III SEMEXSTER

BA9268 – STRATEGIC HUMAN RESOURCE

MANAGEMENT AND DEVELOPMENT
SYLLABUS - REGULATION 2009

UNIT – I HUMAN RESOURCE DEVELOPMENT 10

Meaning – Strategic framework for HRM and HRD – Vision, Mission and Values –
Importance – Challenges to Organisations – HRD Functions - Roles of HRD
Professionals - HRD Needs Assessment - HRD practices – Measures of HRD
performance – Links to HR, Strategy and Business Goals – HRD Program
Implementation and Evaluation – Recent trends – Strategic Capability , Bench
Marking and HRD Audit.

UNIT – II E-HRM 6
e- Employee profile– e- selection and recruitment - Virtual learning and Orientation
training and development – e- Performance management and Compensation design
Development and Implementation of HRIS – Designing HR portals – Issues in employee
privacy– Employee surveys online.

UNIT – III CROSS CULTURAL HRM 7

Domestic Vs International HRM - Cultural Dynamics - Culture Assessment -
Cross Cultural Education and Training Programs – Leadership and Strategic HR
Issues in International Assignments - Current challenges in Outsourcing, Cross
border M and A- Repatriation etc - Building Multicultural Organisation -
International Compensation.

UNIT – IV CAREER & COMPETENCY DEVELOPMENT 10

Career Concepts – Roles – Career stages – Career planning and Process –
Career development Models– Career Motivation and Enrichment –Managing
Career plateaus- Designing Effective Career Development Systems – Competencies
and Career Management – Competency Mapping Models – Equity and Competency
based Compensation.

UNIT – V EMPLOYEE COACHING & COUNSELING 12

Need for Coaching – Role of HR in coaching – Coaching and Performance – Skills for
Effective Coaching – Coaching Effectiveness– Need for Counseling – Role of
HR in Counseling - Components of Counseling Programs – Counseling
Effectiveness – Employee Health and Welfare Programs – Work Stress –
Sources - Consequences – Stress Management Techniques.- Eastern and Western
Practices - Self Management and Emotional Intelligence.

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 UNIT – 1
UNIT – I HUMAN RESOURCE DEVELOPMENT
Meaning – Strategic framework for HRM and HRD – Vision, Mission and Values –
Importance – Challenges to Organisations – HRD Functions - Roles of HRD
Professionals - HRD Needs Assessment - HRD practices – Measures of HRD
performance – Links to HR, Strategy and Business Goals – HRD Program
Implementation and Evaluation – Recent trends – Strategic Capability , Bench
Marking and HRD Audit.

STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategy:
It is creation of mission, setting of organizational objectives with full
consideration of external and internal forces, formulation if specific policies, to achieve
objectives and assurances of implementation of the policies with a view to make the
objectives of the organization are accomplished. HRM comprises of developing, applying
and evaluating policies, procedures, methods and programmes relating to the individuals
in the organization.
Young and Berman (1997) identifies three paths through which HR practices can
contribute to business performance.
 By building original capabilities.
 By improving employee satisfaction
 By shaping customer and shareholder satisfaction.
Changes required:
 Instead of being HR driven, the next generation of HR measures should be
business driven.
 Instead of being activity oriented new HR measures should be impact oriented.
(How must business results do we improve)
 Instead of looking backward, innovative HR measures should predict the future
success of corporation.
 Instead of focusing on individual HR practices, future measures should focus on
the entire HR system.
 The business objectives are to be achieved by the people working in the
organization.

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  If the people are not competent and rightly motivated then the best strategy may
go in vain.
 HR policies should be in synergy with business objectives.
 HR professional becomes a part of the team who formulate the business/
corporation strategy.
 HR strategy should be drawn from the business/ corporation strategy.

Types of strategies:
Cynthia fisher (1989) has classified strategies into two:
Growth prospector high tech entrepreneurial strategy:
Here the organization requires creative, innovative and risk taking behavior from
the employer.
 Here the HR department recruits people at all levels from external labor market to
obtain skilled employees to meet the growth needs.
 It tends to assess people based on the results they achieve rather than on the
process they employ/ personal traits.
 Performance incentives serve as basis for compensation.
 Bonus, PS, ESOP are common but salaries are modest.
Mature – defender cost efficiency and strategy. They need repetitive, predictable and
careful behavior.

Mature strategy:
 They tend to recruit people primarily at entry level and promote them from
within.
 They emphasize doing things in the right way in assessing the performance and
focus a short term results.
 Compensation is based on the ways determined by job evaluation.
 Length of service, loyalty is rewarded rather than performance.
 Financial incentives may be present but tend to be available only to a few selected
employee groups.
Definition of strategic HRM:
Walker (1992) defines SHRM as “The means of aligning the management of HR with the
strategic content of the business”.
“To minimize competitive advantage, firm must match its capabilities and resources to
the opportunities available in the external environment”. This is called the strategic fit
model.

Sequence of strategic formulation:

Micheal Armstrong developed strategy which is as follows:

Traditional HR is basically managing HR by specialists in line with the rules and acts of
the organization.
Strategic HR places the responsibilities for using people on the line managers who
manage their people at work.

Traditional HR Strategic HR
Accounts HR specialists. Line managers and HR specialists.
Importance Managing people to facilitate HR strategy formulation and
the activities. implementation alignment with the
organization and strategy.
Role of HR Custodian of HR policy, Strategic business partners.
implementation and
compliance.
Approach orientation Ritualistic reactive activities. Proactive, business oriented results.
Major function People development. People and organization
development in line with business
objectives.
STRATEGIC HUMAN RESOURCE FRAMEWORK FOR THE HRD PROCESS
Designing HRD interventions involves a process, which include a 4-step sequence;
 Need assessment
 Design
 Implementation and
 Evaluation.
I. Need Assessment Phase:
A need can be either be a current deficiency such as poor employee performance/
new challenge that demands a change in the way the organization operates.
Example: In 1980’s, Ford Motor Company, because of the poor quality of its car and
truck loosed its market share to foreign competitors.
Ford framed HRD Programs to train employees in quality improvement and
problem solving techniques.
Identifying needs involves examining organization, environment, job tasks and
employee performance. The information can be used to
 Establish priorities for the HRD efforts.
 Define specific training HRD objectives.
 Establish evaluation criteria.

b. Design phase:
If the intervention involves same type of T&D program the following activities are
typically carried out.
a) Selecting specific objectives of the program:
Translate the issues identified in to class objectives.

b) Developing an appropriate lesson plan for the program:

It should contain what should be done in HRD program.

c) Developing appropriate materials for the trainees.

d) Determining who will deliver the program
Full time HRD Professional is employed- depends on expertise and work schedules of
professionals. If he is not available, it depends on managers, supervisors, outside
consultants (depends on willingness, ability, availability, cost).

e) Selecting appropriate management

 Developing the content of the program
 On the job/off the job (setting)
 Lectures, role play (techniques)
 Work books, ppt, videos (materials)
 Develop in-house material/purchase.

f) Scheduling the program

Consider the following
a) Lead-time available to participants
b) Program length
c) Location
d) Regular duties.

c. Implementation phase
 Executing the program as planned
 Creating an environment that enhances learning
 Resolving problems

a. Evaluation phase:
Participants’ reaction to the program
 How much they have learned
 Whether they use what they learnt
 Whether the program improved organization effectiveness
The following information will help in making better decision
  Offering a particular program in future
 Budgeting/resource allocation.
HUMAN RESOURCE DEVELOPMENT
It is a continuous process to ensure the development of employee dynamism,
effectiveness, competencies and motivation in a systematic and planned manner.

GOALS OF HRD: / OBJECTIVES OF HRD

HRD has multiple goals. They are:
 Employee’s competency development.
 Employee’s motivation development.
 Organizational climate development.

a. Employees need to have a variety of competencies:

Knowledge, skills and attributes in technical areas, HR and conceptual areas to
perform different tasks. Therefore HRD aims to identify competency gaps of
employees and train them to perform the roles effectively. Due to change in the
environment, customers expectations, technology, new opportunities, challenges,
employees need to improve their competency to perform the job well.

b. Motivation Development:
Motivation Development is an aim of HRD. It means the desire to work, it is an
involvement to the job and commitment to the organization. Without motivation
employees are not likely to give their best.
c. Organizational Climate:
HRD promotes team building and collaborative climate. This requires building and
enabling organizational culture in which employees use their initiative, take risks,
equipments, innovate and make thins happen.

HRD MECHANISMS / SUB- SYSTEMS:

1. Performance and Potential Appraisal:
 If the performance of the people has to be enhanced, their performance has to be
evaluated periodically. Performance appraisal interviews between the manager and
the sub ordinate are conducted at regular interviews.
 Strength and weakness
 Reasons for shortfall in performance.
Potential appraisal means the possibility of career advancement. Capability to
perform new roles and responsibilities must continuously be developed among
employees.

2. Feedback and performance coaching:

Managers in an HRD system have the responsibility for observation and feedback to
subordinates about their strength and weakness on a continuous basis.

3. Career planning:
HRD philosophy is that people perform better when they feel trusted and see meaning
in what they are doing. As managers have information about the growth plans of the
organization it is their responsibility to transmit information to their sub ordinates and
to assist them in planning their careers within the organization.

4. Training:
It is linked with performance appraisal and career development. Employees are
trained on the job / special in house training programmes. The effects of all training
programmes are monitored, analyzed and used for

5. Organizational development:
This function includes research to ascertain the psychological health of the
organization. Employee surveys are conducted here. OD specialists helps to solve
problems such as absenteeism, low production, interpersonal conflict.

6. Honours and awards:

 Appraisal honours and awards not only recognize and motivate employees, but also
communicate the organizations values to the employees. Awards include cash awards,
certificates of appreciation, announcements, pay rise.

7. Employee welfare and quality of work life:

In order to maintain work commitment of lower level employees in the organization,
the organization must provide some welfare measures viz; medical insurance,
holidays.

QWL focus on the environment within the organization. Job enrichments, educational
subsidies, recreational activities are few.

STRATEGIC CAPABILITY

With the emergence of the knowledge era, it has become widely recognized that the
intangible assets of an enterprise will be key to both its ability to create competitive
advantage, and to grow at an accelerated pace. As a result, more and more organizations
are showing increased attention to the creation of value through leveraging knowledge.
Increased competition, changing workforce demographics and a shift toward knowledge-
based work are requiring companies to place an increasingly higher priority on improving
workforce productivity. Organizations are now looking to the Human Resources function
to go beyond the delivery of cost-effective administrative services and provide expertise
on how to leverage human capital to create true marketplace differentiation. Facing these
challenges, many HR organizations have been actively revamping to more effectively
deliver the strategic insights the business requires. Improving the strategic capability of
the HR organization is not, by itself, a new idea. Spurred on by leading academics such
as David Ulrich and Edward Lawler, organizations have worked for the better part of the
last decade to build more strategic capability into their HR departments Competing in
today’s environment requires companies to focus on building a more responsive, flexible
and resilient workforce.
To do so, organizations must do a more effective job of sourcing talent, allocating
resources across competing initiatives, measuring performance and building key
capabilities and skills. HR organizations that provide strategic guidance on these issues
can become proactive drivers of organizational effectiveness, rather than simply a
supporter of these efforts. The key to the performance and growth of today’s enterprises
resides in the capabilities of the organization, which in turn depend on the capabilities of
its people. The industrial era was a time when people were easily recruited and retained
to fill an established, unvarying set of roles. The knowledge era brings with it a much
more competitive marketplace for talent.

As they experience unprecedented employment volatility around them, people are placing
a great deal of value on working in an environment where they can actively develop their
capabilities. In a way, customers are also putting a high value on learning and acquiring
capability, with regards to solutions that are important to the realization of their
aspirations.

In current and emerging business contexts, our understanding of what creates value for
organizations has changed radically. Intangible assets now represent the most important
source of value creation. This is a radical change from the industrial era when tangible
assets played a much more prominent role. However, the overall blueprint of today’s
organization has, in large part, been inherited from the industrial era. As a result, our
enterprises are ill equipped to manage their intangible assets. This is why rethinking on
how to best approach Human Resources management in the knowledge era must be based
on an understanding of intangible assets.

Building Strategic Capability: The roles of the HR manager or HR Business

Partner and Centers of Expertise (CoE)

At the heart of the strategic reinvention of the HR organization are the roles of the HR
Business partner and the Centers of Expertise (CoE). Organizations continue to struggle
with a number of factors (see Figure 1.7), including:
 Defining the new job responsibilities and performance measures for HR Business

Partners and CoE members

Identifying the capabilities necessary to meet the new role expectations

Defining the number of individuals needed to fill each of these roles

Identifying and addressing sources of resistance when HR personnel are asked to

focus on more strategic activities.

Figure 1: Areas of focus when transforming strategic HR positions

Capability Capacity

Responsibilities

In recent years, companies have often retitled their HR generalists as “Business

Partners” in an attempt to connote a closer and more strategic working relationship
between
the HR department and the operating units. For many companies the very nature of the
work of a Business Partner has been redefined. At the same time, a significant amount of
the front-line employee relations work was also transferred to a combination of line
managers
and dedicated shared services personnel. For some organizations, these changes
eliminated
up to 70 percent or more of the workload of the traditional HR generalist role. In its
place,
HR Business Partners were generally asked to take greater accountability for more
strategic
tasks that need to be accomplished over a longer time horizon. These could include
activities
such as: consulting with business unit leadership on a new productivity initiative; rolling
out
a new competency framework; developing a talent capacity plan for a new product or
service launch; and developing a three-year labor outlook for an emerging set of skills
and
capabilities. These activities are designed to look beyond employee transactions at how
the business unit can make the best use of its current and future human capital resources.
For individuals working in CoE, the focus shifts toward playing two roles: thought leader
and integration manager. As thought leaders, CoE personnel need to be responsible for
designing HR programs and processes, identifying and applying good practices from
outside
the organization, monitoring program effectiveness, and providing subject matter
assistance
to Business Partners and shared services personnel. In addition, CoE personnel need to
manage the relationships with outsourcing vendors for their particular discipline;
including
the monitoring of service level agreements and conducting root cause analysis to address
ongoing issues.
1.12.1.2 New capabilities
Based on the new tasks of the HR Business Partner, study participants identified five
key capabilities that are needed to make a strategic contribution to the organization:
analytical
skills; business acumen; consulting skills; change leadership skills; and the ability to
share
knowledge across the HR organization.
HR Business Partners need analytical skills to develop evidence-based
recommendations and effective business cases. They must understand how data flows
through various HR and financial systems, and how to obtain and analyze human capital
data that supports their recommendations. HR Business Partners also need to be
proficient
in developing models and scenarios that determine the cost and impact of changes in HR
policies and procedures. Participants in our study found that they were unlikely to have
sufficient depth in these skills within their own HR organizations and considered them
among the most difficult to develop.
HR Business Partners also need business acumen in the form of understanding their
business unit’s strategies and operations. To serve as true advisors to the business, they
STRATEGIC HUMAN MANAGEMENT AND DEVELOPMENT

NOTES
41 ANNA UNIVERSITY CHENNAI
must understand the dynamics of their industry, as well as the day-to-day activities
performed
by different functional units and how individuals within the units are evaluated. They also
have to understand the needs of customers and partners to better see how their human
capital decisions impact stakeholders beyond the organizational boundaries
HR Business Partners will have to serve as lead advisors to their business units on
human capital issues. To do so, a number of consulting skills are essential, including the
abilities to build trusting relationships with senior executives, diagnose organizational
problems and determine root causes, develop recommendations and business cases, and
create action plans. Further, they must have the strength and conviction to deliver
difficult
messages to senior leaders, even if those messages may prove to be unpopular.
HR Business Partners also need to be effective at driving change through the
organization. This includes soliciting and initiating participation from individuals within
the
business unit to support change efforts, aligning recognition and performance
measurement
systems to support desired activities, and effectively communicating with multiple
stakeholders.
HR Business Partners not only need to provide expertise to the business units they
support, they also should share knowledge across the HR organization. One way to do
this is to regularly connect with peers in other business units to share relevant practices,
while another is to work with individuals in the CoE to pass along new learning. For
individuals residing in the CoE, different set of required capabilities: deep functional
expertise;
the ability to partner with internal stakeholders; process design and stewardship; and
large
scale project management are necessary.
CoE personnel must possess deep functional knowledge and an understanding of
leading practices within their particular disciplines. Because the CoE serves as both the
developer and arbiter of HR policy, individuals working in this area must apply technical
knowledge of their discipline and understand its application to the overall business.
In the more collaborative environment that characterizes transformed HR organizations,
individuals working in CoEs need to partner with others across the organization to design
and implement effective policies. CoE personnel might be called to work with Business
Partners to design programs addressing business unit needs, to work with shared services
to implement cost-effective HR programs that reduce employee confusion, or to connect
with line managers and employees to periodically assess the value of CoE programs and
services. As leading corporations become larger and increasingly global in scope – often
through merger and acquisition activity that brings together disparate processes for
similar
activities overnight – the ability to create common, institutionalized process activities and
metrics is vital. At the same time, CoE personnel must have the flexibility to identify
appropriate regional or business unit variations and determine how those modifications
need to occur. As the HR organization becomes increasingly strategic and vital to overall
business operations, CoE personnel must be capable of managing larger projects that
involve stakeholders from various parts of the business. Finally, they must communicate
progress to key stakeholders on an ongoing basis.

CHALLENGES TO ORGANIZATIONS AND TO HRD PROFESSIONALS

Increasing globalization and technological revolution are 2 primary factors that
make for new competitive edge.
Challenges:
1. Changing Workforce Demography’s
 2. Competing in a global economy
3. Eliminating skill gap
4. Meeting the need for lifelong individual learning
5. Facilitating organizational learning

1.Changing Workforce Demography’s

The following changes predicted to occur in the year 2020.
 Africans, Americans will make up about 11% of U.S.Workforce- same 95
 Hispanics will increase to 14% from 9%
 Asians will increase to 6% from 4%
 Whites will decrease to 68% from 76%
 Women will increase to 50% from 46% in 2020.
 Shift in age composition.
 People of age group
55-64 is predicted to increase from 10% to 20% is 2019.
65 yrs to increase 5%.

2.Competing in a Global Economy

This will require more than educating and training to meet new challenges.
Companies have to conduct quality improvement processes and introduce change effects
(i.e.) learn culture and communicate and conduct business among different cultures in
other countries.

3.Eliminating the skill gap:

Young adults entering the work force are unable to meet current job requirements.
Example: How Haiess learn how to operate new equipment if they can’t read and
comprehend operating manuals. Japan and Germany teach students the basic skill needed
by most employers.
4. The need for life long learning
Because of rapid changes, all the organization face, it is clear that employees must
continue the learning process through out their career in order to meet the challenges.
Example: Professional employees learning may mean taking advantage of continuing
education opportunities.
Managers attending seminars that address new management approaches.
Action plan:
 Establishing Multimedia-learning centers.

What is Multimedia learning?

These centers offer a variety of instructional technologies that can be matched to
each trainee’s unique learning needs.
It can also provide teleconferencing facilities for technical and professional
employees to participate in a seminar that is conducted away.

5. Facilitating organizational learning

Learning organization must follow the basic 5 principles
 System thinking
 Personal mastery
 Mental models
 Building shared vision
 Team learning.
If organizations are going to make fundamental change, they must be able to learn, adapt
change. Here the HRD Professional must emphasis on how learning relates to
performance and relationship between learning and fundamental change.

Action plan:
1. Developing employee skills
2. Effectively using new technology
3. Developing new organization structure
4. Building cultures that foster learning’s innovation.
 EVOLUTION OF HRD:

Phase 1: Early Apprenticeship Training Program

This was the period during 18th century where small shops operated by skilled
artisans produced all household goods, viz (fertilizers, clothes, shoes). To meet the
growing demand, the shopkeepers had to educate and train the workers with no / little
wages. Apprentices who mastered all the necessary skills were considered yeomen to
address a growing no of yeomen, master craftsman formed a network of private
franchises to regulate wages, working hrs etc., yeomanries were the forerunners of
modern labour unions.

Phase 2: Early Vocational Education Program

In 1809, Dewitt Clinton founded the first recognized privately funded Vocational
school, also referred as manual school in Newyork City.
Purpose: Provides O.T. to unskilled people; unemployed/ criminal records.
In 1917, Congress passed the Smith Hughes Act, which recognized the value of
vocational education by granting funds targeted for state programs- Agr. Trades Teacher
Training.

Phase 3: Early Factory Schools

Industrial revolution took place during 1800’s –Machines replaced hand tools.
Scientific management principles-significant role. E.g Mechanical & machinist T.P –
factory schools. 1st F.S-1872- Hoe printing Press Newyork . Followed by Westinghouse
in 1888 and GE in 1901.

Phase 4: Early T.P. for Semiskilled & Unskilled Workers

 The first was the introduction of the Model T by Ford in 1913. The Model T was
the first car to be mass-produced using an assembly line in which production required
only the training of semi-skilled workers to perform several tasks.
Another significant event was the outbreak of World War I. To meet the large
demand for military equipment, the management has to retrain the workers. To facilitate
this, Charles Allen introduced a 4-step Training method.
a. Show
b. Tell JIT (Job Instruction Training)
c. Do
d. Check

Phase 5: The Human Relations Movement

This movement highlighted the importance of human behaviour on the job. It
continued in 1940’s with World War II as a backdrop. Abraham Maslow published his
theory on human needs, stating that people can be motivated by non-economic incentives.

Phase 6: The Establishment of the Training Profession

The federal government established the training with the industry (TWI) service
to co-ordinate training programs across defense-related industries. TWI trained 23,000
instructors. In 1942 (ASTD) America society for training directors was formed to
establish some standards within this emerging profession.

Phase 7: Emergence of HRD

During 1960’s and 70’s professional trainers realized that their role extended beyond
the training classroom. T & D Competencies therefore, expanded to include
 Interpersonal skills
 Coaching
 Group process facilitation & problem solving
ASTD renamed as America Society for T&D.
 RELATIONSHIP BETWEEN HRM & HRD

HRM can be defined as the effective selection and utilization of employees to best
achieve the goals and strategies of the organization as well as the goals and needs of
employees.
Primary Functions
HRM
Secondary Functions

Primary functions:
a. HRP
b. Equal employment opportunity
c. Staffing
d. Compensation and benefits
e. Employee labour relations
f. Health, Safety, Security
g. HRD

Secondary functions:
b. Organization job design
c. Performance mgt and performance appraisal system.
d. Research and information systems

HRD
It is one of the primary functions within HRD department. ASTD Study by Pat
Michigan identified THE HRD roles, competencies needed for HRD function. It
identified 4 trends in HRD function.
 Greater diversity in workforce
  More people involved in knowledge work, which involves judgment, commitment
rather than fulfilling the promises/procedures.
 A shift in the nature of contract between organizations and their employees.
 Greater expectation of meaningful work and employee involvement.
Example: Federal Express
 Training is conducted through interactive video instruction.
 A pay for knowledge system has been implemented that rewards employees who
have completed the video training and passed job knowledge tests.

HRD executives and professionals should demonstrate the strategic capability of HRD in
3 ways.
 Directly participating in the organizations strategic management process
 Providing education and training to line managers.
 Providing training to all employees that is aligned with the goals and strategies of
the organization.

ROLES OF AN HRD PROFESSIONAL

He must perform functional role. It is a specific set of tasks and excepted outputs for
a particular job.
a) HRD Manager/HRD Executive
 He must integrate the HRD programs and strategies of the organization
 Plays leader role in the ED programs
 He serves as an adviser to the chief executive officer.
 Ensure the organization members have the competencies to meet current and
future job demands.

b) HR Strategic Adviser
He consults on HRD issues that directly affect the articulation of organization
strategies and performance goals.
Output:
 HR strategic plan.
  Strategic planning education and training programs.

c) HR Systems designers and developer

He assists HR management in the design and development of HR systems that
affect organization performance.
Output:
 HR program design
 Intervention on strategies.
 Implementation of HR programs.

d) Organization change agent

He advises mgt in the design and implementation of change strategies used in
transforming organizations.
Output:
 Efficient work teams
 Quality management.
 Intervention strategies, Change reports.

e) Organization design consultant

He advises management on work systems design and efficient use of HR.
Output:
 Alternative work design
 Implementation

f) Learning program specialist/instructional designers

He identifies the needs of the learner, develops and designs appropriate learning
programs, prepares materials and other learning aids.
Output:
 Program objective
 Lesson plan
 IS
g) Instructor/ facilitator
He presents materials and leads and facilitates structural learning experiences.
Output:
 Selection of instructional
 Actual HRD program

h) Individual development/career counsellor

He assists individual employees in assessing their competencies and goals in
order to develop a career plan.
Output:
 Individual assessment sessions.
 Workshop facilitation career guidance.
i) Performance consultant/ coach
He advises line management to improve individual and group performance
Output:
 Individual Assessment Sessions
 Coaching design
 Implementation.

j) Researcher
Assesses HRD Practices and programs using statistical procedures to determine
their overall effectiveness and communicates the result to the organization.
Output:
 Research design
 Findings
 Recommendation

HRD AUDIT
 Most of the people in organization including HR Manager believe that auditing
the HR Activities is just impossible because of its subjectiveness. HR Audit creates HR
problems and reports generated out of such audits will not be useful.
Adrian Fun ham and Barrier Gunter destroyed these myths, which are as follows:

Fiction Fact
You can’t measure things viz-corporate HR audits can measure organizations
culture/climate. climate and culture.
Can’t tell what information to collect Through pilot works you can decide what
information needs to be audit.
One can’t calculate the benefits of an audit. M & A can do HR audit & find out the
reasons.

Model for HRD Audit:

The model developed by advisory board of HR Professionals of American Management
Association is as follows:

1.Information Gathering:
Information about the various sub functions of HR dept should be collected first.
1. HR Dept Mission
2. HR Dept Organization
3. Quality of HR team
4. Labour Relations
5. Recruitment and Selection
6. Education, Training, Development
7. Benefits
8. Compensation
9. HRP
10. Organizational Development
11. Safety
12. Security
 13. Equipment and Facilities
14. Information Systems
Assign a score from 0 to 1000.

2.Evaluation
The numerical ratings of the user are to be compared with key weightages
provided in the instrument
Justification should be given for each numerical value. Any disagreement should
be noted down separately.

3.Analysis
Users/ managers have to total the numerical value assigned to each sub function
A user has to examine other factors that will assist him in understanding how well
the activity is denoted by each item. Now the user has got opportunity to repeat the
numerical value to each item. This helps in identifying strength and weakness.
4.Action planning
Based on the strength and weakness, the user should prepare action plans for
improvements. A user has to select a maximum 3 areas for action at a time.

Model for Culture Audit:

Alan Wilkins has proposed twin factor criteria to understand and assess culture.
1.Shared assumptions
2.Taken for granted/shared
It is difficult to audit the assumptions between people who don’t speak directly
and the assumptions are contradictory.

Steps to be followed:
1.Observation
Here, a random observation of people behavior at work helps to know how they act and
react in a given situation.
This data can be crosschecked with people who work early in the organization.
2.Stories:
There will always be some stories in circulation in the organization that employees share.
All these should be collected, documented and analyzed to understand the patterns.
3.Language
The way people speak in different occasions, slang, words, expressions indicate
something a group shares.
4.Customers
The manner in which decisions are taken and methods used to solve the problems by the
employees must be documented.
5.Patterns
In an organization how a particular event is viewed or values by employees must be
noted down.
Example: Reward/Punishment how it is viewed by a particular organization may not be
same in other organization.

I Audit techniques for organization communication:

This is the audit, which helps us to systematically study the methods, channels, tools of
communication to improve the comm. System.
Techniques are:
1.Structured and Unstructured interviews.
2.Questionnaire
Both open ended and forced choice questionnaire should be developed with a clear
objective to collect the data from all the employees.
3. Analysis of telephone bills
Cost incurred on telephone bills, frequency, purpose and subject of issue will provide
important data.
4.Network Analysis
Communication Network can give important about the senders, receivers and blockages.
5.Communication logs
Here, employees will be requested to maintain a diary of communication for a specific
period.
6.In-tray/Out-tray Analysis
How an employee/group of employees clear their letters, memos, correspondence,
circulars and the type they receive in normal course should be analyzed.
7.Critical incident tech
Employees should be asked to narrate the events/experience.
8.Use of media
Telephones, e-mails, postal mails, written communication, oral communication, formal &
informal interaction should be checked.

IIMeasures of HRD performance

Model for HR Measurement
1.Determine the objective of measurement
a) Financial assessment to illustrate cost and benefit value
b) Non-financial value assessment to understand the commitment of
employees
c) Micro-assessment benefit/loss of conducting each function
d) Combination of financial and non-financial purpose.
2.Classify HR activities
a) Tangible – Technical training
b) Intangible – Behavioral training

3. Develop measures for tangible HR activities

Example: if you want to conduct MD program for 20 managers for 3 days an expenditure
of 1 lakh is incurred. It would be 2 lakh if this program is conducted by external agency.
Therefore, one HR Mgr should develop measures for tangible activities.

4.Develop measures for intangible activities

Example: a new approval system is implemented in organization expenditure is 10 lakh.
Whether the new app system has achieved its objectives are not should be measured.
IIIModel for performance measurement
Kenneth rode in 1995 has developed a model
Step 1: It starts with exploring answers to the questions concerned with the identification
of performance dimensions, general, specific.
Step 2: This is the step to identify specific goals with respect to each performance
dimension.
Step 3: Here, one has to identify the indicators related to each goal. These indicators
should reflect what is important for successful performance.
Step 4: Determine the comparative importance indicator.
Step 5: Identify the right methodology to measure the indicators.
Step 6: Conduct a pilot study and analyze the results for incorporating changes.
Follow-up should be done by communicating to all employees about new
performance measurement system to be implemented from a prospective date.

IVSeven-step model for team measurement

Jack Zigon of Zigon consultants developed a 7-step process for measuring the results of
work teams.
1.Reviewing the existing Organizational measures
Team members should be clearly linked to all the aspects of team performance
and such measures should be clearly known to team members.
2.Define team measurement points:
There are 4 alternatives in defining team performance points:
 Team customer diagram
 Team accomplishment pyram9id
 Work process mapping
 Accomplishments, which support organizational measures.

3.Identify individual team member accomplishment, which support the team

Role result matrix can be used to measure an individual performance. It is a table, which
identifies the results each team member must produce in order to support the team.
4.Weigh the accomplishment
Here weights are used to help teams to discuss the priorities and agree on what is really
important.

5. Create measure for each accomplishment

General measures:
 Quantity
 Quality
 Cost
 Timeliness
Specific measures:
1. Numeric measures that use nos’ to evaluate the accomplishment
2. Descriptive measures that use words to evaluate the accomplishment.

6. Develop performance standards

Numeric measures- ask yourself how much is the team expected to produce
Descriptive measures- what customers saying about the product/quality.

7.Develop a feedback system

a) Decide what data to collect
b) Decide what source the feedback should come from.
c) Decide whether all data should be collected.
d) Determine when to collect data.
e) Determine who should collect data
f) Review the existing reports
g) Decide the format for evaluation of data.
 UNIT – 2
UNIT – II E-HRM 6
e- Employee profile– e- selection and recruitment - Virtual learning and Orientation
training and development – e- Performance management and Compensation design
Development and Implementation of HRIS – Designing HR portals – Issues in employee
privacy– Employee surveys online.

E-HRM is the (planning, implementation and) application of information technology

for both networking and supporting at least two individual or collective actors in their
shared performing of HR activities.

E-HRM is not the same as HRIS (Human resource information system) which refers
to ICT systems used within HR departments. Nor is it the same as V-HRM or Virtual
HRM - which is defined by Lepak and Snell as "...a network-based structure built on
partnerships and typically mediated by information technologies to help the organization
acquire, develop, and deploy intellectual capital.

E-HRM is in essence the devolution of HR functions to management and employees.

They access these functions typically via intranet or other web-technology channels. The
empowerment of managers and employees to perform certain chosen HR functions
relieves the HR department of these tasks, allowing HR staff to focus less on the
operational and more on the strategic elements of HR, and allowing organisations to
lower HR department staffing levels as the administrative burden is lightened. It is
anticipated that, as E-HRM develops and becomes more entrenched in business culture,
these changes will become more apparent, but they have yet to be manifested to a
significant degree. A 2007 CIPD survey states that "The initial research indicates that
much-commented-on development such as shared services, outsourcing and e-HR have
had relatively little impact on costs or staff numbers". The processing and transmission of
digitalized HR information is called electronic human resource management (e-HRM)
.Information technology is changing the way HR departments handle record keeping and
information sharing. Employees can gain information through self-service.
E-HHRM AIMS
Leveraging of technology to deliver HR solutions that brings about convergence in uman
capital, processes, data and tools as a catalyst towards achieving business strategies.

TYPES
 Operational e-hrm is concerned with administrative function like payroll,
employee personal data, etc.
 Relational ehrm is concerned with supportive business process by the means of
training, recruitment, performance management and so forth .
 Transformational E-HRM is concerned with strategic HR activities such
as knowledge management, strategic re-orientation, etc

Critical E-HR tools

 e-Recruitment
 Allows managing of recruitment and hiring in a systematic manner
 Advertise openings, manage applications and interviews up to hiring
electronically

 e-Leave
 Application and approval of leave managed through defined workflow
 Approving authority will be able to review the history record
 e-Claims
 Submission and approval of claims on-line
 Submit/scan original receipts to Finance for verification

 e-Profile
 Employee have access to his/her profile for updating or editing
 Controlled maintained by HR prior to approval

 e-Appraisal
 Web-enabled appraisal, skills development and career mapping
  Reduces the paperwork and paper-pushing by HR, onus on manager
 Able to conduct appraisal on-time

Benefits of e-HR
 Business
□ Able to have multiple physical presence, with one virtual HR Department
□ React quickly to a continually changing business structure
□ Obtain human capital information from anywhere in the world, e.g. China, etc.

 HR Division
□ Reduce HR service delivery cost by automating key HR business processes
□ HR gets to focus on strategic issues more
□ Manage workforce with right portfolio of skills and knowledge
□ Manage reward programs to attract, motivate and retain skilled workers
□ Data Entry –increase error detection/reduce correction cost
□ Eliminating cost related to printing and dissemination of information to
employees
 Employees
□ Improved levels of service from HR to meet employees’ demands
□ Employee self-service allows quick and immediate access to info
□ Employees’ career development and appraisal done more effectively and
efficiently

Information Technology has played an important role in HRM practices. E-HRM

is the application of IT for HR practices which enables easy interactions within
employee and employers. It stores information regarding payroll, employee
personal data, performance management, training, recruitment and strategic
orientation. It decreases the paperwork substantially and allows easy access to
voluminous data. The employee can also keep track of his/her achievements
without having to go through litigious procedures. It uses intranet or other web
technology channels. It can also be used for implementation of different HR
 strategies. The authorization of different HR functions can be distributed through
E-HRM.

E-Recruitment

 Is a comprehensive evaluating system that can be used to conduct objective type

tests such as recruitment tests, entrance examinations, competitive exams,
certification tests, assessment quizzes or as an assessing tool in e-learning or
market research.
 A highly customizable product, it allows conducting several tests simultaneously
and can declare the result as soon as the test is over.

Current trends in e-recruitment

 Integrated recruitment starting from vacancy creation right up till employee
induction.
- Equal Opportunities monitoring
- Metrics and reporting for the process effectiveness
- Applicant Tracking
- Linking internal recruitment systems directly to the Job Board
- Analyzing effectiveness by media partner, agency.
- Internal job boards on the employee internet
- Workflow based HR processes and self service in recruitment
-- Induction Schemes and Pre-joining schemes

FORMS OF E-RECRUITMENT
 There are two basic forms of e-recruitment:
 A Company's own home page
 Third party sites e.g. Find Jobs. Build a Better Career. Find Your Calling. |
Monster.com, Naukri.com - Search Jobs in Delhi, Mumbai, Bangalore - Career -
India, Jobs in India, Search for Jobs Online - TimesJobs.com
 Advantages of E-Recruitment
 Cost reductions
 It is usually considerably cheaper to advertise on the internet than in conventional
paper based publications.
 Using on-line recruitment tools can reduce the administrative burden associated
with recruitment e.g. by sending candidates automated responses.
 Organisations have the ability to reach a much larger target audience as there will
be 24 hour global access to their vacancy information.
 It can reduce discrimination and subjective selection.
 It raises the possibility of cutting down the length of traditional recruitment
process.
 Computerisation means that more applicants can be processed.
 Sophisticated search tools can be Growth of E-Recruitment

E- Performance
 The use of technology in performance management tends to increase productivity,
enhance competitiveness and motivate employees.

Technology
 Multi rater Appraising System:
Supervisor /team members generate online as well as off shelf appraisal
software packages where by which appraisal will be done.
 CPM Technology : Computerized Performance monitoring system.
 ERP : Enterprise resource planning software system , Integration of
performance management system.

E- Compensation
Represents a web enables approach to an array of compensation tools that enable
to organisation to gather store, manipulate, analyse, utilise and distribute
compensation data and information.
E- Training & Development
 It can be denoted as E- Learning. It refers to the use of internet or an
orgnisational intranet to conduct training online.
 E.g In WIPRO out of its 17,500 employees , 2500 are on site and 15,000
employees are in off shore centres at Bangalore , Hyderabad, Chennai, Pune
and Delhi.

Training policy :
 Any employee is subject to training for a two week training every year.
 In satyam nearly 80% of the 9000 employees are logged into the in house
learning management system for various courses.
 Infosys has almost 10 % of its total training through e –learning.
 Many firms use e-learning as a prerequisite before classroom training
popularly called Blended training.

Requisites For E-learning

 Sufficient top management support
 Managers and HR professional need to be retrained to accept the idea that
training is being decentralized and individualized

Advantages & Disadvantages

It is self paced, Trainers can proceed on their own.
It is interactive , tapping, multiple trainee senses.
Allows for consistency in the delivery of training.
Enables scoring of services /assessments and appropriate feedback.

Disadvantages
May cause trainee anxiety
Not all trainees may be ready for e-learning.
Virtual Learning and Orientation
It is the process whereby which with an internet connection, learning and
 acquisition of knowledge will happen.

Steps in virtual learning

Reading all the instruction before going for learning any new concept.
Log in to the computer and clients for announcement , email, discussion
forum etc.
Keep track of all the assignment emails and discussion board post.
Actively participate inclass room discussion by asking questions and making
commands to other class mates.

E- Employee Profile
It is where the employees databases are maintained through excel sheet by
using intranet.

Uses Of E- employee Profile

 Accessing employees data quickly.
 Retrieval of data is possible.
 Maintenance of records are easy.
 It sales the place.
 It reduces paper work.

Steps in Creating / maintaining Employee Profile

 Log on to the user ID and open the firm and enter the details like
 Name. DOB. DOJ, Dept, Designation, Years of experience , Marital status
etc.
 Exit the form and forward it to Human Resource Department through HR
Intranet.

HRIS
It is a systematic way of storing data and information for each individual employee to aid
planning, decision making and submitting of reports to the external agencies.
Purpose of HRIS
 Storing information & data for future reference.
 Providing a basis for planning, organizing, decision making and controlling.
 Meeting daily transactional requirement such as absent.

APPLICATION OF HRIS
I Personal Administration
Information about each employee name age, address, DOB, DOJ etc.

II Salary Administration
 HRIS will be helpful in performing what if analysis.
 Report should give details of present salary last increases & proposed
increase.
III Leave / Absence recording:
Maintaining a complete leave history for employee ID card , employee no.

IV Skill Inventory
HRIS helps to maintain skill database at both employees and organization chart
It helps to identify the employees skills required.

V Medical History
HRIS helps to maintain records on occupational health data required for safety
purpose.

VI Accidental Monitoring
HRIS helps to maintain the details of the accident for the injured employees
Accident prone areas within the organisation.

VII Performance Appraisal:

The system record individual employee performance appraisal such as the
  Due date of the appraisal
 Scores for each performance criteria
 Potential For Promotion.

VIII Recruitment :
HRIS Should record cost , method of recruitment , time taken to fill the position.

ix) Training & Development:

The system consider the training & development of an employer with the ability to
record & enquire on courses completed and any projected courses.

x) Manpower/career Planning:
HRIS record details of the organizational requirement in terms of position.
A logical progression paths and steps required for advancement can the identified by
HRIS after which the individual progress can be monitored.

Necessary capabilities Of An HRIS

 Input Function:
Establish the procedures and process required to gather the necessary data. After
collection data must be entered in to the system after codification.
 Data Maintenance Function:
This function is responsible for the actual updating of the data stored in storage devices.
 Output Function:
It is concerned with the information reports produced by the system (evaluating
calculation).

Steps in Implementing in HRIS

 Inception of idea
 Feasibility study
 Selecting a project team
  Defining the requirements
 Vendor Analysis
 Contract Negotiations
 Training
 Tailoring the system
 Collecting the data
 Testing the system
 Starting Up
 Running in Parallel
 Maintenance
 Audit

Designing HR portals
 It is the electronic web system that gives the employees with greater access that
gives the employees with greater access to the tools and information which they
need to do their job.

Need For Portal

 To cope up with the various needs of different users.
 To meet numerous types of information.

Features /Characteristics
 Allowing different information
 Presenting automatically the information and services that the user wants.
 Allowing the user to select the information and services according to his own
interest.
HR Portal
 It enables employee, manager and candidate self service on wide ranging topics,
the information displayed for each for each person is customized.

Designing HR Portal
  Bringing together key stakeholders.
 Articulate strategy
 Understand current content management & technology process.
 Clearly defined the roles and responsibilities.
 Establish accountability.

Employee Survey Online

It is the survey which will be conducted in collaboration with the electronic system.

Types Of Survey
 Employee opinion survey
 Pulse survey.
 Short form survey
 Merger & acquisition survey.
 Expatriate and expatriate spouse survey.
 Global employee survey.
 Special focus survey.

Employee Survey - Steps

 Need Analysis
 Focus Group
 Survey Design
 Develop Question
 Questionnaire Review
 Instrument Pre Test
 Administer the Questionnaire
 Analyze The Questionnaire
 Presentation Of Survey Result

Issues in Employee Privacy

 Privacy in workplace is a controversy issue.
  An employer has all right to monitor an employees performance and behavior

Ways By Which Employees Can Be Monitored.

 Email
 Phone conversation
 Voicemail
 Messages