice & Harris, 2002). Indeed, schools of education are project appearing to
where HRD programs boast the fastest growing merge learning with
approach
enrollment (Kuchinke, 2002). However, adult market or managers.
Article
Toward A Critical HRD in Theory and Practice

education theorists have taken up an antagonistic The HRD critique has

position to the HRD field through a sustained been voiced so many

attack from diverse critical perspectives. But what times

in
adult
Adult Education Quarterly; Washington; May 2004; if these energies were diverted to support a space
education
literature
Tara J Fenwick Abstract
within HRD to nurture critical questions about with so little opening
Drawing from critical management studies and power, interests, and equity and to articulate
for dialogue or future
critical pedagogy, this article proposes principles and critical challenges of oppressive organizational
possibilities that some
practices to support the emerging critical human structures and knowledge legitimation? A critical
deadlock has resulted.
resource development (HRD) field as one stream HRD stream would not presume to supplant
Critics
justifiably
among existing theories and practice of HRD. A existing conceptions of HRD in a totalizing
have been accused of
critical HRD would challenge the subjugation of fashion but would develop as one among the
limiting their diatribes
human knowledge, skills, and relationships to multiple paradigms coexisting in this pluralistic
to the converted;
organizational or shareholder gain and focus on field. A critical HRD might even open a middle
furthermore, they are
transforming workplaces and HRD practice toward space in schools of education-a site where those
often removed from
justice, fairness, and equity. Because both HRD committed to critical perspectives in adult
practical difficulties of
practices and critical perspectives themselves are so learning, workers' lives, organization studies,
organizational
diverse, a critical HRD must be formulated in leadership, and human development could inform
dynamics
and
sufficiently broad terms to encourage a variety of and support one another's research and practice. In
insulated
from
conceptual developments including discursive, this middle space, critical adult educators
difficult debate with
gendered, materialist, and anti-racist lines of might find fruitful alliances with their HRD
business
and
analysis. Theoretical dilemmas of a critical HRD are colleagues toward just, equitable, life-giving, and
management interests
discussed, such as ideological contradictions sustainable work.
(Alvesson
&
between the radical orientation of critical theory and
Willmott,
1996).
Existing Critiques of HRD
the managerialist or performative frames to which
Critics of HRD challenge the field's supposed Graduate students of
much HRD practice is accountable. Possible
allegiance to human capital theory (Baptiste, 2001; HRD are presented
configurations of a critical HRD are described, as
Coffield, 1999; Collins, 1991), the consequent with an apparently
these might play out in contexts of HRD practice.
commodification and subjugation of human unbridgeable schism
[PUBLICATION ABSTRACT]
academic
development to exploitive organizational interests between
Keywords: human resource development; critical
(Cunningham, 1993; Fenwick & Lange, 1998; critical theorizing and
pedagogy; critical management studies; work
Hart, 1992; Howell, Carter, & Schied, 2002; employment as HRD
place learning; emancipatory learning; neflexivity
in
Spencer, 2001 ), and the concomitant deployment practitioners
The field of human resource development (HRD) of HRD technologies wielding soft control through organizations.
practice and research describes itself as emphasizing surveillance, classification, normalization, deficit Furthermore,
three major areas in workplace organizations that assumptions, cultural engineering, workers' self- erroneous
arguably overlap adult education's focus on learning: regulation, and learning demands (Fenwick, 2001 ; assumptions of

an

training and development, career development, and Schied, Carter, & Howell, 2001 ; Townley, 1994). identifiable HRD have

92

created an illusionary entity that is unified and fixed > z

issu

etrical

as an impenetrable opponent-a perspective that fails

es

power

of

arrange

soci

ments.

al

Gender

justi

ce

race/eth

in

nicity

the

is

Swanson, 2001) and although the profession 2=

wor

used as

increasingly incorporates notions of ethics, integrity,

kpla

and sustainability (Hatcher, 1999; Lee, 2001;

ce

categor

Swanson, 2001), some conclude that HRD research

or

still is dominated by a positivistic paradigm. In 1998,

larg

analysi

Chalofsky argued that HRD had yet to reach the

er

s-even

level of a mature profession because practice was

soci

when

based on guesswork, outdated thinking, or what the

al

data are

client wants rather than on research-based theories.

cont

collecte

More recently, in setting out current challenges

ext.

facing the HRD profession, Short, Bing, and

Wo

gender.

Kerhahn

men

Organi

commitments to ethical engagement and socially

's

zational

responsible workplaces, HRD professionals are more

exp

"undisc

than ever expected to deliver shareholder value

erie

ussable

through employee performance.

nces

s" such

In their review of 600 articles presented to the

as

as

Academy

well

sexism,

(AHRD) from 1996 to 2000, Bierema and Cseh

as

racism,

(2003) concluded that HRD focuses little on

thos

patriarc

e of

hy, and

othe

violenc

dive

receive

rse

little

grou

attentio

ps is

n in the

[sic]

literatur

igno

red,

have

as

conside

are

rable

asy

impact

mm

on

to recognize its heterogeneous and fluid character.

Yet HRD theorists have themselves noted problems
in their periodic reviews of the state of the field.
Although multiple

theoretical

paradigms

have

emerged in HRD literature including psychological,

intervention, and systems or complexity perspectives
as well as economic theory (Ruona & Lynham, 1999;

(2003)

of

conceded

Human

that,

Resource

93

despite

their

Development

re c/a O
as
n re c/a
P

r-

>ZZ
z

not

of

by

yet

organizational

Conference inaugurated a

robust

dynamics.

human

Finally,

resources

theories

through a self-reflexive

and

ion

and practices.

critique

rhetoric,

purp

proposes

of

HRD

management stream in its

Defining

tradition, authority, and

oses

principles

research has only

2003 annual conference; the

Critical

objectivity.

of

and

weakly

call for articles expressed

Obviously,

obviously

dem

examples

advocated

puzzlement that HRD "has

meaning

of

draws from ideology

ocra

to

change, (pp. 23-

largely slipped outside the

critical requires

critique but also reflects

tic

continue

24)

gaze of critical management

definition.

In

feminist

refo

the

Bierema and Cseh

analysts," particularly given

analyzing

the

poststructuralist

rm

dialogue

(2003) ended with a

"its

confusion

emphases on difference,

adv

toward

call

critical

ubiquitous nature" (CMS,

resulting

equity, and

ocat

critical

perspectives in HRD

2002, para. 3). Presenting at

proliferation and

and

ed

HRD

practice

that conference, Sambrook

fragmentation

organizational

by

space that

research: for greater

(2003)

the

among

democracy rather than

Ant

might

focus on how HRD

importance

of

bringing

critical

revolutionary

social

ona

invite

might

discourses

of

"being

perspectives

in

change. In a similar

cop

participati

bear

among

organization and

vein, Brookfield (2001)

oulo

on of both

critically

with

and

minded

for

and

reproduce

multifaceted

and

argued

to

the

from

diverse

This

position

and

language
pursues

power relations in

critical"

organizations, for &

current conflicting eclectic

management

integrated

questions about who

discourses of HRD without

studies,

critique

benefits from HRD,

privileging

Antonacopoulou

pragmatism

his

Bro

HRD

and for strategies

iconoclast pitted against the

(1999)

definition of a critical

okfi

profession

synthesized

theory of adult learning.

eld

als

common themes

The central concern, he

are

adult

concluded,

at

educators.

the

critical

ideology
in

and

that address gender

HRD "other."

and equity issues.

The

The first explicitly

article is to support and

into

critical

amplify

nascent

following

democratize production

the

But

beginnings. Given that

definition:

to

core

because

HRD writers

describe

providing voice

community, and ... to

of

HRD is a

was held in 2002

their field as "in search

for the repressed

reconfigure

the

wha

of

with the W

of

(Kuchinke,

and

workplace as a site for

t is

practice,

"becoming"

marginalized,

the exercise of human

mea

this

exposing

creativity" (Brookfield,

nt

discussion

session at an

AHRD

conference

intent

of

unpicking

purpose

of

these

itself

2002),

rather

than

this

static

the

serve

is
the

"to
whole

assumptions

and

ontology (Lee, 2001), the

assumptions and

2001, p. 5). This is a

by

also must

challenging

"the

conditions appear to be

values,

project

criti

undertake

dominantly

fertile for encouraging a

revealing

cal

to confront

stream of critical HRD.

use

and "a selfcritical, self-

in

the

learning-outcome

This is not an act of

and control, and

referential

this

enormous

focus of the E HRD

reifying HRD; the HR

challenging

(Brookfield, 2001, p.

argu

difficulties

field"

field

inequities

5). These dimensions of

men

and

t.

contradicti

preP

performative

and

(Elliott

&

is

already

well

of

the
power

and

requiring

"defensive

flexibility"
stance"

Turnbull, 2002, p.

established and growing

sacrifices made

challenging

971).

U.K.

and appears committed

in the name of

ons

to a continuous self-

efficiency,

recognizing hegemony, The

and unmasking power followi

critical

for

effectiveness,

with

critical

and

and profitability

The

Critical
Management
Studies

(CMS)

search

discriminating

ideology,

deep

self-reflexivity, ng
pragmatic
flexibility, discuss

of

enacting
HRD

in

94

contemporary

shifts

organizations. These

rethinking

difficulties

work,

largely

under

way

in and Australia, CMS

management, is

st

formu

ud

lated

ies

in

in

inequities, es
pluralistic critical

suffic

iently

perspectives from
to noncrit

broad

D,

terms

po

organizational democracy, ical

and
exploring
viable will

to

sit

encou

io

critical

rage

na

wide-

rangi

di

of

organizational contest
constraints (Alvesson & ed as it

ng

sti

Willmott, 1996; Fournier is in

& Grey, 2000; Grey & manag

conce

nc

ptual

tio

important:

formulating exity.

may be anticipated

certainly organizations. A institutionalized

in what many would

critical

organizational

argue

contribute

the

HRD
a

and distinctive

argue to be compl

challenges to managerial What

orthodoxy
and separat

are

knowledge,

be

becoming

promoters

would movement, evident

necessary in its widespread

diametrically

perspective to this work and installment

opposed interests of

derive

strength

working

toward

the

people

(labor)

and

from

it business schools of

continuing the academy and "a

reconceptualization

of proliferation

organiza-

developers entangled within conferences,

tions/management

the complexities of workers' workshops

(capital).

lives

The

fundamental

and

in

of
and

organizational textbooks utilizing

webs.

the

banner

connecting
critical
committed

practices

management

of remain
within as

existing

contradiction

of

melding

an

Toward a Critical HRD: CMS" (Grey &

Willmott, 2002, p.
Some Foundations

Willmott,

Given ement
certain common interests studies

devel

ns

perspective with a

Precedents for a critical 411). CMS is not

internal
approach to HRD exist in without

opme

CMS, a small but vigorous tensions

field within management practical

shared

nts by

us

focusi

emancipatory
practice

embedded

in

exploitive

the

labor relations of a

and

2002).

by

HRD

organization

with , adult
and educati

education difficulties, but it

(Alvesson & Wilmott, 1996; appears to have

management

it on,
makes sense to begin the and

ng on

no

discur

conception of a critical other

HRD
by
examining social

sive,

be

mitigate against a

Clegg, 1989; Fournier & successfully

Grey, 2000) that challenges created

gende

co

sustainable field of

fundamental

approaches and

scienc

red,

nf

es.

mater

us

for

Becaus

ialist,

ed

primary existence

practiti

e both

anti-

as

oners'

HRD

racist,

Fo

knowle

practic

or

capitalist

market

may

ultimately

research

and

and

However, as will be

inequities, sustained a space

oppression, and violence in for activity that its
organizations
wrought dilemmas

argued later, there

through

are

economically

critical

HRD.

sufficient

if

infrequent examples

the

by
apolitical, experienced
while
focused, CMS

HRD's
field

of

the

practice,

and

CMS, a critical

dge,

es and

other

ex

HRD

stream

platitud

critical

lines

going on now in

management science. CMS unique purview of

remains marginalized in the the HRD field.

must

also

inous

perspe

of

organizations

United States, argued Grey CMS suggests that

maintain

close

analy

pl

links

with

solution ctives
s,
or themse

sis.

e,

researc

Withi

la

that are so

n this

bo

of critically oriented
development

work
to

instrumental, and unitarist retaining

reasoning of mainstream autonomy

given

studies,

like

suggest that sites of

and

critical HRD already

pointing to the historical critique such as a

organizational

exist in practice if

"grip of positivism" (p. 414) critical HRD can

contexts

not

and lingering aversion to survive if it is

commitments.

but

diverse

broad

however

Marxist thought in U.S. located

Otherwise,

swipes

rende

pr

peripherally.

management

the

critical

ring

oc

Furthermore, recent

However,

surface

HRD

of

es

work

United States, notably in the practitioner

critic

al

cri

in

suggests

in

name,

CMS
radical

Willmott(2002), organizational

the

research. academy as a field

outside

the of

study

United Kingdom, Europe, education.

95

in

and

critical
might

and

HRD
relegate

itself to railing,
But

elitist

disregard

lves

of real studies
must

tics

or

Marxists

ontological

within

twofold position is

participation.

sup

ine

ic

wl

might argue that

tension

critical

proposed. First, a

The

port

qui

al

ed

anything short of

concerning

purpose of a

ing

tab

ge

revolutionary

nature of power:

ons are fundamentally

critical HRD

coll

le,

co

action for worker

Unresolved

more

opposes

would

ecti

or

D,

nc

control

tensions

comple

subjugation

reform-of

ve

life

ea

both

acti

or

le

of

the

means

of

the

fuel

orientati critical

HRD
the
of

be

continuing debates

production is not

between

far

knowledge, skills,

workplace

on.

dra

kp

emancipatory,

arguing

reachin

relationships, and

organizations

ini

la

by

others

materialist

and

pri

ng

ce

un

development

mar

co

or

ita

practices

ga

ris

directed

first

mo

ni

toward

step

difi

za

ill

advocating

critical

social

those
for

and human

primary

g, but a education

understanding

of

full

organizational

learning and praxis

power based on

explicat gain

may

Marxism

ion

argue

for

broader
recognition

of

and

to

and

goals

of that are primarily

those devoted to

these is economic

more

not

instrumental.

individuals

in

cati

tio

us

german

Second, a critical

and

groups.

such

on

ns

io

Although this

refo

of

ar

ns

discursive

complex identities

analyses

and

diverse

circulating

interests

beyond

cultural

power. argume

the transformation

is not unique

rm

hu

of

and

Another

tension

nt.

of

organizations

within

HRD

is to

ma

co

ho

concerns

the

Suffice

and HRD practice

studies

and

help

nc

exp

mi

ep

og

critical HRD

ose

nds

tu

en

would

work

and

and

ali

eo

just,

toward reform

reve

sou

ze

us

life-

aligned

rse

ls.

id

and

purposes

2. Ep

as

en

iste

co

titi

dim

mo

nt

es,

participation.

ensi

log

es

ali

two

Specific

ons

y:

te

gn

the

purposes

of

wo

might

HR

rkp

ter

en

advance

lac

rai

social

theo

ns

be

class,
poststructural
critics

of

or

e to this HRD is devoted to

might

nature of scholarly

altogether

engagement with

to note toward,
Kincheloe's
that

realist

practice. Fournier

among

(1999)

assumptions about

and Grey showed

these

more

organizations

for

that

ignoring

the

CMS

writers

orientati equitable,
giving,
ons,

argue

over

certain

sustainable

justice,

commo

workplace.

equity,

pragmatic

Working

orientation dilutes
critical integrity or

principl these
es may principles,

whether a purist

be

theoretical

academic stance is

pluralism

self-righteously

are
advance dimensions
d for a proposed for a

flourishes in CMS,

elitist and insular,

critical

critical HRD as a

transformatio

ry

as

of

tw

practitioners

HRD.

site for study and

that

con

rel

ee

Fournier and Grey

juggle

Drawin

practice:

naming

may

test

ati

(2000)

uncomfortably

g from 1.

mechanisms

be

ed

on

characterised

with

CMS

purpose:

of

com

terr

or

according to two

pragmatism

and

organizational

power,

plici

ain.

an

ke

main

of

purism. Obviously

critical

reform

fostering

t in

In

r/

is

the

pedagog

justice, equity,

resistance,

unju

kn

an

between

y,

and

and

st,

crit

an

contest
such

discursive
construction

of

workers,
production,

and

emancipation.
This

same

pluralism

lines

tension.
essentially

One

that

although

whether

both
and

conflicts
and

view,

from

following

in

four

Political

for

conduct,

with
of
and

through

cultural

thos

96

ager

interests,

and

false

pow

knowledge

organizational

er

counts,

naturalization

development

relat

who influences

must

of imperatives

in

critical

ions

its assessment

be

such

HRD

would

cons

would

tituti

as

human

or

development,

polit

these

these dimensions

ical

four

purp

dimensi

oses

ons

together with the

re c/a O

integrat

underpin

broader

70

epist

ed.

ng

pedagogical

objectives

n re c/a

emo

Contradict

logi

ion

cal

performan

assu

ce

mpti

orientation

ons,

with

and

somehow
brought

as

globalization,

center

on

competition,

power

and

and

control issues

orga

activities.

individual

performativity.

and

nizat

Reflexivity,

development,

Social

understand

ional

both

organizational

organizational

how

struc

philosophical

development, and

positions

sociopolitical

tures

and

career

crisscrossed by

processes

of

methodologica

development

inqu

critical

different

historically

ineq

l, is central to

within workplace

iry

purposes

have come to

uity.

critical

organizations.

foci,

and

sexes,

constitute

Fam

perspectives to

This is where the

and

methods.

knowledge,

elements

that

iliar

challenge

most

difficult

met

A glaring

ethnicities,

appear

to

criti

ironies

questions emerge

hod

dilemma

generations,

comprise

cal

those

about

the

olog

exists

structures that

ques

committed

of

ical

the

cultural

appear

tions

equity

critical HRD.

appr

signifiers

commitments

inevitable:

abou

imposing

Dilemmas of a

oach

comprisin

are

performance

emancipatory

Critical HRD

es

g HRD, as

examined. This

measurement,

who

efforts on the

Several dilemmas

beco

Schied

diversity is not

human

se

so-called

immediately

me

(1995) and

cast as difficult

development,

inter

oppressed

as

appear

blen

others

people

and

ests

well

as

constructing

ded.

have long

requiring

shareholder

are

exposing

The

pointed

management

value.

serv

controlling

practical

follo

out,

ed

apparatuses

foundations for a

win

reflect the

origins of

and

genders

histories,

and

and

carefully

but understood

seek

to

4. Methodology:

the
of
to

the

HRD

>z

of

>ZZ
z

viability

theoretical

r-

2=

in
and

of

in

that

as the source of

exposure,

by

normalized in

critical

both

iconoclasm,

deve

existing HRD

stream that enacts

disc

HRD

organizational

and reflexivity.

lop

technologies.

these purposes of

ussi

performan

ingenuity

Practices to be

ment To
pursue
a
,
critical
human

justice,

equity,

on

ce

and participation;

of

enhancem

how (resource)
kno
tions of
wled
workplace

assump-

dile

ent.

mm

Humans

exposure, icono-clasm,

as,

objectified

and reflexivity. These

ther

as

dilemmas are threaded

efor

resources,

across

e,

argued

treat

Schied, &

are

and

sustainability as

encouraged

well

through a field

suffering

as
and

oppression.
3. Inquiry:

of

critical

HRD

would

expose

and

ge is

contested

the
as

HRD

methodologies

of

on

challenge

cons

terrain;

inquiry

and

prevailing

truct

focused

on

history.

economic

ed,

power

and

dimensions,

for

Explanations of

ideologies and

what

history;

and

theory

practice,

focused
power

97

all
and

four
in

as

continually

Furthermore,

radical

problems

reconstructed in an

educative approaches aim

inequity

exploitive

and

not to develop humans'

alienating

relation

exchange

of

Amid they

little may

prevailing structures of point to

be gained

undemocratic

authority,

except

to

power relations.

practice can be quashed of

perhaps

with their so-called

liberate them from exchange

Radical calls for

by

further

developers.

relations. This liberation is

change are lost

management measures. ed

disillusion

Furthermore,

not

when

Further, empowerment warrior

or

development

imposed technologies but

to spaces for so-

as a concept has long s

duplicity.

through

participatory

called

worker

been

dialogues in dialectic with

voice

without

popular

collective

substantive

signifies

hierarchical
than

rather

cooperative

relation O
the

where

other

constituted

is

in the

value

but

conducted

through

action.

Thus,

and

workforce.

confined

Those 2002).

contradicti

of

empowerment

mance-development

the

this

these very

exercising

workers (as in

of HRD,

human s,

building

as yet another

dimensions and the perfor-

HRD must

radical

progressing

tradition

management tried

the

tool to subjugate

wholeness. In the

A critical

of

capital.

critical

to

in have

address

change or used

between

orientation

of

much

mainstream HRD practice.

who

literature for purposes (Brook

ideological
orientation

incompleteness

co-opted

avenues

developer's gaze as P
from

punitive wound

there appear to be profound

contradictions

for

critical legions

It is all

ons

outside very
core
values
and well to
prescribed procedures say that

drawing

studies

confessionals

soon discover the tight critical

leashes and potential studies
backlashes

flourishing
sional

use

of

worker

from
critical
already

process

has

Potential subversion or

presented as so-

driven

by

appropriation of radical

called

under and
girding rhetoric calling practic

purpose,

and

democratic

for

needs

methods. Perhaps worse,

dialogues).

conducted

critical practice may be

Gee, Hull, and

Incommensurable

subverted

Lankshear

assumptions. Some critical married

theorists (i.e., Hoist, 2002) ,
but

might

nt,

been

organizational
performance
and

through
technologies

of

inquiry,

by

domesticated

being
through

(1996)

management declarations

workers

(1994)

described

of

usually

HRD

practices.

nonhierarchical

constrained

Radical

structures and continuous

terms

commitments

learning

denounce

this

hierarchical
management

of

of

efforts.

could take, the

they

argue

emancipatory

be

that without
educative further

fields

of

economics
manageme
law,

and social

practice within capitalist theorizi

institutions is completely ng of

sciences

untenable and that what fundam

emerges would always be a ental

insights
At

for
and hope.

decisions

populist

could make, and

domesticated shadow of contrad

critical struggles against ictions

the

oppression,

critical

they could have

and

HRD must

despite

arguing

management

human

to

rationalization,

as

positioning
resistant

hierarchical

to

authority,

influence

organizational

and

and control-and-compete

resolves

worker-

models but advocating

empowered,

centered definitions

instrumental

self-directed

of meaningful work

reengineering

that,

in

and

fact,

the

old

reifies

they

organizational e
transformation.
should

in profes-

This is most evident in

itself

growth.

the

reengineering

of

support

in

actions

subjugation

productivity

quite

explain

literature

organizational

are

to

human learning and

lives

for

As

noted,

control, as Townley

support

by

teams
thinking

for

and

exploitation, and
inequity.
Others their
the

the

same time,

same politica
incommensurability
but l play

align itself

with different intents have in

shown that trying to pursue workpl

people's

a critical practice within ace

organizational contexts is organiz

experience

inordinately difficult, and ations,

in

with
needs and
s working

98

organizations.

To

disengage

from

and

control

or an

advocate

understanding clear binaries greater

of

equality

flexibility

asserted that the point is to ging

and

transform

responsive

practice,

confining

to separate managers and pronouncing

critique

to

the

workers as if these were others should want

practices in tandem with ideolog

ness

to

unitary and fixed positions. or how they should

transforming

critical

carefully controlled

In the workplace, these perceive the world

schools,

research

assumptions

managers and students to of

its

think

about critical

circumstan

show theory

ces

such

that

it

academy

or

that

are 'better' is not lost on

samples but does not

insupportable

involve practitioners

complex

and

interests

their

knowledge,

is

to

amidst either dominant or

variations
and
by

in dominated groups"

power (p. 195). Feminist

occupation, educators

in

commit the old sins

education, language, race, particular

have

of

gender, sexual orientation, shown

hermetic

produced

what

and Willmott (2002) who reenga

business y
encourage critique

critically

leadership,

and

opinion

leaders with

of

practice to

(politicians, policy makers, pragma

neither

regulators,

establishes

and

senior tism

executives) how critical focusin

and so on. It is more patriarchal relations

analysis reveals contexts g

orthodoxy

who might defend

difficult than it may seem to that

be

and configurations of work the

nor

such an exclusive

point to clear centers and reproduced

in

organizations within global experi

neglects

posture in the name

peripheries in organizations critical

and

its

of

or

scientism.

Those

intellectual

power

can

unambiguously in any one zealous

find

position.

to

understand

the

complex
and

relations

needs

workers

and

education.

situated In some ways, the

integrity still must

ways

the

management the

Too

critical

often educator is no less

managers are portrayed as presumptive

homogenous

or

or damaging in terms

of

unproblematically

to

oppressors.

as

The

the of fostering human

fixed, well

being,

political mental

own

economies. Alvesson and improv

reflexivity.

Willmott

argued ement

Although

critical of

critics

that

(1996)

engaging

theory within organizations contem

worry that

helps avoid replacing old, porary

the

instrumental,

contexts of

unitarist conditi

management dogma with ons.

practice

new

are

move beyond naive

rational agent-subjects upon learning,

prescriptions.

which much critical theory liberation than the

Critical projects worked argume

inherently

rests have been persuasively well-intentioned

through

conserva-

critical

contradicted

both

organizational realities also that the

tive

conceptualizations.

theoretical

postmodern Potential dilution of

avoid, wrote Alvesson and latter's

promiscuo

A further dilemma

critique (Edwards & Usher, critique in practice.

Willmott,

usly

may be anticipated

2000) and by the increasing In

tendency toward simplistic ipated

eclectic,

through

workplace

iron-cage

thus

contemporary

jobs,

critiques of critical

knowledge.

educative

Finally,

Inadequacies

approaches.

of

These

flexibility

identities,

educators

and

national

on

new

by HRD practitioner.

CMS,

this

of dilemma is voiced
and in debate between
those

advocating

emancipatory for developing a

critical
assuming practical

of

powerful positions as self- agenda and those

elected social doctors are worried that such

singular groups in

have highlighted the

critical

ideology. His
messy nt

theoretical unantic

depictions

organizations

is

or

of conting

broad ency

or

returning

Utopian visions that ignore and

us to the

micro-problems

problemati

and openne

possibilities persisting in ss
organizations.

to

continu

c
possibility
of eroding

generally accepted to be a engagement dilutes

significant problem within the critical project.

the ous
difficulties of enacting a reform
critical theory of adult ulation
learning in sites such as helps
workplaces,
Brookfield ensure

integrity

intentionally

those
critical theory itself. As Among
Alvesson and Deetz (1996) seeking a practical

wielding domination

pointed out, "The irony of agenda are Grey

(2001)

inadequacy
conceptualizing
the

workplace

99

In

addressing

suggested the

the power
and
of critical
practice,

Brookfield asserted

knowledge,

that

efficiency.

critical

truth,

and HRD activity will

Performativity be discussed further

practice

and workpl

experimentation.

Indeed, ace

of
nonperfor

pragmatism offers a

means, following Fournier on.

this very fluidity may have educati

mativity,

"flexible pursuit of

and Grey's interpretation of In fact, a critical

Lyotard, "the intent to HRD
may
develop
and
celebrate experience fewer

<

to

denaturaliz

contributed to a certain suggest

a-tion, and

vulnerability of HRD as an a viable

reflexivity.

knowledge

academic

way

One of the

forwar

most

beautiful
consequences"

(p.

20). In the context

of work, these might

contributes

include

production
and

workplace
reconfigured

for

freedom and human

creativity
constructed through
multiple
experiments,
of

to

maximum than
CMS
output for minimum input" undertaking

democratized
production

which contradictions and

the peer disparagement

ways

reflecting,

and

focuses of critique.
Practical difficulties

of

on,

in

discipline perceived with d. Four

common

the

skepticism and even open approa

approache

(p. 17). Although some may agenda

that
argue that performativity CMS is attempting
actually
structures to pursue. After all,

attack by

ches

s to critical

will be

practice in

other disciplines.

outline

organizati

organizational

existence, human
resource
Fournier and Grey were developers are in a
most
interested
in different position

d here:

ons

emanci

currently

Zew

Configurations: patory

being

highlighting their argument than

that
"noncritical in

Critical

HRD

debated

management

management
most

study

in The action

Workplace

learnin

are forms

is organizations-they
governed by the principle of often have more

Nonetheless, the survival g,

of

of a critical HRD is not emanci

emancipat

performativity which serves immediate

to subordinate knowledge commit-

possible

ory action

formal

without

clear patory

strategies, mindful of the project

learning.'

considerable dilemmas, for s,

Loosely

defining and constructing critical

based on a

question of how to

and truth to the production ment to worker

of efficiency" (p. 17). well-being
and
second is denaturalizing their interests are

critical practice within the workpl

combinati

integrate

mainstream

workplace.

on

of

implementing

critical

HRD.

However,

the
critical

theory

with

organizational
practice continues to
cause

trouble.

Fournier and Grey

(2000)

identified

three
within

directions

understandings of existing preserving control

social and organizational or
current
arrangements, division of hierarchical

and radical actually look on, and

like

like

problem

labor,

organizational

management relations.
authority as natural and Furthermore,
which,

that

exercised

continually

fruitful

critically

critical HRD. Non-

liberating

performative intent

more

questioning
alignment

first,
the
between

Third

the

is tradition that HRD

when has established for

by itself
educated in its brief history

managers, may
help

the

up

and

concrete practice of

is

might ace

Freirian-

reflexivity,

the

What

notions of emancipatory educati

practice

for

directly
with

inevitable.

CMS

suggest

theory

to

themes

guide

management not
and mainstream tied

is a fluid coupling

germinate

more of academy-based
practices and &

widespread

critical theorizing
cultural analyses of existing knowledge

and

conditions. Specific possible production

with
enactments of these three in organizational

when

linked

individual,

with HRD

career,

development?

and reflexiv
ity.

As

posing and
action

a These

learning

practice, critical HRD is approa

(where

difficult to envision fully ches

groups

without

learn

dissolving

Utopian

into illustrat

prescriptions. e

However,
concrete

in

sufficient differe
examples

of nt ways
Fournie

>

critical workplace practice r

of

and

through
collaborati
ve
problemsolving

exist, as reported in the Grey's

processes

fields

labor (2000)

of naming,

critical notions

analyzing,

of

education,

CMS,
and

100

exploring

action-

reinforcing

existing Fournier & Grey,

combine

pragmatic

ect

focus

powerful interests or further 2000, defined it) is

action

critically reflecting),

subjugating

analysis to denaturalize

they

for

studies

organizational

existing relations and

und

reasons

promote more just, life-

erto

related

nurturing organizations.

ok

as

Meyerson's

to

much

work on small wins and

both

to

tempered

radicalism

pro

researc

of

to essential

needs emancipatory

emancipatory action

without

learning

reflexivity. The protocols of That

(Alvesson

in

assiduous action

is,

the

were organiza-&

tional

& Willmott, 1996;

action

Foley, 2001) have

originally

shown its potential

serve

for both individual

purposes of productivity and conventional action

reports many instances

mot

workers'

efficiency, sometimes even learning

of

design

launched by individuals

gen

as

or

critical

assessment

of

learning

learning.

critical

der

based solutions, and

workers

and

proj

formulated

to problem-solving

organizational focus

employing

of
needs

manipulative reversal

to

oppressive or unfair

techniques akin to workers' emphasize

work conditions and

public confession (Schied et dimensions

such
as

(2001)

strategic
small

actions

to

groups

of

der

underes

such

as

equi

timatio

ty

individuals

organizational

al., 2001). Projects also equity, fairness, job

directly

improvement

must

and

meeting protocols that

and

powerf

of

favor dominant voices.

to

ul

These

wins

incr

organiz

interrupted

ease

ational

everyday organizational

orga

discour

events,

challenged

niza

ses. Yet

naturalized

inequities,

tion

the

al

researc

through

action

address

to

avoid

excluding conditions,

workers at lower ends of politics

these

organizational

conditions.

knowledge

hierarchies, whose work legitimation

Furthermore,
facilitator

the

may be more highly are O

in

routinized and training in

that

embedded

problems

of

emancipatory action

opportunities

learning

prescribed. Furthermore, bottlenecks and

is

more organizational
P

challenging

small

effectively

and

brought

forth

of

interpolated in the

in some environments communication

change without risking

effe

hers'

group

that

severe consequences to

ctiv

analysis

individual

enes

reveale

s.

The

partial

argued that this sort of

success

micro-emancipation as

repo

in their

they term it-that is,

rted

critical

when

small

grea

agenda.

real conducted flexibly

target

Of their

practices-

diffi

three-

does catalyze change

cult

layered

toward

y in

approac

sust

an

aini

critique

the

ng

(of

their

domina

criti

nt

as

collaborative
participant
than

as

prescriber,

particularly blockages.

nonconducive to radical Willmott's

rather
an

invoke
measures.

and

So-called version

emancipatory

which

learning may reinforce action learning is

direction of HRD

without

toward the collective

voice

and

them further in the dark through

from

coercion possible
enabling
while

keeping and

individual

about

development.

organizational position.

inspirational

of

action emancipatory

workers'

Although

punitive that a non elitist

flips the gaze and

away

(1997)

projects, managers may examples show

authoritative
assessor

are

reflectively
multiple

their experiments

Thus,

caution

and

varying

jobs

well-being.
and

and

Alvesson

Willmott

(1996)

projects

that

specific

oppressive

more

just

organizational

and collaborations.

structures.
example

As
of

of

in

reflexivity are demanded of

Examples

hypothesis, such a

practitioners. In examples

exist

showing

stance has proven

offered by Foley (2001), it

how

small,

difficult in practice,

is

locally focused

KoIb (2000) described a

cal

gendere

sometimes

performative

projects

participatory

gen

clear

101

that
intent

non
(as

also

can

complexities
work,

of such

Meyerson

and

feminist

discourses

and

project.

Their

study delicate negotiation

processes),

showed how a shift from of

experimentation

problem-focused

(with

critical

concrete

changes

to

liberatory

to activities

within

inquiry-focused existing workplace

forms of action learning and

what

in

the conseq

workplace. Tensions of this uences

counts as a

work are inevitable: Barndt is

an

benefit for

detailed these and showed ethical-

the few as

how she engaged them moral

well as for

gendered

management team of a wrote, "Use every

directly and creatively as underta

the many.

failing

contradictions.

Finally,

improve

work

She

education

helped
and

the structures.

exactly

interrupt
practices

transform

training

contexts such as English of

small opportunity

to

Lakes king,

manufacturing company inquire about how

( 1994), another critical not an

self-

effectiveness),

to think creatively about the workplace runs

workplace

reflexivity

and

strategy

showed

narrative

and how it affects

educator, instrum
ways

of ental

is one of

generation

and to change the way they our lives" (p. 190);

politicizing

(constructing

related to one another to be for example, when

education in schools as to

prominent

collective stories

more supportive, caring, and mapping workplace

well as work organizations decide

recommen

of

challenging.

to empower youths and if

the

change

process),

the

These processes,

have

vocational one. So

the

dations for

examples do not attempt learners investigate

workers as critical learners practic

HRD

narratives opened

radical

and

reform as

a fruitful site for

existing

critical learning.

approaches but suggest that it is, what history

democratic transformation HRD is

theory and

Both workers and

critical practice may require and

of industry. A frequently possibl

practice

some

selective

trials

in

referenced resource among e

offered by

spaces

of

particular imaginative

organizations.

alternatives

managers

participated

in

critical
questioning
these

of

collective

narratives
then

and

generated

subversive

some

priorities

it

small reflects, and what

might

as

catalysts

potential e

for

of

the critical

or

a field of

these and other radical sustain

Townley

workplace

(1994)

educators

is able,

in

The practical barriers as be generated. Like

Barndt
well as the possibilities of Nash,

Learning Work in which one

her

Simon,

depth

doing critical HRD can be (2001)

also glimpsed through the critical

described

Schenke (1991) described determi

poststructu

education

critical education through ne how

ral

in

work-based projects and to

analysis of

of

internships

the

Dippo,

and must

in-

what

subjugatio

that

pedagogy.

purpos

n wielded

encouraging
work point to the tensions of as
questioning
structures people to work

The real question to be es are

confronted by those who most

by

organizations participatively to
their
focused on measurable name
outcomes and the openness conditions and to
to questioning of those make their worlds

develop a critical HRD is worthw

not if it can be done- hile,

ary human

examples abound showing what

that radical participatory costs

practices.

reclaiming
for by
workplace education. Nash production.
practice
(2001),
for
example, Barndt's
described her participatory engaged people in

development

initial
in

gendered
organizational
structures.
and

Nugent

(1997)

offered

another
of

structures organized the way

thus

Freirian

changes

example

is

workplace education. Their emphasizing

analyses of this difficult connections as well

toward

Tosey

work

and

alternative
moved

of why

practices of those who are with workers

already
doing
critical terms

narratives
scenarios

transformation

within

footing

the

bills

workplace participatory photoeducation as a story making in

micro-

approaches

emancipatory

literacy

to

undertaken

rooted

in judge

be are
anywhere-but bearabl
may

for
its e
consequences and whether these
these
are
ultimately purpos
beneficial. The weighing es, and
what

might

be

contempor
resource
In
particular,
Townley
exhorts
HRD
researcher
s

and

102

professionals

to

deconstruct

the

oppressive

effects

exercised

through

what are taken-for

granted

practices: surveillance and management, and

providing a way warnin

social

neces

rel

thus regulation of workers knowledge.

forward that does gs

move

sary

ati

through

performance Conclusion
appraisal and classification, Existing critique

not succumb to about

ments.

produ

ve

simple dualities, becomi

As

ction

ly

repression

a critical HRD ng

a Welton

[invol

sm

(1995)

ving]

all

a voice or insiste

educa

pe

legitimate stream "degene d,

tors

rc

The

argui

en

diversity of
HRD,
through standardized
management, and

HRD

of

would

take

measurements and

important starting appear

workplace

training

point for a critical to

education

HRD

in provide

opened important

of

an

questions and sites

resource research, into

potenti

ng for ta

about importa for resistance to

itself: What does it nt site the
more
mean to be human for the controlling

education,

al

non-

ge

the

coerc

of

the broader field activis

workpl

ed,

of

ace as

free

comm pl

of

workers,

and

workers'

self-

regulation

stream

promoting

position

up token

has

questions

promoted through
discourses

of

continuous
learning

and

an further

subjugations

of

evolutio human resource

wrong n
of technologies.

as

human rating"
and (uncriti

practice

within cal)

HRD.

This m,

organization?

stream

quality

What

unicat

oy

management. all of

with

dedicate itself to to quick for

workplace
and dismiss emanci

ion

ee

these

practices

presumption

human

pertai

render

workers

developing

ning

is

the organiza Unfortunately,

of tional,
some
of
this
or career,

knowable and thus

managing

subject to control

development

in

humans? Who is vidual

ways

that

everyone involved

the and
of indi-

reform

inaccurate,

navigating

or

couched in such

difficult

inflammatory

between

initiatives

for

individuals'

and

their

natural. In all of its

organizational

be possible theoretical
understood than as rethinki underpinning

development,

resources

Townley

organizations?

emphasized

that

work

Living

for ng
out

part

is

as sometimes
of to
its

a the

blind
own

site

resource al from patory

by wider
learnin

critique is unfair,

naturally excluded develop terms

that
it
in such practices? ment in succeeds only in
What other ways work
polarizing
all
can humans and and its sides. The critical,

accepts as utterly

would leading

of

a HRD
meld worlds
central of

to the ho

remain

organ

se

iza-

at

commitments of theory

least

tion,

or

critical pedagogy and

partiall

contr

kp

and critical social practice y open

action with the .
. . .
tenets
of Sustena introdu

ol and lac

individual, career, nce can cing

and
be
public

work.

(p.

an

organizational

sphere

152)

Welto

in

discuss

cr

colonizing

development

drawn
in from

es

ses of de

HRD must remain

critical orientation radical

agendas and to the

work-based

critically attentive

to

heterogeneity

contexts. Critical CMS

ion

(1995

ea

to issues of voice,

organizational

HRD

and

sin

equity, differential

practice as well as y

pursue activity as critical

decisio

maint

gl

interests, and the

a field of study, adult

n-

ained

manipulative

in academic study occurrin practices. This is

and education is g in the not to deny that

an approach to educati

makin

that

co

power

clearly

complex. intersect there is much to

Yet despite the ed
disparage
in
contradictions and worlds certain

practice, and as on

such a m

preservice

as g into
well as the

possi

pl

education,

from

sphere

bility

ex

difficult

cautious

of

exists

for

only

ms

in

embedded
its

own

practices.
Perhaps

this

reflexivity

will

offer

the

most

HRD

in shifts
arguabl

of

existing

HRD

theories

and

negotia- of work, configurations of

tions,
these organiza HRD. But in the
complexities
tion,
interests
of
103

Fournier
Grey's

both

of

purpo

would and

of politica

and l allies sociall

(2000) in
y

for a of

knowledge and call

naturalized

for

illusions of unitary its trial,

exercise

autonomy

of
and

collective

worker/manager
interests

responsibility.
this

If
small

to

spaces

resource
in

acting

various

roles

>z

we

the venture

re c/a O

of into

among network
Particular s

that

vigilance might be are

needed

to

at

keep least

(facilitators,

distant

planners, boundary

current

spanners,

humanistic

greater

management

respect

job

redesigners),
great

deal

a
of

from likely to

recipes

spheres of workers

what Alvesson and for each

and managers is

Willmott

possible.

disparaged as "a posi-

Immediately,

fatally

difficult questions

ideologically

appear

polluted version of for our

a rich

humility

'emancipation' that own

critique" (p. 229).

task presented by
this discussion will

In pursuing these joint

issues, we might responsi

be

discover

bility

apparent

fundamental

for

fundamental

reasons

shared

contradictions

prohibiting

harsh myopia,
and

between

a problem
middle space of s.

managerial

critical

HRD

where

adult

and

radical orientations

education

neither

HRD

representing

converge.

human

Dialogue

across

these

fields

ultimately

might

managers

resource
as

the

unequivocal

2=

crippled, tions,

experiment. A first

performance

zo

(1996) other's

merits

explore

>ZZ

voice

future of study and

to

r-

for and

empowerment-

guarantee

soft open

influence on other

that

unexplo 70
dialogic red
n re c/a

them.

developers

in

unproblematic
safe

human

or

existence

percentage happens
be

But

and
could

oppressors

nor

be unproductive or

slipping

into

near

impossible.

104

>
z

LESSON 1 5 :
FUTURE
OF
HRD

re
c/a

O
7
0

n Learning
r
e
c/a
p

r
>
Z

Objectives

Relations Institute and the National HRD Network in 1987 the

following information was revealed:

HRD in Indian Industry

Suggestions to make HRD Effective in Indian

separate departments to look after the HRD functions as distinct

Organisations

Article on Emerging HRD in theory and practice

approach

re Since the early 1970's when the concept of HRD

first began to re
in

from the traditional personnel administration and industrial

relations function. Several others had only named or renamed
their departments dealing with the conventional tasks, as HRD or

HRD in Indian Industry

organisations

1. Of the 29 organisations studied, 12 (constituting about 35%) had

be recognised by some
India,

large

number

of

organisations in the country have begun to display an

interest in HRD. While many organisations appear to
have Z simply relabelled their personnel departments
as HRD departments or HRM departments to keep up
with the fashions of the times, there are some which
seem to have done considerable work in setting up
HRD systems. On the basis of some studies done on
this subject it can be inferred that the main factors
behind the setting up of a separate HRD function in
any organisation are the philosophy of its top
management and the nature of its business. The more
diversified the business of an organisa-tion and the
more the amount of faith and commitment of top

Human Resource Management Departments.

2. The HRD function seemed to receive greater importance by
organisations, which had a diversified product range and
differentiated multi-divisional structures because out of 6 such
organisations as many as 5 had separate HRD functions. No
significant relationship was found to exist between the HRD
functions and such other variables as
ownership (whether public sector or private sector), age (young or
old organisation) and size (in terms of number of employees or sales
turnover).
3. It was the philosophy of the top management of an organisation
which was the main factor behind the setting up of a separate HRD
function. Of the 12 organisations, which had separate HRD function,
10 had direct formal linkages with top management. That is, in each
of these 10 organisations, the head of the HRD department reported
directly to the chief executive or to his assistant.

management in HRD, the greater is the tendency to

4. With the exception of training most other HRD activities such as

set up separate HRD departments. Some important

counselling, performance appraisal, etc., were found to be in

organisations in our country which have introduced

operation only with regard to the managerial and supervisory cadres.

HRD are as under:

A critical drawback was the failure to involve employee unions in

1. State Bank of India,

HRD related activities. In the end, it may be said that while a lot of

2. Bank of Baroda,

progress has been recorded in the field of

3. Larsen and Toubro,

5. HRD in the last 25 years, there is a lot more that needs to be

4. Voltas,

achieved. So far the efforts have largely been limited to large sized

5. Crompton and Greaves,

profit organisations only. Even here the focus of all HRD activities

6. Indian Oil Corporation,

has been on executive development. Worker development has been

7. Steel Authority of India, and

mostly neglected. Service sector organisations and government

8. Bharat Heavy Electricals.

departments still treat HRD as synonymous with training.

From a study of 29 business organisations (5 from

Organisations in the small-scale sector have not even thought of

the public sector and 24 from the private sector)

HRD.

done by the Centre for HRD, Xavier Labour

105

Future Directions

HRD deserves increased attention of both managers

An attempt has been made

contain

intrinsic

the

and the academicians. HRD in organizations is

in this chapter to draw the

motivational

factors?

diagnost

necessary for effectively coping with changes in the

difference between HRD

Job redesign has been

ic tools

environment, expectations of the new breed of

and

attempted

for

employees, and the need for adjustment to rapid

personnel functions. I hold

places but the exercise

detemli

changes in technology. Sustained leadership of

the view that HRD will

is difficult and time

ning the

organizations is likely to depend on the success of

have a greater impact on

consuming.

most

their HRD programmes.

organizations

unlikely

HRD is also important in the societal context. Lack of

distinguished

development at work is reflected in unsatisfactory

personnel functions. This

frequently undertake a

strategy

re1ationships in the family and society. Alienation at

view

based on the

job redesign exercise.

for

work contributes to growing discontent among the

premise that HRD has to be

What' are the other

HRD?

young and a feeling of anger for established

action-oriented and rooted

ways

Singh

institutions,

are

in the problem areas. The

intrinsicattributes

necessary for developing collaborative societal

scope of HRD is wide and

clerical jobs?

relationships.

it would be more effective

3. How should a common

if it is a separate function.

or' shared - philosophy

The decision to set up

develop

typolog

HRD as a separate unit will

decentralized,

depend primarily on how

spread

the

organization?

Positive

experiences

at

work

Areas of Concern
Considering

the

importance

of

HRD

for

organizations, it is necessary to identify the areas or

issues that need examination. Some of these are
identified 'here:
What is the difference between traditional personnel
functions and HRD? If HRD is merely a change in
terminology, the position should be clearly stated. If
the two are different, the distinction should be
highlighted. Experience shows that even when HRD
philosophical reorientation is given to traditional
personnel functions, they do not, o~ their own, lead to
development of individuals.

the

is

traditional

if

it

is
from

programme

is

some

It

1$.

that

large

organizations

appropri

will

of

ate

adding
to

(1988)
has

in

suggeste

y.

widely
If

out

Further

the

studies

conceived and the purpose

success of HRD is

in

it meant to serve.

dependent

on

respect

conviction

that

1. Is

HRD

dependent

the

manager

linked.

people, what are the

they

should
be

handled

simultaneously
sequentially?

has

necessar

about

y.

most effective ways of I

or

developing

Would

convictions

believe

these that
in

this

are

upon OD? If they are

more

a organizatio

HRD have less impact

dispersed area? What ns are now

if it is not linked to

are the strategies likely concerned

OD?

to be more useful in with HRD

From

the

literature on HRD. the

the

difference

These questions would were a few

between

Indian

context? than

HRD and 00 is

need

not

experimentation

clear

(National

by think

the

and difficulty is

managers

1989).

academicians alike.
4. How

they

serious years ago. I

HRI? Network Papers,

2. How should operators

106

in

in

should translating
identify the concept

in routine tasks such as

management

clerical employees be
involved in HRD? Does

an appropriate entry of
point
for
HRD into

the nature of their, work

intervention? What are concrete

HRD
a

plan of action. We

did not have

ay

classified

believes in educating

Benevol

need

any

into three categories:

his subordinates and

ent

benevolent

making

leadersh

paternalistic),

in-depth

explicit

be

studies and a great

corporate

deal

of

policy

experimentation to

human

critical

evolve

resources.

on

(or

them

independent.

makes

centered and theory

his

subordi

and

making

developmental

(or

dispensable. According

feel

his

self-dis-pensing).

to McClelland such an

depende

some professionals

commitment to

chief

executive

nt

to

HRD

HRD by his

executive is one who is

following

their

Effective in Indian

actions because

like

characteristics:

leader

Organisations:

actions

speak

'giver' and a 'satisfier' of

(i) He may attend the

and

1. There should be

louder

than

s.

the

explicit

words.

His

corporate policy

actions

may

on

take

appropriate strategy
for action

2. The top head

should

Suggestions

by

make

an

human

resources.

The

the

forms:

on

(i)

He may
attend

should be stated

initial HRD

explicitly,

orientation

explained down

programme

the

s given to

and

pursued
In

this connection,
it

the

line

vigorously.

(ii)He

may

be

periodically

interesting

to

review

the

note that in a

progress in

survey

implementi

the

by

Xavier

Labour

ng HRD;
(iii)He
himself

chair

the HRD task

Institute Centre

force; and

HRD

1986

in

covering

53 organisations
it

was

found

that as many as
30 organisations

107

(iv) He

a
b
o
v
e
c
nt
e
xt
,
le
a
d

may

Relations
for

managers;

may

conducted

I
th

resources

lines

(v)

following

corporate policy
human

show

er
s
hi
p

may

st

yl

commit
reasonable

amount

resources

of

task-

ip

believes that the test of

an

(or

He

type),

benevolent
father
needs

figure-a
of

his

success

is

in

himself

has

initial

the

HRD

nates

on

critical

employees. He believes

orientation

leadersh

that the best way to

programmes given

ip

manage people is by

to line managers;

makes

constantly

(ii)He

understanding

their

needs, building them

like a parent, giving
them instructions and
treating

them

with

warmth and affection.

He is nurturant, and
values relationships at
times even at the cost of
tasks.
A

critical

chief

executive is one who

believes that people are
generally lazy and tend
to avoid work unless
they

are

supervised.

closely
He,

therefore, tends to keep

a close watch on his
subordinates, at times
reprimanding them or
expressing his dissatisfaction.
A developmental chief
executive is one who

sets

personal

feel

example to others;

incompe

(iii)
He

them

exercises

self-

discipline;

Hence
these

(iv)

styles

He has a keen sense

of

tent.

justice

rewarding

in
those

who

should
be used
only in
certain

work and sacrifice

for

the

organisation; and

situation
s

or

with

(v)He builds up good

certain

morale and positive

people.

culture

his

The

unit

by

style

'empowering'

his

which

in

subordinates.

should

The first two types of

be used

leadership,

viz

generall

benevolent

and

y is the

not

develop

critical,

are

conducive for human

mental

resource development.

style.

3.

HRD needs of

need to provide

department.

organisation

more and more

lowers the credibility of

(iii)

HRD

Trust,

the

should be seriously
examined

>
z

opportunities
for promotion,

function

an action plan

advancement,

re c/a O

organisation and makes

for HRD should

etc. But in an 70
old
n re c/a

people

Organisations

organisation

w top head. In fact, only

usually differ in

whose

their needs in

employees

respect

have

be

and

>z

This

prepared.

of

reached

human resource

the end of their

development.

career there is

An

need to check

infant

the

suspect

r-

2=

(vi) Authenticity or positive

correlation between words

the

good intentions of the

>ZZ
z

in

(ii)Collaboration or team spirit,

such

persons

appointed as head of

this

who have demonstrated

should

be

and actions,
(v)Autonomy or certain degree
of freedom of action for
each individual, and
(vi)
An interest in confronting

department

their

issues

and

solving

them

rather than hiding them.

capabilities

elsewhere

are

HRD efforts not only promote

develop

of proven reputa-tion

the above type of climate but

resource

alternative

and goodwill.

also depend on it for their

development

forms of work

The head of the HRD

are not the same

satisfaction,

department

as those of a

retirement

nave direct reporting

mature

assistance, etc.

relationship with the

organisation. In

Once the HRD

top head. This not only

needs of the

lends importance to the

organisation's

frustration.

needs of human

new

organisation

organisation

where most of

have

its

identified,

employees

to

and

should

function but also keeps

been

are still young

action

plans

and want career

giving

details

paths, there is

of the

the top head informed

about his employees.

5. Conducive

climate

should be developed. A

minimal

positive developmental

various

mechanisms which the

organisation plans to

the

2=

use may be prepared.

of

departments

Some

should be headed by

features of a positive

4. HRD

re
c/a

climate is essential for

competent

70

placed c/o)'e to the

chief

re

on

organisation

c/a

chart. Sometimes the

tendency

r-

executive

is

to

appoint a person who

108

HRD

effort.

important

developmen-tal climate

persons and should be

the

success
all

are as follows:
(i) Openness

or

freedom to express
one's

ideas

opinions,

Hence

and

periodical

surveys may be carried out to

examine changes occurring in
this climate. Feedback from such
surveys could be used to change
HRD activities in subsequent
years.
6. Heads of various departments
which

>ZI

HRD

success.

are

dealing

with

HRD efforts should be encouraged

to

experiences

share
and

professionally.

their
develop

Behavioural

knowledge is, growing every day.

New

frontiers

reached

in

the

are

being

realm

of

performance appraisal, training,

O.D., etc. Hence it is essential
that instead of each unit in
the

organisation

separately

rediscovering the wheel all units

pool together their experiences
and

learn

from

each

other.

The HRD Network recently set

up in our country can serve
as a good common platform for

thi

Newsletter

which

pu

publishers

II

Journal: Indian Journal

brought out by

for

and

rp

the

Development.

os

The

Add:

B41,

e.

Indian Society

Institutional Area, New

Ev

for

Mehrauli Road. New

er

Behavioural

Delhi-IIOOI6

Sciences

or

help

ga

developing

nis

process

ati

competencies in

on

HRD managers.

is
Network.

Applied
can
in

ca Following are the

n addresses of some
wr important
ite professional
ab bodies:
ou
1. Na/ional HRD
t
Nerwork-pubJishes
its
HRD Newsletter
H
Add: Secretary,
R
National HRD
D
Network. ECE
ex
House. 28-A.
pe
K.Q.
Marg,
rie
N.D.-tIOOOI.
nc
2. Indian Society'
es
for Training and
in
developmentthe

Training

ISTD,

3. Indian

Society

Applied

for

Behavioral

Science.
Add:

ISASS,

C/o

BHEL HRD Institute,

Jeevan Tara Building

5, Sansad Marg. New

Delhi-IIOOOI.
4. National Institute of

Personnel

MCI/Jagernem-

publishes

a Journal Add: NIPM,

45-Jhowtala Road. P.B.

10275.

Calcutta-7000t9
5. Indian

Society

Individual and Social

Development.

Add: ISISD. Sudeep.

Navneet

Park,

Polytechnic.

Ahmedabad-380015

S
O

Learning Objectives:

Framework

for

framework for the HRD issues

the

process.

and

pI'o5tetm~i

Employee Behaviour

A Framework for The Kjili

6rgatd~tiori,
HRD Process

Today let us discuss more

HRD

on

HRD process

HRD

instruments.

Before that, lets see the

109

and They
interventions can be used used
to address a wide range of orient
programs

are
to
and

socialize

new

HRD interventions was

employee

perfonnance.

important to translate the facilitate

employees

are used to address major

This information can be

issues identified in that learning

ip~,~as:iN:tatioi1,

some

used to:

phase into clear objectives (such as

provide skills and

"gap" within the the

Establish priorities for

for HRD programs. This

knowledge,

organiza-tion.

expending HRD efforts

should also facilitate the

Define specific training

development

and HRD objectives

lesson plans concerning

what should be done in the

help

and

individuals

need

or reason
A compan

need can either be y

was

current losing

of

clear

arid

group:sbeconit!"tn

deficiency, such as market

Establish

Ote effective. To

poor

criteria

HRD program. Selecting

ensure that these

perform-ance, or a foreign

Design Phase

the

goals are achieved,

new challenge that competit

The second phase of the

deliver the HRD pro-gram

care must be,.ta~h.

demands a change ors.

training and HRD process

is

when

designing

in the way the re-

involves

decision, and it can be

and

delivering

organization oper- sponse,

HRD

employee share to

HRD programs.

ates

Designing

legislation

HRD

In

(new Ford
or boosted

interventions

increased

involves a process,

competition). For g

which includes a

example, in 1997, HRD

four-step

se-

when the extent of program

needs

sexual harassment s to train

assessment, design,

and sexist behavior employe

implementation,

in the U.s. Army es

and evaluation. For

became dear, the quality

ease of memory,

Anny added

this can be referred

one week to its ment

to as the "A DImE"

eight-week

framework (assess,

training for new problem

design, implement,

recruits to provide -solving

and evaluate). In

training

in

this book, we will

values

that

use

Anny

quence:

this

phase

four

spendin
on

in

improve

designing

program or intervention. If
the

intervention

involvessometypeof
training or devel-opment
program,

the

following

activities

are

typically

carried out during this

phase:
Selecting the specific
objectives of the program

also

person

an

to

important

an

re-sources available. If the

organization

employs

group of full-time HRD

profes-sionals, the choice
will depend largely on the
expertise

and

work

schedules

of

those

professionals. However, if
the organization does not
have an HRD staff, it will
have to rely on other
people,

including

appropriate lesson plan for

managers,

supervisors,

the program

coworkers,

or

Developing

the techniqu

acquiring

the es.

appropriate

were Identifyi

the

proper

difficult, depending on the

Developing

basic and

felt

evaluation

outside

or

consultants. Using such

the

individuals raises a host of

materials

for the trainees to use

issues,

including

their

willingness, ability, and

process

necessary to end ng needs

Determining who will

availability to train, as

to

this behavior and involves

deliver the program

well as cost issues.

approach
describe

HRD

ensure

that

its examini

Selecting the most

The design phase also

efforts:

needs

mission

will

be ng

the

appropriate method or

involves

assessment, design,

fulfilled. Similarly, organiza

methods to Conduct

developing the content of

implementation,

in the 1980s, it tion, its

the program

the pro-gram. This means

and

became obvious to environ

evalua-tion

(see Figure 1_5).52

the

Needs Assessment

Company that the job

Phase

poor quality of its tasks,

cars

110

Ford

and

Motor mentl

trucks and

Scheduling

the

program
Once the assessment phase
has been completed, it is

choosing

selecting

the

and

most

appropriate setting for the

program (on the job, in a
classroom, online, etc.),
the techniques used to

re c/a O

>

is,

70

ZN

impact,

>z

n re c/a

employee reaction.53 This

Have you ever wondered:

2=

information

Why a coworker behaves the

lecture,

r-

(as deter-mined in the design

discussion,

role

phase). Delivering any HRD

play, simulation),

program generally presents

and the materials

numerous challenges, such

to be used in

as executing the program as

deliver' ing the

program

envi-rorunent that enhances

(workbooks,
aids,

job

Web-based

(missing

materials.

conflicts

films,

aspects

between

well

Influence of HRD on Employee

as

Behaviour ^traduction

allows.

way he or she does?

of

the

H'RD

Why people so often live up (or

effort, such as:

down) to the expectations that

others have of them?

Continuing to use a
particular

technique

Why managers seem to develop

or vendor in future

resolving
equipment,

as

line

decisions about various

relationships of different quality

programs

problems that may arise

or Web-enhanced

bottom

managers to make better

planned, creating an

learning, and E

both

with different subordinates?

Offering a particular

program in the future

videos,

participants, etc.). p

Budgeting

PowerPoint

g Evaluation Phase

resource allocation

presentations,

Why some work teams develop

and

more trust and cohesiveness than

others?

Program evaluation is the

How

etc.). Inherent in

final phase in the training

Using some other HR

employee behavior?

these decisions is

and HR'D process. !his is

or

the

of

where the effectiveness of

approach

whether

to

the HRD intervention is

employee selection or

develop

the

measured.

This

program in-house

important

but

or purchase it (or

ignored activity. Careful

parts of it) from

evaluation

an outside vendor.

infonnation

Implementation

participants' reaction to

Phase

the program, how much

The

issue

goal

of

assessment

is

an

often
provides
on

the

they

learned,

and

they

use

whether

what

they

design phases is to

learned back on the job,

implement effective

and whether the program

HRD pro-grams or

improved

the

interventions.

organization's

ef-

means
program

that

This
the

fectiveness.

or

professionals

HRD
are

intervention must be

increasingly being asked

de-livered

or

to provide evidence of the

implemented, using

success of their efforts

the most appropriate

using a variety of "hard"

means or methods

and "soft" measures, that

111

managerial

(like

motivation

influences

whether there are some gmeral

frameworks or models that can help
il1

Imderstrmding

the

various

influences all employee behavior?

Changing work rules)

to solve the problem ,"

The

It is important that HRD

Resource Development interventions is

professionals

to

provide

overarching
pro-vide

goal

of

activities

Human

and

other

HRD

mechanisms that assist employees and

progtams im- . prove

organizations in attaining their goals.

individual

HRD professionals can help employees

evidence

that

and

organizational

meet their personal goals by providing

effectiveness. Armed with

programs

this

HRD

promote individual devel-opment, for

better

examrle, career development activities,

compete with managers

mentoring, and fonnal training and

from other areas of the

educational opportunities. Concerning

organization

organizational

informatidn,

managers

can

when

discussing
effectiveness

the
of

their

and

interventions

goals,

the

that

ul-timate

objective of most, if not aU, HRD

programs

is

to

improve

actions and competing for

organiZi1tiOttill

performance.

HRD

resoutces.

efforts are not the only contributors to

organizational perform-ancej however,
thel are increasingly recognized as a

critical component of

behavior is no easy task. The

forces-that is, those within

organizational

factors con-tributing to any

the

success. Further, a

behavior

motivation, atti-tudes, and

major focus of most

complex, and difficult to

KSAs

HRD interventions is

ascertain. Yet a thorough

and abilities). The model

an effort to change

understanding of employee

assumes that exter-nal and

employee behnvior.

behavior and its causes is

internal forces interact or

That is, the hope is

critical

HRD

combine to produce a given

that

providing

program to be effective. The

behavior, and that employee

employees with the

purpose of this chapter is to

behavior

skills and behaviors

introduce

to the

relationship to the personal

they need to perform

major

influencing

and organizational outcomes

successfully

employee behavior and their

that are obtained. Although it

lead to the greatest

implications

HRD.

may be possible in some

accomplishment

of

Students with backgrounds

cases to trace the cause of a

both employee and

in organizational behavior or

behavior to one or two

organizational goals.

applied

dominant forces, we believe

Thus, the field of

find

HRD has had (and

provides

continues to have) a

review and an opportunity to

eXplained

strong

relate these issues to topics

combination of many factors.

should

focus

on

are

for

factors

for

psychol-ogy
that

this

In order to change

Model

any

Behavior

of

wiD

chapter

an

within HRD.

we

any

readers

employee be-havior.
behavior,

numerous,

important

Employee

must first understand

The model of employee

the factors that cause

behavior shown in Figure 2-

employees to behave

1 presents what we consider

the way that they do.

to

Armed

this

affecting employee behavior

knowl-edge, we can

and their corresponding rela-

more

tionships. It includes two

with

accurately

be

the

key

factors

diagnose

main categories: 1) external

performarice

forces-that is, those found in

problems,

the

understand
makes

external

clluirollmcnt

what

(outside the organization)

effective

and in the work environment

performance

(inside

possible, and design

induding

HRD programs to

supervision, aspects of the

create the behavior

organ-ization

we want.

coworkers, and the outcomes

Identifying

the

causes of employee

112

the

organization),
leadership/
itself,

of perfonnance (such as
praise);

and

2)

internal

that

employee,

induding

(knowledge,

has

o\'erall

behavior

can

skills,

direct

patterns
best
by

of
be
the

different aspects or dimensions of individual

labo
t

distinction is between those behaviors that are

FHii-hir-n In tin, EiJBmiil Union
central to per-foming one's job (often called task
Lu'lnirmanl
performance), and other behaviors that are less

TKIWOIOWCSI

J_________J
LI:w:. ;I-R

.* Pttwmi

Influences on
Employee
Behavior
Factors in the

central yet still valuable for the effective

External

functioning

Environment

of

the

team,

department,

or

QUTB&rtrt*

CTSNISIIOCIT

organization as a whole. Many training efforts Influences

have focused on the first group of behaviors, outside

HI

RTFIRL

in this category have been given different labels influence

(such as organizational citizenship behaviors, behavior.

BTLNR:
Attn**
Suuthirt

discretionary

contextual factors
perforrnance).4 A central aspect of such behaviors work

from
the

namely those relating to perforrning the critical organization, that is,

tasks associated with a given job. ~ut the second the
external
category of behaviors is also important. Behaviors environment, clearly

UPNLI]I

behaviors,

or

employee
Further,
within

the

environment

(we will call them organizational citizenship also playa strong role
behaviors) is that in the aggregate, they also in
determining
contribute to organizational effectiveness.!> For employee
behavior.

TJSK

PIPTONNFIE'iw

(;GFLRIIIDKHUI

exam-ple, HRD efforts to inculcate a culture of Factors

from the
innovation and initiative taking would be focusing external environment
more on this second category of behaviors. include the general

HCNO-ii-i

Similarly, team-building ef-forts that seek to state of the economy

promote cooperation and teamwork emphasize (e.g., the rate of insuch citizenship behaviors. Alternately, coaching flation and the level of

* THTT*\4W

or mentoring efforts often seek to promote be- unemployment),

haviors that are helpful to the organization as a various

' Oonwol
ha

performance have been identified, one vital

External

Ou

the

whole, yet are not "enforceable re-quirements" of a govemmentallaws and

given
reg-ulations,
what

Booms*

The model is relatively simple for purposes of

clarity and relevance to HRD.
Our gmil is not to cover all of the possible causes
for employee behavior, but to in-clude only those
most critical to designing, delivering, and using
HRD programs. Additional relevant concepts will
be presented in later chapters. The remainder of
this chapter will focus on the elements contained.
within the model.
Major Categories of Employee Behavior
If HRD efforts are primarily intended to change
employee behavior, then it is use-ful to first ask
what types of behavior they are intended to
change. Recen't research
and writing strongly suggests that individual-

job.6 The motivational issues discussed other organizations or

later in this chapter are particularly critical competitors are doing,
in determining

the extent to which plus the many global

employees engage in behaviors that are" and
technological
above and beyond" their formal job issues mentioned in
requirements. As Daniel Katz wrote many Chapter 1. Our model
years ago, "An organization which depends in Figure 2-1 depicts
solely upon its blueprints of prescribed these as general forces
behavior is a very fragile social system."7 that influence the
As we seek to present you with a "systems" organization and all
perspective
on
human
resource parts within it.s Even
development, we think it is necessary to organizations
with
begin our discussion by highlighting these strong internal work
two critical as-pects of individual environments
and
employee behavior. Next, we will describe high
levels
of
the major factors that influence such employee
behavior.
can be

behaviors
negatively

performance is multidimensiona1. While many

113

impacted by external factors such as a downturn in

downsizing over the past twenty years, there is in

the economy or a sudden technological change.

fact little solid evidence concerning its effec-

Two factors that have their roots in the external

tiveness as a business practice.10 For example, a

environment deserve special mention, namely

survey conducted by Watson Wyatt Worldwide

downsizing and mergers and acquisitions. These

found that 46 percent of the companies surveyed re c/a O

are labeled as external

met

factors primarily because the forces that lead

organizations to consider either one are generally

ob-jectives, and only 21 percent increased their

outside of the organization (such as global

return on investment for shareholders.ll A study by

competition or techno-logical advancement).

Wayne Cascio of companies that downsized more

Downsizing refers to voluntary actions on the part

than 3 percent in a given year between 1980-1990

of organizations to reduce the overall size of their

found no improvement in financial or stock

workforce, generally to reduce costs.9 A huge

performance as a result of downsizing.12 An ASTD

number

their

survey found that dow;n-sized organizations

workforce over the past two decades, including

reported lower organizational performance, lower

AT&T, Boeing, DuPont, IBM, Xerox, and United

quality products or services, and lower employee

Technologies (the organization highlighted in the

satisfaction compared to organizations that had not

Opening Case). Despite the widespread nature of

downsized.1J

>z
R

companies

have

reduced

ex-pense-reduction

after 70
downsizing, fewer than 33 percent met their profit n re c/a

of

their

>z

goals

r-

>ZI
Z
o
2=

In order for organizations to ensure their future

discussion that downsizing has enor-mous implications for human

success, they must maintain their investment in

resource development, and conversely, that HRD efforts can have a

their workforce, even when they are restructuring

significant

14

on

the

effectiveness

of

organizational

This includes training the

downsizing. A leading HRD scholar, Warner Burke, has argued that

re c/a O "survivors" of downsizing on how to carry out

HRD pro-fessionals should playa more active role in challenging or

70

or downsiz-ing.

impact

their

responsibilities

after

downsizing

has

redirecting corporate downsizing efforts.19

n re c/a occurred,15 but can also include deci-sions to

retrain rather than layoff employees. For example,
p
r-

Mergers and acquisitions (M&As) are increasingly reshaping

> Z Z Digital Equipment, Eastman Kodak, Hallmark,

Pacific Bell, and Raychem have all been cited for
N

acquire another, or for two firms to merge into one is that such

their efforts to retrain workers who would

both firms, improving the'competitive position of either or both,

otheTW"ise be laid Off.16 Similarly, amid all the

resulting in improved financial operating results.,,20 Unfortunately,

layoffs at AT&T since its court-ordered breakup in

in the majority of cases, mergers and acquisitions fail to live up to

1984, AT&T developed a Safe Landing program to

expectations, or worse, can be classified as "outright failures.,,21

assist their employees in obtaining other positions,

While changes in the economy can contribute to some of this, the

o
2=

ei-ther within AT&T or elsewhere.

The ASTD

study

cited

17

above

modern organ-izations. The argument for one organization to

efforts "create value when they enhance the strategic capabilities of

consensus seems to be that merger faill,!res (and disapJ;0intments)

found

that

are most often the result of the mismanagement of peo-ple issues. 2

organizations did best when they emphasized both

Problems can occur in communications (before, during, and after

organizational and individual performance. In

the merger), in retaining key employees, and in managing the

particular, three individual-level practices were

integration of the two organizations (including the respective

more common in companies designated as high

cultures of each). HRD profession-als, especially those with

performance work systems, namely coaching and

expertise in organizational development and change (see Chapter

mentoring, individual development, and multirater

14) should be actively involved in such integration efforts. Sadly, a

feedback. Further, companies with the most exten-

1999 survey found that only 19 percent of human resource

sive high performance work systems were nearly

executives felt that they had sufficient technical expertise to

three times less likely to cut their workforces than

properly assist top management in the merger and acquisition

were companies with less extensive usage of such

process. According to Clemente and Greenspan, "This lack of

prac-tices.18 It should be clear from this brief

knowledge and experience is ostensibly the reason HR is not being

114

brough , HRD professionals can be actively in-volved in

fear or dislike. Embarrassment, disciplinary actions, transfers, loss

t in bythe communications and training needed to carry

of payor privileges, and ostracism are all pos-sible unpleasant

senior out a successful merger or acquisition. For

outcomes of employee behavior.

manag example, employees and managers at

Figure 2-1 presents these outcomes as following from employee

ement all levels of the organization need information on

behaviors. That' is, though clearly other factors influence individual

to

and organizational outcomes, (Here comes the following table in

what to expect at each phase of the M&A process?

directl 4 With the skills and competencies described in

page 9 in file framework1.)

we have limited our discussion to those things that influence

this book, HRD profes-sionals should be in a

supportprime

position

to

facilitate

the

successful

employee behaviors, and the subsequent influence that these

acquisi completion of a merger or acquisition.

behaviors have on personal and organiza-tional outcomes. However,

tion

it is also important to note the likely influence that or-ganizational

Factors in the Work Environment

strateg In addition to factors in the external environment,

y andthere are also factors within the organization that

outcomes have on employee behaviors (this is actually the reverse

target influence employee behavior. We will empl;\asize

compa four sets of forces within the work environment
ny
that affect employee behavior: outcomes, the

motivation the0-ries that we present later in the chapter propose that

evaluat supervisor, characteristics of the organization

ions.,,2 itself, and coworkers. Table 2~1 pre' sents a list of
3 HRthese forces and some of the issues found in each.
profess
ionals
need
greater
compet
ency in
the
area of
strategi
c
manag
ement.
Further

of the ordering presented in Figure 2-1). For example, several of the

employee perceptions of outcomes are important determinants of
behavior. Consider two examples:
1. Expectancy theory states that people will perfonn behaviors that
they perceive will bring valued outcomes. If employees fulfill
certain obligations to the organization but do not receive

Outcomes: Outcomes occur as a result of a given

promised outcomes (such as promotions or pay raises), they may

employee behavior. Outcomes can be personal or

reduce their expectations about the link between their

organizationaL Personal outcomes are those that

performance and the desired outcomes and thus choose to

have value to the individual, such as pay,

behave differently. Further, if outcomes are not as rewarding as

recognition,

anticipated, the employees may revise their juents about the

and

emotions.

Organizational

outcomes are things valued by the organization,

value of that OJ1ocome and perform different behaviors.

such as teamwork, productivity, and product

2. Equity theory states that outcomes are evaluated by comparing

quality. These outcomes are what the organization

them to the outcomes received by others. If employees perceive

would ultimately hope to achieve by the collective

an inequity, they may change their performance or cognitions, or

efforts of all organizational members. The word

both, to reduce the inequity. In addition, outcomes can serve as a

value in this context should not imply that

form of feedback to employees. Bonuses and recognition, for

outcomes are always positive or desirable. Be-

example, let

havior can also result in outcomes that employees

employees know if they have performed

receive, the training may be seen as unfair. As a result, the em-ployee may

appropriately and if their performance is

resist participating in the program.

valued. by the organization.26

It is often the outcomes of performance (such as embarrassment or a poor

Outcomes and outcome perceptions are important

eval-uation) that serve as attention getters, convincing an employee that

to HRD. If employees do not believe that

training or de-velopment is needed. For example, if a nurse who treats

attending a training platform will lead to valued

patients rudely never experiences any unpleasant outcomes as a result (such

outcomes, they may choose not to attend the

as complaints to the super-visor or disciplinary actions), it is wilikely that

program, or they may devote little effort to

the nurse will perceive any need to change this behavior. Similarly, if

learning and using the skills being taught. If an

college professors who have not kept current in their field continue to

employee perceives that company training will

receive support and recognition for their work in the class-room, they may

require increased individual effort with no greater

perceive that their behavior is acceptable and see no reason to at-tend

personal outcomes than what other employees

professional seminars or engage in other developmental actions.

Thus, it is important that supervisors and managers remain aware of the
out-comes of their subordinates' performance, as well as how their

115

subordinates

view

these

outcomes.

This

addition, supervisory expectations play a key role in the coaching process,

knowledge can be useful in detecting needs for

which will be discussed. in greater detail in Chapter 10.

training, motivating employees to participate in

The supervisor's approach to leadership can influence employee

training, and in ensuring that what employees

performance as well Leadership is the use of non coercive influence to

learn in training is applied to their jobs.

direct and coordinate the activities of a group toward accomplishing a goal?

Supervision and leadership: The immediate

1 There are almost as many definitions of leadership and theories about it as

supervisor plays an important role in the

there are leadership researchers! Two examples serve to demonstrate the

employee's work life, delegating tasks and

effect a supervisor's or managers or leadership may have on employee

responsibilities, setting ex-pectations, evaluating

behavior.

performance, and providing (or failing to provide)

tx

feed-back, rewards, and discipline. Even with the

First, Robert House argued in his path-goal theory that a

shift toward greater use of teams, including more

self-directed work teams, supervisors continue to

leader's role is to identify goals and clarify the paths employees

playa critical role in the success of most

may take to reach these goals. If this is done effectively (accord-

organizations.27

ing to the theory, by applying one of four possible leader styles,

Although

the

influences

supervisors have on subordinates are numerous

depending on employee characteristics and environmental

and sometimes complex, two factors deserve

comment: self fulfilling prophecy and leadership.

factors), then motivation, job satisfaction, and employee performance are

Research on self-fulfilling prophecy, or the

all predicted to increase. Subsequent research has provided support for the

Pygmalion effect, has shown how the expectations

theory's predictions regarding job satisfaction. In Second, George Graen's

Leader-Member-Exchange (or LMX) model of leader-ship (earlier called

subordinate's behavior. FiJSt demonstrated in

the vertical-dyad linkage approach) observes that supervisors tend to

classroom settings, sell-fulfilling prophecy states

develop different quality relationships with different subordinates.34 In

that expectations of performance can become

early research, this was depicted in terms of two extremes, that is, those

reality because ~ple strive to behave consis-tently

employ-ees with high quality relationships with the supervisor (the "in-

with their perceptions of reality. If supervisors (or

group"), and those with low quality relationships (the less favored "out-

trainers) expect good performance, their behavior

group"). In-group members have relationships with their supervisors

may aid and encourage their subordinates (or

characterized by respect, liking, mutual trust, and influence; the opposite is

trainees) to raise their own self-expectations,

true of relationships for out-group members. In-group members tend to

increase their efforts, and ultimately perform well.

have higher performance and satisfaction than out- group members, lower

The opposite would happen if supervisors or

turnover, and more positive career outcomes.3S More re-cent writing on

trainers expected poor performance.

LMX has focused on improving the leadership exchange relationship with

supervisor

establishes

can

influence

Dov Eden and his colleagues have demonstrated in

a variety of work settings that raising managers'
performance expectations results in higher levels
of per-formance in their employees.29 Interestingly,
research to date has failed to demon-strate that

all employees. As Graen and Uhl-Bien write, the emphasis is now placed
"not on how managers discriminate among their people but rather on how
they may work with each person on a one-on-one basis to develop a
partner-ship with each of them.,,36 Supervisors should work to develop
effective dyadic relationships with each employee under their supervision.

self-fulfilling prophecy occurs when females are

These and other leadership theories highlight the effect the immediate

leaders; confirmatory evidence has only been

super-visor can have on employee behavior. Subordinates look to their

obtained when males are leaders.3D 111f> ii.

managers and supervisors for cues about appropriate and inappropriate

;lications for supervisors and HRD

behavior. If a manager or supervisor speaks and behaves in ways that

professionals who conduct training pn>gI<t.IDS

indicate training and develop-ment are unimportant, employees will likely

are clear: All must be aware of their own

have little enthusiasm for these ac-tivities. Alternatively, if managers and

expectations and what they communicate to

supervisors take these activities seriously and reward employees for

others, while taking advantage of the benefits

learning and using new skills, techniques, and atti-tudes, HRD efforts will

resulting from high but realistic expecta-tions. In

be more effective, and ultimately the employee, manager, and organization

116

will benefit. Leadership is also a key aspect of

systems sometimes fail. As expectancy theory and reinforcement theory

management de-velopment. Many organizations

predict, employees tend to do what they are rewarded for. The

use

programs

management does not carefully design and implement the reward

(discussed in Chapter 13) as a way to improve the

system, then it may unintentionally reinforce undesirable behavior in

leadership skills of managerial employees.

employees (such as lack of initiative, acceptance of the status quo, and

management

development

In organizations that use teams as the primary

low participation rates in HRD programs). Also, when reward systems

way to accomplish tasks, some of the

are perceived too strongly as "control mechanisms," this can serve to

influences supervisors ordinarily control can be

reduce employee motivation and performance.39

controlled by team members or the team leader

Therefore, it is important for supervisors and HRD professionals to

(if one exists), or by both. There is evidence

understand what the organization's reward system is intended to do, how

that the differential quality of exchange

it is put into prac-tice, and how employees respond to it. Some

relationship among team members can influ-

performance problems may be solved simply by adjusting the reward

ence team cohesiveness, satisfaction with

system. It must also be understood that a major reason why many

coworkers, and

job satisfac-tion.

employees become involved in HRD programs is to ob-tain valued

Although the dynamics of a self-managed team

rewards, such as promotions, pay increases, and more desirable as-

are

traditional

signments, As mentioned earlier, some organizations choose to highlight

supervisor-subordinate relationship, the impact

the linkages between desired rewards and HRD as a way to pique

of expectations and leadership will likely be

employee interest in them. Rewards and their effective distribution can

similar.

also be a topic of training, particularly in supervisory and management

more

general

complex

than

the

The organization: The organization itself can

development programs. And in some instances, access to HRD programs

influence employee behavior through its reward

can be used as a reward, or access may be perceived to be a reward. An

structure, culture, and &

organization's culture also can have a strong effect on individual

job design. Reward

structure focuses on

behavior. Organizational culture is a set of values, beliefs, norms, and

p?" ~.J of behavior that are shared by organization members and that

The types of rewards an organization uses

guide their behavior of individu-als who

(material,
E

understand an organization's culture are better able to accurately interpret

social);

organizational events, know what is expected of them, and behave in

How rewards are distributed (equally to all

appropriate ways in novel or unfamiliar situations. Organizations that have

relative to each individual's

a strong culture try to perpetuate that culture by selecting individuals who

already share the culture (as Southwest Airlines does in its efforts to recruit

Contribution, or on the basis of need); and

people who have a "fun," team~ oriented attitude) and by socializing new
members so that they accept these norms and values.

The criteria for reward distribution (results,

Two examples can illustrate the impact of organizational culture on

behavior, or nonperformance issues, such as

individual behavior. If an organization firmly embraces the idea of

seniority or tenure).

continuous improvement as the way to ensure high levels of quality (as is

Further, rewards include not only tangible

things, such as financial bonuses and plaques,
but also intangible things, such as recognition

Reward systems should ideally provide the

desired

to find ways to improve quality, engage in HRD programs to improve their

knowledge and skills, and focus their efforts on trying to satisfy customer
needs and expectations. Similarly, in organizations committed to diversity

and acceptance.

outcomes

done in total quality management efforts), employees should be motivated

by

members

of

the

organization. Similar to our discussion of

"outcomes" above, motivation theo-ries can
serve as the foundation for organizational
reward systems as well That is, motivation
theories can help to explain why reward

(where individuals from all 'cultural backgrounds are viewed and treated as
full organizational members and participate fully within the 'organization),
employees will strive to appreciate one another's differences and behave in
ways that encourage active participation and acceptance of all members in
achieving the organization's goals.
One clear implication of organizational culture for HRD is that HRD can be
a means through which an organization's culture is perpetuated or changed,

117

and HRD can also be influenced by the

The implication of job design for HRD is two fold. First, the wayan

organization's culture (in terms of HRD content,

organiza-tion chooses to construct its jobs can affect an employee's

importance, and acceptance).

behavior and attitudes. Second, to improve an employee's performance and

Job design is the development and alteration of

attitudes (or reduce excessive stress), the focus can be on altering the job

the components of a job (such as the tasks one

rather than the employee. Job design will receive more attention in our

performs and the scope of one's responsibilities) to

discussion of organizational development in Chapter 14.

improve productivity and the quality of the

Coworkers and teams: Coworkers, and especially team members, can

employee's work life. As proposed by Richard

exert a strong influence on an employee's behavior in at least Ithree ways.

Hack-man and Greg Oldham, when jobs contain

First, coworkers control some of the outcomes valued by an employee, and

factors that satisfy employees' personal growth

may use those outcomes to influence the employee's behavior. For example,

needs or provide elements that generate feelings of

if an em-ployee behaves in a way coworkers value, they may reward or

responsibility, mean-ingfulness, and knowledge of

reinforce that behavior by offering friendship and recognition. Similarly,

results, employees will be more satisfied and more

coworkers may choose to react to behavior they disapprove .of by

productive. Job design has received considerable

withholding desired out-comes or punishing the employee through insults,

attention and research support.41

ostracism, or threats. This is especially true in team situations, where members hold one another accountable for behaviors and

performance, and where access to rewards is based on team

performance.
Second norms, or informal rules for appropriate behavior established
wil"hifl work groups. can serve as guidelines for appropriate behavior, if
the employee chooses to comply.42 Norms send a clear message about
what behavior is expected and may lead employees to behave in ways
that differ from typical patterns.
Third, because HRD programs are often administered to

------------------------

groups of employees and employees must perform newly leamed

behaviorS in group settings, HRD professionals need to
understand the effect of group dynamics on behavior. Group

------------------------

dynamics influence the wayan employee may behave when

interacting in a group. Dynamics such as groupthink and social

loafing show that the performance of in-dividuals within

--------------------------

groups can differ from their behavior alone.43 Groupthink

occurs when group members are primarily concerned with

tmanirnity. making poor deci-sions by failing to realistically

assess alternatives. Social loafing is the tendency for group

members to reduce their effort as the size of the group

increases. The impli-cation of dynamics such as social loafing

--------------------------

and groupthink is that consideration must be given to how

employees will behave when they are in group settings. Care
should be taken when designing and implementing HRD

--------------------------

programs to ensure that group dynamics do not undermine the leaming

process. Teamwork both amplifies the importance of coworkers'
influences on individual behavior and brings other dynamics to the
forefront Two teamwork issues are trust and cohesiveness. Trust has todo
with expectations that another
person (or group of people) will act benev-olently toward you.

--------------------------

118

There is a certain vulnerability or riskiness to trust, in that the other

party may not fulfill your expectations. Yet, research has
demonstrated strong links between interpersonal trust and

--------------------------

employee performance (including cit-izenship behaviors), problem

solving. and cooperation. 44 Cohesiveness is the members' sense of
togetherness and willingness to remain as part of the group. Given team
members' high level of interdependence, they must trust one another and
feel a sense of
cohesiveness if the team is to work together and be successful.

--------------------------

-Similarly, group and team dynamics should be taken into account when
plan-ning actions designed to ensure that what is learned is transferred
back to the job. Supervisors, managers, and team leaders can monitor
potentially destructive dy-namics, as well as the level of trust and
cohesiveness, and act to address them to maximize the chances that what
employees learn in training and development ac-tivities will be used.
Involving coworkers and team m~bers in the learning process, as participants or trainers, can increase their acceptance of newly 1eamed skills
and the likelihood. that they'll use them on the job. Likewise, managers
and supervisors should pay attention to, employee attitudes toward
training and to-ward using new methods and skills.

119

>
z

HRD
INFLUENCE
MOTIVATION

re
c/a

O
7
0

n Learning
r
e
c/a
p

LESSON 1 7 :
ON
EMPLOYEE

Objectives

Understanding motivation is critical to HRD. The success of many

Motivation-Influencing

r
- Behaviour
>
Z Theories

BEHAVIOUR-

factors

on

Employee

HRD pro-grams and processes depends in part on whether the

individual is motivated to participate, learn, and use what is learned
to improve performance. The reason a person chooses to attend a

of Motivation

Students, as we all know that the motivation is one of

training class but then fails to use the skills learned in training back

the very important elements of human behaviour.

on the job may be rooted in motivation. Programs designed with an

Hence today we shall &

eye toward motivation can explicitly address these issues. In addition,

discuss " how motivation

motivation theories are useful in diagnosing the cause of performance

influences Employee behaviour".

E

Motivation: A Fundamental Internal

Influence

on Employee Behavior
Motivation is one of the most basic elements of
human g

behavior. Motivational theories attempt to

explain how effort is

generated and channeled.

Terry Mitchell synthesized many ~3

definitions of

work motivation as "the psychological processes

problems and often serve as the basis for designing or choosing HRD
programs to remedy those problems.
There are an abundance of theories of work motivation available.
Although some theories share common processes and constructs,47
there is still no single, in-clusive, and widely accepted explanation of
work motivation.48 In general, approaches to explaining motivation
can be grouped into the three categories displayed in Table 2-2: need-

that cause the arousal, direction, and persistence of

based, Cognitive, and noncognitive. After we present various

voluntary

prominent motivational theories, we will use a diagnostic model of

actions that are goal directed.

moti-vation to synthesize these various theories.

This definition makes several important points.

Zeed-based Theories of Motivation

First, work motivation pertains to the causes of

Several motivational theories are rooted in the concept of needs. Needs

voluntary behavior-the nature of nearly all

are

behaviors performed in the workplace. Even in

psychological, that energize and direct behavior. Henry Murray proposed

situations where employees feel they do not have a

that humans experience a la~ number of needs, such as aggression,

choice, their behavior reflects their consideration

affiliation, autonomy, and achievement. Although needs are internal

of the perceived consequences of their actions.

states, they can be influenced by forces in the envi-ronment. The

Second, motivation focuses on several processes

opening case, for example, suggests that forces in the global econ-omy

affecting behavior:

and the potential for layoffs within an organization may heighten an

Arousal or energizing-The generation

or mobilization of effort

Direction-Applying effort to one behavior over

another

Persistence-Continuing (or ceasing) to perform

a behavior
Third, motivation at work is usually seen as an
individual phenomenon be-cause all people have

defi-ciency

states

or

imbalances,

either

physiological

or

employee's need for security, thereby reducing motivation to learn or

engage in educational opportunities.
Approach
Need-Based Underlying needs, such as the needs for safety or power,
drive motivation.
Cognitive Process
Motivation is a process controlled by conscious thoughts, beliefs, and
judgments.

unique needs, desires, attitudes, and goals.46 Most

Zoncognitive

motiva-tional theories recognize these differences,

Motivation is explained as aD interaction bet1Ne<:>n behavior and

and often include components that describe how

external events without appealing to internal thoughts or needs.

they affect the motivational process.

Theories

120

Maslow's Need Hierarchy Theory

Two

Alderfer's Existence, Relatedness, and Growth (ERG)

based

Theory Herzberg's Two-Factor Theory

motivation, Maslow's need

Another widely discussed

Expectancy Theory Goal-Setting Theory Social

hierarchy

need-based

Learning Thevry Equity Theory

Alderfer's

Needs are said to drive behavior through the

combination of need activation and need satisfaction,
a process depicted in Figure 2-2. A need becomes
acti-vated when a person lacks something necessary
maintaining

psychological

or

physiological

equilibrium. The activated need is felt as tension. The

tension may be a recognizable feeling such as
loneliness, or it may be more general, such as anxiety.
Because tension is unpleasant, the person will look
for ways (i.e., he or she will perform behaviors) to
reduce the tension by eliminating the deficiency that
is causing it. That person will continue to perform
different behaviors until one is found that effectively
reduces the tension and, thus, satisfies that need. Only
activated needs can be motivational, because only an
activated need produces the tension the person is
motivated to eliminate. Once the need is satisfied, the
tension is gone and the need is no longer felt.

cited

need

theories

of

theory51

and

behavior.

theory

is

Herzberg's two-factor the-

growth

ory.53 Herzberg claimed

(ERG) theory,S2 sug-gest

that people have two sets

that needs are arranged in a

of

hierarchy.

focusing on survival and

and

They

propose

basic

needs,

one

that needs emerge in a

another

focusing

on

particular pattern, in which

personal

growth.

He

certain groups of needs

argued that factors in the

(those important to physical

workplace

survival) emerge first and

survival needs, or hygiene Need-

must be satisfied before

factors,

other needs (psychological

themselves

and

satisfaction-they

social

needs

like

that

satisfy

cannot

of hierarchy

provide

job theories
only have

been

affiliation and esteem) can

prevent

emerge and affect behavior.

Alterna-tively,

Once the currently activated

factors, which satisfy the managers

needs are satisfied, the next

growth needs, can create and

most powerful group of

feelings of job satisfaction, students in

needs are felt and thus will

but their absence will not part

drive behavior.

necessarily

Maslow's need hierarchy

dissatisfaction. Following they

lists

the

five

levels

categories
of

or

needs:

dissatisfaction. popular
motivator with

lead

two-factor

to because
are

theory, easy

to

workers can be motivated understand

physiological, safety and

by ensuring that hygiene and

security, love, status and

factors are present, thereby intuitively

esteem,

preventing dissatisfaction, appealing.

and

actualization.
ERG

selfAlderfer's

theory

reduces

factors

to

create

job to

satisfaction. This strategy sense.

three

is referred to as

levels

of

needs:

are

and then adding motivator They seem

Maslow's hierarchy to only

existence, relatedness, and

121

to be activated and drive

existence,

relatedness,

Reinforcement Theory

for

widely

enrichment.

make
But

Job it is unclear
whether

growth. More important,

these

ERG theory proposes that if

theories are

a person becomes frustrated

valid

trying

explanation

to

satisfy

the

currently activated needs,

this frustration will cause

motivation.

previously satisfied needs

Need-

of

hierarchy

these results using conscio

be-cause they attempt to

cognitive

other methods. The us

explain the sequence of

motivation:

rigorously test, in

theory

thoughts and decisions that

theory, Goal-setting theory,

that they re-quire

embroiled

ener-gize,

Social learning theory, and

measuring

controversy.57

are

theories

difficult

to

internal

became thoughts
in playa
role

control behavior.

Equity

Expectancy
>z
R

Each re c/a O

the-ory.

While

find

some support for behave.

theories

job enrichment as a A

relevance to HRD. Most

Expectancy

and explain. While

way to motivate second

HRD

Expectancy

most of the studies

employees,

attempts

to

of Maslow's theory

validity nf the Ivm- motivati

employee

behavior

have

factor

influencing their thoughts,

that o
motivation is a conscious 2=

beliefs,

choice

accurately

to

identify

failed

to

is how we

and

of

states that people

difficult

there

in

direct,

theories

the group of
theory on

support it, much of

remains unclear.

this research has not

So

theories,

Cognitive

motivation
have

direct

pro-grams

and

include
change
by

attitudes.

theory has relevance for 70

the practice of HRD.
n re c/a
theory:

was > Z Z
first pro~ by Victor Vroom N
and

assumes

process.58

Learning, which lies at the

According to this theory,

heart of HRD, is often seen

people choose to put their

as

effort into activities that

some insight into process

one cate-gory of theories,

(learning will be discussed

they

in Chartr 2.;. We can do a

perform

possible forces that recogdrive

behavior, nizes

better job of designing and

produce desired. outcomes.

implementing

HRD

Expectancy theory argues

programs if we understand

that decisions about which

evidence to sup-port

they have proven this and

difficult to test and argues

how employees' thoughts

activities to engage in are

or

apply

are that
insufficient as an motivati
is
explanation
of on
motivation. Even based

and

based on the combil'\ation

been

conducted

properly.54
Although

some

research has been

conducted to test
the

ERG

theory,

there is insufficient
reject

the

theory.55

Needs

exist,

but

generalizable
hierarchy
explaining

the

a
so, HRD pro-grams on
based on need- person's

relationships among

based

them

such

is

not

yet

available.
problems
with

factor

twotheory.

Herzberg's
studies

initial

sup-ported

the notion that there

are two separate sets
of factors that affect
job

satisfac-tion

differently.56
other

But

researchers

could not replicate

122

theories, thoughts
as
job and

enrichment

Similar
exist

and

achievement

and beliefs
(or
cognitio

motivation

Cognitive Process
Theories

of

Motivation
Few of us would
deny

that

our

cognitive

beliefs

process

affect

their

believe

they

can

that

will

and

behavior.

of three sets of beliefs:

In the section below, we

expectancy, instrumental-

will briefly review four

ity, and valence.

Expectancy

beliefs

performance. All other things being

represent the individual's

equal, people should engage in tasks

judgment about whether

for which they have high expectancy

apply-ing (or increasing)

beliefs.

effort to a task will result

The

in

instrumentality, is a judgment about the

its

successful

accomplishment.

second

belief,

called

Stated

connection the individual perceives (if

another way, people with

any) between task performance and

high expectancy believe

possible

that increased effort will

are

instrumentality

lead

better

sometim

asking the question, "U I per. form this

performance, but people

es

task & successfully, is it likely to get

training, have been ns).

used in organiza- These
tions with some theories
success.

r-

theory

need- called
based theories of cognitiv
motivation provide e
while

to

out'

comes.
judgments

Making
is

like

with low expectancy do

referred

me something I want (or something I

not

their

to

don't want)?" Instrumentality ranges

efforts, no matter how

from strongly positive (the individual is

great, will affect their

cer-tain that performing a task will O

as

process
theories

believe

that

2. the driver believes the

lead to a particular

sets of judg' ments when

outcome),

through

deciding which behaviors

manager

give

theory, em-ployees will not be moti-

zero (the individual

and tasks to engage in.

more vacation days if

vated to attend HRD programs and try

certain there is

Specifically, the theory

his

to learn from them unless they believe

relationship

predict~ that employees

record is improved to

between performing

will choose to put effort

the

into behaviors they

(instrumentality), and

is

no

the task and

occurrence

the

of

Bbelieve they

particular outcome),

can

to strongly negative

successfully

(the

individual is

certain

performing a certain

from occurring).
The third belief

theory is called
valenc.e. Valence

particular

outcome. Valence
judgments range
from

strongly

positive
highly

(for
valued

outcomes),
through zero (for
outcomes
person
care

the
doesn't

about),

to

strongly negative
(for outcomes the
person

finds

theory states that

employees

will

make these three

123

more

vacation

days

(valence).

1. Their efforts will result in learning

the

new

skills

or

information

presented in the program,

2. Attending the program and learning
new skills will increase their job
per-formance, and

desired

outcomes

or

prevent

unwanted outcomes.

to

Viewing employee behavior from an

expectancy

(high valence) or

expectancy theory predicts?

supervisors and HRD professionals can

will

Empirical studies testing the

design and market programs in ways to

(negative

theory have shown some

ensure

Believe

59

that

theory

employees

perspective,

make

the

instrumentality)

support for its predictions.

outcomes they want

However, sev-eral writers

will be motivated to attend, learn, and

to

have

that

apply what they have learned back on

methodological problems in

the job. Some ways to do this include

some of these stud-ies may

offering incentives such as holding

have led to underes. -'lates of

HRD programs in attractive loca-tions

the

(e.g., such as resorts), offering paid

Avoid

(negative

valence).
Figure 2-3 graphically
depicts this process. For

pointed

out

theory's

predictive

appropriate judgments and as a result

ability.6o

time off from work to attend, designing

bus

Expectancy theory may seem

a program that is interesting and

company tries to motivate

complex, and more research

enjoyable, providing proof that the

bus drivers to drive more

is needed to under-stand

program is ef-fective, and making

safely by offering safe

whether

success in the program a prerequisite

drivers

accurately

example,

suppose

the

manager

of

the

theory
the

fl'-.motion

vacation days. Whether

behavioral choices we make.

outcomes.

this will motivate a driver

Expectancy

Goal-setting

to

however, clearly relevant to

cognitive theory of motivation that has

HRD. It offers a way to diag-

rele-vance to HRD is goal-setting

nose performance problems

theory. Goal-setting theory states that

and then suggests how these

perform-ance goals playa key role in

problems can be over-come.

motivation. The theory proposes that

In

expectancy

the presence of performance goals can

theory has implications for

mobilize employees' efforts, direct their

the design and effectiveness

attention, in. crease their persistence,

of

and affect the strategies they will use to

drive

additional

more

safely

depends on whether
1. the driver thinks he or
or her safety record to

Expectancy

3. the driver values having

(high

she can improve his

aversive).

level

expectancy

Do people behave in the way

prevent

expectancy

on

desired

to

outcomes they desire

to

the person places

safety

are

instrumentality)

outcome

refers to the value

her

according

3. Doing so will help them obtain

Believe

connected

task will prevent a

important

(high

or

expectancy) and

that

particular

perform

will

example,

the level desired. by

the
(expectancy),

manager

represents
theory

addition,

HRD

programs.

is,

For

and

other

theory:

desirable

second

accomplish a task.62

supported

Goals influence the

manage-ment

individual's

Research

intentions, which are

defined

theories

in

adding

goal

setting

Social learning theory: The major

overall.64

condition to an already

Albert

convincingly

effective training program

developed

shows that goals that are

made

cognitive

specific,

effective.67

motivation, which is social learning

accepted by employees will

Goal setting has become an

learning

lead to higher levels of

integral part of many HRD

Bandura proposes that out- that

goals to which the

performance

programs, particularly in

come

person

is

vague goals (e.g., lido your

helping

expectations

committed.,,63 This

best") or no goals at all. This

understand

commitment

will

research also demonstrates

result of each program and

An outcome expectation expectation

direct

that the presence of feedback

to

(similar to instrumentality s

employee

behavior

enhances the effectiveness of

achieve these results. Goals

in expectancy theory) is a determine

until

goal

goal

can then be discussed with

person's

as

the

"cognitive
representations

continue

to

the

of

and

than

easy,

participants
the

mo-tivate

desired
them

to

the-ory

the

of social

theory,69 theory
and

individual

is
a

self-efficacy person's
affect self
performance. efficacy
will

research

to

their super-visors back on

decision is made to

understand how and under

the job to ensure that the

change or reject the

what condi-tions goal setting

employees use what they

given

goal.

works best.66 For example,

have learned during the

a study on the effectiveness

HRD program to improve

motivation generally

of

their

agree

goal

gave "assigned" goals to half

example, a key com-ponent

setting is the best

the trainees at the end of the

of the career development

supported theory of

training

These

process (and many career

work motivation and

trainees were told to use the

development programs) is

one

key points taught in train-ing

setting career goals.

in two settings per

According to goal setting

that

of

the

best

week

for

four

weeks.

Checklists

is

training

program.

performance.

reactions

establishes career goals is

from e

goal-setting

in

their

condition

attainment.

improved.

in

the behavio
rs in a
had role

more likely to advance his

or her career, especially if
the

More playing

trainees who had

could

been assigned goals

from

liked the training

significantly larger the

significantly

less

por-tion

right after training

training

than those in the no

than

goal-setting

trainees

condition.

assigned goals, and this

mechanisms

they

feedback.

follow-up

session

124

reproduce ce than
memory

a could

are

specific,

challenging,

importantly,

they experien

goals

Interestingly,

in

6B

theory, an employee who

assist these trainees

However,

For

four weeks later, assertiv

trainees

goal

needed

as-sertiveness

were provided to
tracking

Further

more

third of

achieved, or until a

on

setting.65

even

has prediction

that 1. Whether
performing
a
given a behavior
behavior will lead to a will
be

Writers

is

difficult,

it

Bandura

and

accompanied
feedback
toward

by regular

on
the

progress

goals.

The

belief

outcome.

Self performed,
efficacy can be defined as
2. How
"people's judgments of
much effort
their
capabilities
to
will
be
organize and execute
spent, and
courses of action required
3. How
to attain designated types
long the
of performances. It is conperson
cerned not with the skills
will
one
has
but
with
continue
judgments of what one can
to
do with whatever skills
perform
one
possesses."70
A
the
shorthand way of looking
behavior
at self-efficacy is that it is
.
a person's judgment of the
likelihood that he or she Bandura
can successfully perform a argues that
particular task or activity. people who

the goal

program should ensure that

Self-efficacy beliefs are have

malleable and can be self-

content trainees.

employees set such goals

influenced

and help employees and the

accomplishments,

organization

observations

of

could

no

the A basic

without point of
also research

demonstrated more is

that

career

development

establish
for

regular

verbal

by

high

one's efficacy for

a particular

will
others, task
persuasion, and focus their
of

physiological states?

attention on
the

challenges of the

expectations, it is can

in a training ap-proach

and contri-butions to

situation and use

unlikely that they learn

known

those of others.

greater

will

new

modeling?4

behavio

modeling

thus increasing the

rs

trainee

chances

make

components

task

decision

behavior to be learned

experience tension, and n re c/a

performance. Con-

s about

(e.g.,

they

versely, people who

whether

performer) and shown a

have

to

film or videotape in which

perform

an

demon-strates

particul

perfonn the behavior. Then

ar

the trainee practices the

behavio

behavior

from others and finally

themsel

receives

ves.

reinforcement

Modelin

performing the behavior.

g is a

Equity theory: A fourth

key

cognitive

compon

motivation, called equity

ent

theory,

effort

mastering

in

them,
of

successful

low

efficacy

self-

for

particular task will

focus their thoughts
on obstacles and
shortcomings, and
as a result, reduce
their

chances

of

successful

task

performance.

model depicting the

influence of selfefficacy

on

performance

is

shown in Figure 24.

Research

conducted

by

Bandura and others

shows

that

self-

efficacy is strongly
related

to

task

performance.72
Furthermore,
research has also
shown

that

self-

efficacy can predict

performance

in

training programs?
3

Clearly,

self-

efficacy has direct

relevance

for

success in HRD. If
employees
low

125

have

self-efficacy

attempt to improve
performance.

they

to

do

try

improve
performance, they
will not put forth
the same effort as
persons with high
self-efficacy.
Therefore, trainers
and

supervisors

should behave in
ways that increase
the

trainees'

judgments of their
self-efficacy.
Of

particular

relevance to HRD,
social

learning

theory

also

proposes that most

behavior is learned
by

observing

others, a process
called

modeling.

Research suggests
that

through

observing

behavior and its

consequences

in

others, individuals

and

of

as

behavior
In

behavior

they have been treated

told

the

unfairly

of

the

inequity)

is

firing

actor

poor

(the

model)
how

with

to

feedback
social
for

theory
suggests

of
that

ng. a de-

influenced by the desire to

velopme

be treated fairly and by

ntal

people's perceptions about

techniqu

whether they have been

treated fairly. As a the-ory

is

strongly

will

of work motivation, it is

discuss

based on the following

in

three assumptions:

Chapter

1. People develop beliefs

about what is fair for

Modelin

them

exchange

has

to

receive

in

for

the

also

contributions that they

been

make

applied

organization.

to HRD
with
great
success

2. People

believe

the

motivation

12.

who

training.

mentori

we

3. People

to

the

determine

fairness by comparmg
their relevant returns

(called

>z
R

re c/a O

will as
will

be

r-

motivated.to find ways > Z I

to reduce it.
Z
o
2=

>z
R

Equity theory predicts that employees who believe

Are the predictions made by equity theory supported by research? In

they are being treated fairly (a judgment called

general, there is support for the predictions made about what people

equity) will be motivated. to continue their present

do when they believe they are underrewarded?8 There is less

perform-ance and behavior patterns, whereas

support for predictions about

re c/a O employees who believe they are victims of

whatpecpkcbwhei thg/hpfcve th^arBa/mrwacfcL

inequity will search for ways to reduce their

Equity theory has clear implications for HRD, particularly in

n re c/a feelings of unfairness. There are at least five ways

in which individuals reduce their feelings of
P
r-

understanding how employees perceive HRD programs an.d their

> Z Z inequity:
N
1. cognitively distorting views of contributions or

programs is used (or perceived) as a reward for good performance

rewards ("She must be smarter than I thought")

cerning which employees will be included in HRD programs are not

70

2. influencing the perceived rival to change his or

2=

response to them. In some or-ganizations, participation in HRD

or punishment for poor performance. Also, the decisions conwithout con-sequences. Equity theory

her contributions or re-wards (e.g., convincing

suggests, for example, that employees who consider themselves

the person to be less productive)

unjustly left out of an HRD program (e.g., a management develop-

3. 3 changing one's own contributions or rewards

ment seminar) will experience inequity. As a result, those employees

may attempt to reduce the inequity by lowering their job

(either working harder or

4. contributing less)

performance or becoming less com-mitted to the organization.

5. comparing one's self to a different person

Employees may even leave the organization for some-place where

6. leaving the situation (requesting a transfer or

they feel their talents will be more appreciated. To prevent this from

quitting)

occurring, managers should make the selection criteria for attending

7. Typically, people choose the way to reduce

inequity that appears to be the least costly to
them.77 Figure 2-5 depicts this process.

HRD pro-grams clear and provide employees with feedback so they

can see that participa-tion judgments are made fairly.
Equity theory can also help us determine whether employees Will
use the skills or knowledge they have learned in an HRD program

A Graphical Representation of Equity Theory

II

with certain outcomes in return. If the employees see other employ_

Outcomes^ nsvvnrtis received

.1

of their new skills or knowledge as an input in their exchange with

the employer, they may expect the organization to provide.them

Outcomes/re^
erris

back on the job. For exam-ple, if the employees view the application

Dy raleugnt

ees who lack the newly acquired skills receiving the same outcomes
as them' selves, they may choose not to use the new skills on the job
as a way to restore a feeling of equity.

Input* of rafevani others

Reinforcement Theory: A Non Cognitive Theory of Motivation

The last motivation theory we will discuss, reinforcement theory, is
rooted in behaviorism, which attempts to explain behavior without

Social
comparison

of

referring to U11.observ-able internal forces such as needs or

outcomes

to

thoughts.so Behaviorists seek to explain behavior by focusing only

on things that can be directly observed: the behavior itself and

InptltE

environmental events that precede and follow the behavior. In short,

reinforcement theory argues that behavior is a function of its

^ reeled

consequences. This is based on the law of effect, which states that

equity

behavior that is followed by a pleasurable consequence will occur

Motivation

more frequently (a process called rein-forcement), and behavior that

La

is followed by an aversive consequence will occur less frequently.81

Motivation

la

maintain

prns^nl equity relation-ships

According to reinforcement theory, a manager or trainer can control

an employee's behavior by controlling the consequences that follow
the employee's behavior.

126

Reinfo niques known as behavior modification. Behavior

3. Extinction seeks to decrease the frequency of a behavior by

rcemen modification suggests four choices for controlling

t

an employee's behavior:

4. Punishment seeks to decrease the frequency of a behavior by

theory 1. Positive reinforcement refers to increasing the

can be frequency of a behavior by following the
applied behavior with a pleasurable consequence.
by

2. Negative

using a
set

of

tech-

reinforcement

frequency

of

removing the consequence that is reinforcing it.

increases

behavior

hy

introducing an aversive consequence immediately after the

behavior.
In addition to the type of consequence that follows a behavior, the

the

way that conse-quences are paired with behaviors, called a schedule

removing

of reinforcement, is an im-portant part of how behavior

something aversive after the behavior is

modification can be effectively applied.

performed.

Reinforcement theory and behavior modification

have attempted to integrate several theories into a in

have received strong support in a large body of

larger, more inclusive model (for example, the accompanied

research

Porter-Law]er model, which combines expectancy sufficient level of

and

have

understanding

of

helped

work

increase

-related

our

behavior.82

turn,

must

and equity theories). One recent at-tempt to ability

be

by

(described

Reinforcement theory has also had a strong

synthesize multiple motivational models was below), as well as

influence on HRD. Methods of instruction, such as

proposed by John Wagner and John Hollenbeck.85 accurate

programmed instruction and some approaches to

Their model can be seen in Figure 2-6. In this perceptions.

computer-based training, draw heavily from

model, to the employee outcomes are of particular setting theory is useful

reinforcement theory (we will dis-cuss this more in

interest (these are the rectangles in the center of here

in

providing

Chapter 6).

the model): employee desire to perform, the effort guid-ance

to

Trainers

and

managers

can

also

motivate

role
Goal-

they put forth, their per-formance, and their employees concerning

employees to learn and use what they have learned

satisfaction. Expectancy theory is used as the what

back on the job by using behavior modi-fication

overarching framework to depict influences on done, at what perfor-

techniques.83 While a strict behaviorist would

employee motivation and performance. How-ever, mance level, and who

reject any emphasis on thoughts or needs (i.e., all

the other theories described above are also used to has responsibility for

the methods covered above), we feel that such an

increase our understand-ing of how this process doing it. When effort,

approach is too narrow, and that an effective HRD

unfolds.

professional should consider a more holistic or

For

integrated approach to motivation.

Summary of Motivation
As we have seen, there are many approaches to
explainil1g and understanding mo-tivation. Each
theory

we

have

discussed

enhances

our

understanding of employee behavior and has at

least some research support (with the strongest
support going to goal setting, reinforcement
theory, social learning theory, and expectancy theory). In addition, each approach offers valuable
insight into the design and imple-mentation of
HRD programs.
This brief discussion of different approaches to
work motivation is not exhaus-tive and does not
explain the complexity and interrelationships
among the theo-ries. Some theories, such as
expectancy theory and reinforcement theory, make
many similar predictions. In addition, researchers

127

needs

to

be

ability, and accurate

and role perceptions are

expectancy were described above in our discussion all present, then high
example,

valence,

instrumentality,

of expectancy theory. However, the various need levels of individual

theories can as-sist us in understanding valences, performance are prethat is, what it is that people value or want. Sim- dicted to occur. The
ilarly, both reinforcement theory and social final outcome variable
this
model,
in in
is
understanding what employees believe will lead to satisfaction,
the attainment of what they want, that is, their predicted to follow
learning

theory

can

provide

guidance

instrumentality beliefs. The various forms of from performance, as

reinforce-ment, as well as the vicarious learning well as from a
via modeling (suggested by social learning theory) perception
lead to such instrumentality beliefs. These then rewards have
combine to produce a given desire to perform on given
the part of employees. As suggested by expectancy Equity

that
been

out

theory, this then interacts with expectancy (the provides a

judgment that one's efforts will lead to a successful framework

fairly.
theory
helpful
for

outcome) to produce a high level of effort. Effort, understanding

employees'
perceptions

of

the

equity of rewards. Finally, the model portrays return arrows back to valence, instrumentality, and
>z

expectancy. This is meant to portray the dynamic

nature of employee motivation and performance,

that is, motivation and performance can change

re c/a O

over time. A highly motivated person can lose

70

motivation when valence, instrumentality, or

n re c/a

expectancy decline. On the other hand, when one

of the aspects of this model is improved or

increased, then higher levels of motivation,
performance, and satisfaction are predicted to
occur. We view this model as a useful diagnostic
tool to understand employee motiva-tion, as it very
effectively

synthesizes

and

summarizes

our

discussion of the vari-ous motivational theories.

We hope that this discussion encourages the reader
to appreciate both the im-portance of motivation in
determining employee behavior as well as the
richness of potential applications that motivation
theories have for HRD.

r-

Other Internal Factors that Influence Employee > Z Z

zo

Behavior

Internal factors, in addition to motivation, that 2=

influence employee behavior include attitudes and
knowledge, skills, and abilities (KSAs). Each of
these factors is discussed below.
Attitudes
Attitudes are the second major internal influence
depicted in our model of work behavior (refer
again to Figure 2-] on page 36). Attitudes add to
our under-standing of employee behavior by
showing another way thoughts can influence
behavior. Many HRD programs and processes,
including

training

evaluation.

management

development, and organizational development,

either focus on modifying employee attitudes or
use attitudes as
a central component. For exam-ple, one common

Although common sense tells us that attitudes often cause behavior,

way HRD programs are evaluated is by means of

the reality is often more complex. If attitudes did directly affect our

assessing em-ployee attitudes toward the program

behavior, without any other intervening factors, our behavior should

and its content.

be consistent with those attitudes. Unfortunately, this is not always

What is an attitude? An attitude "represents a

the case. Attitudes can be used to predict behavior, but the

person's general feeling of favor-ableness or

predictions are at best only moderately accurate. Re-searchers

n re c/a unfavorableness toward some stimulus object.'0.86

attempting to prove a direct relationship between attitudes and

>z
R

re c/a O
70

Attitudes are always held with respect to a

r-

behav-ior have experienced considerable frustration.

> Z I particular object-whether the object is a person,

place, event, or idea-and indicate one's feelings or
Z

Research conducted over the past thirty years suggests that the

affect toward that object. Attitudes also tend to be

One widely discussed model that explains this relationship is the

2=

stable over time and are difficult to change. 81

behavioral intentions mode1.88 This model states that it is the

Of particular interest to HRD is the nature of the

combination of attitudes with perceived social pressure to be-have

relationship between attitudes and behavior.

in a given way (called subjective norms) that influences an

128

relationship between attitudes and behavior is not simple or direct.

individ ual's intentions will be. Ac-cording to the

ual's

behavioral intentions model, then, attitudes appear

in-

to affect behav-ior only to the extent that they

tention influence one's intentions.

s.

One example of how the behavioral intentions

These model of attitudes can inform HRD practice is

intenti when measuring a program's effectiveness (see
ons, inChapter 7). Rely-ing solely on measuring attitudes
turn,

to determine whether employees will apply what

more they have learned in an HRD program will likely

directl produce only moderately accurate results. The
y

Inln
Kjpa
f

behavioral intentions model suggests that it may

influen be more useful to measure trainees' intentions to

ce
use what they have learned, because intentions
behavi incorporate attitudes and more directly influence
or (seebehavior. While this is no substitute for assessing
Figure an actual change in job behavior, the behavioral in2-7).

Knowledge, Skills, and Abilities (KSAS)

The third and final internal factor included in our model of

tentions model implies that intentions, rather than

employee behavior (Figure 2-1) is the employee's knowledge, skills,

When attitudes alone, may be a better indicator of

attitudeprogram effectiveness.

and abilities (KSAs). It is clear that KSAs have a significant impact

andAttitudes are an important factor in HRD

subject programs. Ray Noe proposed. that two types of
ive
attitudes-reaction to skills assessment feedback
norms and career/job atti-htdes-can have a direct effect on
conflic the motivation to leam.89 An empirical test of the
t,

themodel suggested that these factors do in fact

stronge influence motivation and learn-ing in a training
r of theprogram.'}!) Based on these results, a modified
two

model was pro-posed. This model (shown in

plays Figure 2-8) suggests that job involvement and

the
career planning can have a significant impact on
dominapre training motivation and motivation to learn.
nt roleWe believe that explicitly considering and
in

understanding the effects that trainees' attitudes

determ can have on training

ining effectiveness, as suggested here, is a prom-ising
what avenue of research-one that will likely yield new

on employee performance. All other things being

equal, if employees lack the KSAs to perform a task or behavior,
they will likely faiL Almost all HRD programs focus on improving
or renewing the KSAs of employees.
Despite the ubiquitous nature of KSAs in HRD, these factors can be
difficult to define with precision. Definitions differ according to the
person defining them. Edwin fleishman, a leading researcher of
human abilities, defines abilities as gen-eral capacities related to the
performance of a set of tasks. Abilities develop over time through
the interaction of heredity and experience, and are long-lasting.
Skills are similar to abilities, but differ in that they combine abilities
with capabili-ties that are developed as a result of training and
experience.92 Skills are often cate-gorized as psychomotor
activities (while abilities tend to be more cognitive) and are
typically measured in terms of the ease and precision evident in the
performance of some task.93 Finally, knowledge is defined as an
understanding of factors or princi-ples related to a particular subject.

the

insights into ways HRD programs can be made

individ more effective.
Over 100 different types of abilities have been

needed to perform particular tasks. Taxonomies help HRD professionals to

identified, including general in-telligence, verbal

select and assign employees to training, choose appropriate learning

comprehension, numerical ability, and inductive

strategies for indi-viduals of differing skill levels, and specify training

reasoning and Some types of abilities, like general

needs and content when de-signing training programs. Fleishman and his

strength, have even been

colleagues have developed one such taxonomy that has been applied to

artitioned into sub-

categories (including explosive, dynamic, and

static abilities). Researchers have attempted to
develop taxonomies to describe the abilities

129

HRD.

It should be clear from the preceding discussion

supervisor interacts with the employee, with the employee's performance

that motivation, attitudes, and ability are critical to

tending to live up or down to those expectations.

explaining

to

Two additional factors in the work environment that influence employee be-

understanding and ap-plying HRD. It is the

havior are coworkers and the organization itself. Coworkers provide

combination of these influences with the external

influence through group norms, group dynamics, and teamwork, and by

influences described earlier that affect employee

controlling valued outcomes. The organization can also affect employee

behavior.

behavior in several

Summary

ways, including its culture, reward structure, and the way it designs the

Because HRD programs are generally attempts to

employee's job.

change employee behavior, it is important to

One of the key internal factors that influence employee behavior

understand the factors that influence employee

is

behavior. This chap-ter presented a number of such

processes that energize, direct, and lead to the persistence of

factors that have direct relevance to HRD, using a

voluntary

simple model of employee behavior to guide the

sources

discussion. The model contains two sets of factors

hierarchy,

that interact to influence employee behavior: 1)

theory),

external factors, which include factors in the

social learning theory, and equity theory), and the consequences

external environment (economic, governmental,

of behavior (reinforcement theory). Each of these theories has

and competitive issues), as well as those in the

implications

work environment (e.g., outcomes, the supervisor,

The Wagner -Hollenbeck model of motivation and perfor-

the organization, and cowork-ers) and 2) internal

&

factors, which in-clude motivation, ability, and

mance was put forward as a useful means of combining the

attitudes.

various theories to diagnose motivational and perform-ance

Outcomes-the results of performing a behavior in a

<

particular way-are an external influence on

issues.

employee behavior. Both personal outcomes

PP

(relevant to the individual, like pay or recognition)

Attitudes and the employee's knowledge, skills, and abilities (KSAs) are

and organizational outcomes (relevant to the

also important internal factors of behavior. Without ability (the capability

organization, like productivity or profits) can be

one has to perform a set of tasks) a person

used to diagnose and motivate employees to

given behavior, re-gardless of motivation. Attitudes, which are made up of

attend, learn, and apply what they have learned in

beliefs, feelings, and be-havioral tendencies, affect behavior indirectly

HRD programs. Theories of motivation, such as

through intentions. According to the behavior intentions model, attitudes

equity

and

combine with the perception of social pressure to form intentions, which in

reinforcement theory, attempt to explain whether

turn directly affect behavior. Research has shown that both employee

and how outcomes affect employee behavior.

attitudes and ability playa role in the effectiveness of HRD programs.

employee

theory,

behavior

expectancy

and

theory,

motiva-tion.

to

Motivation

is

behavior.

Theories

explain

behavior,

Alderfer's
cognitions

for

ERG

defined
of

theory,

and

the

motivation

including

(ex-pectancy

developing

as

theory,

dif-ferent

(Maslow's

Herzberg's
goal-setting

conducting

use

needs

and

psychological

HRD

need

two-factor
theory,

programs.

will be unable to perform a

and

HRD professionals, as well as supervisors and managers, are in the business

expectations, also influence employee behavior. A

of understanding and influencing employee behavior. As the sampling of

supervisor can use leadership (non coercive

concepts and theories in this chapter shows, there are many possible

influence) to affect a subordinate's performance,

explanations though fewer unequivocal facts. The techniques we discuss in

attitudes, and motivation. According to the leader'

the chapters that follow draw upon the foundations laid by researchers of

member-exchange theory, employees who are

work motivation and behavior. Obviously, applying these theories to a

treated by their supervisor with trust, respect, and

given situation requires judgment and

friendship are more satisfied and perform better

Questions for Discussion

than those who are not. Research on self-fulfilling

1. Describe at least three ways that factors in the external environment

Supervisors,

prophecy

through

shown

that

leadership

supervisor's

influence employee behavior. If you were an HRD professional involved

expectations of an employee can affect the way the

with an action team that was charged with evaluating the likely success

130

has

their

of a proposed merger of your organization with

2. Select a familiar problem that you have encountered in the workplace.

another organization, what factors would you

Use the model of employee behavior presented in this chapter to seek to

want

explain why this problem exists. Be specific.

to

consider

in

making

this

'recommendation? That is, based on what you

3. Suppose that you are the recruitment manager for a medium sized bank.

know of HRD to this point, 'how can HRD

One of your best recruiters appears to be unmotivated lately. The

professionals impact the likely success or

number of recruits the recruiter brings in is normally above the average

failure of a merger or acquisition?

for effective performance but has fallen below the standard for the past
two weeks. What might expectancy theory suggest is

causing the drop in the employee's performance? What might equity theory suggest? Based on your knowledge of
equity and expectancy theories, develop two recommendations for helping to improve the recruiter's performance.

>z

4. Suppose you are the HRD manager for a large electric utility company.

re c/a O

5. The quarterly report shows a 25 percent decrease in participation in management development programs over the same
quarter last year. The number of managers employed by the company has not changed, and the company's profits have

70

remained stable. You already hold these programs in desirable locations off-site (local hotels and conference centers)

n re c/a

and participating in these programs counts toward the employees' annual performance evaluation. Using your

r-

knowledge of motivation theory, suggest three possible reasons that could explain why participation rates are down. H,

>ZZ

after investigation, those reasons turned out to be the true causes, what might you be able to do to improve participation

rates?

2=

6. Compare and contrast the need-based and cognitive-based approaches to understanding motivation.
7. The HRD manager for a chicken processing plant has come to you for advice. Even though all of the employees in the
plant recently completed a safety-training program, the accident rate has not improved. In particular, the manager has
found that employees are not wearing safety gear (goggles, shoes with nonskid soles) consistently and are not following
safe procedures. Using your knowledge of attitudes and supervisory expectations, develop two possible reasons to
explain the employees' behavior. If your hypotheses are true, how could the HRD manager improve the situation?
8. Why do people with low self-efficacy perform more poorly in training programs than those with high self-efficacy?
9. Briefly describe three ways that coworkers can affect an employee's behavior at work.
10.

Recall a time at work or school when

you found it difficult to motivate yourself to complete a required task (like start a report or study for an exam). Using
two different motivation theories, explain why this lack of motivation may have occurred.
Exercisie/Assignment
Assume that you have been asked to design a portion of the orientation program that your organization is using for new
employees. How might the three concepts from expectancy theory (expectancies, instrumentality, and valence; see Figure
2-3) be used to increase the motivation of new employees? That is, what activities or discussions might be conducted that
would increase the likelihood that employees will exert high.

131

each employee, it can

LESSON 1 8 : JOB
ANALYSIS AND DESIGN

be

ensured

that

whatever amount he is
Learning Objectives

performance if it is based on measurable paid, he deserves, it is

Job Analysis-Definition

learning objectives.

Uses of Job Analysis

Elements of Job Analysis

the small business is to conduct an audit of and several factors.

Job Description

future personnel needs. Ask yourself

Job Specification

Job

Design-

Approaches

because of his skills,

The first step in assessing personnel needs for abilities,

Can

the

workload

you

visualize

experience

What is Job Analysis

be It is also known as job

accomplished by the present work force? Will study. It studies and

Dear

more or fewer employees be needed? Consider determines

the

students,

seasonal patterns of demand and probable characteristics of each

Today let us memorise the topic Job analysis,

turnover rates.

which we have studied in the 2nd semester in the

human resource management.
Introduction

Can any jobs be eliminated to free people for responsibilities,

working conditions,
other work?

What balance of full-time or part-time,

The small business owner should base the firm's

temporary or permanent, hourly or salaried

personnel

personnel do you need?

policies

on

explicit,

well-proven

principles. Small businesses that follow these

principles have higher performance and growth
rates that do not follow them. The most important

All positions should be filled with people who

are both willing and able to do the job.

The

more

accurate

and

realistic

the

specifications of and skill requirements for

each job, the more likely it is that workers will
be matched to the right job and, therefore, be
more competent in that job.

A written job description and definition are the

keys to communicating job expectations to
people. Do the best job you can! is terrible job
guidance.

Employees chosen on the basis of the best

person available are more effective than those
chosen

on

the

basis

of

friendship

or

expediency.

If specific job expectations are clearly spelled

out, and if performance appraisals are based on
these expectations, performance is higher.
Also, employee training results in higher

What does the labor supply look like in the

future?

of these principles are

job like duties and

element of risk in
performing each task,
employment
conditions,

such

as

remuneration,

working
Will you be able to fill some of the jobs you've opportunities
identified? How easily?
promotions

hours,
for
and

What qualifications are needed in your privileges etc.

personnel?
There are various
Develop a method to forecast labor demand based attributes
regarding
on your answers to these questions. Once your job analysis. Some of
needs are estimated, determine strategies to meet the attributes are
them.
discussed below:
The process of selecting a competent person for

A job element is

each position is best accomplished through a

the smallest unit

systematic definition of the requirements for each

into which work

job, including the skills, knowledge and other

can be divided.

qualifications that employees must possess to

perform each task. To guarantee that personnel

work

needs are adequately specified, (1) conduct a job

VARIOUS problems relating to human resource

management can be effectively solved if a detailed
analysis of each job is carried out. Also
ifperformance appraisal is carried out regarding

activity

carried out for a

analysis, (2) develop a written job description and

(3) prepare a job specification.

A task is a distinct

distinct purpose.

A duty relates to a

number of tasks.

A position refers to
one or more duties
performed by an
132

individual in an organisation. There are as

>z

Job

ysis,

many positions as the number of persons in the

Ana

you

lysi

identify

s-

the

Ele

skills,

me

knowle

nts

dge and

Job

abilities

anal

require

2=

ysis

is a

that

syst

employ

ema

ee, and

tic

determi

inve

ne

stig

duties,

atio

respons

ibilities

that

and

coll

require

ects

ments

all

of each

info

job.

rma

Job

tion

analysi

pert

inen

should

t to

provide

eac

informa

tion

task

such as

perf

Job

orm

title.

ed

Dep

by

artment

an

Sup

emp

ervisio

loye

e.

require

Fro

d.

Job

organization.

re c/a O

A job may be defined as a position or a group

of positions that are similar as to kind and level
of work. For a particular job there may be only
one position in an organisation, for instance
Secretary of a Company, whereas there may be
many positions to reform the same job, as for
instance, accountants, clerks, foremen etc.

A job family is a group of two or more jobs

that

either

call

for

similar

worker

characteristics or contain parallel work tasks as

developed by job analysis.

An occupation is a group of similar jobs. There

is similarity in the kind of work and possesses
certain characteristics. Marketing may be
bifurcated into a number of jobs due to various
reasons but it is considered an occupation.

A career relates to all the jobs, positions or

occupations held during one's working life.

as
n re c/a
P

r-

>ZZ
z

this
anal

133

of

the

des

criptionmajor

and

implied
duties

and

determining what types

the job and the

requirements of a

agai

ment:

of information should

other relating to

job and the kind of

nst

Identifi

be obtained from the

the

person who should

whi

cation

applicant,

performing the

be hired for it.

ch

of

job

duties

from

responsibilit

previous

ies.

and from other sources.

requirements of

consist of positions

appl

and

Even

the

that

ican

respons

Unique

employers,

individual

though

many

job.

The
job

Organizations

are

have

to

be

of

companies are laying

termed as Job

staffed. Job analysis

ibilities

the job including

off substantial portions

description and

is

can

and the

location

of

the

through which you

be

usage

determine

com

of

the duties of these

pare

machin

d.

es and

characteristics

and

<
e

physical

setting.
PP Types

of

material used.
E Types

of

equipment used.
t

Qualifications.

their

workforces,

qualities

employee selection is a

required

vital

the

part

of HRM.

from

performer

the

procedure

Personnel selection is

are termed as

positions

important

Job

characteristics of the

The

equipm

building of a productive

specifications.

people who should be

spe

ents

workforce. Determining

Following

hired for them .The

cifi

help in

the qualifications of job

definitions will

analysis

produces

cati

develo

candidates requires that

help

you

to

information

on

on

ping

as much information as

understand

the

requirements, which is

pro

the

possible

concept of job

then

for

vide

content

in

be

the

obtained

and

the

job

used

Experience

from the candidates and

analysis better:

developing

job

s a

and

requirements.

other

descriptions (what the

basi

subject

Education

important for you to

job entails) and job

matter

requirements.

data

understand

specifications

for

of

Mental and

collection

information

kind of peo-ple to hire

sele

trainin

physical

and analysis

collected

for the

ctio

requirements.

procedure

relevant for to the job

job).

n of

progra

Manual

through

and sufficiently reliable

pers

mmes.

dexterity

and

required.

practitioners

Working

have an understanding

sources.

It

that

is
the

that

is

should

be

valid.

HR
should

conditions

of job requirements to

(inside,

permit an analysis of

outside, hot,

application

forms,

cold,

dry,

employment

tests,

wet,

noisy,

interviews,

and

dirty, etc.).
You

must

reference

checks

of

individual candidates.

understand that

The information when

Job

secured and examined,

analysis

provides

the

exhibits

basis

for

information relating to

some

defined

(what

which

Uses of Job Analysis

information

Job

about

job

significant role in human

tasks

and

resource department assist

Analysis

plays

job

affects numerous activities

requirement

of the department. Some of

the activities are given

are

obtained.

below.

Job analysis
is

the

(a)
Selection of Personnel: Job

procedure

analysis

for

setting

determining

specification.

job

the

duties

specification

is

the

and

skill

facilities

in
job

standard of personnel

onn

(c)

el

Job

the

for

Evaluat

vari

ion: It

ous

facilitat

posi

es job

tion

verifica

s.

tion.

(b)

There

Trainin

are

certain

and

jobs in

Dev

which

elop

risks

134

and hazards are

necessary

analysis for a

is a list of the

des

th

involved.

qualifications.

particular

elements that make

cri

titl

Labour Relations:

position

up a particular job.

pti

jo

es

in determining

Job analysis helps in

typically

on

b,

of

the

consists of two

is a list of the

and

th

jo

which

parts.

qualifications

ut

us

bs

terms of money

facilitate in resolving

required to perform

mo

pr

th

so

the

the disputes between

particular job.

st

es

at

wages can be

trade unions and the

important

of

car

er

ar

fixed.

management.

document as it

deta

vi

clarifies the scope

iled

sho

ng

im

of job activities,

info

uld

fle

duties

rmat

be

xi

ed

Job

analysis

(g)

worth

of

setting

job

in

standards

each

(d)

helps

that

Performanc

performance

(h) Health and Safety: It

A job specification

job

description

e Appraisal: It

enables

helps

in

hazardous

the

unhealthy

responsibilities

ion

tak

bil

iat

environmental

and

whi

en

ity

el

of

ch

in

of

evaluating
performance

to

identify
and

and
positioning

objectively.

It

conditions

makes

it

corrective

organisation. The

cons

wri

op

ov

possible

to

steps can be undertaken

contents of job

titut

tin

er

er

know how far

to reduce and avoid the

description

es a

g it

ati

an

an

possibility

given below:

job.

do

on

of accidents.

Job

wn.

s.

un

employee

has

been

successful

in

achieving

the

objectives

of

the

understand why is Job

job

( e) Promotions,

for

promotions,
transfers,
other

and
related

terms.
(f) Guidance:

Job

analysis
provides
candidates

is

information

about jobs.

Why is Job Analysis

the
in

jobs for which

have

the

are

Job

Identification

Dut

ies:

Job

title,

department,

It

division, and

give

plant and code

number of the

com

job.

preh

Job

ensi

Summary: It

ve

provides

list

additional

of

identification

the

information

duti

when a job

es.

title

It is

i
a

adequate and

the

procedure

secondly

it

bac

for studying jobs to

orients

the

kbo

Job description is

determine their various

reader

derived from job

elements

towards

analysis. It is an

understanding

important

Without

sufficient knowledge of
what

employees

organizations

do,

cannot

develop other human

resource practices and

Job

analysis

systematic

is

and

requirements. The job

135

in

procedures.

ascertaining the
they

analysis

obtaining

Transfers etc.: It
basis

What is Job Analysis -

job

Analysis required:

organisation.

the

that

It is very important to

provides

so

is

not

ne
an

of
job

It
sho

Su de
pe r

uld

rv

thi

be

isi

reg

on

jo

ard

Gi

ed

ve

an

as

an

an

th

out

line

de

of

ec

gr

the

ei

ee

mi

ve

of

ni

d:

su

mu

It

pe

in

rvi

req

cl

sio

uir

ud

em

es

in

ent

th

vo

s of

lv

ed,

such

as

conditions

ations

the

experience

es

newcomer

must

required

to
the

of

simila

or

esp

oth

ga

onsi

ers,

types

nis

bilit

ope

of

ati

y:

rati

jobs,

on

general,

should

intermediate or

clearly

and

possess to perform

perform

close

mentioned.

resp

the

job.

onsi

satisfactorily and

Any

bilit

successfully.

Knowledge

For

on

motiv

al

or

ies.

specification

Requirement

cert

and

ation

str

s:

ain

mai

of

ate

supervision.

be

that

duti

Unusual

Relation

to

Terms:

ob
Job

Specific

Other Jobs: It

technical

exhibits

unusual works 3. It

identifies

vertical

under

the helps in

education,

mow

includes

high

nte

emplo gy

relationship of

head

'job develop

ledge,

skill,

specific

leve

nan

yees

promotion and

duties'

knowledge

ce

etc.

Si

the horizontal

'duties

perform

abilities needed to

that cannot be

jobs

of

The

nc

relationships

performed'

ance

do

of

should

be standar

and

listed

ds.

procedures.

separately and 4. It is
defined.
used as

the

workflow

Machine,
Tools

and

Uses

of

personality

or ing

Job a

Description

provides

There are several of wage

method

list and defines

uses

each

description. Some salary

major

of

job and

type or trade

of them are given adminis

names of the

below:

machines,

1. It facilitates in Job

tools

tration.

the

equipments
material used.
Working

of
which

Conditions: It

cations

job The job

specifications,

specific

are ation is

useful

in an

provides

planning

output

information

recruitment

of

about

the

and
formulating

which the job-

training

holder has to

development

work, such as,

hot, cold, dry;
dusty,

oily,

noisy

etc.

Hazards

newcomers

equ

mana

effectively.

Job

adequately by

abili

ip

geme

jo

the education

ty to

me

nt

bs

and

assu

nt,

shoul

ar

important tool in

experience

me

too

d not e

the

requirement.

resp

ls,

take a lin

.~

onsi

etc.

decisi

serve

as

an

selection

process

and

evaluation.

They

are developed by
the

human

resource

bilit

Skill

Requirement
s:

Manual

skill required

department

in

consultation with

to perform a
job.

supervisor

and

managers.
The

Personali

ty
Requirement

various

s: For certain

elements of job

jobs

specification are:

personality

Education

factors

such

Requirement:

appearance,

Minimum

emotional

formal

stability,

the

education

maturity,

minimu

necessary

ion,

2. It facilitates in m
orienting

the

as

and states

programmes.

covered

al

job

in descript

environment in

job

different

Specifi

development

and the raw

the

specifications

Equipment: It
the

and

This

the accepta
ble

towards their qualific

to

perform

personal

initiative,
drive

and

particular job.

sociability are

required..

e:

Experienc
Minimum

Job

ke

on in d

y is Design
an
Job

haste

be

in

tw

esse

desig

ee

ntial involv
pre- es

ning

or

pe

requ special
isite isation,

later

op

redesi

le

gning

an

This ication
resp in

jobs

onsi

perfor

organi ga

bilit

ming

sation

the

. Job ati

may

job,

desig

on

be

job

ning

sup

rotatio

shoul

or

ervi

n, job

sion

enlarge

consis nis

of

ment,

tent

ati

othe

relatio

with

on

rs,

nship

the

al,

safe

with

overal en

ty

design

simplif

in an or

nis

be ga

vir

136

onmental

and

designing

jobs tics

behavioural

initially

factors should be

redesigning at a discuss

taken into account

later

before

whether

designing

or model
>z

stage, es this
they issue

Group

re c/a O

r-

s develo

Quality

>ZZ

i pment

circles

70

x in their

develop

n re c/a

2=

t functio

participati

o nal

ve culture

e area. It

as well as

i provid

teamwork

g es

h solutio

concept

t ns for

of quality

. quality

circles is

Tand

not

h produc

confined

i tivity

to

s proble

manufact

g ms,

uring

r which

organisati

o are to

ons but it

u be

has

p imple

spread in

e mente

areas like

fd

banking

technical approach to job

jobs.

want

The

modernize the job the

>

Organisational

and, if so, to what chapter.

job

extent.

Job

are

The

Design

group is responsible for

environmental

Appro

re or groups are
c/a discussed below:
O

given a COI}$jqeraple

factors

of

design
concerned

with

to later in

Design

efficiency.

factors

They consist of

design consists of The

mechanistic

ability

approach,

which

of

job aches
and manage

availability

of ment

seeks to identity

potential

every task in a

employees

job; so that the

the

tasks

of the society.

design

arranged in such a

The

options.

manner

behavioura/factor

They

may

be
to

has
and various

expectations job

minimize the time

s of job design can be

and

are

effort

of

utmost classifi

of

ed

workers. When a

importance.

group of identified
tasks are dubbed

The management under

should
first two

into a job, it is

decide

called

whether categori
the skills of the es viz.

specialisation.

existing

Secondly,

the

workflow in an
organisation

is

1. Gro

employees

will up

Options

design, It integrates the

The

social system with the

approaches

for designing or

technical

redesigning

autonQ!11ol,lS

jobs

Work Teams

system.

An
work

achieving a goal and is

70 To create a work

amount of control over

n team, a. group of

work assignments, rest

re workers is given a

breaks,

c/a large

priorip.ziIlg,/inspection

task

to

complete and the

procedures

etc.

Some

r- team members are

autonomous work groups

> responsible

for

eveIl, have the freedom

Z deciding

on

to select their members.

Z specjfic

task

Quality Circles
The concept of quality

o assignments,
2= solving
z

circle has emerged from

quality

production
problems;

and

control.

It

focuses

on

primarily
maintaining

continually

and

improving

work

enhancing the quality of

activities.

The

the product or service.

members of the

The basic objective of

work

quality

team

can

control

is

to

match with the Design

rotate the tasks

develop,

new

among

members

manufacture, market and

jobs. Options

design,

determined by' the

Sometimes

or assign specific

service products that will

nature of product

additional

2. Indi

tasks to members.

provide

The group has a

satisfaction

supervisor

consumers.

or service. Work
practices

are

standardized
of

performing work.
The management
to

decision

137

is vidual

required.

Design

Designing

methods

has

training

take

while

jobs Options
should satisfy the .
wants, needs and
desires

of

the

employees.

The

job

characteris-

who

life
to

long
the

Quality circle refers to a

operation.

group of employees who

Autonomous

meet regularly to sole

Work Groups

problems pertaining to

This

their operational

also

termed as socio-

area.

Their number is usually

only

f the

and

o manag

insurance.

r ement.

The

t It

is

objectives

h not

of quality

e sugges

circles

l tive

are:

p body

s but has

about

n to play

an

t even

overal

h beyon

e d that.

develo
pment

v follow
es

of the

organi

r proacti
a ve
l approa
l ch.

To

bring

i a role

o It

overseas the entire

is

by

The

sation;

To

develop a

well on a task that they P

tive

throug

ec terms:

care about (experienced e

ly

model specifies five core

tiv Experienced

meaningfulness).

to

psych

ial develop a sense of

job characteristics: They

en Meaningfulness:

more that these three p

job

ologic

w belongingness

are:

es The degree to
s which
the
of employees

conditions are present l

al

the greater will be the e

that

states

employees

are

in

hi perceive the work

s as
being
or meaningful,

performance

and i

hig

influe

the t

ncing

lower, their absenteeism h

in

person

and

of s

mo

al and

co n

that

quality

characteristics and their

eff the

ng circles, if properly

inter-relationship.

en implemented,

or with

the

The

The o

the

Skill

Variety:

ki organisation, team

degree

to

ng spirit,

problem

employees are able to do

en solving approach,

a number of different

vir better

tasks

on interpersonal

different skills, abilities,

he valuable

and talents.

r worthwhile.
pe Experienced

turnover. As the model t

tiva

work

shows, the links between r

tin

outco

rf Responsibility:
o The degree to
r- which employees

the

mes

and the work outcomes n

pot

variab

are

the g

enti

les,

m feel
an and

accountable

strength

the g

al

rather

responsible

individual's growth need, r

tha

than

that is, the employee's o

influe

desire

do

ncing

cy1d

tho

them

se

directl

individuals with a high n

wit

y.

growth need are more e

Work

likely than their low e

we

Flexibilit

growth need counterparts d

ak

to expedience the critical s

gro

In

psychological

states r

wth

recent

are e

nee

years

enriched and to respond s

ds.

there has

m relations,

job

which

using

The

following

the

many

en satisfaction etc.

Task

t; ^dividual Design
an Options

degree to which the job

d The

whole and identifiable

individual

design approaches

Identity:

The

requires completion of a
piece of work

and

To (Job Environment,

Task Significance: The

ful Job Enlargement

degree to which the job

ly and Job Rotation)

has a substantial impact

ce. for the outcomes

Th ofth.eir work.

ex are discussed in

on the lives or work of

pl the

other people-importance

thr

of the job.

ee

Autonomy: The degree

cri

th Morale.

to which the job provides

tic

e Job
hu Characteristics

substantial

freedom,

al

and

ps

m Model
an While performing

discretion

the

yc

individual in scheduling

ho

ca some job there are

the

in

lo

pa certain

determining

the

gi

bil characteristics

procedures to be used in

ca

iti that
affect
es. productivity,

carrying

maintaining rigid control

sta

St motivation
ud satisfaction.

and

over the work.

tes

ies Hackman

and

which carrying out the

ha Oldham

have

work activities required

by the job results in the

chapter-

or Motivation,
e Incentives

ve developed

and

independence
to

work

and

it

out

and

Feedback: The degree to

sh model

that

individual

o identities
w such

five

direct

job

information

obtaining
and
about

clear
the

ar
e
de
fin
ed
in

Knowledge
Results

of
from

Work Activities:
The

degree

to

which employees
know

and

understand

how

well

they

are

performing on the
job.
The model says
that

internal

awards

are

obtained

by

individuals when
they

learn

(knowledge

of

results) that they

personally
(experienced
responsibility)
have

performed

motivation, w

satisfaction

and

likelihood

job

characteristics o

adjusted

This

when

by
of

for

self-esteem w

self-actualization. t
means

their

jobs

that h

the

more positively to the p Job

psychological
states o di
when they are present. n me

been

The model shows the d

n,s

business,

following features:

ion

thereby

People who work on o

jobs with high core r

s or

increasing

cha

the

job characteristics are e

more
motivated, p

ract

working

eris

force. The

and o
productive than those s
i
who do not.

tics

working

ope

class

rate

trying

satisfied

an

expansion
of

is

138

>

.
m

h
a

l
a

g
e

e
e

h
a
t

w
o
r

u
s

e
s
s

f
a
m

h
139

r
e
uc
l
d
a
d
a
p
t
t
o
t
h
e
c
h
a
n
g
i
n
g
e
n
v
i
r
o
n
m

i
b

r
i

f
l

s
,

i
n

,
w

d
w

l
140

c
e

t
b

e
t

d
v

e
f

c
e

e
i

e
d

t
e

d
s

n
o

r
t

g
y

g
141

,
t

y
o

r
.

h
e

m
w

i
n

n
i

a
s

s
e
i

w
h

b
t

142

of work within certain

limits. The employees

assume responsi-

bility for completing a

specific job.

c
o

Telecommuting is a
more recent trend in

which employees can

^
b

work

choice of location and

communicate through

from

their

re
w

I-

the use of computers,

express

mail,

fax,

telephone etc.
f

a
s

Work

designed

to

give

flexibility

to

those

sharing

is

people

----------------------------------------------

re

y
n

r
o
f
143

o
f

r
e

o
n
c

i
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e

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f

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t

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i

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144

a
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b

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d
t

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f

r
145

f
o

o
b

t
h

a
d

h
e

c
r

s
i

e
s

e
o
146

There is an excellent resource the small business s

owner can use

s
m

o
147

.
A

the job than anyone else.

Job Specification

n
o

T
h

e
s

(
b

p
e

t
h

i
f

u
c

t
i

a
t

o
j

s
c

a
n

r
i

i
a
148

qualities, skills and abilities needed to perform the

job satisfac-

c
a

i
n

c
w

p
r

should be used as the

basis for recruiting.

149

Job Description Vs Job Specification

n
f

n
-

b
p

equipment

and

conditions

which job

is performed.

used
working
under

n
n

o
b

a
r

a
s

r
a

i
f

e
i

150

t
o

e
s

i
n

perform a job What

i
f

physical

personal

c
h

i
s

k
n

a
151

about
and

g
t
h
,
p
a
t
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c
e
,
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152

>z

LESSON 1 9 : JOB ANALYSIS-PROCESS

AND TECHNIQUES

re c/a O

Learning Objectives

Step 3

as

Definition

Select representative positions to be analyzed. This is done when

n re c/a

6 Steps in Job Analysis

many similar jobs are to be analyzed and it is too time-consuming to

Types of info gathered

analyze, say, the jobs of all assembly workers.

>ZZ

Method of collecting Job Analysis Data

Step 4

Impact of Behavioral on Job Analysis

Next actually analyze the job by collecting data on job activities,

r-

Now let us go through the 6 Steps In Job Analysis

2=

required employee behaviors, working conditions, and human traits

and abilities needed to perform the job. For this, you would use one
or more of the job analysis tech-niques explained in this lesson.

Develop

Job

Description/Job

Specification6
Review information with incumbents
5
Collect

data

to

analyse

job

how

information

will

be

used

confirm that the information is factually correct and complete. This

"review" step can also help gain the employee's accep-tance of the
job analysis data and conclusions by giving that person a chance to

Step 6
Develop a job description and job specification. A job description

Go through the following six steps in doing a job

analysis. They will make the concept clear to you .
Step 1

and a job specification are usually two concrete products of the job
analysis. The job description is a, written statement that describes
the activities and responsibilities of the job, as well as important
features of the job such as working conditions and safety hazards.

Identify the use to which the information will be

put, since this will determine the types of data you
collect and how you collect them. Some data
techniques

like

interviewing

the

employee and asking what the job entails and what

his responsibilities are - are good for writing job
descriptions and selecting employees for the job.
Step 2
Review relevant background information such as
organization charts, process charts, and job
descriptions. Organization charts show how the job
in question relates to other jobs and where it fits in
the overall organization. The chart should identify
the title of each position and, by means of its
interconnect-ing lines, show who reports to whom
and with whom the job incumbent is ex-pected to
communicate.

153

and with his or her im-mediate supervisor. This will help to

review and modify your description of his or her job activities.

collection

Review the information with job incumbents. The job analysis

informa-tion should be verified with the worker performing the job

4
1 Select representative positions to analyse
3
Review
background
information
2
Identify

Step 5

The job specification summarizes the personal qualities, skills, and

background required for getting the job done; it may be either a
separate document or on the same document as the job description.
It is essential for you to understand that Job Analysis helps to find
information about the following:
Work activities: Information is usually collected on the actual work
activities per-formed, such as cleaning, selling, teaching, or
painting. Such a list may also in-dicate how, why, and when the
worker performs each activity.
Human behaviors: Information on human behaviors like sensing,
communicat-ing, decision-making, and writing may also be
collected. Included here would be information regarding human job
demands such as lifting weights, walking long distances, and so on.
Machines, tools, equipment, and work aids used: Included here
would be informa-tion regarding products made, materials
processed, knowledge dealt with or ap-plied (such as finance or

law), e) by which an employee in this job will be

Types

and

Information

dealt with / applied

that

Gathered

required.

evaluated.

service Job context: Included here is information about

s
such matters as physical working conditions, work
rendereschedule, and the organizational and social
d (suchcontext-for in-stance, in terms of the number of
as
people with whom the employee would nor-mally

of

Services

rendered

Human
Behaviours

Knowledge

Commu

trainingare

Performa

responsible for two nce

dozen or so specific Appraisal

nicating,

duties

counse have to interact. Also included here might be

ling orinformation regarding incentives for doing the job.

decision

planning

making, and

repairi Human requirements: Finally, information is

ng)
usually compiled regarding human requirements of

production schedules, ce
purchasing
raw appraisal

Perfor the job, such as job-related knowledge or skills

mance (education, train-ing, work experience) and
standa required personal attributes (aptitudes, physical

demands,

rds:

Work

char-acteristics, personality, interests).

Other

physical job

including A
weekly performan

materials,

and compares
supervising the daily each
activities of each of employee's
her
first-line ac-tual

e.g., lifting

supervisors.

Inform

Activities

ation is

Work

also

activities

collect

performed

ed

How

regardi

,why

ng

activity

perfor

performed

}v performan
fissing, however, is ce with his
any

reference

managing

to or
her
raw performan

material or finished ce
goods
in-ventories. standards.

,when
is

On

further It is often
investigation you find through

mance

that none of the other job

manufacturing people analysis

stan-

is

dards
(in
terms
of
quantit
y,
quality,
or
speed

Performance
standards

Quantity,

quality,
speed

Used to

evaluate
employee
performance

for

responsible

for that

inventory
management
Your

job

experts
either. determine
analysis the

(based not just on standards

what
employees to
be
report as their duties, achieved
but
on
your and
the
knowledge of what

specific

Training

ac-tivities

Job

analysis to
is

be

each

Tools,

information

job

equipment,

used

duty,

etc used

training and devel- ANALYSI

for

opment

instanc

made

Products

for

also performed.

designing JOB
programs S

because the analysis Process of

and

resulting

job defining

description show the jobs

in

skills-and

of

therefore terms

154

2e

manager, you may find

The tasks performed, the pace at

=Appraisal
J
M Compensation

she reports herself as

which activities are done, the working

being

conditions, etc., are observed during a

complete

H
J
P

Methods of Collecting

Job Analysis Data/ Job

Ra

Analysis Methods

el

You should know that a

cu

variety of methods are

ra

used

uti

information about jobs.

io

None of them, however,

tn

is

practice,

collect

perfect.

In

therefore,

combination of several

gA Look at the

value of and appropriate

methods

Areas in Which

compensation for each job.

obtaining

SJob

This

data. These are discussed

Evaluation
is

is

so

compensation.

because
(such

as

used

job

cycle.

certain

During

precautions

should be taken
The

analyst

must

observe

average workers during average

conditions.
>
Z

The analyst should observe

essential for estimating the

is

observation,

actual

nLet us Now Have

eZnformation

without

getting

directly

involved in the job.

for

analysis

The analyst must make note of

the specific job needs and not

below.

the

specific

to

salary and bonus) usually

Job

performance:

eRecruitment and
cSelection

depends

this

method

required skill and education

analyst actually performs

t
Job
analysis
i
provides
o
information about
n
what
the
job
P
entails and what
e
human
r
characteristics are
f
required to carry
o
out these activir
ties. Such job
m
description
and
a
job specification
n
information
is
c
used to decide

level, safety hazards, degree

the job in question. The

The analyst must make sure

of responsibility,

analyst,

that he obtains a proper sample

and so on-all factors that are

first hand experience of

as-sessed

through

job

contextual factors on the

This method allows for a deep

analysis.

Job

analysis

job including physical

understanding of job duties. It is

information

hazards, social demands,

appropriate

for

emotional pressures and

period

activities.

worth of each job so that

mental

requirements.

negative side, the methods fail to

each job can be classified.

This method is useful for

take note of the mental aspects of

jobs that can be easily

jobs.

learned. It is not suitable

Critical incidents : The critical

what

done are in fact assigned to

sort

of

provides

on

the

determining

the

the

Ensure

job's

relative

Complete

Assignment of Duties
The job analysis is also
useful for en-suring that all
the duties that have to be

people to recruit

particular

and hire.

example, in analyzing the

Job

analysis

information is also

current
company's

po-sitions.
job

of

For
your

production

for

the

thus,

jobs

hazardous

In

behaviours

lUsed

Compensation

155

to

work

particular workers.

job

receives

for generalisation.

job

manual,

short

On

the

that

are

incident technique (CIT) is a

(e.g.,

fire

qualitative approach to job analysis

fighters) or for jobs that

used to obtain specific,

require extensive training

behaviorally focused descriptions of

(e.g.,

work or other activities.

doctors,

Here the

pharmacists).

job holders are asked to describe

Personal

observation:

several incidents E based on their past

The analyst observes the

experience. The incidents so collected

worker(s) doing the job.

are

analysed and classified

according to the job areas they

ar the

job.

For

onexample, if a shoe

ce salesman

Interview:

th comments on the

interview

e size

consists

an customer's

al and the customer

incumbents

ys leaves the store in

supervisors in either an

about the motives and

relationship to overall performance.

t a

individual or a group

may

the

The jobholders should be asked to

dr behaviour of the

setting.

information

they

properly rate the various job factors

a salesman may be

behind the use of this

provide. If seen as an

and communicate the same on paper.

w judged as ineffec-

method is that jobholders

opportunity

to

The ratings thus collected are then put

s tive in terms of

are most familiar with

improve

their

to close examination with a view to

th the

the

can

positions such as to

find out the actual job requirements.

e produced.

increase their wages,

Questionnaire

li critical

workers

may

economical as it covers a large number

of

a
feet

huff,

the

result

it

descriptions into meaningful

dependent

statements.

interviewer's

skills

The success of the method depends on

various

factors.

The

structured

and may be faulty if

questionnaire must cover all job

method

they put ambiguous

related tasks and behaviours. Each

asking

questions to workers.

task or behaviour should be described

both

Last,

in

and

may

to

The

job

the

The
of

questions

on

reason

and

The

supplement

the

incidents

information

obtained

interviewees
be

suspicious

distort

terms

of

importance,

features

difficulty,

method

such

as

frequency,

is

highly

ne are recorded after

through

observation.

exaggerate their job

of job holder" at a time. The collected

be the events have

Workers

know

duties to add greater

data can be quantified and processed

twalready

specific duties of the job

weightage

through a computer The participants

ee place

and

positions.

can complete the items leisurely.

n routine and non-

aware

Questionnaire

Designing questionnaires, however is

ef routine.

The

relationship to the rest of

method

fe process

of

the organisation.

questionnaire

cticollecting a fairly

Due diligence must be

widely used method

He':

ve good number of

exercised while using the

of analysing jobs and

Further, it is difficult to motivate the

an incidents

interview method. The

work.

participants

d lengthy

interviewer

jobholders are given a

questionnaires truthfully and to return

in Since, incidents of

trained

properly

them.

ef behaviour can be

interviewing techniques.

questionnaire

fe quite

It is advisable to use a

at eliciting

ctithe

ve classifying

be into

ha descriptions

vi be difficult. The

ouanalysts

rs overseeing

of work must have

w analytical
or and

taken
-

both

is

a
one.

dissimilar,
process
usable

ability

the

supervisors
of

are

the

job's

must
in

be

proper

to

their

The

not an easy task. Proper care must be

taken to see that the respondents do

is

Here

the

designed
aimed

standard format so as to

relevant

data

focus the interview to the

information.

After

purpose of analyst.

completion,

the

questionnaires

are

can

the
skills
to

ke translate

the

rs content

of

oh

Although the interview

method

provides

opportunities
information
not

to

elicit

sometimes

available

through

other methods, it has

limitations. First, it is
time

consuming

and

hence costly. Second, the

value of data is primarily

handed

job-related

over

supervisors.
supervisors

to
The

can

seek

further clarifications on
various items by talking
to

the

the

to

questions.

complete

the

Let us now have a look at some of the

standard questionnaires that are being

of
job

misinterpret

jobholders

directly.After everything
is finalised, the data is
given to the job analyst.

widely used.
They are discussed below for your
better understanding:
1.

The

Position

Analysis

Questionnaire (PAQ)
The

PAQ

is

standardised

questionnaire (developed at Purdue

University)

developed

to

quantitatively sample work-oriented

job elements. It contains 194 items
divided into six major divisions. The
PAQ

permits

management

to

156

er s

c
i

Activities

in

and what tools or

re PAQ

devices does he/

devices.

she uses?

Assemblin

lat1. Information
ed Input: Where

Examples

g/

jo

and how does

disassemb

the employee

ling.

el

gets

information

he/she uses in

with other people are required

en

performing

in performing the job?

ts

his/her

Examples:

above

in

job.

Instructing.

are

to

Examples

Contacts

with

relevan

jo

public,customers.

3. Job context: In what

to

di

physical and social

job?

context

work performed?

ples:

n-

Examples:

Specifi

ed

the

Keyboard

2. Relationships
people:

is

What

with

other

relationships

the

Exam

the

si

on

work

s.

pace.

Amoun

he

t of job

se

reasoning,

structur

ar

making,

planning

ex

pl

2. Mental Process: What

decision

e.

e
and

The

information-processing

activities

activities are involved

shown

ai

in performing in the job?

above

ne

Examples

represent

Levels of

requiremen

be

reasonin

ts that are

lo

applicable

w:

problem

to all types

solving.

of

jobs.

Coding/

This

type

pl

decodin

oy

characteristics:

1. Physical activities:

What

ee

in

Job of

4. Other

quantitativ

activities, e

What

physical

conditions,

activities does the

characteristics

employee

than those described many

157

perform

or questionna
other ire allows

2 nnt

. aspecifically

designed
for

iuse in analyzing

8.

Approval

of

financial

wha

trical

typewriter),

purposes to be served by jobs

may

t is.

mental

the data. There is no one uncover

(analysing data) or

best way to conduct a employee

job analysis. Wherever faults,

commitments.

he

interpersonal

seco

(consulting

nd

person).

step

is

statements developed

quantitative

the

in FJA must conform

like Position Analysis employer's

y and stress.

iden

to a specific

Questionnaire

12.

tific

format.

financial

atio

Mrmanagerial

jobs.

9.

a eThe

item

service.

n questionnaire

a (contains

sections. It would
g M

n.

e Ptake

11.

complete
mD

questionnaire.
e Q

n )most

respondents
are
t M
Pasked to state

responsibility.

13.

deals with analysis of

qualitative approach like Resistance

Critical
Incident to change:

and

When jobs

-how
important
PQ
each item is to the
o D

tasks. Each task is

personnel

desc

analysed

responsibility.

ripti

Factors on Job Analysis tune

s position.

scales. These include

Functional

on

While carrying out the changes in

Analysis (FJA)

of

scales (data, people,

job analysis, managers technology

i iManagement
t sPosition

three worker function

FJA is a worker-

task

must take note of certain , there is

i Description

things),

oriented

s,

o aFactors
n 1.
Product,

instruction

analysis approach

whe

that attempts to
describe

t
o

p
a

274

15

21\2hrs

to
the

cases

smarketing

In
the

and

Staff

10.

Supervisio
Complexit
Advanced

Brood

Job

another

The

task

The

third

re

imposed) and three

employees.

Employees revise job

the

task

scales of reasoning,

may not always like the description

idea of someone taking a s and job

language.

examine

ned

fundamental

c don
of
other
r aorganisational

of

acti

i runits
p dpersonnel.

"data, people and

ons.

things". There are

The

five steps to be

task

followed:

acti

a
c

services

responsibility.

Q i5.

u ncustomer
e srelations.

t
h
e

Public and

s t6.
Advanced
t rconsulting.

i u7.
Autonomy
o m
of actions.

ne

the

as

components

The

involves

first

ons

the

may

identification

be

of

phy

the

and

In the fourth step

the analyst develops

performance
standards to assess
the

results

of

The

deals

final
with

training
needed

of
content

by

the

goals for the

FJA analysis.

ratin

Which

This analysis

g an

Follow?

describes

elec

Experts agree that the

jobholder.
Method

reasons

the ons

examine

-to

such make them

behind

negative responses more more

meaningful

closely.

a
analysis efforts may put have
them in a 'Straight significant

the

development

Let's

step

(ope

be, as well as,

to

This
Employee fears: Most .
employee's fear that job would

sical

should

the need

worker's tasks.

urgent

hard look at their jobs. specificati

organisation

what

with

from

defi

Impact of Behavioural change in

responses

the job. It tries to

Products

worker

Technique (CIT).

(degree of supervision

e aplanning.
s n2.
Coordinati

o e4.
n dand

(PAQ) attention

behavioural an

scale

mathematics

t i3.
Internal
i sbusiness control.

approach the

strong

job

s are

step

using

whole person on

written

must be followed. A escaped

should be supported by a so far.

D tfinancial strategy

and

multiple which

methods of job analysis might have

possible,

to

choice of job analysis

method depends upon the

their impact on
safe
initiative and inability. the
Another reason for the and secure
negative attitude is the job worlds,
Jacket',

limiting

feeling that" as long as employees

to
someone does not know used
am live
supposed to be doing, comfortabl
then I am safe". A y.
searching examination of Employees
precisely

what

158

n s ward off such

currently

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the job does".

d amust

Management1

>z

, nemployees in the

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involve

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t stating the reasons

h sfor

e hlatest

y oclearly.

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uOveremphasis on

a demployees:

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Job
efforts

rshould not place

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e icurrently

nSome

emphasis
what

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are
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t fmay be gifted with

o uunique capabilities

land

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n eof the job and

d sassume

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i ilike that person if

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u tjob

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t especifications

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"the

sshould

t .merely

a description

s Twhat the person

k o

159

Job

analysis re c/a O
efforts may put
70
managers in a '
n re c/a
straight jacket',
P
limiting
their rfreedom to adapt

>ZI
Z

m lcurrent

filling

not

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a
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o
2=

to changing needs from time to time. To avoid this, they may even refuse to appropriately describe what an employee is
supposed to do in the company - creating, of course, further confusion in the minds of employees.
Summary
Let us now summarise what we discussed under Job Analysis. We started with defining job analysis. Then we came down to the
six steps that are covered in the process of job analysis. Later on we threw some light on the type of information that is covered
and the areas where this information is used .We then spoke about the various methods that are available for Job analysis and
noticed that there is no one best method to collect data. All the methods have their pros and cons. This sums up E the topic.

recruitment.

LESSON 20:
RECRUITMENT
SELECTION

AND

Being

aware of legislation
that will affect your

Learning Objectives

Recruitment-Sources of Recruitment

Objectives of Recruitment

Recruitment Process and

Selection Procedure

effective, the recruitment process should attract business is extremely

qualified applicants and provide enough important to efficient
information for unqualified persons to self-select recruiting.
themselves out.
Recruiting
Your
The Aim of Recruitment
Employees/Recruitm

Very soon you all would be approaching different

it is of utmost importance for all of you to know

The overall aim is "to obtain at minimum cost the ent Process
number and quality of employees required to You are looking for
satisfy the human resource needs of the company". new staff. Perhaps

on what criteria do the companies select its human

(Armstrong, 2001:385)

your

resource.

The main objectives of recruitment are:

expanding, or maybe

Recruitment is one of the most visible roles

organisations looking for job opportunities. Hence,

company

is

organisations. Recruitment can be considered as

To obtain a pool of suitable candidates for you have to replace a

vacant posts.
key employee, who

Attract the best-qualified candidate for the has got another job,

part of a trio, 'recruit, reward and retain'.

position.

Recruitment is a process of generating a 'pool' of

undertaken by human resource departments in

Identify the talent needed to do the job.

moved

away

retired.

With

or
good

candidates by reaching the 'right' audience suitable

to fill the vacancy. Selection involves 'picking' the

contribute to company goals and a desirable planning you can take

most suitable candidate from the 'pool' that is

company image

To ensure that all recruitment activities human resources (HR)

willing to fill the vacancy "The human resources

are the most important assets of an organization.

the

guesswork

and

flying-by-the-seat-of

Promote your company as a dynamic place your-pants stress out

The success or failure of an organization is largely

where people do interesting work that makes a of finding employees.

dependent on the caliber of the people working

difference.

therein.

Without

positive

and

creative

contributions from people, organizations cannot

progress and prosper. In order to achieve the goals
or the activities of an organization,therefore, we
need to recruit people with requisite skills,
qualifications and experience.While doing so, we
have to keep the present as well as the future
requirements of the organization in mind."

To conduct recruitment activities in an efficient moment you reply to a

request for proposal,
and cost-effective manner.
Draw on the diversity of people in your
company, industry and community

Recruitment involves searching for and obtaining

potential job candidates in sufficient numbers and
quality so that the organisation can select the most
appropriate people to fill its job needs. (Dowling

Definition
Recruitment is a linking function' - joining
together those with jobs to fill and those seeking
jobs. It is a 'joining process' in that it tries to bring
together job seekers and employer with a view to
encourage the former to apply for a job with the

HR planning starts the

and Schuler, 1990)

We must understand that an organization with jobs
waiting to be filled, HRM personnel need to (1)
find candidates for those jobs and (2) match the
right candidate with each job.

or get a bigger order

from

an

existing

customer.

By

establishing a process
and following it, you
should

have

fewer

problems in finding
staff - whether they
are full-time, contract,
part-time,
consultants
fewer

or

problems

and
in

The basic purpose of recruiting is to develop a

It is important for us to understand that Recruiting keeping them with

is the process of attracting qualified job applicants. your company. The

group of potentially qualified people. To this end,

As a small business owner-manager, you should process may seems a

the organization must communicate the position in

be aware of the legal environment in which you bit bureaucratic and

such a way that job seekers respond. To be cost

operate. This is especially true when it comes to time

latter.

161

consuming

at

first glance, but the time spent up front will pay

and authority for each job. Your job descriptions > z

large dividends down the road. Hiring the wrong

should be living documents that you review yearly.

person can be costly in many ways.

As your business changes so these changes may re c/a O

need to be reflected in the job descriptions.
as
Job descriptions are usually one to three pages
n re c/a
long, depending on the scope of the job and the P
rlevel of responsibility. They can be in various
>ZZ
formats but all will contain the same basic
N
o
elements. A useful guide for environmental job
2=
descriptions is

Using Job Descriptions

A job description is written a summary of the
duties, responsibilities and expected results of a
job. Clear job descriptions will help both you and
your employees. The descriptions help to organize
how work is done, define the links between
different jobs, and state the level of responsibility

CCHREI's National Occupational Standards for

defined to assign responsibility for managing external contacts such

Environmental Employment.

as key customers or government regulators.

Elements of a Job Description

3.

Start your job description with a job title to name

Recruiting and Selecting Employees: A job description is the key

the job. Next add a job summary, one or two

tool that you will use when hiring new staff. You can use it to specify

sentences that defines the overall purpose of the

qualifications

job. The job qualification section is a brief listing

applications and to decide on interview questions.

of the education, qualifications and experience

4.

needed to be able to do the job effectively. The

Orienting and Training New Workers: You can use the

final section of a job description is the results and

ready-made outline of the job description to show new employees the

duties. Here you list the key job tasks and results

scope of the job, their responsibilities and anticipated results. The job

that the employee is responsible for. Descriptions

description can also be used as a checklist when training them on

for more senior staff should be focused on the

specific job skills or procedures.

results they need to achieve; while for junior staff,

5.

the emphasis is more on the tasks to be completed.

Communicating with Employees: By taking the time to prepare and

1. Defining Job Results and Duties: Job

review job descriptions, you are ensuring that your employees know

descriptions help you

to organize work functions

and

experience

when

advertising,

to

review

the results they are accountable for. This reduces the possibility of

and assign tasks to various jobs.

critical tasks falling between the cracks. While you want to empower

This is especially useful if your business is changing

your team by encouraging them to try new procedures and ideas, you

due to g growth or cutbacks, reorganizations or joint

also want them to deliver on the core job that they were hired to do. It

ventures, or you are N introducing new technology or

is a fine balancing act. A job description will reduce frustrations with

procedures. A brief listing of the expected results of

staff who either try to shirk responsibilities by saying 'that's not my

each job will help you to reassign tasks, results and

job,' or take on tasks outside of their job description because they like

responsibilities. The new job descriptions will help

them more than the work that they were hired to do.

your employees to understand and deal with the

6.

changes.

Managing Performance: The job description is ready list of the

2. Defining Job Relationships: Job descriptions

tasks and results that your employee should be achieving. By using

clarify the links between jobs by showing the

the job description both you and the employee can rate his or her

nature of contacts, supervision and authority that is

performance.

given or received. For example, a manager

7.

supervises a team, and the team takes direction

Determining Pay: You can use job descriptions to set pay structures

from the manager. Relationships can also be

and ranges for each job. Job descriptions can also be used to compare

162

your pay rates to your competitors and to those in

a friend or relative hired and perform well. Evaluate all word of mouth

the environmental sector as a whole.

referrals the same way as you would other applicants. Do not feel that

Finding/Searching Your Employees (or) Sources of

you have to hire them because they were recommended to you.

Recruitment

Internet Job Sites: This is fast becoming the preferred way for both

Whether you are replacing an employee who is

employers and employees to find each other, especially if you are

leaving, or you need to hire new staff as the business

looking for staff who are younger or comfortable with information

is growing, you need to use the most efficient method

technology. To reach a small select group of candidates, you can post the

to find the right people. There are many ways of

job on the career section of your own web page or to websites such as

conducting a search - each with its own advantages

the CCHREI EnviroJob Board and the Canadian Environmental

and disadvantages. Your search could range from in-

Industries Association (www.ceia-acie.ca). To reach a larger audience

house recruitment to reviewing unsolicited resumes.

you can post your job on general websites such as those run by the

You need to assess each option and then choose the

newspapers. They may charge you for doing so.

one or more ways that work best for you.

Newspaper/Trade Journal Ads: Most jobs are filled by the methods

Effective recruiting requires that you know where and

listed above. There may be times when you need to place and ad in a

how to obtain qualified applicants. It is difficult to

newspaper or trade journal. You can reach the largest pool of applicants

generalize about the best source for each business, but

locally, nationally or even internationally. The disadvantages to this

a description of the major sources follows:

method include price it can be very expensive to place a decent sized

In-house: The most qualified person may already be

ad that potential applicants will see as they scan the career sections. This

working for you. Some of the benefits of hiring from

method is also time-consuming, as you need to write the ad and let it run

within include a boost in employee morale, efficient

for some time. You also need to plan how to handle the volume of

succession planning as you are identifying those

applications. One company placed a small ad for a junior biologist in

ready for a new challenge, and less time spent on

their regional area. They received 800 applications for the positions from

orientation and training. Other benefits include fewer

across the country.

turnovers, as employees can see that they can have a

Colleges and Universities: This is a very effective way of filling junior

career with your company, and it is cheaper as there

positions with people whom you know are already qualified for working

are no advertising costs. However, there are some

in the industry. Campus recruitment is also helpful if you need staff with

disadvantages to hiring in-house. You may have a

specialised skills. For example, you could find a groundwater engineer

limited number of applicants, you will reduce your

from the Centre for Research in Earth and Space Technology

chances of hiring from diverse communities, and you

(CRESTech). The placement officer in the college or university will be

may miss the new energy and ideas that come form

more than willing to help you plan your recruitment strategy.

hiring outside your company. Internal hiring may also

Unsolicited applicants: Small businesses receive many unsolicited

cause a ripple effect of promotions and vacancies in

applications from qualified and unqualified individuals. The former

your firm. As one person moves up a new vacancy is

should be kept on file for future reference. Good business practice

created, a process which can continue all the way

suggests that all applicants be treated courteously whether or not they

down to an entry level job.

are offered jobs.

Word of Mouth: Putting the word on the street that

Schools: High schools, trade schools, vocational schools, colleges and

you are looking for people can be an effective and

universities are sources for certain types of employees, especially if prior

efficient way of finding employees. By tapping into

work experience is not a major factor in the job specification. Schools

your networks you may readily find the experienced

also are excellent sources for part-time employees.

professional that you need for that new contract with

very limited cash expense. Outplacement companies
maintain job boards free of charge and can be a good
source of skilled workers. Do not over look referrals
from employees. They have a vested interest in seeing

163

Private employment agencies: These firms provide a service for

employers and applicants by matching people to jobs in exchange for a
fee. Some fees are paid by the applicants, and there is no cost to the

employer; for highly qualified applicants in short

employees. These include people you meet at environmental

supply, the employer sometimes pays the fee.

conferences, seminars and trade shows. You can attract them by

Employee

referrals:

References

by

current

either setting up your own recruitment booth or through

employees may provide excellent prospects for the

informal meetings. Private employment agencies are also a

business. Evidence suggests that current employees

source, although they do charge a fee. Finally, you may find staff

hesitate to recommend applicants with below average

if someone just happens to be making the rounds of potential

ability. Word of mouth is one of the most commonly

employers by visiting your office or by sending you an unsolic-

used recruiting sources in the small business

ited resume. Whatever your source of employees, you should

community.

screen and select those for interviews using the same rigorous

"Help Wanted" advertising: Letting people know

methods.

that the business is hiring is a key element in gaining

access to the pool of potential employees. At its

Screening

simplest, this type of advertising may take the form of

The screening process provides information about an Z

window. More

individual's skills, knowledge and attitudes, enabling a potential

sophisticated methods involve using local media,

employer to determine whether that person is suited to, and qualified for,

primarily print sources such as daily and weekly

the position. Experience has shown that hiring an overqualified person

newspapers. The classified pages of newspapers are

can be as harmful as hiring an under qualified person.

frequently consulted by active job seekers, including

The application form is the place to begin screening candidates for a

currently employed individuals who may be tempted

job. It provides information on the person's background and training and

by a more attractive position. Other advertising media

is the first means of comparing the applicant with the job description.

include radio and television. These tend to have a

This will ensure that you don't waste time on applicants who clearly do

wider appeal than the newspaper; however, the price

not meet the minimum requirements for the job.

of an advertisement is correspondingly higher.

Generally, the following information is asked on an employment

Help

Wanted

sign

in

the

&
V

<
g

trade

application form: name, address, telephone number, social security

association magazines and newsletters, may also

number, kind of work desired, work experience, military service,

produce quality job applicants. There are efforts in

education and references.

some parts of the country to offer small business

The personal interview is the second step in the screening process:

employers access to cable television community

You need to make the interviews meaningful for both yourself and the

bulletin boards. Another high-tech opportunity is to

applicants. Do not just go through the motions, especially given all your

list positions on computer network bulletin boards.

effort in writing job descriptions and advertising. Successful interviews

Prices for help wanted advertising vary and the small

are a two way process. As the employer, you want to know more about

business owner approaches them with caution. A

the applicant than what is on their resume. In turn, the applicant wants to

well-placed, high-quality advertisement will attract

hear more about your firm and the job beyond what was in the job ad

good people, whereas, an

and job description. The key to good interviewing is preparation.

expensive advertisement in the wrong medium may

Before You Start

get no results. Some experimentation is worthwhile to

Long before you start the interviews you will need to do some

most small businesses. Another suggestion is to ask

background work. The more of this work you do ahead of time the easier

other small business people in the area about their

it will be to complete the interviews successfully. Part of your

success with help wanted advertising. Learn from

preparations includes deciding if it will be one or multiple interviews, if

others' successes and mistakes.

there will be one or more interviewers, and the length of the interviews.

Other Methods: There are a few other ways of

The short-listed applicants will need to know this information ahead of

finding the right

time. The more extensive the interview process, the more insight you

Specialty

media

publications,

such

as

will gain on the candidate and their fit to your company. This of course

164

will cost you in time. You also need to decide how

many people you are going to interview. Just before the interviews
ensure

that you review the correct resumes, the job

Listening

description, and the key questions you wanted

Once you have asked your questions give the applicant time to

answered by the end of the process.

answer. And pay attention to the answers. Keep an open mind at all

Opening

times. If the applicant gives an unexpected answer, use it as a

During the opening you want to make the

chance to probe and to clarify. If you do not like their answer, keep

applicant and yourself comfortable. Shaking

your reaction to yourself. Make notes to help you concentrate and to

n re c/a hands, offering coffee, taking a coat and so on can

refer to after the interview is over. Ideally, the candidate should do

>z
R

re c/a O
as
P

r-

all help put the applicant at ease. Next, you need to

> Z Z set the context for the interview. Give the applicant
N

2=

most of the talking.

Body Language

an idea of how you will do the interview and

Body language is just as powerful as the words you and the

perhaps a brief overview of your company.

applicant use in the interview. A smile will encourage the applicant

Open-ended Questions

to talk more freely. Frowning will cause the opposite effect. Audit

Use lots of open-ended questions in the interviews.

your body language when conducting interviews to check for

These questions usually begin with who, what,

consistency between what you say and how you act.

when, where, or tell me about a situation when?

Closing

Open-ended questions are used to encourage

As you bring the interview to a close, make sure that you ask the

discussion, to get the applicant to talk about their

applicant if they have any questions. In your closing remarks

past accomplishments and to probe where the

explain the next steps in the process and thank the applicant for

answers are not so clear. They are also used to

coming. After the person leaves make notes on their strengths and

build trust and rapport between you and the

weakness.

applicants.

During the interview, the manager learns more about the applicant

Close-ended Questions

through face-to-face contact, including observation of personal

Use these when you need a specific or a yes or no

appearance. The interview should be guided, but not dominated, by

answer. For example, you can ask "how long did

the manager as it is important to let the candidate speak freely.

you work for company XYZ?" Or "have you had

Whenever possible, the interviewer should ask questions that are

any project management experience?"

directly related to the job. Devise a list of questions that will

adequately assess the applicant's qualifications while meeting the

Questions to Avoid
Remember that hiring is a two way street; you
have to decide that this is the right person for the
job, and they have to agree that you are the right
employer. You can increase the chances of this

specifications for the job.

Three major errors often committed in the personal interview are:

Failure to analyze the requirements of the job in sufficient

detail to generate valid questions.

happening by avoiding certain questions and

remarks. Questions like "that's an unusual name,

their strengths and weaknesses, and their fit with the job.

what nationality is it?" Or "do you rent or own

your own home?" Or of women, "do you plan to

evaluation of candidates based on criteria established in the job

have children?" These kinds of questions suggest

specification.

Failure to ask candidates the right questions to determine

Too much reliance on gut reaction instead of objective

that what is important for the job is not the

Interviewing makes the selection process more personal and gives

person's skills and experience, but their culture,

the interviewer an overall idea of whether the applicant is

finances or marital status. These questions may

appropriate for the job.

also be illegal under your provincial human rights

legislation.

The following list of techniques will help you select the right
applicant for the job:

165

1. Re 3. Develop an interview time plan and stick to it.

employment tests measure aptitude, achievement, intelligence,

4. Keep an open mind, i.e., don't form an opinion

view

personality and honesty. A physical examination determines if the

the jobtoo early.

applicant meets the health standards and physical demands of the

descrip 5. Give the candidate time to tell his or her story;

job.

tion

Selecting your Employee

don't talk too much.

before
the
intervi
ew.
2. Bre
ak the

6. Present a truthful picture of the company and

After you have finished all the interviews your next step is to assess

the job.

each candidate. You want to see which one is the strongest in terms

7. Listen carefully, concentrate and take notes.

of skills, experience and qualifications. Also, you want to assess

intangibles such as the person's fit to your company. If the applicant

8. Avoid detailed discussion of salary too early in

is weak in a particular area how will it affect you and the rest of

the interview.

your employees?

-9. Be courteous.

ice

establis10.
h

friendl
y

Checking References

Don't leave the candidate hanging - discuss

Once you have selected your top candidate the next step is checking

the next step in the hiring process and the

references. In talking to the applicant's current or previous managers

timing.

or co-workers, you are making sure the applicant has the skills and

Other screening techniques include employment

atmosp tests

and

physical

examinations.

experience listed on their resume. Reference checks are important

Some

since research shows that about

here.
third of all applicants are creative with or lie about

Do we still need the job to be done?

their employment history. You want to make sure

What does the job now involve?

the person will not be a liability to you and your

Does it need to be done in the same way as

clients if they claim to have technical expertise

before?

that they do not in fact possess.

Making your Offer

It is also important for the firm to know what sort

Before you contact the unsuccessful employees,

of person do they need

make sure your top candidate is willing to take

1. To fit the job

Is there a Job Description?

your job offer. They may well have found another

Is it a lonely job?

job by the time you reach this step. In your call

Does it require unsocial hours working?

briefly tell the applicant why you want to hire

Does it need a team person?

them, confirm salary range and other details.

n
a
c

2. To fit the organization

Completing the Paperwork

What do we believe in?

Finish off your recruitment process by tying up

Obedience to the boss - or Independence?

the loose ends. This includes sending your offer

Competition - or Co-operation?

letter with the job title, start date, and salary to the

Customer First - or - Organization First?

3. Do we want help to change?

interviewees a short letter explaining that the

Linking the Role of Recruitment and Selection

position has been filled and wishing them success

Exter

in their job search. Some of them may wish to

nal

successful applicant.

Send the unsuccessful

e
s

approach you in the future for a different position.

Hence it is important for the recruiting firm to
understand the job that needs filling?

How has the job changed since it was last

filled?

Recruitment Policies
i

Recruit

Organisation'

ment
activities

s nee d for
additional
labour

and Procedures
One of the first steps
in planning for the
recruitment

of
166

employees into the organization is to establish

marketing activity as well as a public relations

proper policies and procedures. A recruitment

exercise. When recruiting people, organizations

policy indicates the organizations' code of conduct

are going out into their external environment and

in this area of activity. A typical policy statement

competing with others for suitable candidates.

for recruitment may run thus.

Such activities_ therefore, should be conducted in re c/a O

Recruitment Policy Statement

a manner that sustains or enhances the prestige and 70

public image of the organization concerned. Fair n re c/a

In its recruitment activities, the company will:

Advertise all vacancies internally,
Reply to every job applicant without any
delay,
Inform job applicants the basic details and job
conditions of every job advertised,

and objective recruitment policies and standards

r-

would add to the image of the organization in the > Z Z

long run. One way in which managers engaged in N
o
recruiting people can follow a systematic approach
2=
is to adopt a checklist such as the one given below:
Checklist

Process all applications with efficiency and

1. Has the vacancy been agreed by a responsible

courtesy,

manager?

Seek candidates on the basis of their

2. Is there on up-to-date job description for the

qualifications,

vacancy?

Aim to ensure that every person invited for

3. What are the conditions of employment for the

interview will be given a fair and thorough

vacancy (salary, hours of work, fringe benefits,

hearing

perquisites, holidays, etc.)?

The company will not: Discriminate unfairly

>z

4. Has

personnel

specification/candidates

against potential applicants on the basis of sex,

profile (in terms of physique, intelligence,

race, religion, caste, etc.;

aptitude, qualifications experience, etc.) been

Knowingly make any false or exaggerated

prepared?

claims in its recruitment literature or job

5. Has a notice of the vacancy been circulated

advertisements.

internally?
6. Has a job advertisement been agreed? Have

Once the recruitment policy is made explicit, the

details of the vacancy been forwarded to

company can evolve a detailed procedure to

relevant agencies?

make the whole exercise systematic. Such a

7. Do all potential candidates (internal or

systematic approach will enable people within (or

external) know where to apply and in what

outside) the organization to follow a predictable

form?

path. The recruitment procedures should, however,

be flexible enough to permit personnel department
to respond quickly to demands made on them by
various departments and by potential candidates.

8. What are the arrangements for drawing up a

shortlist of candidates?
9. What about the interviewing dates and
arrangements for selection of candidates?

Recruitment, it should be remembered, is a

n re c/a
P

>z
R

re c/a O

10.

r-

>ZZ
N

Have the short listed candidates or waitlisted candidates been

informed sufficiently in advance and asked to furnish detailed

references?

2=

as

167

11.

thanking

Have

attendance?

them

for

their

interest

and

DBM's career transition consultants advise their clients to send both

printed and e-mail resumes when searching for new employment.

uns
uita
ble
can
did
ates
or
wai
tlist
ed
can
did
ates
bee
n
info
rme
d of
thei
r
pos
itio
n in
a
poli
te
wa
y

were among the best-known online recruiting services in Canada.

They say job candidates should send their resume electronically with

Article

an e-cover note and then follow-up with a printed letter and resume.

Online Job-hunting

"Many people think that electronic and printed resumes are different.

April 8 2003 - a study of more than 363,000

They should not be. You are merely altering the presentation format

unemployed

career

of a printed resume for the Internet," says Judith Gelber, Vice-

transition firm DBM reveals that Canadian

President/Managing Consultant, DBM. "A well-written, well-

Internet surfers were four times more successful

prepared resume will contain all of the necessary keywords to attract

in finding new jobs than the global average in

attention whether it is being read by a hiring manager, scanned or

2002. In fact 12% of the 7400 unemployed

searched in a management system or indexed in an Internet site."

Canadians studied found new jobs last year

Gelber also has some tips for people applying for work over the

through various Internet-based resources. This

Internet: * Just the factsBe true to your record. You will find more

compares with 3% worldwide and 6% for US

opportunities more closely suited to your background

respondents. Nevertheless, personal networking

and goals.*Talk the talkThe correct use of industry or professional

is still the best method to find new employment.

terminology will instantly allow the potential employer to

The study found that worldwide 42% of people

understand your background and determine a possible fit quickly

found new jobs by networking - and the

and efficiently.*Timing is everythingMost large job posting sites list

proportions were higher in the USA (61%) and

resumes chronologically and recruiters often look at the most current

Canada (68%). The relative importance of online

postings. It's a good idea to re-post your resume weekly.* Pick and

recruiting methods in Canada probably reflects

chooseBe selective about the sites to which you post your resume.

the high level of Internet penetration across the

Recruiters will not take you seriously if they discover you are

country. New York-based e-Marketer, a leading

indiscriminate about the position you are seeking.* Highlight key

source of data about internet, ebusiness and

pointsFor online resumes use asterisks ((*)) or plus signs (+) at the

emerging technologies, says there were 14.9

beginning of lines instead of bullets at the beginning of lines. Use a

million internet users in Canada in 2002

series of dashes to separate sections. Consider using capital letters or

compared to 152.8 million in the United States.

asterisks to surround key text instead of using bold face.* Going

This number is expected to grow to 21.4 million

publicOnce posted, consider your resume a public document and out

users in Canada by the end of 2004 compared to

of your control. Consider renting a post office box and using a

174.9 million users in the United States. An e-

specific voice mail account for your search instead of including your

Marketer report titled North America Online:

home address and phone number on your resume.* Update or

Demographics and Usage, released in February

outdateSome Internet services will allow you to post your resume

2003, estimates 7.2 million online households in

without cost, but will charge for updates. Look for Internet services

Canada in 2002 - approximately 60% of all

that allow an unlimited number of updates.

workers

worldwide

by

households in the country. Over 63% of

households in Alberta, British Columbia and
Ontario have online access according to e

Article on Selection

Marketer. Another survey by COMPAS Inc.

Less Hiring Of Minority Graduates, Study Says

found that 47% of Canadian business executives

Chicago Sun - Times; Chicago, Ill.; Aug 24, 1993; Janet Kidd

said they used online tools such as company web

Stewart

sites or internet-based recruiting firms to fill

Sub Title: [LATE SPORTS FINAL Edition]

employment vacancies last year. Monster.ca,

Start Page: 37

workopolis.ca, hotjobs.ca and careerclick.com

Personal Names: Hanigan, Maury Abstract:

168

[Maurypercentage of minorities hired because minority

Young Ham, Lisa Clare, Melissa Jarnecke, Tamika Lampkin and

Haniga enrollment on college campuses is growing

Erik Jackson about job opportunities. A new study shows that

n] saiddramatically.

companies are recruiting fewer minority college graduates today.;

the

Credit: Brian Jackson

Minority enrollment in engineering programs, for

researc example, grew by 82 percent during the 1980s,

h
Hanigan said. While school placement counselors
group are frustrated, schools such as Roosevelt with a
had
large percentage of black studentd may do better
expect than colleges with few minority students. That's
ed
abecause recruiters often look to historically black
bigger schools for candidates, Hanigan said.
boost At Roosevelt University Monday, placement
in thecounselor John Bailey talks with students Tae-

Full Text:
Copyright Chicago Sun Times Aug 24, 1993
Companies are recruiting fewer minority college graduates,
suggesting the politically correct American workplace is hot air, a
new study shows.
"The argument that there are not enough qualified (minority)
candidates becomes suspect," said Maury Hanigan, president of
Hanigan Consulting Group, the New York firm that did the

study. "If anything, there is a bumper crop of minorities coming out

of top schools."
But since 1989, minority hiring on campus is down 35 percent, according
to the survey of 100 Fortune 500 companies.
That dismal number looks better in light of the overall hiring at
U.S. campuses, which is down 55 percent in the same period.

------------------------

But the relative strength doesn't fix the problem, Hanigan said.
While minorities grew by 4 percentage points to 20 percent of total
hires, fewer students - and fewer minority students - are
actually employed.
At

Roosevelt

University,

which

has

43

enrollment, campus recruiting gets more difficult every year, said

&

placement director Dr. Patricia Dore.

"Across the board, there are just a lot of problems getting

students placed," Dore said. "We're beginning to revamp
students' expectations about a first job, encouraging them to worry
about their career track after they get started."
Mark Brailey, a Roosevelt placement counselor who deals directly with
students, said it's more rare today than a few years ago to see companies
requesting minority candidates.
"I think it is lip service," he said, referring to the increased attention
diversity has gotten in recent years. "The economy has caused a lot of
people to forget these causes."
Hanigan said the research group had expected a bigger boost in the
percentage of minorities hired because minority enrollment on college
campuses is growing dramatically. Minority enrollment in engineering
programs, for example, grew by 82 percent during the 1980s, Hanigan
said.
"I was surprised minority hiring was not up more," Hanigan said.

169

percent

minority

When the job market is tight, she said, companies are less willing to
take risks in hiring a diverse work force.
"They get more cautious, and they're very wary of turnover. So they get
conservative and hire only those they see as a good company fit.' That
usually is the stereotypical white male," she said.
While school placement counselors are frustrated, schools such as
Roosevelt with a large percentage of black student may do better than
colleges with few minority students. That's because recruiters often look
to historically black schools for candidates, Hanigan said.
But by separating the diversity issue from overall hiring,

--------------------------

Hanigan said, companies reinforce old stereotypes and other minorities

get passed up.
"When we think of diversity, we're still in the old mindset of affirmative
action. They have an international hiring manager, a diversity manager, an
ADA manager (who handles hiring under the Americans with Disabilities
Act). They have all these little, separate boxes.
"If we can't manage a diverse work force better than that, what
makes us think we can be global competitors?"

170

>z
EVALUATION
PROCESS

re c/a O

OF

LESSON 2 1 :
RECRUITMENT

AND

SELECTION

Learning Objectives

increased demand by allowing an outside specialist agency to

70

Alternatives to Recruitment

undertake part of the work to mutual advantage.

n re c/a

Evaluation of Recruitment

Temporary employees: Employees hired for a limited time to

Effective Selection Process

perform a specific job are called temporary employees. They are

r-

>ZI
Z
o
2=

Alternatives to Recruitment

particularly useful in meeting short term human resource needs. A

Since recruitment and selection costs are high

short-term increase in demand could be met by hiring temporary

(search process, interviewing, agency fee, etc.)

hands from agencies specializing in providing such services. It's a

firms these days are trying to look at alternatives

big business idea in United States these days ($3-$4 billion

to recruitment, especially when market demand for

industry). In this case the firm can avoid the expenses of recruitment

firm's products and services is sluggish. Moreover,

and the painful effects of absenteeism, labor turnover, etc. It can

once employees are placed on the payroll, it may

also avoid fringe benefits associated with regular employment.

be extremely difficult to remove them if their

However, temporary workers do not remain loyal to the company;

performance is marginal. Some of the options in

they may take more time to adjust and their inexperience may come

this regard may be listed thus:

in the way of maintaining high quality.

Overtime: Short-term fluctuations in work volume

Employee leasing: Hiring permanent employees of another

could best be solved through overtime. The

company who possess certain specialized skills on lease basis to

employer

of

meet short-term requirements - although not popular in India-is

recruitment, selection and training could be

another recruiting practice followed by firms in developed

avoided. The employee benefits in the form of

countries. In this case individuals work for the leasing firm as per

higher pay. However, an overworked employee

the leasing agreement/arrangement. Such an arrangement is

may prove to be less productive and turn out less

beneficial to small firms because it avoids expense and problems of

than optimal performance. Employees may slow

personnel administration.

down their pace of work during normal working

Evaluation of Alternative Sources of Recruitment

hours in order to earn overtime daily. In course of

Companies have to evaluate the sources of recruiting carefully

benefits

because

the

costs

Invitees to interview ratio

4:3 invited
Leads to invitees ratio
5: 1
contacted

time overtime payments become quite routine and

-looking at cost, time, flexibility, quality and other criteria - before

for any reason these payments do not accrue

earmarking funds for the recruitment process. They cannot afford to

regularly,

fill all their vacancies through a particular source. To facilitate the

employees

become

resentful

and

disgruntled.

decision making process in this regard, companies rely on the

Subcontracting: To meet a sudden increase in

following:

demand for its products and services, sometimes,

Time-lapse data: They show the time lag between the date of

the firm may go for subcontracting - instead of

requisition for manpower supply from a department to the actual

expanding

immediately. Expansion

date of filling the vacancies in that department. For example, a

becomes a reality only when the firm experiences

company's past experience may indicate that the average number of

increased demand for its products for a specified

days from application to interview is 10, from interview to offer is

period of time. Meanwhile, the firm can meet

7, from offer to acceptance is 10 and from acceptance to report for

capacities

work isment can be ascertained - before pinning hopes on

15.

a particular source that meets the recruitment

Theref objectives of the company.

ore, ifYield ratios: These ratios indicate the number of
the
leads/ contacts needed to generate a given number
compa of hires at a point at time. For example, if a
ny
company needs 10 management trainees in the
starts next six months, it has to monitor past yield ratios
the

in order to find out the number of candidates to be

recruit contacted for this purpose. On the basis of past

ment experience, to continue the same example, the
and
company finds that to hire 10 trainees, it has to
selecti extend 20 offers. If the
on
interview-to-offer ratio is 3:2,
processthen 30 interviews must be

Trainers

now, itconducted. If the invitees to

would interview ratio is 4:3 then, as
require many as 40 candidates must
42

be invited. Lastly, if contacts or leads needed to

days

identify suitable trainees to invite are in 5:1 ratio,

before then 200 contacts be made. Based on this

the
information, the company can construct the
new recruiting yield ratio, as shown below:
employOffer ratio 1:2 needed offers made
ee

Interview of offer 3:2 interviewed

joins

Candidates

its
ranks.
Armed
with
this
inform
ation,
the
length
of the
time
needed
for
alternat
ive
sources
of
recruit

Candidates

Candidates
200

Recruiting Yield Pyramid

the table."

Why Should Z Hire

Surveys and studies: Surveys may also be

NetSelect's web-based prescreening ability is

You?

conducted to find out the suitability of a particular

achieved by means of an online questionnaire. A

September 24 2003 -

source for certain positions. For example', as

customized

It's

pointed out previously, employee referral has

standard

Manpower in consultation with the hiring client.

interview

question,

emerged as a popular way of hiring people in the

This determines if candidates possess the desired

but

Information Technology industry in recent times

prerequisites for a position. When candidates

employers receive can

in India. Correlation studies could also be carried

express an interest in that open position, they are

be far from ordinary.

out to find out the relationship between different

directed to the questionnaire that is posted at a

The Creative Group, a

sources of recruitment and factors of success on

unique Web address. Employers can establish a

specialized

the job. In addition to these, data on employee

link within an online job posting leading directly

service

turnover, grievances, and disciplinary action

to the custom-built questionnaire. NetSelect is

marketing,

would also throw light on the relative strengths of

completely

no

advertising,

a particular source of recruitment for different

downloads,

IT

and web professionals

organizational positions. Before finally identifying

integration.

the sources of recruitment, the human resource

managers must also look into the cost or hiring a
candidate. The cost per hire can be found out by
dividing the recruitment cost by the number of
candidates hired.

questionnaire

Web-enabled
network

is

developed

it

requires

configuration

or

by

Candidates can access the questionnaire when it

suits - it is available 24 hours a day, 7 days a
week. When a candidate has completed the
questionnaire, NetSelect assigns a score based on
how closely that person's background and

Dear friends, let us go through the following

preferences match the job profile. NetSelect then

articles for better understanding of the topic.

organizes the results in a database. This allows

Article - 1

employers to:

Manpower

Lntroduces

Web-Based

16

2003

see at a glance how many people completed

the questionnaire

Employment Prescreening Tool

July

Manpower

has

added

view their scores;

determine who will move on to the next step in

NetSelect(SM), a Webbased employment prescreening tool, to its range

the hiring process.

of North American human resources services. The

Additionally, hirers can send e-mail messages to

company considers that NetSelect is able to

applicants directly through NetSelect, which

efficiently prescreen thousands of job candidates,

keeps a record of correspondence.

thereby significantly reducing the amount of time

"NetSelect brings unprecedented efficiency to the

hiring managers need to spend reviewing resumes

hiring process, and employers will appreciate the

and identifying the most suitable candidates.

impact this tool has on the bottom line," said

"Manpower designed NetSelect in response to

Mark Gambill, vice president of marketing for

customer demand for new technology that

Manpower North America.

facilitates faster hiring while improving quality,"

Manpower considers that employers will save

said Barbara J. Beck, executive vice president of

time and money because only candidates with the

U.S. & Canadian operations for Manpower Inc.

highest scores proceed to the more time- and cost-

"This tool strengthens Manpower's lineup of

intensive screening procedures.

staffing

and

HR

services,

creating

added

convenience for customers seeking a single

partner who can bring a range of services to

Article - 2

the

answers

staffing
providing
creative

on a project basis,
recently

asked

250

advertising

and

marketing executives
to

describe

strangest

the

responses

candidates have given

when asked why they
should be hired.
Those surveyed were
asked, "What is the
most

unusual

or

creative reason you

have ever heard a
candidate

give

for

why he or she should

be hired?" Here are
some

of

their

re-

sponses:
"The candidate said
he could be an asset
to

our

company

softball team."
"The applicant said
she

was

watching
home."

bored
TV

at

 "The job seeker pointed out that he had a great

"The job seeker said we should hire him

smile."

because he just won big at the casino and was

"When discussing why they should be hired,

on a roll."

applicants should focus on their strengths most

relevant

to

the

qualifications

position

ultimately

and
will

how

"One person said we should hire her because

those

benefit

>z

she was a cheerleader in high school."

the

"An applicant explained that his brother-in-law

company," said Tracey Turner, executive director

was successful in the industry, so he would be,

of The Creative Group.

too."

Employers are less likely to be interested in the

re c/a O
70
n re c/a
P

"Someone said she was a good reader at

following points made by job seekers:

church, and that's why she ought to be hired."

"The candidate noted that there were no

Candidates should be sure to focus on the

redheads in the company and said we should

potential employer's needs, not their own, during

hire one."

the interview. These next applicants might have

r-

>ZZ
N

2=

benefited from this advice:

"With numerous qualified professionals competing for jobs, a
"One person said I should hire him because
>z

he was tired of living with his parents."

"The applicant said he'd been rejected by all

re c/a O
as

the good agencies."

"A guy said he was the sole source of

n re c/a support for his

P
puppy."
r-

2=

"The candidate said that unless we hired

him,

our

success," said Turner. "Applicants need to really sell themselves

during the interview, emphasizing specific expertise and highlighting
career achievements."
Turner offered the following tips to help candidates showcase their
strengths during the interview process:

> Z Z Threats rarely inspire a job offer. To wit:

N

candidate's power of persuasion plays a greater role in his or her

corporate

identity

would

disappear."
"One person said she wouldn't stop calling
us until she was hired."
"The applicant said our company wouldn't
survive without him."

Curtail cliches. Avoid overused terms or phrases such as

"hardworking" and "results-oriented." Instead, focus on your unique

qualifications.
Get specific. Provide examples that highlight your positive
attributes. For instance, if you're able to meet tight deadlines, tell
a brief story that demonstrates this quality. The more memorable
the anecdote, the better.
Focus on achievements. Instead of simply describing your
responsibilities

in previous roles, try to quantify your

accomplishments, such as bringing in 15 new clients in one year.

While job seekers should show enthusiasm

Do your homework. Research the firm thoroughly so you can

about the position, excitement about the

discuss how your expertise relates to the particular position and

company locale may not go over well, as

company.

these next examples show:

"He said we should hire him so he could
ride his bike to work."
"The candidate said she'd always wanted to
work in our building."
"The applicant said we should hire her
because she lived close by."

Wendy Gillis, Toronto division director for The Creative Group, said,
"Asking intelligent questions during the interview and following up
with a compelling thank-you note that reiterates key strengths and
qualifications can help applicants stand out from the competition."
The survey was developed by The Creative Group and conducted by
an independent research firm. It includes 250 responses - 125 from
advertising executives and 125 from senior marketing executives.
The Creative Group has offices in major markets across the United

States Eugene;

Sep

2003;

Deanna

Mather

sex or national origin. More laws followed. The Age Discrimination

and inLarsonAbstract:

in Employment Act, protects people 40 years and older from losing

CanadaThe pharmaceutical industry, with its worldwide

their jobs because of their age. The Americans with Disabilities Act

and

outlaws discrimination against qualified individuals who have a

focus, is greatly interested in a diversified

offers workforce. Paul Harding, Vice President,

online Human Resources for Solvay Pharmaceuticals
job
North America recognizes that the workforce

disability.

search should reflect the populations it serves. When a

service pharmaceutical company needs to add to its

Human Resources for Solvay Pharmaceuticals North America

s at.

"At Solvay, by virtue of the business we're in, we feel that for us to

pool of employees it is primarily concerned with

Article a
on

candidate's

experience,

knowledge

The pharmaceutical industry, with its worldwide focus, is greatly

interested in a diversified workforce. Paul Harding, Vice President,
recognizes that the workforce should reflect the populations it serves.

and

be successful and connect with our customer base, our patient base,

expertise. Looking within a company's own

and physician base, we have to have great sensitivity to the diverse

Recrui diverse workforce is a good place to start when

tment positions are open. Cynthia Christian, Manager

makeup of the populations we serve."

Pharm of

Aventis

employees who advance a company's diversity goals. But where do

Pharmaceuticals North America, uses a number

you find these people? How do you keep them once they're on your

Succes of ways to find qualified candidates. At Solvay,

s
inHarding says the company advertises in
Makin minority publications and participates in career

team? And how can you accommodate diversity and keep your

fairs sponsored by minority organizations.

America, Takeda Pharmaceuticals North America and Yamanouchi

Divers When candidates have encouraging credentials

ity
but their skill levels aren't up to standards, some

Pharma Technologies share their experience with the important job of

Work companies offer ways to improve proficiency.

Pharm Forty years ago President John F. Kennedy put

Finding Talented and Diverse Employees

a's

Diversity

and

EEO

for

aceutic pen to paper and made the Equal Pay Act (EPA)
al

a law. From that point on, men and women were

Execut to be paid equally for the same job. A year later,

ive;

Every hiring manager understands the need for truly qualified

operation

running

smoothly?

The

professionals

of

Aventis

Pharmaceuticals North America, Solvay Pharmaceuticals North

diversity hiring. They all agree-diversity is good for business.

When a pharmaceutical company needs to add to its pool of

employees it is primarily concerned with a candidate's experience,
knowledge and expertise. Looking within a company's own diverse
workforce is a good place to start when positions are open. Tip: Ask

Title VII, the Civil Rights Act, banned

your employees for assistance in locating promising recruits. They

discrimination because of race, color, religion,

may have relatives or friends who

qualify. Also, employment agencies can screen

encouraged to nominate anyone they feel is step

credentials and hand you the best of the lot.

qualified.

Cynthia Christian, Manager of Diversity and EEO

Aventis uses several ways to get its name out there mailing to some of
for a number of reasons, and one reason is to those individuals to

for Aventis Pharmaceuticals North America, uses a

further.

"We

actually do a direct

attend meetings and support organizations such as

attract talented candidates. When a charity held a try and give them
information
regatta, Aventis participated. "And we came in more

the Black MBA Association, the Hispanic MBA

third," says Christian.

Association and the National Organization of

Lori

Black Chemists and Chemical Engineers." She

Resources

also

sororities and fraternities. Christian says one of the

Pharmaceuticals North America, uses online job says Takeda regularly

boards dedicated to specific ethnic groups, such as participates in career

most beneficial recruitment tools is a successful,

DiversityInc.com,

number of ways to find qualified candidates. "We

recruits

through

universities,

including

positive workforce. "Our associates are out there

talking

to

people."

Aventis

employees

are

Smith,

about us, what we're

Senior Vice

and

President

Administration

for

Human about and what we're

Takeda looking for." Smith

and fairs and the NAACP,

BlackPlanet.com. When she finds promising the Hispanic Alliance
Career
prospects posted online, she takes her search one for
AsianAvenue.com

Advancement and the National Black MBA

environment is a very key area for incredibly Wasserman.

Association.

talented people."

At Solvay, Harding says the company advertises in

of
Yamanouchi supports a diverse workforce by variety
encouraging all its employees to continue their concerns,

minority publications and participates in career

fairs sponsored by minority organizations. He also
searches local schools. "We have close ties with

The

company addresses a
health
as

education. "After you've been with us for six Wasserman explains,

months, we have 100 percent reimbursement on "We have fitness

Medicine. We have looked at the possibility of

continuing education up to $5,000 a year," says centers on site. We

had a quit smoking
Carl.

expanding our initiatives with Emory University as

Keeping Good Employees

well."

Once a company has a diverse workforce,

When Dave Carl, Director of Human Resources

retention becomes the next challenge. Well-

for Yamanouchi Pharma Technologies looks for

trained, well-educated minority employees are an

new talent, he goes to the Internet. He also hires

asset worth protecting. Tip: Try getting creative

recruiters and advertises in certain magazines.

with your benefits package. Your package can

According to Carl, well-qualified minority groups

address many diversity issues from the familiar to

are readily responding whenever the company has

the more obscure, such as obesity in the

an opening.

workplace. It can influence lifestyle and behavior "We have twelve

changes that can reduce your health insurance holidays a year," says

Spelman College and the Morehouse School of

few

large

corporations

outside

of

the

pharmaceutical industry have in-house minority

networks. These networks could offer another way

program a couple of
years ago. We also
had a mammogram
program set up with a
local hospital." The
list grows as other
interests come to the
company's attention.

costs and increase productivity. Employees usually Harding of Solvay.

participate in a program when it's offered as a "Nine of which are

grassroots organizations that will take calls from

perk. A thoughtful benefits package that addresses fixed and three that
the needs of your diverse staff can help instill are floating. This

the public are: The Black Employee Network at

loyalty in these valuable employees.

American Express Financial

The law requires a company to reasonably

Advisors (Vivian Moore, 800-328-8300) and The

accommodate the religious practices of an

Women's Advisory Committee at 3M (Lynnette

employee. Aventis does this by offering four

Welsch, 651-737-6335).

floating holidays a year and a generous vacation

Promising Talent and Company Criteria

package. If an employee needs to take time off to

When candidates have encouraging credentials but

observe a religious holiday, or for any other

their skill levels aren't up to standards, some

reason, "You just let your manager know you need

companies offer ways to improve proficiency. Tip:

to use a day," says Christian. Additionally, flexible

Consider

work

to expand a recruitment base. Two of these

allows our employees,

hours

allow

employees

program, or entry-level positions for college

arrangements

when

they

graduates with hard science or medical degrees.

obligations. "This is very helpful to people who

Takeda has an intern program that is all-inclusive.

have small children," says Linda Wasserman,

Smith says, "We do a lot of on-the-job training for

Aventis's Director of Communications for U.S.

interns and for other people too." Summer

Drug Innovation and Approval. "Or for people

internships introduce the college student to the

who have elder-care issues, things like that."

company's way of doing business and instill a

The company's in-house ergonomics unit works

loyalty that

with all employees,

could build an intern into a highly motivated

disabilities, to ensure their work space fits their

employee. Smith adds, "Obviously the college

needs. "If they're having problems we'll work with

part-time

summer

employment

have

to

make
personal

including people with

them to facilitate the best response," says

who

do

have

particular days they

want to recognize for
personal, spiritual or
religious reasons, to
do

that."

Harding

believes Solvay, as a
responsible corporate
citizen, has a direct
interest in the health
of its workers. Its
benefits

program

offers

ways

for

employees to improve
their

lifestyles

and

living conditions. "We

have

an

Weight
program
sponsor,"

in-house
Watcher's
that

we
says

Harding. Classes are

offered to help smokers stop smoking and,

>ZZ

Harding says, "We have a wellness program for

new and pregnant mothers."

for

their

up-and-coming

2=

Solvay recently began participating in a mentoring

program

zo

>z

re c/a O

female

employees. The company pays the fees and the

70

women are mentored by people in various

n re c/a

industries in the Atlanta area. Harding says, "It

r-

allows them to
get a feel for life in other companies and to

Yamanouchi has several attractive benefits that appeal across the

appreciate the challenges that others, perhaps more

diversity lines. Carl says, "We're working very hard with the

senior to them in career terms, have faced."

University of Oklahoma to set up adjunct professorships for some of

Smith says Takeda encourages their employees,

our Ph.D. people."

minority or not, to take paid personal days for

Carl stresses, "We're very much a family-oriented company and we

whatever reason they feel necessary. "They just

emphasize that." One way the emphasis is shown is through

n re c/a work it out with their managers, letting their

matching contributions that employees, or their families, make to

charitable or not-for-profit organizations.

>z
R

re c/a O
70
r-

managers know that they're going to be out for a

> Z Z few hours or for the day. It's as simple as that."

The company supports a physically healthy workforce. Carl

Takeda's employees with disabilities are always

explains, "If employees want to go to Weight Watchers, we will pay

2=

supported. Not only is attention paid to their

toward that. We have a number of people who are bikers and we

physical needs, but, as Smith explains, "We make

sponsor

sure that employees with disabilities have every

competitions and pays entry fees for employees who participate. "I

opportunity to work in all the different functional

think our focus is more that a healthy employee is more content,

areas."

more motivated and just a better overall employee," states Carl.

The company made arrangements with a fitness

Smoothing the Way for All Employees

center to offer Takeda employees a discounted

The minority population in the United States continues to grow. The

membership rate. On site classes include subjects

diversity within this minority population is also expanding.

such as living a healthy lifestyle and weight

Misconceptions can still arise even when people are comfortable

management "We definitely do encourage people

with a diversified workplace.

to think healthy," says Smith.

From their first day Aventis's new employees are introduced to the

When people come to Takeda with language

company's widely pluralistic workforce. Christian says, "We have a

difficulties, the company consults with experts to

diversity video, titled Working in a Global Community, that we use

evaluate

either

in our new-hire orientation program." Christian explains that the

individual tutoring or course-type work is offered

video features Aventis employees. "They're talking about diversity

to bring the employee's skills up.

and why it's a strategic part of Aventis and how we do business."

At Yamanouchi, any employee who needs part of a

Managers participate in diversity training programs. Christian says,

day off can take advantage of the company's

"We're looking at rolling that training out to all our associates." One

flexible work hours. "Work it out with your

sales team, both managers and associates, has already participated in

supervisor and your team," says Carl, "and you can

the training.

come in later and leave later, or come in earlier

Once a month Aventis employees are invited to attend a Lunch and

and leave earlier." When a full day off is

Learn. This program features information on a wide variety of

necessary, the options are taking a vacation day or

topics. "We've done Black History Month," says Christian. "We've

using one of the three annual personal days.

done health care issues in Native American populations. We've had

their

language

skills. Then

bike-a-thons."

The

company

also

backs

running

progra workplace." A popular feature of these noontime

bring their different backgrounds and opinions to the table, they not

ms onsessions is the company-provided lunch.

only create a more productive culture, but they open the way for

religio At Solvay, Harding says, "We have to be sensitive

us
not only to the traditional diversity definition of

more innovative business ideas.

diversitrace and color, but we also have to be sensitive to

y.
sexual orientation." All new Solvay employees are

company initiated employee focus groups. "We had close to a

We've required to complete a daylong class called Civil

talked Treatment. "They learn sensitivity to the
about backgrounds, the thinking, the opinions of others,"

had the opportunity to participate. They were asked to explain what

generat explains Harding. The company offers other

ions inworkshops on subjects ranging from finances to

at Takeda. The process took several months and many hours. In the

the

dedication to its employees, patients and the community.

sexual harassment. Managers are also required to

To make sure Takeda was on the right track, three years ago the
thousand employees at that time," recalls Smith. Every employee
they saw as unique about the company's culture, what made the
company different and what they liked and disliked about working
end the company came up with six core values that speak to its

workpl participate in diversity training. And the company

ace. keeps adding new programs as they become
We hadnecessary.

Because Yamanouchi is a Japanese-owned company, Carl says they

Takeda employees participate in a course called

Lunch Managing Inclusion. Smith says, "Our focus has
and
really been high-lighting the importance of
Learn diversity and making sure people understand that

orientation and annually after that." Once a year the company holds

on

it's not just about age and ethnicity, but a much

you represent the company even away from work," Carl adds. A

gays

broader array of considerations and expectations."

sensitivity training program is under consideration. "But only as a

This program focuses not only on awareness but

lesbian includes a look at diversity's impact on business.
s in theAccording to Smith, when people are allowed to

preventive measure," says Carl. "That really hasn't been an issue

and

have ongoing training in the Japanese culture. "We do harassment

training and sexual harassment training as part of our new employee
business ethics training sessions. These sessions focus on ethical
business practices, confidentiality issues, respecting equipment, the
facility and the grounds. Training also includes, "Recognizing that

historically."

When Discrimination Issues Arise

When an advanced position opens up within a company and employees are encouraged to apply, problems as well as advantages
can come up for the company. With workers competing for the same position, care must be taken to assure a fair outcome. Tip:
Consider using a team of people to review the applications, and make sure your team is as diverse as your workforce. Additionally,
a team who has participated in diversity or sensitivity training will be better qualified to render an unbiased decision that the
applicants can comfortably accept.
Managing a diverse workforce includes having a process available for any employee who feels harassed or discriminated against
for any reason. Making this process easily accessible and nonthreatening will go a long way toward defusing a difficult situation.
At Aventis, in-house promotions are handled in a variety of ways, depending upon the level of the job. For most employees a
supervisor makes the decision. The company also has a dual career ladder. As Wasserman explains, "People can progress on the
scientific and technical side as well as on the management side. You can be promoted on the basis of your expertise."
Should an Aventis employee suspect discrimination, he or she is encouraged to speak with a manager. The manager need not be in
the same unit as the employee. Christian says other contacts are available. "There's a Human Resource Generalist who works with
each department or group." She continues, "We also have a 1-800 phone line if someone wants to call and discuss an issue
confidentially and anonymously."
When Solvay offers an in-house advancement, it uses a bank of interviewers to select the best qualified candidate. "If somebody is
not selected and wants to understand why, they can certainly discuss the reasons with the human resource consultant, or with the
hiring manager." Harding continues, "They are entitled to an explanation."

If a Solvay employee suspects discrimination and he or she isn't comfortable talking to a manager, the company has a confidential
telephone number called the Alert Line. Harding says, "Employees can anonymously report any instance of policy violation,
wrongdoings, and concerns that they may have about practices within the company or with given individuals." The telephone calls
go to a call center that is not affiliated in any way with the company. Harding explains, "We have no means of finding out who the
individual is if they don't volunteer that information." The call center transcribes the report and forwards it to Harding.
According to Smith, a Takeda employee who feels any kind of discrimination has a first option of talking with his or her manager.
People can also take their concerns to the human resource staff. "We very much try to encourage a culture of open
communications," says Smith. The company urges their employees with concerns or issues to feel comfortable airing the
problems. "And to also understand that we expect them to surface those kinds of issues," adds Smith. "We want to know." Takeda
employees also have access to a confidential telephone number.
Two years ago Takeda initiated an anonymous employee survey asking for feedback on employee workplace issues. "It's all done
online," says Smith. "And it takes about 30 minutes or so to complete." The surveys are carefully studied by management. "We
spend a lot of time looking at that data and evaluating what it tells us and then coming back with very specific recommendations
for addressing those concerns or issues," says Smith. The first two questionnaires were so successful that the company will
canvass their employees again this year.
"In the last survey, 86 percent of our population turned it in."
At

Yamanouchi,

nication
right

lines

open

straight

company."

Carl
up

Carl

says
on

all
to,

continues,

the
levels.
and

company
"We

strives
have

including,

"At

an
the

Human

to
open

keep

commu-

door

president

of

Resources,

we're

employees

who

policy
the
very

open door. People are more than welcome to come in at any

time and talk about any issue."
Another

option

Yamanouchi

offers

its

have problems with the workplace environment is through

might

CIGNA Behavioral. Employees can call CIGNA and receive the first three counseling sessions free. These sessions don't have to
focus entirely on workplace dissatisfaction but can include financial concerns, personal matters and even drug abuse or
dependency issues.
A Modern Business World is a Diverse World
Today's pharmaceutical companies operate internationally. For a great many companies their home office is located abroad.
Employees are often transferred in and out of different countries. Cultural awareness is necessary if an employee is to represent the
company well in another country. Many areas in the United States have immigrants who might be willing to offer advice and alert
your employee to cultural subtleties. Tip: Try contacting local universities and high school exchange student programs for
advisors.
According to Wasserman, Aventis has major facilities in the United States, France, Germany, Japan and well over a hundred
countries around the world. Wasserman says, "American English is officially the Aventis language for global business
communications, but local languages are used in each country." Neither Christian or Wasserman have seen any problems arise
when an employee has been transferred from another country.
"Since we're a European-based organization," says Harding, "for us, diversity, in a broader sense, is cultural diversity between the
United States and Europe." Solvay does not have an international hiring program, but people stationed in the United States are
routinely transferred to company operations in Germany or The Netherlands or several other locations around the world. Likewise,
internationals are often brought into the American operations. Cultural sensitivity is carefully cultivated through the extensive
training, development and educational process Solvay conducts for all employees.

Smith at Takeda says, "We do some international hiring. Some individuals come from our parent company which is based in
Japan." While the company does not specifically recruit from the international workplace, Smith says, "I can definitely see this
coming as we evolve." In previous positions, Smith has done a lot of international hiring over the years, and she's found more
advantages than disadvantages. "The advantages

win the numbers race. The buying power of this vast number of

are huge in terms of bringing people in who have a

people is not something a business can overlook. Women, still

very diverse background and who bring a very

considered a minority in the workplace, hold the purse strings for

diverse set of experiences to the business." The

most American families, and they've moved into the labor market in

re c/a O only drawback for Smith is the logistics. "I've had

large numbers. For the pharmaceutical industry diversity spells

various people who come from other countries

creative, dedicated employees, a sharper competitive advantage and

>z
R

as

n re c/a where I've worked on visa status, et cetera."

P

r-

a larger marketplace. While most companies do follow the letter of

Yamanouchi does not recruit internationally, but

> Z Z Carl says, "We hire a number of internationals."

z

2=

the law, pharma companies have found that the spirit of the law is
great for business.

The company assists people who are seeking

[Sidebar]

employment in the United States by sponsoring

"We have an open door policy right straight up to, and including, the

them for H-1B visas. The H-1B is a temporary,

president of the company."

nonimmigrant visa issued to individuals working

as professionals in a specialty occupation. The visa
period can last up to six years. The plus side for
the company, according to Carl, "Is we're able to
take advantage of the most qualified people

[Sidebar]
The EEOC at a Glance
When the EPA became law, it broke new ground. David Grinberg,
of the Equal Employment Opportunity Commission (EEOC) in
Washington, D.C., states, "That was the first major civil rights

available."
Periodically Yamanouchi's parent company in
Japan sends an employee to the United States for a
term of six months to two years. Carl says if any
problems with the English language exists, for
either the employees or their families, the
company pays for English as a Second Language
classes. The company has also identified several
instructors able to teach English to Spanishspeaking people. "But I'm certain we could find
other language instructors if we needed to," says
Carl.
Forty years ago it took a law to make businesses
recognize new attitudes. In today's world, diversity
is an accepted way of life. In six of the largest
metropolitan areas in the United States, minorities

legislation specifically directed to the workplace." The EEOC

enforces discrimination laws, and offers education and technical
assistance. Currently one commissioner position and the General
Counsel position remain open. Commissioners:
Cari M. Dominguez, Chair, nominated by President G. W. Bush
Naomi C. Earp, Vice Chair, nominated by President Bush Paul
Steven Miller, nominated by President Clinton and longest serving
commissioner in the history of the EEOC. Leslie E. Silverman,
nominated by President Bush For field offices:
800-669-4000
Posters or publications:
U.S. Equal Employment Opportunity Commission Publications
Distribution Center
P.O. Box 12549 Cincinnati, OH 45212-0549 800669-3362
Website: www.eeoc.gov

LESSON 2 2 : ORIENTATION
AND PLACEMENT

We must all know that

after a candidate joins
the firm, he or she

Learning Objectives

Designing an Induction Programme

goes

Orientation-Concept and definition

Placement - Benefits of Proper placement

firm's

Objectives/purpose of Orientation

Need for an Induction Programme

through

program.

the

orientation

Orientation is the process of acquainting new

employees with the organization. Orientation

interact. .

confidence in the

topics range from such basic items as the location

candidate and he

of the company cafeteria to such concerns as

b.Creates a good impression: Another purpose of

may:

various career paths within the firm.

induction

developing

Socialization is a process through which a new

is to make the newcomer feel at home and develop

positive

recruit begins to understand and accept the values,

about

norms and beliefs held by others in the

pride in the organization. Induction helps him to:

organization. HR department representatives help

Adjust and adapt to new demands of the job.

Get along with people.

Get off to a good start.

new recruits to internalize the way things are done

in the organization". Orientation helps the
newcomers to interact freely with employees
working at various levels and learn behaviors that
are acceptable. Through such formal and informal
interaction and discussion, newcomers begin to
understand how the department/ company is run,
who holds power and who does not, who is
politically active within the department, how to
behave in the company, what is expected of them,
etc. In short, if the new recruits wish to survive
and prosper in their new work home, they must

The people with whom he is supposed to

The terms and conditions of employment.

sense

of

Hence we can say that induction or orientation or

socilisation is the process through which a new
employee is introduced to the job and the
organization. In the words of Armstrong, induction

start
thinking
the

organisation.
2. Effective induction
can minimize the
impact of reality
shock some new

Through induction, a new recruit is able to see

more clearly as to what he is supposed to do, how
good the colleagues are, how important is the job,
etc. He can pose questions and seek clarifications
on issues relating to his job. Induction is a positive
step, in the sense, it leaves a good impression
about the company and the people working there
in the minds of new recruits. They begin to take
pride in their work and are more committed to
their jobs.

soon come to 'know the ropes.

these may develop

employees
undergo.

may
Often,

freshers join, the

organization with
very

high

expectations,
which may be far
beyond the reality.
When they come
across with reality,

c. Act as a valuable source of information:

they

Induction

shocked.

serves

as

valuable

source

of

often

feel
By

information to new recruits. It classifies many

proper

things

the newcomers can

through

employee

manuals/handbook.

induction,

Informal discussions with colleagues may also

be

clear the fog surrounding certain issues. The basic

'understand

the

purpose of induction is to communicate specific

reality

'the

job requirements to the employee, put him at ease

situation.

and make him feel confident about his abilities.

organisation

Serves the Following Purposes:

Need for Induction

some

a. Removes fears: A newcomer steps into an

1. When a new employee joins an orgainisation,

induction

is "the process of receiving and welcoming an

employee when he first joins a company and
giving him the basic information he needs to settle
down quickly and start work.
Objectives of Induction/Orientation Induction

made

to

'of

Every
has

sort

of

he is a stranger to the organization and vice

programme either

stranger. He is new to the people, workplace and

versa. He may feel insecure, shy and nervous

formally

or

work

environ-

in the strange situation. He may have anxiety

informally.

In

ment. He is not very sure about what he is

because of lack of adequate information about

large organisations

supposed

do.

the job, work procedures, organizational

where

Induction helps a new employee overcome such

policies and practices, etc. Frustration is likely

well-developed

fears

to develop because of ambiguity In such a case,

personnel

perform better on the job.

induction is needed through which relevant

funcions,

information can be provided; he is introduced

induction

to old employees and to work procedures. All

programmes

are

undertaken

on

organization

as

to

and

The job, its content, policies, rules and

regulations.

there

are

often

formal basis, usually through the personnel

>z

department. In smaller organisations, the

immediate superior of the new employee may

do this.
Designing an Induction Programme Steps in
Induction Programme
The HR department may initiate the following
steps while organizing the induction program:

Welcome to the organization

Explain about the company.

re c/a O
70
n re c/a
P

r-

>ZI
Z
o
2=

Job location

Show the location department where the new

Job tasks

recruit will work. .

Job safety needs

Give the company's manual to the new recruit.

Overview of jobs

Provide details about various work groups and

>z
R

re c/a O
70

the extent of unionism within the company.

n re c/a
P

r-

Give details about pay, benefits, holidays,

leave, etc. Emphasize the importance of

>ZI
Z

attendance or punctuality.

Explain about future training opportunities and

career prospects.

2=

Clarify doubts, by encouraging the employee

to come out with questions.

buildings, facilities, etc. Hand him over to his

supervisor.

covered

step by step through the following orientation programme being

followed in "Toyota Motor Manufacturing, USA"
Orientation (it is called "assimilation") at Toyota Motor
Manufacturing, USA is a case in point. While it covers traditional
topics such as company benefits, it's mostly intended to socialize
new employees, that is, to convert Toyota's new employees to the
communication, and mutual respect. It lasts four days, as follows:
Day One : The first day begins at 6:30 a.m. with an overview of the

in

employee

organization structure and human resource department by the firm's

induction

vice president for human resources. The vice president devotes

programme may be stated as follows :

about an hour and a half to discussing Toyota history and culture,

1 . Organisational Issues

and about two hours to employee benefits. Another two hours are

History of company

then spent discussing Toyota's policies about the importance of

Names and titles of key executives.

quality and teamwork.

Employees' title and department.

Day Two : The second day starts with about two hours devoted to

Layout of physical facilities

"communication training-the Toyota Motor Manufacturing way of

Probationary period

listening." Here the importance of mutual respect, teamwork, and

Products/services offered

open communication is emphasized. The rest of the day is then

Overview of production process

devoted to general orientation issues. These include safety,

Company policy and rules

environmental affairs, the Toyota production system, and the firm's

Disciplinary procedures

library.

Safety steps

Day Three : This day also begins with two-and-a-half to three hours

Employees'

devoted to communication training, in this case "making requests

handbook

Employee

Benefits

and giving feedback." The rest of the day is spent covering matters
such as Toyota's problem-solving methods, quality assurance,

Pay scales, pay days

hazard communications, and safety.

Vacations, holidays

Day Four : Teamwork is stressed in the morning session. Topics

Rest pauses

include teamwork training, Toyota's suggestion system, and the

Training Avenues

Toyota Team Member Activities Association. This session also

Counseling

covers what work teams are responsible for and how to work

Insurance, medical, recreation, retirement

together as a team. The afternoon specifically covers fire prevention

benefit

and fire extinguishers training.

Introductions

Employees thus complete the four-day orientation/assimila-

To supervisors

tion/socialization process having been steeped in-and it is hoped

To co-workers

converted to Toyota's ideology, in particular its mission of quality

To trainers

and its values of teamwork, kaizen/ continuous improvement, and

To

problem solving. That is a big step toward winning new employees'

employee

counselor 4. Job Duties

183

Let us try to understand the process of orientation better by going

program, a welcome to the company, and a discussion of the firm's

Contents of Induction Programme

areas

Relationship with other jobs

firm's ideology of quality, teamwork, personal development, open

Take the employee on a guided tour of

The

Job objectives

commitment to Toyota and its goals and values.

Summ the
ary

candidate

may

be

offered

permanent

employment.

After aNow we know why after the initial placement of

candid the candidate on the job, his induction is
ate isnecessary. Induction is a technique by which a
selecte new employee is rehabilitated into the changed
d forsurroundings and introduced to the purposes,
employpolicies and practices of the organization,
ment, employee's job and working
he is
placed
on the
job.
Initiall
y,

the

placem
ent
may be
on
probati
on, the
period
of
which
may
range
from
six
months
to two
years.
After
success
ful
comple
tion of
the
probati
on
period,

184

conditions, salary, perks, etc. In other words, it is the process of

introducing the employee to the organization and vice versa.

------------------------

Placement
After all the formalities are completed, the candidates are placed on
their jobs initially on probation basis. The probation period
may range from three months to two years. During this period,
they are observed keenly, and when they complete this period
successfully, they become the permanent employees of the
organization. After a candidate is selected for employment, he is
placed on the job. Initially, the placement may be on probation, the period
of which may range from six months to two years.
After selecting a candidate, he should be placed on a suitable
job. Placement is the actual posting of an employee to a specific

job. It involves assigning a specific rank and responsibility to an

employee. The line manager takes the placement decisions after

matching the requirements of a job with the qualification of a

__________________

candidate. Most organizations put new recruits on probation

for a given period of time, after which their services are

confirmed. During this period, the performance of the

probationer is closely monitored. If the new recruit fails to adjust himself
to the job and turns out poor performance, the organization may consider
his name for placement elsewhere. Such second placement is called
differential placement. Usually the employees' supervisor, in consultation
with the higher levels of line management, takes decisions regarding the
future placement of each employee. Placement is an important human
resource activity. If neglected, it may create employee adjustment
problems leading to absenteeism, turnover, accidents, poor performance,
etc. The employee will also suffer seriously. He may quit the organization
in frustration, complaining bitterly about everything. Proper placement is,
therefore, important to both the employee and the organization. The
benefits of placements may be summarized thus,
Major Benefits of Proper Placement
The employee is able to:
Show good results on the job.
Get along with people easily.
Keep his spirits high, report for duty regularly.
Avoid mistakes and accidents.

185

>
z

LESSON 2 3 : GLOBAL RECRUITMENTTECHNO APPLICATION

re
c/a

O
7
0

nr

Learning Objectives

e
c/a
P

r
>
Z

Sharon Rodeghiero, international human resources manager with

Article on Global Recruitment

Golden's American Management Systems, says she's seeing more

project-type overseas assignments that run six months to a year.

Article on " Effect of corporate culture in

Global companies".

Jumping for a job in Japan? An urge for Uruguay? A passion for

Hello students,

Paris?

Before we go into the subject let me ask a question,

You're living in the right place at the right time.

How many of you are willing to work at Foreign

sites?

"Here in Colorado it's just really amazing how many international

companies are growing like crazy," says Mike Tucker, president of
Tucker International, a Boulder-based training and assessment service
for companies that do business overseas.

Good! today we shall discuss on Global

As the business world goes increasingly global, more and more

Recruitment, Which is very interesting and

companies are moving operations overseas or expanding their client

challenging and we'll learn more on "how the

base to include international accounts. The result is more long- and

recruitment process is taking place globally"

short-term opportunities for employees who want to work outside the

hence shall we start our discussion based on the

U.S.

following article.

"The idea used to be to start a business overseas and send one or two key
people, bringing them back as soon as possible," Tucker says.

Article 1

But now, entire teams, from project managers to accountants, travel to an

Going Extra Miles for A Job Employers Open

overseas job site. Tours of duty could last six months to five years. But

World to People Willing to Work at Foreign

Sharon Rodeghiero, international human resources manager with

Sites

Golden's American Management Systems, says she's seeing more

Denver Rocky Mountain News; Denver, Colo.;

Nov 7, 1999; Vicky Uhland Special to the News

International hiring experts say demand for overseas jobs pretty much
equals supply. This is a switch from past years, when competition for

Abstract
"Here in Colorado it's just really amazing how
many international companies are growing like
crazy," says Mike Tucker, president of Tucker
International,

project-type overseas assignments that run six months to a year.

Boulder-based

training

and

assessment service for companies that do business

overseas. As the business world goes increasingly
global, more and more companies are moving
operations overseas or expanding their client base

international jobs was fierce.

The change can be attributed to two factors: Aging workers aren't keen
on leaving the comfort of home, and eroding company loyalty makes
employees anxious about committing to a long stint away from
headquarters.
"People don't trust their companies," Tucker says. "If they move to
Brazil for three to five years, what happens after that? Sometimes when
they come back the company isn't even in business in the same form."

to include international accounts. The result is

Workers on the fast track for promotion can fall victim to the "out of

more long- and short-term opportunities for

sight, out of mind" syndrome if they take an overseas assignment.

employees who want to work outside the U.S.

"People are thinking, I'm not going to take this job and ruin my career

But now, entire teams, from project managers to

when all the other guys here are still sitting schmoozing with the boss,"

accountants, travel to an overseas job site. Tours

Tucker says.

of duty could last six months to five years. But

186

Although some companies might have difficulty

"Getting there is probably

spousal

finding people who want to work abroad, it still takes

easier than being a success

paid trips home.

a certain type of worker to win an overseas

there," Lazo says.

For those who want to In addition,

assignment.

In addition, a worker's

land

"You have to be very qualified. The company has to

family must also want to

assignment, the best bet is opportuniti

trust you can do the job and be loyal," Tucker says.

live overseas, and they

to get a domestic job with es for those

Lou Lazo, principal with human resources consulting

need

a company that conducts in top-level

firm Delphi Management Solutions, says employees

frequently,

who can work autonomously are valued in overseas

build overseas facilities in

jobs. Lazo, former director of international human

countries

to

realize

that

corporations

assistance

an

and hospitality
workers.

overseas there

business internationally.

are

managemen

lower

Tucker
large t.
corporations such as Coors says

resources for Denver-based Newmont Mining Corp.,

standards of living.

says a good work ethic is key, because many

Although Tucker says the

and Johns Manville. Also, companies

many large and small usually like

international jobs are broader and have more

U.K. remains the No. 1

demands than domestic jobs.

destination for Colorado's

There are also the intangibles. Flexibility is very

expatriate workers, "with

important, along with open-mindedness, patience and

globalization,

respect for other people's beliefs.

destination

with

the

These

include

high-tech and telecommu- to

nications companies have their

send
own

overseas accounts. Tucker chief

points out that chain financial

country

"You've got to recognize that conducting business in

changes instantly."

retailers such as Home officer and

Depot and Walgreen send chief

the American way overseas is probably not going to

Lazo cautions that it can be

get things done," Lazo says.

easy for people who aren't

U.S. management teams to technology

overseas stores to assure officer to an

He adds to the list tolerance for different physical

suited

for

international

conditions, the ability to take adversity in stride and a

work

to

accept

sense of humor. Also, it's important to figure out how

assignment overseas. The

long it will take to be successful in your overseas job.

reason? Money.
Although

an

worker

probably won't get a pay

raise for doing the same

job resources
boards like Monster.com personnel
post hundreds of overseas also may be
The

big

Internet

jobs. Even if you don't expatriated.

want the job advertised, Generally,

companies offer lucrative

you can check out which Tucker

says, senior
companies are hiring.

expatriate packages. For

Certain

job

overseas,

many

instance, Lazo says an

overseas

compensation

package can include a taxfree

foreign

service

premium of 5 percent to 15

of managers
professions are more in stay abroad
demand overseas than longer, with
types

Information the average

technology workers and assignment
engineers can often write three to five
others.

There can also be a 5

their own tickets. There years.

are many opportunities for Once

percent

teachers.

percent of the base salary.

companies offer subsidized

care you've
a
workers and those in sales landed
and marketing can find job with a

housing

work

to

30

percent

hardship premium. Some

187

that business is conducted overseas

site. Human
uniformly.

and

day

care,

Health

There's company
also a call for clerical and that sends
overseas.

employees

Article 2

recruitm

worldwide, almost 5,000

corporate

overseas, there are

Global

ent

are

Boynton

certain ways to get

Companies

practice

States. Since the Golden

company strives to hire 6% just five

noticed.

Reexamine

Arches

management

says it's key to be

corporate

worldwi

1967, the company has had

members who have skills

able to speak a

Culture

de:

to

that

Tucker

second
and

language,

almost

any

language will do.

This demonstrates
that you're willing
to learn languages.
You

also

can

distinguish yourself
by

showing

that

you're familiar with

international work
or travel. Tucker
recommends studyabroad

programs

through universities
or churches or civic
associations

like

Rotary

do your homework.
If your company
sends workers to
learn

about the country's

culture, economics
politics.

Demonstrate

your

interest and show

you're

Monica;

Aug

1994;

Anonymous
Abstract
Through
recruitment,
international
balance their own
values and cultures
with those of the
diverse
in

countries

which

they

operate.
McDonald's

has

areas of operation

properly

prepared.

Sweden.

and
In

there

all,
are

restaurants in 73
countries,
employing
approximately
750,000 people. It
is these employees
who are key to
keeping
McDonald's
corporate

culture

"Show you've got

alive. PepsiCo has

an

of

on

competencies that

awareness

what's

going

core

internationally,"

are essential in the

Lazo says.

company's

the

went

perform

United

global
a

in

cultural

says

alive. compared

that the with

complement

its

balancing act: Like other

corporate values: "We're

U.S.

organizations

looking for people who are

internationally,

customer-service oriented,

2.

drive for

operating

results,

Oak Brook, Illinois-based

who

3.

McDonald's

standards and who have

respect

has had to find a way to

the

for

maintain

others," she explains. In

others,

identity around the globe

addition,

4.

without trampling on the

that the managers must

capablili

diverse cultures of the

have

ty.

countries in which it does

leadership

McDon

business.

strategic

ald's has

"McDonald's employment

abilities, be able to solve

long

practices and philosophies,

problems and have the

been an

in essence, are similar

ability

America

around the world," says

business.

Amy Boynton, director in

however,

tradition

the company's international

characteristics may differ

and part

human

greatly

of

department.

Corporation
its

corporate

resources

have

high

ability

work

to

coach

Boynton

good

says

individual
styles

and

leadership

to

manage
She

stresses

that
from

the
these

place

to

that

place. "We're not saying

national

doesn't mean that the way

exactly how someone has

culture.

these

are

to do something or be,"

But the

executed is the same from

she says. "That's unfair

"billions

one country to the next.

and

and

That's

inappropriate."

billions

differences

served"

play."

McDonald's isn't the only

are

For McDonald's, areas of

company grappling with

longer

operation

this issue. According to a

only

widespread as Kuwait and

recent

U.S.

Sweden. In all, Boynton

managers by New York

citizens.

says there are restaurants in

City-based

The

In fact,

73

Conference

Board,

of

approximately

our

no

the

"But

practices

where

cultural

come

are

into

as

countriesemploying
750,000

culturally

Widespread Concern

survey

promotion

of

of

HR

corporate

14,250

people.

these

values and culture is the

restaura

employees who are key to

top priority for 15% of

nts

keeping

global

It's

McDonald's

only

team years ago.

integrity

and

corporations

Kuwait

Lazo suggests you

and

Santa

as widespread as

International.

Indonesia,

Personnel Journal;

1.

outside

culture

companies,
188

re c/a O
70

>z

n re c/a

>

r-

But how do these

can't

HR

everything."

professionals

defi and

nes International

as 70,000 people, we don't

business," he says.

2=

hon have time for memos and a

Finally, PepsiCo looks for candidates

esty lot of bureaucracy," he

who are

to

detail

their

Richard Gros agrees. As

cultures

vice president of personnel

and the cultures of

at Somers, New York-

re the areas in which

c/a they operate? "Very

based PepsiCo Foods and

O carefully,"

Gros says that PepsiCo has

z
R

meld

try

>ZZ

corporate

70 Calvin

says

Reynolds,

Beverages

International,

determined

four

core

counselor
n senior
re with Organization

competencies

c/a Resources
P
r- Counselors, Inc. in

recruitment

New
> Ossining,
Reynolds,
Z York.

these

competencies

four,

Gros

I who has more than

years'
Z 30

PepsiCo is able to uphold

o experience working
with
global
2=
businesses,
says

a diverse population that

to

be

essential in the company's

practices

worldwide.

By

limiting

says

to
that

its corporate values within

by designincludes many
non-U.S. executives. "We

that one solution is

use

to establish broad

characteristics; everything

HR

else

principles,

only
is

four

determined

core
by

rather than specific

what's appropriate for a

guidelines. "There's

particular

of

explains. "There isn't a

homogeneity in this

template on organizational

total

lack

culture,"

he

says.

Beverages
is

almost

can candidates

have

the

This includes the ability to break

dor, integrity

that's

needed,

abil employees

in a creative way and the desire to

ity during

are

interviews:

drilled
"We
really

mm walked the talk."

new concept, we can't go to another

uni Secondly, PepsiCo looks

cate for employees who have a

consumer-goods company and find

ope drive for results. "This is

nly really a bias for action and

the initiative to grow and learn."

and a commitment to achieving

the goals," explains Gros. He

Through these four competencies,

abil adds that PepsiCo often

ity looks to past behavior as a

International maintains its culture

to predictor of how an
deli employee will respond in
ver the future. "We focus in on
whapeople and say, 'Tell me

competenciesplus the company's

t's when you've really brought

pro home the results. What

our executive leaders have helped us

mis were the obstacles and how

competencies that have built us to

ed. did you overcome them?'"

"Be The
third
core

where we are today," Gros explains.

cau characteristic for PepsiCo

se is people, or respect for

attributes
the

ulat superstars

snack-food business in India. Gros

underpinnings, every other

policies, they get

aspect of the business can

aren't

into a mess," he

be different."

global

189

companies

that the first is integrity,

which

the

company

is

into markets where capitalism is a

have

HR

of principles, but

curiosity

co candidates

much

says

"Intellectual

essential," Gros says. "When we go

our others. "We've found that

pop in our company, individual

Gros

learn.

to look for examples of when

same attitudes and cultural

must-haves?

into solvable

ones, the ability to rethink problems

too

with a general set

complex problems

the Gros says that prospective

generalize

What are PepsiCo's four

the

company calls business thinking.

As long as we have the

fine to come up

of what

that

companies start to

Core Competencies

capable

ensure

structure around the world.

says. "I think it's

values and different ways of doing

To

world of ours; if

on

respect for different beliefs, different

ion successful," says Gros.

in Instead, he says that people

employees. We need people who take

International Hiring
PepsiCo

Foods

and

Beverages

and values globally. And it's these

diverse organizationthat Gros says
are the foundation for the company's
success. "The studies we've done on
determine

that

these

A strong belief
led

are

in these

PepsiCo

to

the

core
hire

Ramesh Vangal in 1985. That year,

company

was

looking

for

someone to establish a beverage and

says that once the interview was
complete, he knew Vangal was the

Pep must respect others and

siC work in teams. This is

person for the job. First, because

how to operate within its culture.

especially important in a

Foo global

company:

Vangal grew up in India, he knew

"It's

Also, because he was working in

ds necessary that people have

Geneva when PepsiCo hired him, it

wa meone to help it

recently promoted him to

somess of how a company

s expand into a new

president of the snack-

eti ultimately

cle location, it also was

foods

mes handle this issue, the first

ar essential that the

Asia-Pacific.

hav step is the recognition that

to employee

A Balancing Act

e anthe

Gr results-driven. Gros

As more companies join

age Reynolds

os says that Vangal,

PepsiCo and McDonald's

nt "Companies

tha who was employed

in

doi sensitive

t with

marketplace, this issue of

ng differences.

Va Gamble Co. before

international

busisuggesting

ng joining

PepsiCo,

identity won't go away. As

nes compromise their morals,

al was someone with

Darryl Sjoberg, manager

co that quality. "We

of

ther aware

ul looked at his track

resources at Minneapolis-

d record," Gros says.

based

Inc.,

and

wo"We could see that

expresses: "It's key to have

we'l

rk he was creative and

a common thread running

l do

we liked

think

through an organization.

the

ll outside the box."

Without that thread, the

sup

wi Also,

says

corporation becomes many

plyi

th that Vangal had an

separate parts with no

ng,

a independent spirit:

commonality."

but

was

Procter

to
Gros

&

di "Vangal

worked

ve through

the

rse company's
gr bureaucracy well,"
ou he says. "He was a
p real maverick there.
of We wanted to take
pe that

energy

and

op give him a blank

le. sheet of paper. We
Be said, 'Ramesh, you
ca write the story.'"
us Vangal did just
e that: Under his
Pe leadership, PepsiCo
psi became the first
Co U.S. multinational
ne company to be
in
ed established
ed India. And as a
so result, the company

division

the

for

the

international
corporate

international

human

Cargill,

But Sjoberg agrees that

cultural

variance

from

country to country can't be

ignored. And if there's an
ethical conflict, sometimes
he says it may be best to
simply

do

elsewhere.

business
"You

compete

can't

in

international

an
location

when your ethics and the

country's

ethics

don't

blend," he says. "If there's

a serious conflict, some
companies
business

won't
in

the

do
area."

When faced with a severe

ethical dilemma, Sjoberg
says that Cargill has taken
this

approach.

"We'll

decides

dilemma

to

exists.
says:

must
to

be

cultural
I'm

that

not
they

but they must be very

of

the

different

attitudes around the globe."

basi
call
y
we
don
't
hav
e a
pres
enc
e in
thos
e
loca
tion
s,"
he
say
s.
Reg
ardl

190

Article: 2
U.S. Demand for Executives Declines 19%, Study Shows
Wall Street Journal; Brussels; Jan 17, 1991;
Abstract
Demand for senior executives by U.S. corporations dropped by a record
19% in the fourth quarter of 1990, according to a study by Korn/Ferry
International.
In its 76th quarterly National Index of Executive Vacancies, the executive
search firm said demand for top managers fell 17%
last year. Executive hiring levels were down in the first two

------------------------

quarters and were flat in the third.

LOS ANGELES Demand for senior executives by U.S.
corporations dropped by a record 19% in the fourth quarter of

1990, according to a study by Korn/Ferry International.

__________________

In its 76th quarterly National Index of Executive Vacancies, the

executive search firm said demand for top managers fell 17%

last year. Executive hiring levels were down in the first two

--------------------------

quarters and were flat in the third.

Company Chairman Lester B. Korn attributed the fourth-quarter drop-off

to "full-blown crises in a number of key industries, the recognition that
the economy is in a recession and all the tremendous uncertainties
brought on by the gulf crisis and the price of oil."
Other Findings of the Study

The demand for chief executive officers increased and

__________________

average chief executive compensation rose 10%-15%. Mr. Korn said

shareholder pressure for companies to "hold the
line" during troubled times compounded the need for

__________________

strong corporate leadership.

Finance and real estate were particularly hard hit. Other

industries affected included high technology and
electronics, retailing and business services.

Health Care, education and entertainment recruiting remained strong.

Health care actually experienced growth in
executive hiring.

Demand fell most sharply in the U.S. Northeast, followed by the West
and the Southwest. The Midwest and
Southeast faced less belt-tightening. International hiring
grew 6%.

The Korn/Ferry survey is drawn from 750 Korn/Ferry clients, both

corporations and nonprofit organizations, and records the
hiring of executives earning at least $100,000 a year.

--------------------------

>z

LESSON 2 4 :
PERFORMANCE
MANAGEMENT

re c/a O

Learning Objectives

output,initiative,leadership

as

Brief Introduction to PM

operation,judgment, verstality,health and the alike. Assessment

n re c/a

What is performance Management

should not be condensed to past performance alone. Potentials of the

Evaluation of performance & Review

employee for future performance must also be assessed.

Potential Appraisal and promotion

A formal definition of performance appraisal is:

r-

>ZZ
N

o
2=

abilities,supervision,dependability,co-

Brief Introduction to Performance

It is the systematic evaluations of the individual with respect to his

management

her performance on the job and his or her potential for development.

A majority organization has today have some sort

A more comprehensive definition is :

of formal performance appraisal system. Such

systems typically make use of a standardized
rating from that is used to evaluate various aspects
of employee performance. Numerical values or
ratings are generally assigned to each performance
dimension. Most formal appraisal are done
annually though there is evidence that employees

In fact both supervisors and employee frequently

express considerable dissatisfaction with the
whole performance appraisal process. Gerald
marble has described performance appraisal as the
poorest performing, most ineffective and least
efficient human resource practice.
Effective managers and supervisors realize that
they must take an active and positive role in
employee performance to ensure that goals are
met. These managers and supervisors realize that
they are paid not so much for what they do but for
what their subordinates do. Therefore they define
their role in managing employee performance as
one of empowering employees. Their role is to
ensure that employees know specifically what to
do, can actually do it and do not face unnecessary
or

disincentives

to

effective

performance.
What is Performance management? Meaning
and Definition
In simple terms, performance appraisal may be
understood as the assessment of an individual's
performance in a systematic way, the performance
being measured against such factors as job
knowledge,

quality

and

quantity

and evaluating an employee's job related behaviours and outcomes

to discover how and why the employee is presently performing on
the job and how the employee can
perform more effectively in the future so that the employee,
organization,and society all benefit.
The second definition includes employees' behaviour as part of the

would prefer to be evaluated more frequently.

obstacles

Performance appraisal is a formal, structured system of measuring

of

assessment. Behavior can be active or passive- do something or do

nothing. Either way, behavior affects job results. The other terms
used for performance appraisal are: Performance rating,employeee
assessment,

employee

performance

review,

personnel

appraisal,performance evaluation , employee evaluation and

(perhaps the oldest of the terms used) merit rating. In a formal
sense, employee assessment is an old as the concept of management,
and in an informal sense, it is probably as old as mankind. Nor
performance appraisal is done in isolation. It is linked to job
analysis as shown below:
Performance Management is one of the oldest and most universal
practices of management. It refers to all the formal procedures used
in working organization to evaluate the personalities and
contribution of group members. Modern management makes
somewhat less use of the term merit rating that was common in
earlier periods. The approach resulted in an appraisal system in
which

the

employees

merits

like

initiative,

dependability,

personality, etc were compared with others and ranked or rated.

Today an increasing number of organizations have begun to
emphasize performance management. Performance management
goes beyond the annual appraisal ratings and interviews and
incorporates employee goal setting, coaching, rewards, and
individual development. As such performance management focuses
on an ongoing process of performance improvement, rather than
primarily emphasizing an annual performance review. Further more,

tional in 2000 placed performance management as

Individual performance becomes an important consideration only

bench the second highest priority for global business

during the later phases of an employees career. By this time,

markin ( right behind leadership Development ).

however the employees capabilities and potentials are well known,

g studyIt should be clear by now that one of the major

conduc objectives for which performance management is

simply from the long exposure senior officers have had to the

ted byused in the west and in India-reward and

develo promotion decisions has little meaning in Japan.

In any case, performance in the sense of an individual's

pment Promotion is by seniority and reward bonus is

dimens distributed twice a year to all employees, based on

concerned about-both because of the belief that all performance is

ions

performance, for praise or blame is inimical to group harmony.

company's performance.

employee's work.

achievements is not something the Japanese are inclined to be

group

performance,

and

because

isolating

an

individuals

Interna
Consequently

performance

in

Japan

means

Data relating to performance assessment of

Organizational

performance with respect to human relations and

employees are recorded, stored, and used for

maintenance/objec

whatever performance appraisal does take place

several purposes. The main purposes of employee

tives,

emphasizes this aspect more than performance

assessment are:

documentation

with respect to material results. For all these

1. To effect promotions based on competence and

purposes.

reasons, most Japanese organizations do not have

a

formal

performance

evaluation

system.

Performance appraisal does go on, however, since

some means exits for assessing the ratio between
the individual's capabilities and the organizations
need. But performance appraisal is an informal,
implicit process.
As William ouch describes in his theory Z, the
Japanese organization takes in only young people
who are still in formative stages of life, subjects
them to multiple group memberships, and so
inculcates in them a kind of devotion to coworkers
that one sees in the U.S. marines. It is not external
evaluations or rewards that matters in such a
setting. It is intimate subtle and complex
evaluation by one's peers-people who cannot be
fooled-which is paramount.
There is another reason why a formal performance
appraisal system would be out of place in Japanese
organizations. While employees are selected very
carefully, a small percentage of their incompetent
or unproductive employees can be expected to
exist in all companies. Since these individuals
cannot be fired, some ways must be found where
by they can be kept busy.
Objectives of Performance Appraisal:

performance

Evaluation

and

iv)

of

2. To confirm the services of probationary performance Review

employees upon their completing the A Questionnaire study
probationary period satisfactorily.

can be carried out for

3. To assess the training and development needs measuring the extent

of overall satisfaction
of employees.
with the existing
4. to decide upon a pay raise where(as in the
appraisal system.
unorganized sector) regular pay scales have not
Questions may be
been fixed.
framed
on
the
5. To let the employees know where they stand
following points to
insofar as their performance is concerned and
effectively review the
to assist them with constructive criticism and
performance appraisal
guidance for the purpose of their development.
system.
6. to improve communication. Performance

Relationship
appraisal provides a format for dialogue
Between
the
between the superior and the subordinate, and
Appraiser and the
improves understanding of personal goals and
Appraisee
concerns. This can also have the effect of
This may be measured
increasing the trust between the rater and the
in
terms
of
rate.
hierarchical
7. Finally, performance appraisal can be used to
relationships in the
determine whether HR programmers such as
organizational
selection, training,and transfers have been
structure and work
effective or not.
relationships.
8. Broadly, performance appraisal serves four
Performance
objectivesI)
development
uses,
ii)
review ,A survey of
administrative
uses/decisions,
iii)

employee preferences found a slight preference '

than on their evaluation. This objective is better

for receiving informal feedback on the job over

fulfilled by the potential appraisal system, which

final feedback through an appraisal interview (53

tells about an employee's capability to successfully

percent to 47 percent). The authors of this study

assume a new rote in future following his

interpreted this as suggesting that most employees

promotion. It is different from performance re c/a O

want both types of information, that is, they still

want the information provided by a formal

appraisal which tells a!? out an employee's present 70

performance in his existing role. Promotions done n re

appraisal process, but they want this to be supple-

on the basis of the employee's present performance

mented by an ongoing process of evaluation and

Furthermore, a benchmarking study conducted by

in his existing role are generally unsatisfactory if >

the nature of roles, responsibilities and functions
Z
of the higher post are substantially different from N

Development Dimensions International in 2000

those of the posts held by the promote now. In

placed performance management as the second

such cases performance appraisal is an indicator of 2=

highest priori~ for global business (right behind

an employee's future success in higher role only to

leadership development).

the extent that the duties and responsibilities

Growing body of literature emphasizes the

involved in the two roles are common. If the

compensation' and reward aspects of performance

employee's would-be role is going lo be different

management.

from his present role, potential appraisal needs to

feedback.

These

are

critical

issues

for

organizations to address. Reward issues fall

outside the bounds of coverage for a textbook on
human resource development and thus we will
stress the coaching, feedback, and goal setting
aspects of performance managemet1.t in our
discussion

to

follow.

Nevertheless,

we

wholeheartedly agree with the point made in the

broader literature that performance management
and coaching must be connected to the goals and
strategies of the organization as a whole.
As Jerry Gilley and colleagues point out, what is
required is an organization-wide approach to
performance improvement, with coaching and
employee development as critical aspects of this
effort. Among other things, this also means that an
organization's recognition and reward system must
function in a way that managers and supervisors
are in fact rewarded for effective coaching. We
will return to this point in our concluding
comments. Next, however, let us look at the
coaching process
itself.
Potential Appraisal and Promotion Potential
Appraisal
Under HRD, the appraisal system lays greater
emphasis on the development of employees rather

be done.

>z
R

r-

Potential Appraisal is another powerful tool of

seen as an attitudinal problem. Further, these problem children bask

employee development. Whether managers realize

in the glory of their potential but are unable to contribute to their

it or not, they are accustomed to making potential

own jobs. Dealing with workhorses too could be tricky. They can

assessments. Every time a manager recommends

perform very well on routine tasks but have limited potential.

re c/a O or fails to recommend an employee for a

Hence, their promotability is difficult and this creates frustrations

promotion, a potential assessment has, in fact,

for the employees. If promoted, they are unable to perform higher-

n re c/a been made. The process of assessing the

P
managerial potential of employees deals with the
r-

level jobs and this too creates problems both for the individuals and

> Z Z question of whether or not they have the ability to

N
handle positions in the future which involve

have in organizations. But retaining these stars could be difficult.

>z
R

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the organization. We easily conclude that 'stars' are ideal people to

Like the performance appraisal, potential appraisal is also done by

considerably more responsibility than what they

the employee's supervisor who has had the opportunity to observe

have right now. As long as individuals are viewed

the employee for some time. Potential appraisal may be done either

as being able to handle increased or different

regularly (annually) or as and when some post falls vacant. It has

responsibilities, they would be considered to have

been found in practice that appraisal is generally more objective

potential (either latent or visible).

under the regular potential appraisal system than under the

Potential appraisal may thus be defined as a

intermittent system. In the former system, the last part of the

process of determining an employee's strengths

appraisal form generally deals with the potential appraisal.

and weaknesses with a view to use this as a

For example, part III of the Performance Appraisal Form of Maruti

predictor of his future performance. This would

Udyog Ltd. solicits information to assess the future potential and

help determine the promotability of an individual

ability of its Ls and above categories of workers to assume a

to a higher position and help chalk out his career

position of higher responsibility (LI3) in the following format:

plan.

The

fundamental

difference

between

Group effectiveness (Maintaining and improving morale of the

reviewing performance and assessing potential is

group and helping its identification with organizational

in the criteria used. In reviewing performance, the

objectives; optimal utilization of available manpower resources;

criteria used is what goals the employee achieved

directing and coordinating efforts and effective follow-up action

and what skills he or she currently possesses that

could be indicators of his or her ability to assume
different or more advanced responsibilities.
It is this that makes potential appraisal a very
crucial & critical area. If an employee without
requisite abilities is promoted to a higher position
and does not perform as per expectations, then it
becomes impossible to demote him.

L"
1 L3
Outstanding Very good
Satisfactory
Unsatisfactory
to ensure accomplishment of planned objectives.)
1

good
Ability to develop' subordinates (Sensitivity to develop
subordinates' mental skills; ability to provide professional
Outstanding
results.)

L"

1 L

3 guidance to produce group

Thus, he is unable to perform at the higher level

and becomes a 'passenger' in the system. It is
rightfully assumed that every individual has
potential, low or high. Many organizations have
people whose potential being low, performance too
is not up to the mark. Whilst the question in our
minds hovers around how such people got into the
system, the fact remains that they do not contribute

Unsatisfactory
Very good

Good

Satisfactory
Potential Capability (Overall rating for managerial capability to
head a deparetment. based on your assessment related to the
above two points.)

to the organization's performance. A major

problem that companies face is tackling the

Outstanding

problem children. They can and have the ability to

Very Good

perform but do not perform and do not contribute

to the organization's performance. This is mainly

1J LJ
satisfactory Good
Unsatisfactory

In some organizations a directory is prepared which contains

descriptions of each job, functions involved in each job and the

qualitieofficer to.J1elp him in assessing the potential of all

profitability and cost effectiveness and so rnThp salmi rr^?tia.c!

mn'l-JfclT i theCorm of letters. notes. instructions etc. in the 'IN'

his subordinates.

require In intermittent potential appraisal the methods

d
togenerally used are ; (i) In-basket exercise and (ii)

tray on which the appraises have to take quick decisions. At

Cavity Assessment center.

out
In-basket exercise has now become a very popular
these tool of potential appraisal all over the world. The

appraising the potential of its middle level managers for

functio International Labor Organization has developed a

ns. AManual of these exercises. These exercises relate

performed simultaneously by a group of trained evaluators using a

copy

to a variety of situations which the appraises

from different departments are brought together to spend 2 or 3 days

of thiswould face if they were to be promoted to the

dnsdbr higher post.

working on individual or group assignment similar to the one they

For example, they may relate to the launching of a

The pooled judgment of observers leads to an order of merit of

new project, difficult industrial relations, structure

ranking for each participant. Compared to other forms of potential

of

appraisal this method affords better opportunities to unknown

is

given
to
every

the

organization,

marketing

strategies,

Crampon Greaves Ltd. this 1001 is being successfully tried for

appointments to top positions in the company.
An assessment center is a multiple assessment of several individuals
variety of group and individual exercises. Typically, individuals

will be handling if they are promoted.

people who are working in com' operatively less

important or low status departments of an

The above linkages will help the employee in Requirements of a

organisation to compete with people from more

knowing his strengths and weaknesses and in Sound

well-known departments.

developing himself through training and job Scheme

Steps for setting up a good Potential Appraisal

rotation. Systematic records of the existing First requirement of a

System

potential will. help the organization in better sound

1. As a first step there should be clarity of roles

and functions associated with the roles in
respect of which the potential of employees is
to

be

appraised.

In

other

words,

the

organization must have well-prepared role/job

descriptions. There should also be a detailed
list of qualities required to perform these roles.
2. As a second step the mechanism by which the
various qualities required for the role are going
to be assessed must be decided. Ratings by
superiors,

psychological

tests,

assessment

Promotion

promotion

utilization of its internal resources and in doing scheme is that it must

better manpower planning.

provide for a uniform

Promotion

distribution

of

A promotion takes place when an employee moves promotional

to a position higher than the one formerly opportunities
occupied. His responsibility, status and pay also throughout
increase. When as a result of promotion there is no organization.

the
This

increase in the employee's pay it is called a 'dry' means that the ratio of
promotion. A dry promotion is usually made internal promotions to
decorative by giving a new and longer title to the external recruitment
employee. Employers generally get rid of their must be the same at

the various mechanisms which are used for

incompetent employees by giving them such various levels in al1

departments. If this
decorative promotions.

assessing the potential of an employee.

In many companies only vertical I promotions are

centers and performance appraisal records are

3. As a third step the organization must, formulate

made under which the employees are promoted

a clear-cut promotion policy to promote its

from one rank to the next higher rank in the same

employees who are found to possess the

department. A vertical promotion scheme has two

necessary potential for higher roles (Read the

disadvantages: first, it limits the experience of an

section on Promotions in the chapter on

employee; second, it deprives him of the

Motivation).

opportunity

4. Finally, the organization must link its Potential

to

secure

promotion

in

other

departments at the right time.

Appraisal system with various other sub.

As such. horizontal promotions are also allowed in

systems of HRD such as: Feedback and

some companies under which employees may be

Counseling, Training and job rotation, Data

promoted to higher ranks in other departments as

storage and Manpower planning:

well.

ratio differs greatly

from one department
to another, morale of
employees

may

be

seriously impaired in
the

department

notorious for its low

ratio of promotions.
Second

requirement

of a sound promotion
scheme is that it must
tell employees in ad'

Vance what avenues for advancement exist.

vacancies. In this way, the staff position of the

Companies generally make use of various types of

personnel department does not intrude upon the

charts for this purpose. These charts variously

authority of the department served. In addition,

known as 'promotion charts' ,'opportunity charts' or

subordinates are impressed favorably by their line

'fortune sheets' do not promise or guarantee the

superior's concern for their progress.

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promotion of any individual. They merely point

Finally a sound promotion policy must provide for 70

out how various positions in the organization are

a suitable system of follow-up, counseling and n re c/a

related to each other. There are two broad

review. Say, month or two after the change the

categories of these charts; three-position charts and

personnel

multiple-chain promotion chart.';, Ten threeposition charts each position is related to two other

department

should

!\old

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r-

brief > Z I
interview with the promoted employee and his Z

positions-one from which employees are promoted

new superior to determine whether in is going on o

well. All promotions should be made for a trial 2=

and another to which promotions are made. In

period so that if the promoted employee is not

multiple chain promotion charts each position is

found capable of handling the job he can be

linked to several others from which promotions

reverted to his former post Indy his former pay

can be made and to several others to which

scale.

incumbents may be promoted.

Since the number of potential candidates is very

Third requirement of a sound promotion scheme is

often more than the number of promotional

that there should be some definite system for the

openings, some candidates are bound to lose in the

selection of employees who are to be promoted

competitive struggle. Rowland refers to them as

from within the promotion zone. This, of course,

"also rans.,,1 Generally all also-rans accept the

calls for the choice of promotion criteria. In the

outcome philosophically. For the few who do not,

absence of a contract to the contrary the employer

counseling services should be provided by the

has the right to establish any criteria for evaluating

management.

promo ability if they are reasonable, pertinent to

the job and are not applied in a discriminatory
manner. The two criteria often used for making
promotion decisions are merit and seniority. These
nerd discussed in detail in a separate section.
Fourth requirement of a sound promotion scheme
is that all promotions should be finally sanctioned
by the concerned line heads. The personnel
department may only

repose the names of

potential candidates and send their history records

Review of a promotional decision by higher

management
essential

may

also

sometimes

to satisfy employees

become

who accuse

management of being unfair and unjust.

Advantages of Promotion Schemes
A promotion scheme is of little significance for a
small organization where there are only few job
relationships and, therefore, it is difficult for a
current job holder to progress readily from one job
to another. But the scheme is of signifi-

to the department making the requisition to fill

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cance for a big organization which has a large number of vertical

and horizontal relationships.
The Advantages of having promotion schemes are as follows:

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as

into jobs that provide greater personal satisfaction and prestige.

n re c/a
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They offer opportunities to management to provide recognition

and incentives to the better employees, to correct initial mistakes

r-

>ZZ

They provide an opportunity to the present employees to move

in appointments and to 'Freeze' inefficient personnel.

They generate within an organization motivational conditions for

better work performance and desired behavior of all its
members.

Fin is that they result in a condition known as

administration of monetary compensation in two parts: (I) Primary

ally 'Inbreeding' in which the company's old ideas and

Compensation, and (2) Incentive Compensation.

the habits are perpetuated and little new thinking is

Primary Compensation

able to occur. The system becomes stagnant,

The primary monetary compensation is basic pay in the form of

ser repetitious and overly conformist. The new

wages or salaries. In popular usage a distinction is drawn between

ve employees are introduced at lower levels where

these two words. The word 'wage' is used to denote payments to

as they can have little influence.

hourly-rated production workers and the word salary is used to

an In the words of Peter Drucker " Promotion should

ord not be entirely from within. This should indeed be

denote payments to clerical, supervisory and managerial employees.

erly the norm, but it is important not to let a

, management become inbred , not to foster
logi smugness and isolation. And the bigger the

roughly the same problems are involved in the administration of

cal company , the more desirable is the outsider. It

and should be clearly understood throughout the
pro company that the people from the outside will be

The oldest and most common system of paying employees is on the

mpt brought in periodically even into high managesou ment positions.

the amount of output. The employer buys the time of the worker,

rce " The history of Sears, Roebuck shows how

of important this can be. No one reared in the mail
recr order business could have brought about the

period of working. Use of time rates for salaried employees is

uit expansion into retail store which ensured the

me growth of the company. For this general wood
nt have to be imported. Similarly, the revival of ford

little control over the quality of output or when there is no clear -cut

for required bringing men from the outside right into

ma the top posts. And only if men are brought in all
nag the time rather than during a crisis- can the

of work is specially important; supervision is good and the

em crisis be avoided or anticipated.

ent
Compensation and Reward
to
Good compensation plans, well administered. have
fill
a salutary effect on the entire enterprise.
vac
Employees are happier in their work, co-operation
anc
and loyalty are higher, amount of output is up, and
ies
quality is better. In the absence of such plans
as
compensation is determined subjectively on the
the
basis of haphazard and arbitrary decisions. This
y
creates several iniquities which are among the
aris
most dangerous sources of friction and low morale
e.
in an enterprise.
One
Although there can be both monetary and nonimport
monetary forms of compensation prevailed in an
ant
enterprise, yet it is the former which is the most
drawba
basic element[ by which individuals are attracted
ck of
to an organization. persuaded to remain, and
all
induced to engage in behavior beneficial to the
promot
company. In this chapter, we shall discuss the
ion
scheme

For our purpose, however, this distinction is meaningless because

both wage and salary policies.
Time as a Basis for Pay
basis of time, i.e., rate per hour, per day, per week, per month or per
year. Under this system no consideration is given to the quality or
i.e., the worker is guaranteed a definite payment for a specified
almost universal. Time basis is more satisfactory when units of
output are not distinguishable and measurable and employees have
relation between effort and output as on some machine-paced jobs;
work delays are frequent and beyond the employee's control; quality
supervisors know what constitutes "a fair day's work", and
competitive conditions and cost control do not require precise
advance knowledge of labor costs per unit of output.
The merits of the system are as under:

It is simple to understand. Workers can easily calculate their

remuneration.

It is liked by trade unions because it does away with differences

of payments and assures a guaranteed income for a given period
of work.

It helps in maintaining the quality of output because the worker

is not tempted to increase his speed to produce sub-standard
units to earn more.

It helps in maintaining the machines and equipment in good

condition by avoiding damage Lo them which would otherwise
result if the speed of operations is unduly increased by workers
in order to increase production.

It does n01 cause employees to overwork them and hence it

results in fewer accidents and better employee health.

This can be the only satisfactory system where the units of output
are not distinguishable or measurable or there is no clear-cut
relationship between the effort and output of a worker, as is true in

the

indirect workers, like office employees and

As this system does not distinguish between efficient and

case ofexecutives.

inefficient workers, there is no incentive for workers to improve

most

their efficiency.

Following are the demerits of this system:

of the

As all the workers are paid equal remuneration irrespective of

their quantity of output, the more efficient among them are
tempted either to reduce their speed and efficiency or to leave
the organization.

As this system provides security to the

words, the relative wages of an employee are almost as important for him as

workers, they are tempted to shirk work which

his absolute wages. Unfair differentials in pay lower his morale and often

would lead to loss to the employer.

result in high turnover. However, one important implication of the pursuit

In order to make the laborers work without

of equity in pay is that it loses its incentive and reward properties and

wasting their time, the employer is obliged to

becomes merely fair compensation, just one part of the psychological

appoint personnel for supervision and this

contract.

increases his cost of production.

2. Externally Competitive

Nominal and Real Wages,

Once the wages have been made internal1y equitable, management's next

Wages can be expressed in two ways: nominal and

task is to compare them with those being paid in the community for

real. When they are expressed in terms of money

comparable jobs. The wages and salaries of workers must be in alignment

paid to the worker they are called nominal wages.

with wages and salaries other organizations are paying at similar levels,\If

But when they are expressed in terms of their

this external alignment or comparability is lacking the organization will not

purchasing power with reference to some base

be able to retain its capable employees or attract employees from outside.

year they are called real wages. These wages are

The need to achieve external alignment is highest in times of full

arrived at by making adjustment in the nominal

employment when due to shortage of labor a new worker can choose among

wages for the rise or fall in the cost of living

employers and when older employees can go to jobs elsewhere.

index. Thus, if the nominal wage of a worker in

To achieve external alignment the management must first know (either

1988 was Rs. 400 p.m., and in 1998 it is Rs. 900

through a wage surveyor through some other source) what average rates of

p.m. but if the living in 1998 has become thrice

its key jobs are prevailing in the community. It can then fix its own wage

costly as in 1988, the real wage of the worker in

level at this average level or it may decide a higher or a lower level of

1998 is Rs. 300 only.

wages for itself. In either

Requisites of a Sound Primary Compensation

case the internal relationship among jobs must remain undisturbed.

Structure

Management may decide to pay above average wage level

There are 3 requisites of a sound primary

compensation structure:

talents,

It should be internally equitable;

It should be externally competitive; and

It should pay individuals on the basis of their

performance.

A description of these requisites now

when it wants to choose employees from a wider reservoir of

when it wants to gain reputation in the community as a good

employer,

when there is union pressure on it to pay high wages,

when wages are linked to productivity which is rising, and

when there is an escalator clause and the cost of living is going up. (The

follows. L taternal Equity

escalator clause is a built-in wage adjustment system. This clause has

Internal equity means that there should be a proper

the purpose of maintaining for employees the purchasing power of

relationship between the wages and salaries of

money wages during the time the agreement is in effect.

various 'positions within the enterprise. If, for

Wage rates automatically increase or decrease periodically

example, the salary of a foreman, though above

with changes in the cost of living, as measured by some

the average rate in the community, is lower than

t agreed upon index.)

that of his subordinates, the foreman is not being

Below average rates may be decided

paid fairly. There is inequity in the rates. In other

when there is abundance of labor,

when the enterprise is incurring losses,

individual pay: the single rate approach, the merit approach. the automatic

when the cost of living is going down,

approach, and the informal approach.

when the enterprise has the reputation of being

(i) Single

on

employee

the

job

performance

because

does

When the enterprise pays substantial fringe

required to work at about the same pace (e.g., in simple

everyone

is

office jobs) single rates are frequently paid to employees on

when wages are linked to productivity which is

constant or falling.

It is very uncommon for an enterprise to determine

below-average rates due to the fear that its
employees may quit the organization provided that
other jobs are available.

In the final step, management has to decide

whether all individuals in jobs of the same level
should be paid the same pay or different pay and
how this should be determined. There are four
to

the

determination

jobs.

If

there

are

any

pay

differences

in

such

jobs

employees may consider these as favors.

(ii) Merit

approach:

and

output

are

for

compensating

be

established.

If

differences

important

to

employees
Merit

rating

in

individual

company

for

these

is

then

performance
some

differences
management

basis
should

practice

designed to gear the pay of employees to actual differences

3. Zndividual Pay Determination

approaches

significantly

When

not

basic

vary

approach:

a stable employer with no layoff,

benefits, and

rates

of

in

work

that

accomplishments.

performance

can

be

Merit
observed

rating
with

systems

assume

reasonable

accuracy

even when it cannot be objectively measured.

(ii) The automatic approach. Under this approach both the amount of the
pay increase and the period of review are usual1y predetermined. In this
approach since no consideration is shown to worker's individual
performance

or merit he does not have enough incentive to put in greater effort.

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(iv) The informal approach: Sometimes individual pay

decisions are made on an informal basis without formal guides or controls. This is most incorrect because this creates
iniquities and confusion among employees regarding what is expected of them. Lack of company-wide standards may

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70

also result in pay decisions being influenced by personal favoritism.

The above 3 requisites are complementary because each reflects a different set of factors in the total situation. Internal

n re c/a equity motivates an employee to progress to jobs of higher skills and responsibility. Externally competitive rate prevents
P

r-

him from leaving the organization. Linking individual pay to results acts as an incentive to improve performance on one's

> Z I job.
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o
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Factors Affecting Wages

Following are some important factors affecting wages:
1. Demand for and supply of labor: Demand and supply conditions of labor have considerable influence on the
determination of wage rates. If there is a short supply of labor, the wages may be high whereas if there is no dearth of
labor, the wages tend to be low.
2. Labor unions: If the laborers are well organized into strong trade unions, their bargaining power would be high and
they can demand higher rates of wages. On the other hand, if the laborers are not organized, the management may fix
low wages.
3. Cost of living: The cost of living of workers also has a strong influence on the rates of wages. If this factor is not
considered the laborers may not be in a position to make both ends meet and this will affect their efficiency. Hence
progressive employers consider this factor also.
4. Prevailing wage rates: Prevailing wages in a particular industry are also taken into account by the employers while
deciding wage levels for their employees, By considering the prevailing wage level, employers will come reasonably
close to the wage level of competitors, and this will enable them to retain and attract qualified workers to the
organization.

5. Abi
lity

of the enterprise to pay its workers. The ability to pay in turn is determined by the profit earning capacity of the
enterprise.

to 6. Job requirements: Jobs requiring specialized knowledge or much mental or manual effort are priced higher than those
pay
:
The
wa
ge
lev
el,
to a
larg
e
ext
ent,
is
det
erm
ine
d
by
the
abil
ity

which do not need any specialized knowledge or effort.

7. State regulation: As the State assumes responsibility for protecting and ameliorating the rights of workers, it has to
step in to regulate the wage rates through legislative measures.
8. Fringe benefits: Wages may be somewhat low in those organizations which provide several kinds of fringe benefits to
their employees.

PERFORMANCE
EVALUATION

LESSON 2 5 :
COUNSELING

the
AND

JOB

situation.

This

presupposes

the

existence of a general

Learning Objectives
Performance Counseling

his problems are. There is generally a tendency to climate of openness,

attribute once failures, weaknesses or shortcoming mutuality and trust.

Requisites of Performance counseling

to external reasons. The counselor has to help the

Job Evaluation Process and Methods

subordinate to internalize the problem and its

Performance Counseling

causes. He must also help him in setting his future

The counseling techniques are used to help

goals.

employees deal with personal problems that may

D) to Draw Action Plan

interfere with the achievement of these goals.

Both the counselor and the subordinate jointly In order to make

consider all possible alternative solutions to the counseling effective it
problems. Their pros and cons are weighed and the is necessary that the

Counseling program may address such issues as

substance abuse, stress management, smoking
cessation, or fitness, nutrition and weight control.
The employees counseling helps lot in the
performance achievement. Let us analyze the
various steps involved in employees counseling.
A)

to Establish Rapport or Prepare A Base

2. Genuine Lnterest
of the Superior in
His
Subordinates'
Development

best alternative selected and a stepwise action plan counselor should have
is prepared along with the timetable. The subordi- empathetic
attitude
nate is allowed to monitor the plan himself. The towards
his
plan is reviewed by the two parties at regular subordinates. To put it
intervals.
differently
,

for

Requisites of Performance counseling

counseling should not

Communication

Counseling the employees should be taken utmost be considered as a

This step is very necessary as it generates the

care in the HRD. It is one of the prestigious burden

necessary confidence in the subordinate and

functions and the great intervention of HRD in unpleasant task and

assures him of his superior's genuine interest in

which the employees can be motivated and his practiced

helping him. For the success of this step it is

latent skills can be extracted for the benefit of the

necessary that the counselor carefully listen to

organization. Now let us look into the various compulsion.

what the subordinates says and displays warmth

requisites of the counseling.

3. Mutual

and responsiveness from his behavior.

1.

Participation

B) to Explore Znformation About Performance

Lndividual's Desire to Lmprove

Both the superior and

During this stage the counselor puts to the

The first most important requirement for effective the subordinate should

subordinates

counseling is that the individual to be given whole

various questions, which may elicit elaborate

counsel should be interested in developing participate in the goal

information

himself. Superiors usually hold the view that setting and reviewing

on

the

or

an
half-

heartedly

or

as

heartedly

latter's achievement, strengths, failures and short

subordinates do not take sufficient interest in their of

comings.

growth and development. On the other hand, performance. Without

The

goals

and

object is to make the subordinate himself to

subordinate allege that they do not feel free to such

introspect

participate in the process of the review and counseling would be

and

collaboration

define his strengths and weakness.

feedback.

reckless.

c) to Help Define the Future Goal and

Continuous Dialogue:

Job Evaluation

Znternalize the Problem:

Once the counselor has succeeded in making the
subordinate

reflect

on

of In a preceding section
communicating to the employee what he should or we have seen that
should not do. It is a process of continuous internal equity in pay
Counseling

his

strengths

and

weaknesses he can easily make him realize what

is

not

one-way

process

dialogue directed toward better understanding of is one of the requisites

of a sound primary

202

compensation structure. Management's method to

>z

achieve equity in pay is jab evaluation. It is the

cornerstone

of

formal

wage

and

salary

programme. The central purpose of job evaluation

is to determine the relative worth of jobs of an
enterprise. It thereby helps in establishing fair pay
differentials among jobs. According to Knowles
and Thompson2 evaluation is useful in eliminating
the following discrepancies of a wage payment
system:
Paying high wages and salaries to persons who
hold jobs and positions not requiring great
skill, effort and responsibility;
Paying beginners, less than they are entitled to
receive in terms of what is required of them;
'Giving a raise to persons whose performance
does not justify the raise;
Deciding rates of pay on the basis of seniority
rather than ability;

203

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Paying widely varied wages for the same or

feeling of trust and stimulates interest.

closely related jobs and positions; and

Paying unequal wages and salaries on the basis

A variety of methods may be adopted to organize and communicate

of race, sex, religion or political differences.

information to different categories of persons. Conferences may be

planned for top line executives to explain to them their obligations

Advantages of Job Evaluation

According

to

an

LL.D.

publication3,

job

For example, job evaluation necessarily presupposes self-discipline

(a)It is an objective and logical method of

by management and its willingness to abide by job evaluation

jobs

and

of

removing

unjust

(b) It helps in fining new jobs at their appropriate

places in the existing wage structure.
(c) It improves labor-management relations by

reducing
E

grievances concerning relative wages in the

long run.
(d) It establishes an objective and clear basis for
wage bargaining.
(e)

findings rather than to allow judgment or favoritism to influence

salary decisions. Similarly, training programme may be instituted to

differentials in the existing wage structure.

under the programme.

evaluation enjoys the following advantages:

rankil1g

information is provided voluntarily to all concerned it creates a

It simplifies wage administration by making

wage rates more uniform.

acquaint supervisors with the plan to be used, role that they will be
expected to play and the day-to-day problems which they may face in
administering and explaining the programme to their subordinates.
One of the most effective and widely used media Jar introducing job
evaluation to workers is a letter addressed to the employees signed by
the personnel officer. It brings out two
important points in which employees are interested: namely, it stresses
management's support and it assures the employee that his wages will
not be reduced as a result of a programme. Effective results have also
been attained through the pub' location and distribution of booklets,
which explain in some detail the general principles of job evaluation.

(f) It reveals the possibilities of more efficient use of

the
plant's labor force by pointing out jobs which
need less or more skilled workers than those
who are manning these jobs at present.

2. Selection of Jobs to Be Evaluated

Due to difficulties of time and money all jobs and positions within an
enterprise are not evaluated at one time. Most companies in the
beginning evaluate only shop jobs and office work. Executive,
professional, and technical jobs are usually excluded. But later on when

Major Steps in Job Evaluation

conditions permit these jobs are also brought into the plan. Sometimes a

Major procedural steps to be followed in a job

pilot plan is installed to evaluate a group of jobs within a single

evaluation programme are as under:

department or in a single plant of a multi-plant company. If the plan

I. Planning Acceptance of the Job Evaluation

works well, it is extended to other units in the organization.

Programme:

3. Preparing job descriptions and job specifications

Since the personnel department is a staff

Before any job can be evaluated it is necessary to know what the duties

department it cannot itself enforce a job evaluation

of the job are. A job description is required, therefore, indicating in

programme.

and

considerable detail the duties and responsibilities of each job or position

acceptance for the programme from top line

in the enterprise. From these job descriptions, individual job

executives, employees, labor unions and first line

specifications are prepared. On the basis of the information contained in

supervisors.

these job specifications individuals in the enterprise are evaluated.

This can be done in two ways: by soliciting

Before employing any job specification for evaluation purposes, its

participation and by communicating information.

accuracy and acceptance should be thoroughly checked. It should be

Participation leads to identification with the plan

made certain that there are no omissions and-duplication of

and greater acceptance of it by persons active in

responsibilities in it and that it has been harmoniously accepted by the

its formulation. Communication regarding the

employee concerned. Once all job specifications covering jobs selected

purposes of job evaluation, the'" process by which

for evaluation have been thus checked and agreed upon we have the

it is carried out, and the results currently attained

foundation for determining the relative worth of each job through one of

is also vitally important. To the extent this

several methods of job evaluation described below.

It

must

win

cooperation

204

4. Appointment of A Committee to Perform Job

Evaluation:
Job evaluation may be carried out either by the
employees or by outside consultants or by employees
and outside consultant) jointly. In the first case, a
committee consisting of senior, experienced and
respected

representatives

of

management

and

workers is constituted. Employees' participation in

job evaluation work reduces their doubts and
suspicions about the programme. But the committee
lacks objectivity and speed because its members have
to carry out job evaluation work in addition to their
normal duties. These disadvantages are removed
when job evaluation is performed by outside experts
who generally work on a full time basis. Employees.
however, resent appointment of outside experts and
view them with suspicion and doubt. These experts
may also lack intimate knowledge about the
problems' of the enterprise. As such the best course is
to ask both employee representatives and consultants
to perform job evaluation jointly. The joint venture
makes it possible to combine the intimate knowledge
of the company possessed by the employees with the
necessary expertise of the consultants.

205

5. Selection of A Job Evaluation Method

Job evaluation compares all demands made on

As a student will read in the following section

each worker and, by means of this comparison,

there are in use today four basic methods of job

establishes the relative worth of each job in an

evaluation. While the basic approaches of all these

enterprise. The comparison and evaluation may be

methods are somewhat similar, they differ in their

made on a non-quantitative basis by simply

detailed procedures. Some methods are designed

ranking or classifying the jobs from lowest to

specifically

and

highest, or on a quantitative basis where points

administrative jobs; others work best when applied

value are assigned to the various demands of a job,

only to operative jobs. Sometimes it may be

and its relative worth determined by the sum of

Wage

decided to evaluate the same jobs by two t

such point values.

Survey

different methods. The greater the amount of

Job evaluation programme should be implemented

agreement between the two results, the greater

carefully. The following principles help in

would be their reliability ..

successful implementation of the programme:

for

evaluating

clerical

6. Periodic Review

must be done. Many job evaluation

failed

elements on the basis of the job demands.

or two years, of all job descriptions

have

Classificatio

1. Rate the job but not the employee. Rate the

A periodic review, usually every one

programme

Employee

because

management failed to recognize this fact. A

periodic review of all job descriptions is important
for two reasons:

2. The elements selected for rating should be The

job-evaluation
easily understood.
process starts defining
3. The elements should be defined clearly and objectives
of
properly selected.

evaluation and ends

with

4.

establishing

Employees concerned and the supervisors wage

One, it softens the feelings of those who believe

that their work was not properly described or
evaluated last time and that they will get a fair deal
at the time of review. Two, it enables management
to keep itself abreast of changes taking place in the
nature of a job. As the nature of a job changes
factors which form the basis of job evaluation also
change. Thus automation of job reduces 'physical

The need for daily application of a skill is also

programme.
5. Supervisors

The main objective of

should

be

encouraged

to job evaluation, as was

participate in rating the jobs.

7. Discuss with the supervisors and employees

values to the points.

reduced but the need for potential skill in

emergencies

For, better understanding let us look at the

New

factors

,aches

'machinery utilization' and 'isolation from fellow

stated earlier, is to

6. Secure employee cooperation by encouraging establish satisfactory

wage
and
salary
them to participate in the rating programme.

8. Do not establish too many occupational wages.

increases.

flowchart given below:

workers' become important.

differentials.

Job evaluation process

Job

analysis

should

precede

the

actual

program

of

evaluation.
analysis,

Job
as

discussed
provides

Methods of Job Evaluation

salary

should be educated and convinced about the differentials.

about rating but not about assigning money

effort' and increases 'responsibility'.

and

was
earlier,

job-related

data, which would be

Determining the relative worth of all jobs in the

useful in drafting job

enterprise is difficult. Different jobs make varying

description and job

demands on workers. One job, for example, might

specification.

demand a prescribed level of education, require a

certain

physical

responsibilities

ability,

from

an

or

exact

specific

employee,

whereas

another job may be very lax in these aspects. Jobs,

Objectives ofJob Evaluation

job-evaluation

program

Job Analysis

therefore, differ with repeat to the demands made

involves

answering

several

questions:
The major ones are: I)

on the employee as well as in value to the

which jobs are to be

enterprise.

evaluated.

II)

Who

Job Evaluation Programme

206

should evaluate the jobs? Iii) What training do the

bench

evaluation need? IV) How much time is involved?

mark

employee

V) What should be the criteria for evaluation? VI)

What methods of evaluation are to be employed?

>z

s in the

>jobs

should

Which jobs are to be evaluated in any exercise,

re c/a O

where there are more than 30 or 40 jobs to be

70

evaluated, it is necessary to identify and select a

n re c/a

sample of benchmark jobs, which can be used for

comparisons inside and outside the organs. The

>

r-

Z
N

o
2=

on and it

selecte

would be

to
rd
e achiev
c/ e
a represe
Ontative
sample
a
of each
s
of the
n
main
r
levels
e
of jobs
c/
in each
a
of the
P

r
-

difficult
to
produce a
balanced
sample
unless at
least

25

percent of
the
distinct
jobs

at

each level
of

the

princip

organizati

al

on

were

occupa
>
tions.

included.

The
Z
size of

the

the
Z
sample

depend

committe

o
2

on

the
=
numbe
r

207

organizati

so

z be
R

of

of

Staffing
Evaluatio
Exercise

e,

which

consists
of

Head

differe

of several

nt jobs

of

to

departme

be

covere

nt's,

d. It is

was

likely

pointed

to

out

be

as

less

earlier,

than

does

about

representa

five

tives

percen

employee

t of the

unions

total

and

numbe

specialist

of

dr en

of

the

allowed

for

re-

Non
Non-Analytical
Analytical

subjective
are

as the jobs
1. S

s,

evaluator

peo

bias
3. Very

a committee.

evaluation, if necessary.

1.

w Responsibility for
n the
overall

kolating Job-evaluation

Method

factors. It is hard to m

ple,

Criteria

measure whole jobs.

or

difficu

fr coordination
of
o the job-evaluation

The

tea

lt

ms

use if

m programme should
th be in the hands of

2.
JobJobgrading method
gradi
Non-analytical
ng

determination

of work evaluation. Jobs, t

people, or even teams o

to

there

eva

is

e a senior executive
N who can then

Most job evaluations use

can be ranked from the u

ones adding most value s

lua

large

te

numbe

ati report its progress

on to the board, and

effort

al advise
it
on
Pr ensuring wage and

criteria.

od salary

span of discretion, size

uc development.

of subordinate staff, and

tiv

Training for the

degree

of

Committee

needed.

It

Members of the

emphasis

job-evaluation

evaluation criteria vary

int Ranking Method

committee should

across jobs.

- this

be trained in its

So friends you must have

Ra simplest, the most

procedure so as to

got a fare idea what is

nk inexpensive

make the program

job evaluation; now we

in the most expedient

successful.

will discuss what are the

g method

Time Factor

methods involved in job

m evaluation.

Job

evaluation.

et evaluation

ity
co
un
cil
Jo
b
ev
al
ua
tio
n.
H
R
sp
ec
ial
ist
s
wi
ll
be
no
rm
all
y
th
e
ch
air
m

evaluation

heart

of

evaluation

job

is

the

of

the

criteria for evaluation.

responsibility,

skill,

and

conditions

working
as

major

Other

criteria

used are difficulty, time-

creativity

Ranking

Ranking

tclassification
come
hmethods
this
ounder
dcategory because
A they make no use
na of detailed job
lyt factors. Each job
ic is treated as a

needs

no

al whole
1. determining

that

job

Po relative ranking.
the
and
of
The

ho committee

in

Evaluation

d assesses the worth

haste. Any rushing

Job-evaluation methods

2. of each job on the

through will lead

are of two categories-

Fa basis of its title or

to appeals against

non-analytical

ct on its contents, if

the

analytical.

conducted

grading

of

Job

its

Methods

not

of

in

be

should

and

Job Evaluation

is

m job is not broken

pa down

ideal pace. After

this, the quality of

latter

co available. But the

jobs. Eight jobs in

a day can be the

or the

Analytical

into

ris elements

broken

is

or

into i
p

most l
method e

the

straightforward

Methods
M
eRanking and job

is

not

to

to least value to the e 2. Re

organization. Criteria for i quires

the ranking are not made f little

explicit. Jobs rather than t time

people

people are easier to rank h3. Mi

when there are a large e nimal
number of people in jobs. r admini
Teams can be ranked in a e stratio
team-based environment i n
as a substitute for or s require
addition to the ranking of a d
jobs and people. When a s
Disad
m
larger number of jobs,
vantag
people, or teams are to a
es
be ranked, the method of l
1. Cri
paired comparisons can l
teria
be used. With this n
for
approach each entity is u
rankin
compared to every other m
g not
entity in terms of value b
unders
e
to the organization.
tood
r
Overall value of the 2. Inc
entity is determined by oreases
the number of times that f possibi
the entity is evaluated as j lity of
being of greater value o

teams

then the entity being b

of

jobs,
,

or

to
evalua
te
4. Ranki
ngs

by

different
evaluators
are

not

comparab
le
5. Distan
ce
between
each rank
is

not

necessaril
y equal
6. May
invite
perceptio
ns

of

inequity

evaluation tends to

on factors. Each job

compared against. If an Bandi

jobs

ics

drop, and more

M is compared with

extremely large number ng

are

its

of comparisons needs to A

group

Ch

is

be

ed

ar

time has to spent

Point
Ranking Factor
Ranking

et others

later in checking

Comparison

ho place

and assessing the

validity

of

the

and

d determined.
The method has
several

review of all the

drawbacks.

time

evaluation may be

be

Job

statistical bandin

formulas are available to g

togeth act

reduce the number of proced

er by eri

comparisons

grading. The final

should

made,

required ure

using sampling theory.

Advantages

comm sti

takes

on

cs

place

chara

us

when

cterist ed

208

jobs

3. May

3. Differences

factors

ation

assign for

exempt

inequity

between

corresp

schedu

ment

jo

versus nonexempt,

perceptions

jobs

classification

onding

les

of

professional

Classification

levels may not be

to these need to

points ev

versus

Classification

peo

equal

grades

to

al

nonprofessional,

systems

ple,

4. Creates status

are then prepar

each

ua

union

versus

the value of jobs,

or

hierarchies within

determi

ed

degre

tio

key

people, or teams

tea

organizations

ned.

becaus

e.

contributor versus

with

written

ms

The

Differ

in

non-key

standards for a

do

advanta

same

ent

th

hierarchy

not

of schedu
le

factor

cannot

select

to

group

follow:

nonunion,

contributor,

line

versus

staff,

technical

versus

invite 1. Man

define

of

classification
level.

Each

ges

be

fit

the

neat

method

ly

are;

into

job

grade

non-technical,

classification

value-added

level

versus non-value-

defined

added,

and

number of factors

clas

versus

that need to be

sific

non-classified.

present for a job,

Often

these

the

I) be
used

s are an
al

ed for yti
differ

cal

ent

gr

jobs,

ou

As in the ranking descript types

method, the job- ions are of

with

p.

atio

grading

acco

person, or team to

mpan

nd

groups are then

be slotted into a

leve

ying

er

rank ordered and

particular

differ

thi

each group is then

classification

2. Exte

jobs.
method vague
(or
job- and are Analyt
classification
not
ical
method) does not quantifi Metho

ences

placed in a pay

level.

nsiv

in

band.

factors

are

degre

et

Advantages

usually

blended

judg

together resulting

men

easy procedure

in one standard

t is

2. Has initial face

for

requ

validity

classification

ired

level.

beca

use

stan

dard

call for a detailed ed; ii) ds

or
quantitative difficult
Pointanalysis of job y
in
rankin
factors. It is based convinc
g
on the job as a ing
Metho
whole.
The employ
d
difference
ees
The
between the two about
system
is that in the the
starts
ranking method, inclusio
with
there
is
no n of a
the
yardstick
for job in a
selecti
evaluation, while particul
on of
in
the ar grade
job
classification
because
factors
method, there is of
,
such an yardstick vaguen
constr
in the form of job ess of
uction
classes or grades. grade
of
Under
the descript
degree
classification
ions;
s for
method,
the and iii)
each
number of grades more
factors
is first decided job
, and
upon, and the classific

classified

1. Quick

and

to

employees
3. Allows

for

organizational

These

each

Advantages

be

administration

quickly

slotted

required

into

but

important,
differences
groups

defi

2. Classification

ne

levels have face

each

validity

fact

or

are

blen

for

employees
3. Standards

ignored
but

used
to

the structure

Disadvantages

2. Subtle,

by

and teams can

4. Minimal

between

be

1. jobs, people,

flexibility

1. Subtle,

may

establish

to

value

important,

are made explicit

ded

differences within

Disadvantages

toge

ther

groups ignored
209

for all

es and ho
points d,
.

on

Facto

r-

be

Com

gi

paris

ns

on

wi

Meth

th

od

th

The

factor

sel

ect

comp

io

arison n
metho of
is fa
ct
yet
anoth or
d

er

s,

appro

us

ach

ua

lly five of them-

should

be

all

one

are assumed to be

devised

and

constant for all the

mod

different from

administered

ifica

another rather

jobs. Each factor

on the basis of

tion

than to find a

is

employment

s in

comprehensive

re c/a O

individually with

market,

it

statement

70

other

demand

sho

all the duties

n re c/a

of the job.

ranked
jobs.

For

for

example, all the

labour,

uld

jobs

bargaining

be

compared first by

power of the

the factor 'mental

requirements.'. the

may

be

job

of

(d) Not cause

excessive
>z

r-

The better the

>ZI

resis

state

parties & job

ted

industrial

conditions.

until

relations

The details of

it

easier it is to

physical

the

scheme

beco

introduce a job

requirements,

should

be

mes

evaluation

responsibility, and

drawn up in

full

scheme.

working

such a way

that they do

esta

not

conflict

blis

other

hed.

skills

factor,

conditions

are

ranked. The total

points

are

then

with

assigned to each

provision of a

factor. The worth

collective

prep

of a job is then

agreement.

arin

The

obtained

by

adding together all

scheme

In

should be sold

job

to

all

desc

concerned and

ripti

discuss the few

suggestions

ons

important

sought.

it is

the point values.

Let

us

now

measures

to

improve

Job

Give

major

sou

importance

Evaluation.

that

How to Improve

the

number of job

Job Evaluation

titles

Following

classification

measures

and

steps

for

improving

the

work

of

evaluation

Any
anticipated
in

evaluation

carried

out

scheme should

before

be

scheme

is

It

installed

emp

the

be

cautiously.

tice

s in

should

chosen

prac

hasi

methods
job

nd

to

minimum.

changes

programmes;

and

be kept to a

and

m
the
thin
gs
whi
ch
mak

of

o
the

2=

Essentials for the

Success of A Job
Evaluation
Programme
Following are the
essential for the
success

of

Job

Evaluation:
1.

Compensable
factors should
represent all of
the

major

aspects of job
content.
Compensable
factors
selected
should be (a)
Avoid
excessive
overlapping or
duplication,
(b)

Be

definable and
measurable,
(c) Be easily
understood by
employees and
administrators,

es

210

installation or admin cost and (e) Be selected with legal considerations in mind.
2. Operating managers should be convinced about the techniques and programme of evaluation. They should also be

>z

trained in fixing and revising the wages based on job evaluation.

re c/a O
as
n re c/a
P

3. All the employees should be provided with complete information about job evaluation techniques and programme.
4. All .groups and grades of employees should be covered by the job evaluation
The results of job evaluation must be fair and rational and unbiased to The individuals being affects
Summary

r-

>ZZ

A job evaluation scheme should be chosen cautiously. It should be devised and administered on the basis of employment
market, demand for labour, bargaining power of the parties & job conditions.

o
2=

211

Learning Objective Article on

Potential appraisal

>
z

LESSON 2 6 :
POTENTIAL
APPRAISAL

re
c/a

Article2 on potential appraisal is given below

a higher position and does not perform as per sn

for your better understanding:

expectations, then it becomes impossible to demote c/aP

Theme Article

him. Thus, he is unable to perform at the higher ->

level and becomes a 'passenger' in the system.It is Z

Z

Potential Appraisal
Potential Appraisal is another powerful tool of
employee development. Whether managers realise
it or not, they are accustomed to making potential
assessments. Every time a manager recommends
or fails to recommend an employee for a
promotion, a potential assessment has, in fact,
been

made.The

process

of

assessing

the

managerial potential of employees deals with the

question of whether or not they have the ability to
handle positions in the future which involve
considerably more responsibility than what they
have right now. As long as individuals are viewed
as being able to handle increased or different
responsibilities, they would be considered to have
potential

(either

latent

or

visible).Potential

appraisal may thus be defined as a process of

determining

an

employee's

strengths

and

weaknesses with a view to use this as a predictor

of his future performance. This would help
determine the promotability of an individual to a
higher position and help chalk out his career plan.
The fundamental difference between reviewing
performance and assessing potential is in the
criteria used. In reviewing performance, the
criteria used is what goals the employee achieved
and what skills he or she currently possesses that
could be indicators of his or her ability to assume
different or more advanced responsibilities.
Managers

cannot

rely exclusively on past

performance since a person's ability to adequately

handle one level of responsibility does not
necessarily mean that he or she can perform well
in a position with a higher level or different
responsibility. It is this that makes potential
appraisal a very crucial & critical area. If an
employee without requisite abilities is promoted to

rightfully assumed that every individual has potential, low or high. Many
organizations have people whose potential being low; performance too is
not up to the mark. Whilst the question in our minds hovers around how
such people got into the system, the fact remains that they do not contribute
to the organization's performance. A major problem that companies face is
tackling the problem children. They can and have the ability to perform but
do not perform and do not contribute to the organization's performance.
This is mainly seen as an attitudinal problem. Further, these problem
children bask in the glory of their potential but are unable to contribute to
their own jobs. Dealing with workhorses too could be tricky. They can
perform very well on routine tasks but have limited
potential. Hence, their promotability is difficult and this creates
frustrations for the employees. If promoted, they are unable to
perform higher level jobs and this too creates problems both
for the individuals and the organisation. We easily conclude that
'stars' are ideal people to have in organisations. But retaining
these stars could be difficult. They have high potential backed by
high levels of performance and could be always on the lookout
for greener pastures. Thus, as we see, potential appraisal is more

intricate and complex vis-a-vis performance appraisal.

E

t
Because of the nature of the potential assessment activity, its
timing

and

frequently

is

left

to

the

manager's

discretion.

In

assessing potential, managers are asked to make predictions

N

about the future. These predictions concern many unknown factors, namely
whether the individual can handle new responsibilities in a different
managerial capacity, In addition, the potential assessment criteria is based
mostly on an employee's process skills, which may be difficult to measure
in a precise way. Thus, the timing and frequency of conducting potential
assessment can be quite different from the more predictable timing of a
performance review. For example, the potential assessment might occur
when an employee has been on the job for one year, when an employee
reaches certain 'mile-stones' (i.e. every three years), or in preparation for
major organizational shifts brought about by changes in the business such

212

as reorganizations, expansion or rationalization.It

is recommended that the potential assessment
process take place at least over a six-month
period, with a manager-employee meeting at both
the beginning and end of the process. To begin the
process, the manager and employee should meet
to identify the process skills and the technical and
administrative skills required for the employee's
future responsibilities. The manager explains why
these skills are necessary and explores with the
employee how these skills might be learned and
utilized on the current job. This includes
nominating employees for some specific training
programmes, both skill-based and knowledgebased. Some organisation may also organise such
programmes on an inhouse basis. Further on-thejob training could also be incorporated for the
employees.It is recommended that the manager
observe the employee for at least three to six
months to assess the extent to which the employee
possesses and demonstrates the acquired skills.
During the observation period, the manager
should note specific behavioural examples of
these skills and be prepared to discuss them with
the employee at the concluding assessment
meeting. The employee should also be prepared to
discuss behavioural examples that demonstrate
ability and need.At the assessment meeting, the
manager and employee jointly review their
observations. This discussion should include the
identification of the employee's skill strengths and
developmental needs. The manager then provides
a written assessment in the form of 'summary
statement'. Usually about one paragraph in length,
the sum-

213

mary provides the employee with a brief, clear statement of where he or she stands regarding potential. An important
concept to be conveyed during this meeting is that, while the employee may be assessed as having potential for a higher

>z

level or different position, no promises of a particular job can be made.Before the conclusion of this meeting, the pair

should formulate a development plan (i.e. decide on new development activities) that the employee can pursue in order to

re c/a O help realise his or her potential.Let us realise that there are no shortcuts to the successful implementation of potential
appraisal. If potential appraisal is done in a systematic way it would contribute to having well designed career plan that

70

n re c/a would indicate the preferred growth path of an individual in an organisation. For example, a post-graduate diploma or
P

degree holder in marketing management would aspire for career avenues in market research, sales management,

r-

> Z I advertising and such. An individual specialised in HRM could aspire for avenues in manpower planning, training, welfare,
industrial relations and so on. Any professional organisation would make sincere efforts to match the individual career
Z
aspirations. This would obviously be a mutually beneficial activity for the individual and the organisation. Further,

succession planning is the process where every individual manager is expected to develop a subordinate who would take

2=

over from him over a period of time. Many managers feel insecure about this process and avoid indulging in this
development activity. What they fail to realise is that, if an individual has the potential and shows good performance, there
is always room at the top. Unless they themselves become unpromotable and stagnant. Succession planning too would
succeed if and only if a good potential appraisal system exists and is in firm place.To conclude, if potential appraisal is not
done in a planned manner, you may promote an undeserving employee. As a consequence, he does not succeed but would
not accept a demotion back to his old slot. Thus, in a bid to develop a territory manager out of a super-salesman, and not
doing it properly; you lose both in the process. But if implemented well, professional performance and potential appraisal
could take the organisation on a fast development track and faster productivity through people.

214

 Behavioral

LESSON 2 7 :
THE RELEVANCE OF AMERICAN THEORIES OF
MOTIVATION WITH REGARD TO COMPENSATION AND
REWARD

outcomes:
observable

The relevance of American theories of motivation

bored by doing many different activities in

with regard to compensation and reward :

a day

Intrinsic Rewards and Job Design earning

Goals

psychological

People did not move from one job to

another

Have some insight into the design

Duties and tasks repackaged to make an

individual's job larger
Two or more jobs combined into a single new

reactions to it
Appreciate how the work context affects

the

process

of

diagnosing

job

and

redesigning jobs
Distinguish between the design of jobs for
individuals and the design of jobs for groups
Intrinsic Rewards and Job Design
The Job Characteristics Theory of Work
Motivation

Added duties and tasks that increased a

Workers also had increased involvement in

context within which employees experience

intrinsic rewards
Only indirect control over intrinsic rewards
Can only create a set of job experiences that
lets employees experience intrinsic rewards
Intrinsic Rewards and Job Design
Some Job Redesign Efforts
Job rotation
Same worker moved among different jobs
Each job often had few tasks or activities

215

Affective outcomes

and

Job

Design

satisfaction; decrease boredom

Job enrichment: expected to increase employee
motivation, job performance, productivity
Assumed a positive linear relationship between
job design and employee motivation

work

motivation:
feeling

decision making

Enhance the content of a job to increase

Organizations and managers can create a

and

Internal

worker autonomy and responsibility

Group-Based Job Design

Job design affects motivation and satisfaction

behavioral

Outcomes

Also repackaged duties

Characteristics of Approaches

Ethical Issues in Job Design

and

Behavioral

Diagnosing and Redesigning Jobs

International Aspects of Job Design

Lead to affective

Job enrichment

Intrinsic

Characteristics

characteristics

Affective

Contextual Factors in Job Design

Factors Affecting Perceptions of Objective Job

to perceived job

Some Job Redesign Efforts

Rewards

reactions

outcomes

Intrinsic Rewards and Job Design

people's reaction to the design of their jobs

states
Internal

Describe the major theories of job design

of your present job and your

of

Critical

Add duties and tasks to a job

opportunities to experience intrinsic rewards

as quality and
work

Some Job Redesign Efforts

Discuss the role of job design in giving people

such

quantity

Job enlargement

Explain

behavior

Proponents believed a worker became less

Learning Objective

of

self-

reward from doing

the

job

itself

(intrinsic
motivation)
Growth
satisfaction:
personal
and

growth

development

satisfaction

Clear by the 1960s a universal, positive, General

linear response was not true of all people.
satisfaction:

job

The Job Characteristics Theory of Work

overall

Motivation :

about work and

Well-developed and well-understood job

the organization
Affective

design theory

feelings

and

Understand how job characteristics affect behavioral outcomes

Behavioral
people's motivation and satisfaction
Affective

outcomes:

person's

internal

reactions; satisfaction and motivation

Outcomes:
Effectiveness

Work

Quality of work performance

>z

r-

>

re c/a O

70

n re c/a

2=

Quantity of work performance

Skill variety, task identity, and task significance experienced

Lower absenteeism

meaningfulness of the work The three job characteristics can

Reduced emotional exhaustion and stress

offset each other.

Relationship

Critical psychological states

Knowledge of results:

job

characteristics

to

critical

Autonomy experienced responsibility for outcomes of the

work.

Experienced responsibility: must control

Feedback from the job itself knowledge of the actual results of

the results of work activities

meaningfulness:

core

psychological states

must know job

performance while doing the work itself

Experienced

of

work activities;

person

must feel the work is important

Motivating potential

Perceived and Objective Job Characteristics

Summarizes effect of core job characteristics on psychological states

E Core Job Characteristics:

Formula on text book page 159 shows combining effects of job

re

characteristics

Must be present to produce the critical

psychological states
PP

Perceive objective job characteristics that form

impressions of core job characteristics;

activities

using

several

skills,

abilities, and talents

Task identity: degree to which job lets a
person do a whole piece of work from start to
finish
Task significance: degree to which the person
doing job perceives it as important to others.
Autonomy: degree of discretion in deciding
how and when to do the job
Feedback from the job itself: degree to which
person learns about the quality of job
performance while doing the task.
Includes feedback from clients directly served by
the job Does not include feedback from a
supervisor or coworkers;
Relationship of core job characteristics to
critical psychological states

itself
Autonomy and job feedback related to two of three critical

Skill variety: degree to which job has many

different

Strong effects of autonomy and feedback from the job

psychological states
Low levels of psychological states associated with low affective
and behavioral response
Relationships Predicted by the Theory
Positive linear response to motivating potential
High motivating potential: high internal work motivation
Low motivating potential: low internal work motivation
Relationships predicted by the theory Moderator
variables
Change or affect relationships among parts of the theory
Individual moderators: factors in the person
Work context moderators: factors surrounding the person while
doing the job
Moderator Variables
Positive moderator variable: more positive response to motivating
potential
Negative moderator variable: less positive response to motivating
potential
Negative work context

216

 Distraction effect
Escape

Person without needed skills and abilities should not do job

successfully: low internal work motivation

effect

Moderator Variables

Moderator Variables

Knowledge and skill

Growth need Strength (GZS)

Growth need strength

Strong growth need people should respond

Context satisfaction

more positively to jobs high in motivating potential than weak

Theory does not assume universal, positive response

growth need people

to jobs high in motivating potential.

More "ready" to respond than people with weak growth needs

Moderator Variables

Weak growth need people can feel "stretched" by a high

Knowledge and Skill

motivating potential job

Person with needed skills and abilities should

Moderator Variables

do job successfully

Context Satisfaction

High motivating potential combines with

Quality of supervision

person's knowledge and skill: higher internal

Compensation system

work motivation

Job security
Immediate coworkers

Negative work context distracts from a

High

high motivating potential job

specialization:

low

core

job

characteristics, low motivating potential

Positive work context is supportive; lets the

Flexible
manufacturing

Low specialization: high job characteristics,

techniques:

person experience a job's motivating

high motivating potential

required

qualities

Organizational design and job design

worker
flexibility can

(cont.) Centralized-decentralization

Lmplications for You

If you desire intrinsic outcomes, high MPS

Centralized decision making:

low skill

jobs

variety, autonomy, and task identity; low

Should motivate you

motivating potential

Act as a source of satisfaction

high

opposite is true

motivating potential.

Intrinsic outcomes less important to you

than

extrinsic

outcomes

for

Organizational design: task specialization,

high

Group-based
manufacturing
technologies:
group-based
job

design

discussed later.

help job redesign

relationships with

Removes

Mass-production Technical Processes!)

Standardized

jobs:

low

core

buffers within the

job

characteristics; low motivating potential

subordinates; involvement of subordinates

Custom-designed work: high core job

Organizational Design and Job Design

217

and

Adopting a particular technical process can Management

centralization, decentralization

Task Specialization;

variety

apital investment in existing technical Just-in-time

process can limit job redesign
Znventory

Contextual Factors in Job Design;

Management behavior:

characteristics;

Hinders or helps job redesign

performance

the organization gets done

job

Technical Process and Job Design:

good

Technical process: major ways the work of

core

skill

autonomy

Decentralized decision making processes:

If you desire extrinsic outcomes, the

increase

characteristics; high motivating potential

New Manufacturing Approaches;

technical process
Requires quick
worker responses
High
variety,
autonomy,

skill

feedback

from

the

job

itself;

Measures employee GNS and levels of

high

motivating potential

work context satisfaction

Close control over subordinates: low skill

variety, task

identity, autonomy;

low

GNS)?
Context satisfactions: employees perceive a

General control: high skill variety, task

autonomy;

high

positive work context?

motivating

and skills

Znvolvement in Decision-making Process

importance

of

Do employees have the needed knowledge

person's

and skills to do the redesigned work?

organizational role

variety,

task

Z
N

2=

Asking employees to suggest ways to

autonomy; high motivating potential

redesign their

Diagnosing and Redesigning Jobs

jobs can elicit

useful

information
Group-Based Job Design

Questionnaires

Have mainly focused on job design for

Personal interviews

individuals

Direct observations

Some tasks better done by groups

Job Diagnostic Survey (JDS)

Measures job characteristics and affective

Such groups are known as self-managing

responses

work groups

Calculate MPS and compare to norms

Decide whether job has an excessively low

Design both the group's task and some

score

aspects of the group

Identify the job characteristics responsible

for low MPS

>

results to verify accuracy

significance,

Get Lnformation About Existing Jobs

r-

Employees who provide data should see

decision
skill

n re c/a

job redesign program

Allow more discretion in carrying out the

High

70

If not, include a training program with the

Increase commitment to the decision

re c/a O

JDS does not measure employee knowledge

potential

Shows

Ready to respond to a redesigned job (high

motivating potential

identity,

>z

GNS of employees in target jobs

Management Behavior and Job Design

Self-managing Work Group

Intact groups, permanent or temporary
Skill variety: group uses many different skills in doing task

>z
R

re c/a O
as
n re c/a
P

r-

>ZZ
N

o
2=

Interdependent members do tasks

Task identity: group does whole task

Both members and nonmembers perceive

Task significance: group members perceive task as important to

the groups as real

Produces a defined product, service, or
decision
Members control the group's tasks and the
group's interpersonal processes
Have task assignment authority
Decide how and when work will be done
Major source of it's self-managing quality

others
Autonomy:

group task must give group members discretion in

getting work done

Feedback from the job itself: give feedback to members while
doing group's task
Group Composition
Members have needed skills and abilities

Design of the Task and the Group

218

 Gro

thinking patterns; fail to find creative

solutions

up

affiliate people with weak growth needs:

me Group composition
mb
Group size: too large; group's process
er
becomes inefficient
hete
Interpersonal skills needed to manage the
rog
group's interpersonal processes
enei
ty: Group Norms
find Rules of conduct for group member's
crea behavior
tive Management: encourage norms consistent
solu with group's task and desired productivity
tion
s

levels
Build climate of open discussion of existing

bas

and developing group norms

ed

What Can We Expect to Happen?

on

me

High effort, motivation, performance

mb

er

knowledge and skill to do group's

diff

work

eren

ces

Group composition: high level of

up

Members could feel satisfied with

Research evidence: sizable positive

design

mb

Develop strong norms; try to control

ho

each other's

mo

behavior

eity

Focus

completing tasks

members

on

successfully

Focus members on discovering ways

Zndividual

and

Contextual

International Aspects of Job Design

Cultural Differences in Motivational Needs
Striving for intrinsic rewards from job redesign does not apply
to all cultures
Cultural differences also should guide choice of individualbased or group-based approaches.
Zndividual and Group-based Job Design:
U.S. managers have mostly used individual approaches to job
design
Recent shifts to group-based approaches
Managers in other countries have mainly emphasized group-

Sweden and Norway; consistent with their socially oriented

Changing Specific Job Characteristics

Belgium, Mexico, Greece, Thailand: Not likely to accept efforts

French managers particularly dislike recommendations to

Subordinates do not expect

Makes more interpersonal demands on

people than individual job design
candidates

for

group-based

approach are people with a strong need

for affiliation

Ethical Issues in Job Design

Low need for affiliation people; little desire for team-based

work

Prefer high involvement in nonwork roles.

Two Ethical Questions

Considerations

219

Higher performance levels than less interdependent rewards.

Some people may not want high involvement in work roles.

problems

Best

members.

Self-managing Work Teams

of successfully dealing with work

Interdependent reward system based on performance of all group

them to do so.

Positive performance norms help

ilar

Organization's Reward System:

decentralize decision authority.

gen

People with strong growth and social needs are highly desirable.

to increase autonomy and task identity.

er

sim

task.

values

effects compared to individual job

me

attracted to social interaction, not intrinsic qualities group's

based job design

experiences in the group

Gro

Individuals should also have strong growth needs Strongly

Voluntary involvement in such teams?

Fully inform job applicants about company's use of teams and
likelihood of a team assignment?

Ethical Issues in Job Design

c
>
z
R

re
c/
a

Transnational Organizations
People around the world differ in the importance of needs
Many countries do not readily accept decentralizing decision
authority
Examples:

South American countries, India, Hong Kong as

examples.
Transnational Organizations
Swedish and Austrian employees expect high decision making
involvement
(3=
Should managers honor the host national culture? or

--------------------------

re
Should they adhere to their home organization's
re
emphasis on self-managing work teams?

220

"The lesson content has been compiled from various sources in public domain including but not limited to the internet for the
convenience of the users. The university has no proprietary right on the same."

-________-EIILM UNIVERSITY
----------------------- S I K K I M
Jorethang, District Namchi, Sikkim- 737121, India www.eiilmuniversity.ac.in