LNCT UNIVERSITY,

BHOPAL

BBA VI Sem

Human Resource
Development
LNBBAHR602

Lecture Note

LNCT UNIVERSITY, BHOPAL

 Program: BBA Semester-VI Session: 2020-2023

Name of Paper Paper Code Elective (Human Resource) Theory

HUMAN RESOURCES LNBBAHR602 L T EST CAT Total
DEVELOPMENT
4 70 30 100
Objectives: the objective of this course is to teach students the basic concepts of to human resource
development, goals and importance and HRD functions and strategies
Unit Contents (Theory) Hours/Week
I Introduction to human resource development, Goals and importance, 12 Hours
HRD climate and practices, HRD functions and strategies
II Manpower planning, training and development, Assessment of training 12 Hours
need, Training effectiveness, designing and administrative training
III Performance appraisal concept, need and methods, Differentiate 12 Hours
between performance, Career planning and management.
IV HR system designing and administration, HRD for workers, HRD 12 Hours
approach for organizational change, HRD in Indian organization,
Objectives of HRD professionals
V HR report, Audit and research, Quality of work life, TQM, HRD 12 Hours
strategies, Human resources information system

Name of Authors Titles of the Book Edition Name of the Publisher

T.V. Rao Alternative Approach & Strategies of Rawat Publication
HRD
.R. Peeper Strategic Human Resource Development Springer Publication
Shrinivas R. Kandula Strategic Human Resource Management Prentice Hall
International.
Luis R. Gomez- Managing Human Resources Prentice Hall
Mejia, David B. International.
Balkin

Lecture Plan
Department Bachelor of Business Session 2021-22
Administration
Name Of Teacher Priti Dubey Semester 6th
Subject Human Resource Subject Code LNBBAHR602
Development

Course Objective:
Development (HRD) through assessment of theories and practices of HRD.

Course Outcomes:
The successful completion of this course shall enable the student:
CO1: To build an understanding and perspective of Human Resource Development as discipline appreciating
learning.
CO2: To learn the skills of developing a detailed plan for need and implementation of HRD program in the
organization.
CO3: To learn role of learning in action as an individual, group and an organization in order to develop
creative strategies to organizational problems.
CO4: To develop a perspective of HRD beyond organizational realities including national HRD.
CO5: To understand contemporary realities of HRD and its interface with technology

Course Requirement:
The course requires the student to have a general understanding of certain principles and
practices of management. Concepts of organisation structures & management, managerial
functions, the impact of environment on managerial activities et al will help students to
appreciate the value of Human resources and develop an insight in realizing the significance
of Human resource development. This course will be interactive, requiring class
participation. If you fully participate in this course, including: reading; attending class;
completing assignments, activities, and exercises; and importantly, applying what you learn
to your own experiences, you will leave with a set of competencies enabling you to make the
right management decisions.

Scheme of Evaluation:

Component Number Weightage

No of Sessions 38(2 extra included)

Assignment 02 15 %
Presentation 02 25%
Case 02 10%
Attendance 38 30%
Term End Exam 01 20%

Faculty of Management & Commerce - LNCT University, Bhopal

LECTURE PLAN-ACADEMIC YEAR 2021-22
1. ACADEMIC PERIOD: EVEN SEM APRIL-JULY 2022 5. COURSE: BBA
2. NAME OF THE FACULTY: Dr PRITI DUBEY
 3. DESIGNATION: ASSOCIATE PROFESSOR CLASS: 6th Sem
4. CONTACT N o : 9826093354; email: [email protected] 6. HRD - LNBBAHR602
Lecture Scheduled Topics To Be Covered Date of Execution Remark/Reason for deviation, if any
Date
UNIT-I- Introduction to HRD- Sessions 1 0
1 Introduction to HRD
2 HRD Goals
3 Importance of HRD
4 HRD Functions
5 HRD Strategies
6 HRD Climate
7 HRD Culture & Practices
8 Case Study
9 Presentation
10 Revision
UNIT-II - Manpower Planning - Sessions 08
11 Manpower Planning - Meaning and Definition
 Importance of HRP
 Factors affecting HRP
 The Planning process
12  HRP and the Government
 Requisites to successful HRP
 Barriers to HRP
13  Introduction to Training
 Inputs in Training & Development
 Training Process
14 Training need Assessment
15 Training Methods &Techniques
16 Training evaluation
17 Impediments to effective training
18 Revision
UNIT-III – Performance Appraisal & Career Planning - Sessions 07
19  Meaning and Definition of PA
 Objectives of PA
20  Need of PA
 Performance Appraisal process
21 Methods of Appraisal
22  Challenges of Performance
appraisal
 Managerial appraisal
23  What is career planning
 Career planning – need & process
 Life & Career stages
24  Succession Planning
 Career Development & Counseling
25 Case Study & Presentation
UNIT-IV – HRD System - Sessions 06
27 HR system designing and administration
28 HRD for workers
29 HRD approach for organizational change
30 HRD in Indian organization
31 Objectives of HRD professionals
32 Revision
UNIT-V – HRD Audit- Sessions 05
34 HR report
35 Audit and research
36 Quality of work life and TQM
37 Human resources information system
38 HRD strategies

7. TOTAL No. OF PERIODS 38

Reference Books:
R1: Rao, T.V. (2005). Future of HRD. Macmillan Publishers India.
R2: Mankin, David (2009). Human Resource Development. Delhi: Oxford University Press.
R3: Werner & DeSimone (2006). Human Resource Development. Thomson Press, Network
R4: Essentials of Human Resource Management and Industrial Relations, Dr. P.
Subbarao, Himalayan Publishing House, 2001
WEF : 7-3-22 FACULTY HOD DIRECTOR

Facilitating the achievement of Course Learning Outcomes

Unit No. Course Learning Teaching and Learning Assessment Tasks

Outcomes Activity
I Evaluate the perspective of Mode of interaction would Class participation,
Human Resource be lecturing followed by presentation,
Development as discipline discussion Individual/Group
appreciating learning. Assignment
II Developing skills of a Mode of interaction would Class participation,
detailed plan needed and be lecturing and critical presentation,
demonstrate the appreciation of existing Individual/Group
implementation of HRD theoretical framework Assignment
program in the
organization.
III Explain the role of Role plays, case discussion Class participation,
learning in action as an using andragogical presentation,
individual, group and an perspective, case Individual/Group
organization in order to discussion Assignment
develop creative strategies
to organizational problems
IV Analyze the perspective of Case discussion, group Class participation,
HRD beyond activity presentation,
organizational realities Individual/Group
including national HRD. Assignment
V Explain the contemporary Presentation, discussion, Class participation,
realities of HRD and its lecturing presentation,
interface with technology. Individual/Group
Assignment
 Lecture Notes
Unit - 1
Topics : Introduction to human resource development, Goals and importance, HRD
climate and practices, HRD functions and strategies

Human Resources Development (HRD) is defined as a division of human resources management

that improves the skill sets of employees through training and education by increasing
knowledge, abilities, and skills of employees.
What HRD means to an organization is to have the most knowledgeable and highly skilled
workforce which leads to improved communication, productivity, and ultimately in furthering
the organization’s goals.  What it means to an employee is that the employer is invested in the
growth of their employees.
The result is a stronger employee-employer relationship, a more cohesive work environment,
which fosters more cooperation across the organization and ultimately, leads to higher
productivity and results.

Meaning of HRD
The effective performance of an organisation depends not just on the available resources, but its
quality and competence as required by the organisation from time to time.
Similarly, the difference in the level of performance of two organisations also depends on the
utilisation value of human resources. Moreover, the efficiency of production process and various
areas of management depend to a greater extent on the level of human resources development.
HRD assumes significance in view of the fast changing organisational environments and need of
the organisation to adopt new techniques in order to respond to the environmental changes.
Human Resource Development (HRD) is that part of Human Resource Management which
specifically deals with the training and development of employees. It helps the employees in
developing their knowledge, skills and abilities to achieve self-fulfillment and aid in the
accomplishment of organizational goals.
HRD can be defined as organized learning activities arranged within an organization in order to
improve performance and/or personal growth for the purpose of improving the job, the
individual, and/or the organization.
HRD includes the areas of employee training, career development, performance management,
coaching, mentoring, key employee identification, talent development and organization
development. Developing a highly productive and superior workforce is the aim of HRD
activities.
HRD is defined as activities and process undertaken by an organisation to formulate the
intellectual, moral, psychological, cultural, social and economic development of the individuals
in an organisation, in order to help them to achieve the highest human potential as a resource for
the community. It means to bring about a total all-round development of the working human, so
that they can contribute their best to the organisation, community, society and the nation.
HRD does not cover only a set of mechanisms or techniques but it is a process by which
employees acquire or sharpen capabilities to perform the various functions, develop their general
capabilities as individuals and exploit their own inner potentials, develop team work and
collaboration. HRD concept is much wider and embraces almost all areas of an organisation.
In the context of banking, HRD means not only the acquisition of knowledge and skills but also
acquiring capabilities to anticipate and manage both internal and external environment and
obtaining, self- confidence and motivation for public service. Further, HRD is not a piecemeal or
a one-time exercise, it is a continuous process requiring to keep pace with the changes and
developments, taking place.

Definition of HRD
The concept of HRD was formally introduced by Leonard Nadler in 1969 in a conference
organised by the American Society for Training and Development. Leonard Nadler defines HRD
as “those learning experiences which are organised for a specific time and designed to bring
about the possibility of behavioural change.”
Among the Indian authors, T. Ventateswara Rao worked extensively on HRD. He defines HRD
in the organisational context as a process by which the employees of an organisation are helped
in a continuous, planned way to-
(i) Acquire or sharpen capabilities required to perform various functions associated with their
present or expected future roles;
(ii) Develop their general capabilities as individuals and discover and exploit their own inner
potentials for their own and/or organisational development purposes;
(iii) Develop an organisational culture in which superior-subordinate relationship, team work and
collaboration among sub-units are strong and contribute to the professional well- being,
motivation and pride of employees.
According to Pulapa Subba Rao, HRD from the organisational point of view is a process in
which the employees of an organisation are helped/motivated to acquire and develop technical,
managerial and behavioural knowledge, skills and abilities and mould the values, beliefs and
attitudes necessary to perform present and future roles by realising the highest human potential
with a view to contribute positively to the organisational, group, individual and social goals.

A comparative analysis of these definitions shows that the third definition seems to be
comprehensive and elaborate as it deals with the developmental aspects of all the components of
human resources. Further, it deals with all types of skills, the present and future organisational
needs and aspects of contribution not only to organisational but also other goals.

The analysis of the third definition further shows that there are three aspects, viz.- (i) employees
of an organisation are helped/motivated; (ii) acquire, develop and mould various aspects of
human resources and (iii) contribute to the organisational, group, individual and social goals. The
first aspect deals with helping and motivating factors for HRD.
These factors may be called ‘Enabling Factors’ which include: organisation structure,
organisational climate, HRD climate, HRD knowledge and skills of managers, human resources
planning, recruitment and selection. The second aspect deals with the techniques or methods
which are the means to acquire develop and mould the various human resources.
These techniques include- Performance appraisal, Potential appraisal, Career planning and
Development, Training, Management development, Organisational development, Social and
Cultural programmes, and workers’ participation in management and quality circles. The third
category includes the outcomes’ contribution of the HRD process to the goals of the
organisation, group, individuals and the society.
“HRD is a set of systematic and planned activities designed by an organization to provide its
members with the necessary skills to meet current and future job demands.”

The Evolution of HRD

While traditional HRD was once thought of as skills training and safety education, the reality is
that this area of human resources is far more impactful to both employers and employees.
Since industrialization, training has been prevalent in American businesses. But it was in 1969
that Leonard Nadler(1) introduced the idea of human resources development at a professional
conference with the idea of changing employee behavior through learning experiences in the
work environment. Other HR professionals have come along since then and have expanded the
definition further.
What is imperative to understand today is that HRD is a value add for recruiters and talent
acquisition professionals in encouraging candidates to join an organization because having a
strong HRD  is a great benefit to many potential employees.
Further, a strong HRD program is a strong indicator that the company culture is healthy as the
company sees value in the growth of their employees assists in meeting company goals and
achieving a more ideal work environment which also fosters better communication and a more
cohesive team.

What is the Difference Between HRM and HRD? 

Human Resource Management or HRM is the entirety of the role of human resource
responsibilities, whereas, Human Resource Development (HRD) is the training and development
piece of HRM.
 Human Resources Management (HRM) is a comprehensive talent management process that
has five key stages: recruitment & selection, compensation & benefits, performance management,
culture & engagement, and training & development.
 Human Resources Development (HRD) is a piece of the Human Resource Management (HRM)
Process.

Goals or Objectives of HRD

i. To prepare the employee to meet the present and changing future job requirements.
ii. To prevent employee obsolescence.
 iii. To develop creative abilities and talents.
iv. To prepare employees for higher level jobs.
v. To impart new entrants with basic HRD skills and knowledge.
vi. To develop the potentialities of people for the next level job.
vii. To aid total quality management.
viii. To promote individual and collective morale, a sense of responsibility, co-operative attitudes
and good relationships.
ix. To broaden the minds of senior managers by providing them with opportunities for an
interchange of experiences within and outside.
x. To ensure smooth and efficient working of the organisation.
xi. To provide comprehensive framework for HRD.
xii. To enhance organisational capabilities.
xiii. To create a climate that enables every employee to discover, develop and use his/her
capabilities to a fuller extent in order to further both individual and organisational goals.

Importance of HRD
i. Develops Competent Workforce:  Human resource development helps in developing a
superior workforce for the organization by educating and training them. It imparts all
knowledge and skills to employees necessary for carrying out their roles and duties.
ii. Improve Relations with Employees: Human resource development develops a better
understanding among employers and employees. Employers guides and cooperates its
workforce in performing their roles. It leads to better trust and respect among them which
strengthens their relations with one another.
iii. Provides Opportunity for Career Development: It works towards developing the
career of all peoples working in an organization. Employees are personally provided
various training and development opportunities as per their requirements. It improves
people’s knowledge, skills, talent, creative abilities, values and beliefs from time to time
according to changing demands.
iv. Enhance Productivity: Human resources development has an effective role in increasing
organizational productivity. It imparts abilities and skills to employees which are
necessary for performing organizational activities. All people working are able to
perform well and contribute more to an organization which enhances the overall
productivity.
v. Improves Job Satisfaction: Human resource development focuses on inspiring people
for performing better. It works on the good orientation of employees and provides them
with a better atmosphere for working. All this leads to high commitment towards roles
among employees and results in job satisfaction.
vi. Clarify the Roles: It develops a proper communication network between employers and
employees. Employers are able to explain clearly all roles and duties to their workforce.
Employees can easily clarify all their doubts or problems with their superiors. 
Need of HRD
Human resource development is needed in an organization for the following purposes:
1. To Achieve Goals:
People need competencies to perform tasks. Higher degree and quality of performance of tasks
requires higher level of skills. Continuous development of competencies in people is essential for
an organization to achieve its goals. Competent and motivated employees are essential for
organizational survival, growth and excellence.
2. To Maintain a Level of Growth:
Over a period of time, an organization may achieve a saturation point in terms of its growth.
Even to maintain such a saturation level of growth employee competencies need to be sharpened
or developed as organizations operate in environments that keep changing requiring the
employees to acquire new competencies.
3. Improve Effectiveness:
Any organization interested in improving its services and its effectiveness in cost reduction,
reduction in delays, increased customer satisfaction, improved quality and promptness of
services, market image needs to develop the competencies of its employees to perform the tasks
needed to bring about such improvements.

Scope of HRD
(i) Recruiting the employees within the dimensions and possibilities for developing human
resources.
(ii) Selecting those employees having potentialities for development to meet the present and
future organisational needs.
(iii) Analysing, appraising and developing performance of employees as individuals, members of
a group and organisations with a view to develop them by identifying the gaps in skills and
knowledge.
(iv) Help the employees to learn from their superiors through performance consultations,
performance counselling and performance interviews.
(v) Train all the employees in acquiring new technical skills and knowledge.
(vi) Develop the employees in managerial and behavioural skills and knowledge.
(vii) Planning for employees’ career and introducing developmental programmes.
(viii) Planning for succession and develop the employees.
(ix) Changing the employees’ behaviour through organisation development.
(x) Employee learning through group dynamics, intra and inter team interaction.
(xi) Learning through social and religious interactions and programmes.
(xii) Learning through job rotation, job enrichment and empowerment.
(xiii) Learning through quality circles and the schemes of workers’ participation in the
management.

Human Resources Development (HRD) – Features

(i) HRD is a systematic and planned approach for the development of individuals in order to
achieve organisational, group and individual goals.
(ii) HRD is a continuous process for the development of technical, managerial, behavioural and
conceptual skills and knowledge.
(iii) HRD develops the skills and knowledge not only at the individual level, but also at dyadic
level, group level and organisational level.
(iv) HRD is multi-disciplinary. It draws inputs from Engineering, Technology, Psychology,
Anthropology, Management Commerce, Economics, Medicine, etc.
(v) HRD is embodied with techniques and processes. HRD techniques include performance
appraisal, training, management development, career planning and development, organisation
development, counselling, social and religious programmes, employee involvement /workers’
participation, quality circles, etc.
(vi) HRD is essential not only for manufacturing and service industry but also for information
technology industry.

Characteristics of HRD
i. Idealistic
ii. Utilitarian in purpose, and
iii. Evolutionary

HRD functions
1. Performance Appraisal:
Employees’ performance appraisal or merit-rating is an important function of the HRD. This is
necessary for the HRD to assess the relative efficiency of various workers as reflected in their
performance of their jobs. While job evaluation is concerned with the rating of the job to be
performed, performance appraisal or merit-rating is concerned with the rating of the workers on
their jobs. HRD has to perform this function to analyse and classify the differences amongst the
workers vis-a-vis job standards.
2. Employee Training:
The next function of the HRD is to provide proper training to its employees or workers. Training
is the act of increasing the knowledge and skills of an employee for doing a particular job.
Training is considered to be the corner-stone of sound personnel administration. The employees
could be systematically and scientifically trained, if they are to do their jobs effectively and
efficiently.
3. Executive Development:
Another important functions of the HRD is to provide for executive development in the
organization. Executive development is the programme by which executive capacities to achieve
desired objectives are increased. Programme must be related to development of various inter-
related matters, factors and needs.
Executive capacities involve different individual abilities of present and prospective managers at
different levels of management. The desired objectives include objectives of the concern, its
executives and the persons to be managed.
4. Career Planning and Development:
The next function of HRD is career planning and development. Career planning is a systematic
process by which an individual selects his career goals and the path to these goals. From the
organisation’s point of view, career planning means helping the employees to plan their career in
terms of their capacities within the context of the organisation’s requirements.
Career planning and development involve formulation of an organizational system of career
improvement and growth opportunities for employees from the time of their appointment in the
organization to their retirement time.
5. Successful Planning and Development:
The HRD is also required to perform the function of planning and development of the business
of the organization in successful manner. For this purpose, it has to plan every aspect of its
organization and develop the same successfully.
6. Organisational Change and Development:
Another main function of the HRD is the organizational change and development. It involves
organizational diagnosis, team building, task force and other structural and process interventions
such as role development, job enrichment, job re-designing etc.
7. Involvement is Social and Religious Organisation:
The HRD manager should arrange for social and religious programmes and enable the
employees to learn from each other. Such programmes enable the employees to interact closely
with each other, open up their cognitions, share the strengths etc.
8. Involvement in Quality Circles:
Quality Circle is a self-governing group of workers with or without the supervisors who
voluntarily meet regularly in order to identify, analyse and solve problems of their work field.
This process of solving problems voluntarily enables the workers to learn decision-making and
problem-solving skills from each other.
9. Involvement in Workers’ Participation in Management:
The participation of workers in management enables the representatives of both the management
and the workers to share and exchange their ideas and view-points in the process of joint
decision-making in the organization. The joint decision-making process creates a plat-form for
mutual learning and development. Therefore the HRD managers should encourage the workers
to participate in the management of the organisation.

Nature of HRD
1. Learning:
The essence of HRD is learning. The very purpose of HRD is to make the employees acquire
knowledge, learn newer concepts and develop their skills. The core of HRD is to enhance the
quality of workforce by creating an environment which fosters constant learning.
2. Career Development:
HRD helps in the career development of individuals by matching employee characteristics with
job requirements. Growth of the organization is achieved through growth and development of
individual employee.
3. Specific Duration:
Any particular HRD programme would have a specific duration. It could be for a short, medium
or long duration.
4. Improves Performance:
The performance of employees is improved as a result of HRD. The training programmes
enhance the capabilities of employees and improve their productivity.
5. Organizational Development:
HRD aims at not just the development of the human resources, but at the progress of the
organization as a whole. Positive changes in work culture, processes and organizational structure
are made.
6. Long-Term Benefits:
HRD is a very future oriented concept. The results of HRD can be experienced only after some
time following its implementation. But it benefits the employee and the organization for a long
time in the future.
7. Continuous Process:
HRD is a continuous process. Different HRD programmes are to be implemented in the
organization according to changes in the work environment. Human behaviour needs to be
monitored regularly to enable them to adjust themselves according to environment dynamics.
8. Employee Welfare:
The organization attempts to provide all the facilities which are vital for the physical and mental
well-being of the employees to facilitate HRD. Measures like canteen facilities, crèche, medical
insurance, etc. are provided as part of employee welfare.
9. Development of Team Spirit:
HRD creates a healthy work environment which helps to build team spirit and coordination
among various groups and the department. Team spirit is necessary for fostering loyalty and
belongingness among employees.

HRD strategies
“HRD Strategies are a plan that defines how the human resources would be utilized through the use of an
integrated array of training, organizational development and career development efforts to achieve
individual, organizational objectives.”

Major HRD Strategies

Communications Strategy:
In today’s changing scenario, it is essential to educate and train employees about the change.
Accountability And Ownership Strategy:
Employee’s accountability and ownership leads to higher productivity and customer acceleration.
Quality Strategy:
Quality needs to be fostered in the employees through training and development.
Cost Reduction Strategy:
Every employee’s contribution in savings is crucial as small contributions from each employee can be
pooled by organizations to save substantial savings at the end of a given period and enhance its
competitive strategy.
Entrepreneurship Strategy:
Every employee needs to be an independent entrepreneur, who can generate ideas and bring them to
reality by using the existing resources and support of the org to create innovative and creative products
and services.
Culture Building strategy:
Organization’s valuing its employees have a sustainable competitive edge over competitors because
employees are highly charged, motivated and commitment to the org.
Systematic Training Strategy:
The planning and organization of formal on-job training and off-job training leads to improving vital
employee characteristics, build and sustain appropriate work culture and brings in more professionalism
in action.
Learning Strategy:
Continuous development and learning environments promote self development of employees, of self and
by self.

Advantages of Human Resources Development 

 At its core, human resources development advantages are found by developing employees to
expand their skills, knowledge, and education through proper training and educations channels
whereby the workforce is better suited to attain or exceed company goals.
 HRD is a tool for recruiters to entice potential candidates to submit their applications
 Leadership Development improves, instructs, and guides from within an organization
 Teams are more cooperative teams
 Optimal work done by skilled professionals
 Creates a healthy company culture which leads to easier management of an organization as less
time is spent correcting misbehavior and communication disputes.

Challenges of HRD
 Legal Compliance and Regulation
The one legal constant is that regulations are always changing. Staying on top of these
changes presents a challenge to all Human Resources Functions.
 Leadership Changes
As an organization’s leadership changes, often so do its priorities. Ensuring that
development remains a top priority to leadership is essential.
 Financial Limitations
Budgets and developmental needs do not always align.
 Innovation
Particularly in jobs in the technology sector, innovation changes the educational and
skills needs of engineers, developers and the like.  This means the career roadmap
change  and staying aware of advancement is critical responsibility for HRD.
Factors Affecting HRD
The following are the factors that affect or influence HRD:
1. New Organisational Culture:
Development of a new organisational culture is one of the important factors that influences
human resources development. The globalisation of business has triggered a revolutionary
change which has necessitated a strong demand for strong operational managers requiring greater
reinforcement in the human resource system. The development of human resource has become a
great necessity to cope with the vast technical and technological and cultural changes in the
organisational structure.
2. New Organisational Forms:
New organisational forms have necessitated the development of human resources. H.R.D. and
H.R.P. (Human resources development and human resources planning) strategy must be rightly
and properly adapted together to business strategies in such way that the whole organisation can
take the shape of a viable global organisation.
According to V. P. Michael, “New concepts regarding what is work and how to redistribute
tasks, redefine roles, authority relationships and sources of power must be based on the new
models emerging globally. Recruiting, selecting, developing, rotating and managing human
resources must aid such a global organisation with a new form and perspective”. HRD considers
the factor of organisational form as one of the vital aspects in developing human resources.
3. Congenial Environment:
Another factor that affects HRD is the congenial environment. HRD should create congenial and
healthy work environment so as to motivate the employees to work for the growth of the
organisation as well as for their own benefit. HRD should create good and favourable working
conditions so that the employees can put in best of their efforts, co-operate with the management
wholeheartedly, and work with keen interest in the organisation.
4. Development of Personality:
Development of personality of individual employees is quite essential if HRD is to succeed.
Therefore the HRD has to locate potentiality of the employees and take necessary steps for the
full development of their personality and potentiality so that the employees identify their interest
with that of their organisation. This can be done by integrating HRD with appropriate job design
and succession plan.
5. Employee Counseling:
Every employee in the organisation should be given proper counseling services about his
activities in the organisation. Counseling services should be related to how he should grow and
what right practices he should adopt to improve himself and his organisation. The counseling
need not be confined to work-related issues.
Marital problems, problems with the children, financial difficulties or general psychiatric
problems or health problems may not be directly related to the job. But the management should
recognize that individuals cannot completely separate their personal life away from their life on
their job.
Therefore personal problems do affect an employee’s work performance. An increasingly
popular form of counseling involves not only employees who are about to retire but also new
employees who have just entered the organisation and also employees who have still a long
period of service and who are likely to be promoted. HRD should therefore take care of all types
of employees in general.
6. Manpower Development:
New technical and technological changes are taking place today in the business world, which is
therefore, becoming more and more dynamic and more and more complex, and which is
demanding, on an increasing scale, highly competent human force to handle the situation.
The responsibility of developing such competent human force to handle efficiently and
successfully such changing and challenging situation lies on HRD. Therefore, HRD has to design
manpower training and development programmes to provide adequate exposure to executives,
technocrats and ordinary work-force of the organisation.
7. Recruitment and Selection:
HRD is responsible to undertake the work of recruitment and selection of employees in the
organisation. It should therefore make careful and wise selection of employees, train them
according to the needs of their jobs, and see that right man is placed in the right job.
8. Performance Appraisal:
It is also the responsibility of the HRD to take up the periodical appraisal of the work
performance of the employees. For the purpose of maintaining the quality of work and achieving
the pre-determined targets, the employees are required to be monitored continuously.
Periodical appraisal of the work- performance will enable the firm to locate the weak spots and
correct the same immediately. Without the periodical appraisal of the work performance, the
quality of work and the efficiency of the workers cannot be improved and the quality of
performance cannot be maintained.
There are other factors such as human resource information system (HRIS), management
development, supervisory development, organisation development, technical and technological
development, employee welfare measures and developing feed-back systems which are also
closely associated with human resource development.
Process of Human Resource Development 
1. Organizational Analysis
Review the organization as a whole for training and development needs. Then, analyze
job tasks, and finally, determine the employee’s developmental needs.
2. Design HRD Policies and HRD Plans
Based on organizational objectives, create ideal training methods for the different job
tasks, department, teams, or individuals.
3. Implement Policies and Plan
Use employer branding and communications plans to actively communicate the HRD
Plan, programs associated, procedures to participate, exclusions, and dates of import.
4. Assess and Reassess
Determine if the HRD Plan reached the assigned goals, reevaluate to improve results or
meet new criteria/goals for HRD within the organization.
Divisions of HRD 
HRD is an essential part of human resource management and is essential in various departments
across an organization.
 Planning, Recruitment, and Retention
In human resources development planning is the process that organizations use to ensure
that employees skills and talents align for the betterment of the organization.
 Succession Planning and Talent Management
Succession planning is essentially grooming internal employees into ideal candidates for
future opportunities within the organization. The organization benefits as they do not
have to waste time and money backfilling positions because the individual has been
groomed for their next role.
Talent Management is a similar concept; however, rather than grooming the employee for
a specific role, the idea is to improve skills and knowledge with an eye to both the
organization’s needs as well as the professional growth of the individual.
 Performance Management
Performance Management is both informal and formal channels used to align employees,
resources, and systems with the goal of an ideal workflow.  This encompasses all of the
planning, organizing, leading, and controlling of employees. Performance Management
Systems are an essential piece of the performance management puzzle.
  Policies and Procedures
Regarding HRD, having the appropriate policies and procedures in place sets boundaries
which ensures that the employer and the employee both understand expectations before,
during, and following developmental training at the organization’s expense.
 Job Evaluation and Grading
Building on performance management, Job Evaluation is the hierarchy of the jobs within
an organization and highlights the value that each job brings. Job Grading is the grouping
of similar skill and salary jobs to add further value to the hierarch of job evaluation.
 Compensation and Benefits
Compensation includes all the ways that employees receive monetary payment for work
performed. Benefits are the additional offerings outside of monetary payment that is used
to entice potential employees and retain existing employees. In an HRD context, this is
valuable for recruitment and retention.
As employees improve skill sets and achieve performance management goals, they often
move up a job grade and advance within the corporate hierarchy which has a multitude of
advantages. The benefit to the employee in this example is employee sponsored personal
and professional growth.
 Employer Engagement
Employer engagement in HRD is the outcome of employers investing in their
organization and workforce that establishes a relationship over time that benefits both
parties. An easy way that employer engagement can be improved is through employer
branded communications that reinforce the message that the employer wants to invest in
its employees.
Another way would be engaging with local universities or online universities to partner in
bringing learning and career roadmaps for employee advancement.

Examples of HRD Trends

1. Employee Training: incorporates employer branding in all communications to continually
advance employer engagement perceptions across the organization.
2. Employee Career Development Programs: Road-maps for Career Advancement including
education, certifications, skills, and experience to get from one position to the next.
3. Mentoring/Coaching: Pairing highly skilled employees with Less experienced employees that
show great potential is particularly positive for both parties. Mentor teaches the mentee how to do
 the job more efficiently. The Mentor benefits in growing management skills and knowledge as
well.
4. Tuition Reimbursement: Most employers have embraced and encourage further education for
reimbursement and offer flexibility with work hours and responsibilities during the process.
5. Organizational Development: Understanding how company goals can be attained through
educational road-maps that lead to career advancement has not saturated all organizations though
the adoption of this practice is growing rapidly.

HRD climate and Practices

Organizational Culture is the collective behaviour of humans who are part of an organization and the
meanings that the people attach to their actions. Organizational culture is composed of several
characteristics that range in priority from high to low. Every organization has a distinct value for each of
these characteristics, which, when combined, defines the organization's unique culture. Members of
organizations make judgments on the value their organization places on these characteristics and then
adjust their behavior to match this perceived set of values. Every organization develops and maintains a
unique culture, which provides guidelines and boundaries for the behavior of the members of the
organization.
Culture is the pivot of any group or society. It determines the way members interact with one another and
with outsiders. Stoner, Freeman and Gilbert have described culture, as the complex mixture of
assumptions, behaviours, stories, myths, metaphors, and other ideas that fit together to define what it
means to be a member of a particular society. However scope of this chapter is limited to the study of
culture within the organisation. When an organisation takes on a life of its own, apart from any of its
members, and acquires immortality, the organisation is said to be institutionalised. When an organisation
takes on institutional permanence, acceptable modes of behaviour become largely self-evident to its
members. So an understanding of what makes up an organisation’s culture, and how is it created,
sustained, and learnt will enhance our ability to explain and predict the behaviour of people at work.
Organisational culture is described as the set of important understandings, such as norms, values,
attitudes, and beliefs, shared by organisational members. According to the recent understanding about
organisational culture, ‘system of shared meaning among members’, is the essential core of organisational
culture. According to Eliott Jacques, an organisational culture is the customary or traditional ways of
thinking and doing things, which are shared to a greater or lesser extent by all members of the
organisation, which new members must learn and at least partially accept in order to be accepted into the
service of the firm.
Following are the primary characteristics of an organisation’s culture:
Innovation and Risk Taking: The degree to which employees are encouraged to take innovative steps
and to take calculated risk;
Attention to Detail: The degree to which employees are expected to pay attention to detail;
Outcome Orientation: The degree to which management focuses outcome rather than on process to
achieve outcome;
People Orientation: The degree to which management gives attention to effect of decisions on people
working in the organisation and on its shareholders;
Team Orientation: The degree to which works are organised around team rather than individuals;
Aggressiveness: The degree to which people are aggressive or competitive rather than easygoing;
Stability: The degree to which maintaining status quo is emphasized in contrast to growth;
Individual Autonomy: The degree of responsibility, independence, and opportunities for exercising
initiative that individuals in an organisation have;
Structure: The degree of rules and regulations and the amount of direct supervision that is used to
oversee and control behaviour;
Support: The degree of assistance and warmth managers provide for their subordinates;
Identity: The degree to which members identify with the organisation as a whole rather than with their
particular work group or field of professional expertise;
Performance-Reward: The degree to which reward in the organisation are based on employee work
performance;
Conflict Tolerance: The degree of conflict present in relationships between peers and work groups as
well as the willingness to be honest and open about differences;
Attitude Towards Change: The response given to new methods, ways, and values;
Focus: the vision of the goals and objectives of an organisation’s operations as communicated by those in
control;
Standard and Values: The levels of performance and behaviour considered to be acceptable by formal
and informal criteria;
Rituals: Expressive events that support and reinforce organisational standards and values;
Openness, Communication, and Supervision: The amount and type of interchange permitted; the
communication flow can be downward, upward, across the organisation, and in other directions as spelled
out by the culture;
Market and Customer Orientation: The extent to which the organisation is responsive to its markets
and customers;
Excitement, Pride, and esprit de corps: A tangibly good feeling about the organisation and its
activities;
Commitment: The willingness of the individuals to work toward goals on a continuing basis.
Let's explore what elements make up an organization's culture.
OCTAPACE CULTURE includes ethics, values, beliefs, attitudes, norms, ethos, climate, environment
and culture. The eight dimensions of OCTAPACE culture are openness, confrontation, Trust,
Authenticity, pro-action, autonomy, collaboration and experimentation which are essential for a strong
and successful organization. A culture with OCTAPACE values has the greater chance of achieving high
involvement and satisfaction, team work, growth and free flow of communication within the organization
The most important aspect of organizational culture are the values it practices. Eight values usually
examined to develop the profile of an organizational culture that is called
octapace.OPENNESS,CONFRONTATION,TRUST,AUTHENTICITY,PROACTIVELY,AUTO
NOMY,COLLABORATION,AND EXPERIMENTING.
Organisation and OCTAPACE Culture
• O - Openness
• C - Collaboration
• T - Trust
• A - Autonomy
• P - Pro- Active
• A - Authenticity
• C - Confrontation
• E - Experimentation

a) Openness – It signifies the transparent environment in the organization. The degree of

openness of the organization will be an important factor in determining the nature of the
various dimensions of HRD being designed, as well as the way in which these
dimensions should be introduced. Freedom to communicate, share and interact without
hesitation. Receiving feedback from customers and giving ideas and suggestions to team
members.
OUTCOME: It helps to improve implementation of systems and innovation& free
interaction among team mates , leaders and top authority and clarity in setting objectives
and common goals.
b) Confrontation – The term signifies the actual problems which team face in the day to
day work. It implies to face the problem and find the best solutions to get over it rather
than stepping back to escaping the problems. Facing the problems and challenges boldly
and not shying away is the main theme of Confrontation. If an organization encourages
 people to recognize a problem, bring it to people concerned, explore with them to under it
and search possible ways of dealing with it.
OUTCOME: Improved problem solving and clarity and Team discussions to resolve
problems
c) Trust – The trust factor come with Openess which include maintaining the
confidentiality of information shared by others and company . If the level of trust is low,
the various dimensions of HRS are likely to be seen with suspicion and therefore the
credibility of the system may go down. in such a case the system if introduced may
become a vital and cease to perform the main functions for which it meant.
OUTCOME: Higher empathy, timely support, reduced stress and reduction and
simplification of forms and procedures.
d) Authenticity - Authenticity is the congruence between what one feels and says. It is the
value underlying trust. Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior. This value is important for the development of a culture of
mutuality.
OUTCOME: Sharing of feelings freely to improve interpersonal communication and
reduced distortion in communication
e) Proactive - Taking initiative, preplanning and taking preventive action is the measures of
term Proactive. Organisation must be proactive in terms of their planning. They must be
ready for future. Proaction means anticipating issues in advancing to take advantage of
this undertaking conflict or responding to needs of the future in fact creating the future.
OUTCOME: Taking and planning actions at immediate concerns.
f) Autonomy – Autonomy is the willingness to use power without fear and helping other to
do same. Basically Autonomy is all about Using and giving freedom to plan and act in
one’s own sphere. Organisation’s must avoid Autocratic type of environment and give
chance to team to use their powers in positive way.
OUTCOME: Develops mutual relationships, reduce reference made to senior people
g) Collaboration - involves working together in a team for a common cause. Individuals
solve their problems by share their concerns with one another and prepare strategies
working out plan of actions and implement them together.
OUTCOME: Timely work, improved communication, resource sharing
h) Experimenting – It Involves using and encouraging innovate approaches to solve
problems. It is the value which emphasizes the importance given to innovating and trying
out new ways of dealing with problems in the organisations.
 OUTCOME: Development of new product, methods, and procedures A profile of an
organisation on these aspects may help to decide what elements of HRS should be
introduced in what sequences in the organization.

Elements of Organisational Culture

According to Schein there are three basic elements of organisational culture:
Artifacts: It is the first level of organisational culture. It is observable symbols and signs of the
organisations. It includes visible parts of organisation e.g., structures, processes etc. Artifacts are hard to
decipher. Espoused
Values: These are the reasons (e.g., strategies, goals, philosophies) given by an organisation for the way
things are done. It is the second level of organisational culture.
Basic Assumptions: Basic assumptions are the beliefs that are taken for granted by the members of an
organisation. These are ultimate source of values and action that include: unconscious, perceptions, taken
for-granted beliefs, thoughts, feelings etc. It is the third level of organisational culture. Organisational
culture may be distinguished with respect to their core basic values.
Core values are the primary or dominant values that are accepted throughout the organisation. The
dominant values determine the dominant culture of an organisation. Thus, the dominant culture reflects
the core values that are shared by most of the members of the organisation.

According to Martin there are four such core basic values:

• Sensitivity to needs of customers and employees;
• Freedom to initiate new ideas;
• Willingness to tolerate new risks;
• Openness to communication options.
However presence of dominant culture within the organisation does not mean that there may not be
subcultures within any given culture. Particularly in large organisations there may be subcultures within
the dominant culture. Subcultures are mini cultures within an organisation, typically defined by
department designations and geographical separation. Some organisations may have strong culture
whereas others may have weak culture. In organisations having strong cultures, core values are intensely
held and widely shared. In weak cultures managerial styles may be more person-centred. Strong cultures
lead to more behavioural consistency and less employee turnover. Strong cultures may also serve as
substitute of formalisation. Various studies suggest that national culture has a great impact on employees
than does their organisation’s culture. This factor should be taken into consideration while applying
behavioural intervention in multicultural organisation.
Functions of Culture
Culture is the social glue that helps hold the organisation together. There are three basic functions of
organisational culture:
• It provides a sense of identity for members;
• It enhances commitment to the organisation’s mission;
• It clarifies and reinforces standards of behavior

Dysfunctions of Culture
There are dysfunctional effects of culture, especially a strong one, on organisational effectiveness. Some
of the barriers created by especially a strong organisational culture are following:
 Barrier to Change: Consistency of behaviour is an asset to an organisation when it faces a stable
environment. It may, however, burden the organisation and make it difficult to respond to
changes in the environment.
 Barrier to Diversity: Especially in multicultural organisations, people from different cultural
background may bring diverse strength to the work place. Yet these diverse strengths and
behaviours are likely to diminish in strong organisational culture due to strong pressure for
conformity. Again, organisational culture may become liability if it creates institutional bias or
perpetuates insensitive approach to people from different cultural background.
 Barrier to Acquisition and Merger: During acquisition and merger, high degree of cultural
confluence takes place. When two or more companies having different organisational culture are
merging, all need to evolve a unique culture for the newly emerged organisation. However if one
or more partners are having stubbornly strong culture, the culture may play negative role in the
whole episode of acquisition and merger.

HRD Climate
Though organisational culture and organisational climate are sometimes used interchangeably, some
important differences between these two concepts have been recognized. Whereas organisational culture
is concerned with the nature of beliefs and expectation about organisational life, climate is an indicator of
whether those beliefs and expectations are being fulfilled. Basically organisational climate reflects a
person’s perception of the organisation to which he/she belongs. Organisational climate is a set of
characteristics and factors that are perceived by the employees about their organisations, which serve as a
major force in influencing their behaviour. These factors include: job description, organisational structure,
performance and evaluation standards, leadership style, challenges and innovations, organisational values,
decision making processes, motivation, communication, goals, control processes and so on.
Organisational climate can be said to relate to the prevailing atmosphere surrounding the organisation, to
the level of morale, and to the strength of feelings of belonging, care and goodwill among members.
According to Tagiuri and Litwin, organisational climate is relatively enduring quality of the internal
environment of an organisation that:
• is experienced by its members;
• influences their behaviour;
• can be described in terms of the values of a particular set of characteristics of the organisation. Hodgetts
has classified organisational climate into two major categories. He has given an analogy with an iceberg
where there is a part of the iceberg that can be seen from the surface and another part that is under water
and is not visible. The visible part that can be observed or measured include the structure of hierarchy,
goals and objectives of the organisation, performance standards and evaluations, technological state of the
operations and so on. The second category contains factors that are not visible and quantifiable and
include such subjective areas as supportiveness, employees’ feelings and attitudes, values, morale,
personal and social interaction with peers, subordinates and superiors and a sense of satisfaction with the
job.
According to Forehand and Gilmer, “Climate consists of a set of characteristics that describe an
organisation, distinguish it from other organisations are relatively enduring over time and influence the
behaviour of people in it.”
According to Campbell, “Organisational climate can be defined as a set of attributes specific to a
particular organisation that may be induced from the way that organisation deals with its members and its
environment. For the individual members within the organisation, climate takes the form of a set of
attitudes and experiences which describe the organisation in terms of both static characteristics (such as
degree of autonomy) and behaviour outcome and outcome- outcome contingencies.”
Thus, organisational climate is a relatively enduring quality of the internal environment that is
experienced by its members, influences their behaviour and can be described in terms of the value of a
particular set of characteristics of the organisation. It may be possible to have as many climates as there
are people in the organisation when considered collectively, the actions of the individuals become more
meaningful for viewing the total impact upon the climate and determining the stability of the work
environment. The climate should be viewed from a total system perspective. While there may be
differences in climates within departments these will be integrated to a certain extent to denote overall
organisational climate.
Dimensions of Organizational Climate
Likert has proposed six dimensions of organisational climate: leadership, motivation, communication,
decisions, goals, and control.
Litwin and Stringer have proposed seven dimensions of organisational climate: conformity,
responsibility, standards, rewards, organisational clarity, warmth and support, and leadership. They have
also emphasized motivational framework of organisational climate. Motivational framework of climate
include motives of:
Achievement: concern for excellence;
Expert Influence: concern for making impact on others;
Control: concern for power and orderliness;
Extension: concern for others, and for macro issues;
Dependency: concern for being in close touch with others in a significant way;
Affiliation: concern for building and maintaining close personal relationships.

On the basis of review of various studies and discussions with managers, Pareek has identified twelve
processes of organisational climate. They are:
Orientation: Priority of members may range between concern to adhere to established rules, to concern
for excellence and achievement.
Interpersonal Relationships: Depending on the pattern of relationship it may lead to climate of clique
formation, or climate of control, or a climate of dependency etc.
Supervision: Depending on supervisory style, the climate may be of extension or it may be of affiliation,
or even lem Managealienation.
Problems : Problems may be taken as an opportunity or irritants; manager may solve problems alone or
jointly by the superior and the subordinates.
Management of Mistakes: Attitudes towards mistakes may be of tolerance or of annoyance; such
attitudes contribute to organisational climate.
Conflict Management: Conflict may be perceived as opportunity or as threat; such perceptions influence
organisational climate.
Communication: Direction, dispersement, mode and type of communication influence climate of an
organisation.
Decision Making: Levels at which decisions are taken, degree of participation in decision making are the
issues, which influence organisational climate.
Trust: Degree of trust or its absence influence organisational climate.
Management of Rewards: Perception about what is rewarded in the organisation influences the
organisational climate.
Risk Taking: It is an important determinant of climate.
Innovation and Change: Styles of managing change and innovations are critical in establishing climate.
 Unit - 2
Topics: Manpower planning, training and development, Assessment of training need, Training
effectiveness, designing and administrative training.

Manpower Planning
Manpower Planning which is also called as Human Resource Planning consists of putting right number of
people, right kind of people at the right place, right time, doing the right things for which they are suited
for the achievement of goals of the organization. Manpower planning also includes the details like how
and when will new employees be acquired. This whole process is done keeping in view the goals of the
organization, the future predictions for business and changing technology trends. This helps the
organization be prepared for the future with the correct manpower at their disposal for business
prosperity.

According to Bruce P. Coleman, “Manpower planning is the process of determining manpower,

requirements and the means for meeting these requirements in order to carry out the integrated plans of
the organisation.”

According to Eric W. Vetter, “The process by which management determines how the organisation
should move from its current manpower position to its desired manpower position.”

According to Edwin B. Geisler, “Manpower planning is the process- including forecasting, developing,
implementing and controlling-by which a firm ensures that it has the right number of people and right
kind of people, at the right place, at the right time, doing things for which they are economically most
suitable.”

In this way, manpower planning is the process of anticipating, identifying, selecting and nurturing what is
most useful and beneficial to the organisation. Manpower planning is, therefore, concerned with the
optimum utilization of human resources in the organisation. It is related to current manpower position and
desired manpower position and it is related to the quality and quantity of manpower.

Need of Manpower Planning

Manpower Planning is advantageous to firm in following manner:
(a) Shortages and surpluses can be identified so that quick action can be taken wherever required.
(b) All the recruitment and selection programs are based on manpower planning.
(c) It also helps to reduce the labor cost as excess staff can be identified and thereby overstaffing can be
avoided.
(d) It also helps to identify the available talents in a concern and accordingly training programs can be
chalked out to develop those talents.
(e) Through manpower planning, human resources can be readily available and they can be utilized in
best manner.
(f) It helps the organization to realize the importance of manpower management which ultimately helps in
the stability of a concern.

Importance of Manpower Planning

1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and
controlling are based upon the manpower. Human resources help in the implementation of all these
managerial activities. Therefore, staffing becomes a key to all managerial functions.
2. Efficient utilization- Efficient management of personnel becomes an important function in the
industrialization world of today. Setting of large scale enterprises requires management of large scale
manpower. It can be effectively done through staffing function.
3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of
motivational programs, i.e., incentive plans to be framed for further participation and employment of
employees in a concern. Therefore, all types of incentive plans become an integral part of staffing
function.
4. Better human relations- A concern can stabilize itself if human relations develop and are strong.
Human relations become strong through effective control, clear communication, effective supervision and
leadership in a concern. Staffing function also looks after training and development of the work force
which leads to co-operation and better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in best possible manner.
Higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible
through the staffing and its related activities ( Performance appraisal, training and development,
remuneration)

Objectives of Manpower Planning

1. Optimum Productivity: Skilled and qualified workers are recruited or they become so through the
training programme provided by the organization, through the manpower planning. Hence, an
organization can achieve the effective optimum utilization of human potential, which will result in
optimum productivity and thereby, the production is carried out on uninterrupted.
2. Reduction in Labour cost: Effective use of manpower, and optimum productivity will reduce the
wastage. It will reduce the labour cost.
3. Effective Recruitment and Selection: Right person can be placed at the right job and at right time
through manpower planning. Because future need can be predicted by manpower planning. Therefore,
effective recruitment and selection can be achieved so that no need to spend much amount on the training
and labour turnover can be reduced.
4. Group Satisfaction: By establishing mutually satisfying work relationship between all the members of
the organization, group satisfaction and team spirit can be achieved.

Types of manpower planning

Types of manpower planning can be distinguished:
(A) Level based manpower planning :
(i) National level (macro level)
 Central government plans for human resources for the entire nation.
 It anticipates the demand for and supply of human requirements at national level. e.g.
Government sectors
(ii) Industrial level (micro level)
 In this level, planning is done to suit manpower needs of a particular industry. e.g. engineering,
heavy industries, paper industries, public utility, textile/chemical industries

(B) Period based manpower planning :

(1) Short term:
 Prepared for a period of 1 year.
 It is concerned with the process of matching the existing employees with their present jobs so that
they perform efficiently.
 There should be perfect correlation between the jobs and individuals.
 These types of plans are made as a part of 5 years plans at national level.
 Useful at company level.
(2) Medium term:
 Made for 2 to 5 years
 Prepared as a financial planning at national level
 For employment opportunities and training and development of employees.
(3) Long term:
  Long term manpower planning covers a longer period say 15 to 20.
 Estimates man power needs of a nation
 Rises educational and training

Process of Manpower Planning

Problems in HRP Process
The main problems in the process of HRP are as follows:

a) Inaccuracy: Human Resource Planning is entirely dependent on the HR forecasting and supply,
which cannot be a cent per cent accurate process.

b) Employee resistance: Employees and their unions feel that by Human Resource Planning, their
workload increases so they resist the process.

c) Uncertainties: Labour absenteeism, labour turnover, seasonal employment, technological changes

and market fluctuations are the uncertainties which Human Resource Planning process might have to
face.

d) Inefficient information system: In Indian industries, HRIS is not much strong. In the absence of
reliable data it is not possible to develop effective Human Resource Planning.

e) Time and expense: Human Resource Planning is time consuming and expensive exercise, so
industries avoid.

Factors Affecting HRP

 Type & Strategy of Organization.
 Organizational Growth Cycle & planning
 Environmental Uncertainty
 Time Horizons
 Type & Quality of forecasting Information
 Nature of job to be filled

Techniques for Human Resource Forecasting

1. Managerial Judgement
Under this method, firstly experienced managers estimate the manpower requirements for their respective
departments. This is done on the basis of their knowledge of expected future workload and employee
efficiency. At last, the top management then aggregates and approves the departmental estimates. This is
a very easy and time-saving method.
But it is quite subjective and is, therefore, suitable only for small firms. The assistance of work study,
O&M, and human resource experts can refine the estimates based on experience. This method helps in
judging the informal group norms on Human Resource Forecasting.
2.Work-study Method
This method uses time and motion study to analyze and measure work. Such studies help the managers to
decide the standard time for per unit work. The following method shows this method:

Planned Output for next years  50,000 units

Standard hours per unit  2

 Planned hours required  50,000 X 2

Productive hours per workers in the year  2,000

Number of workers required  1,00,000/2,000 = 50

If the span of control is ten, five (50/10) supervisor will supervise the work. When it is possible to
measure work and set standards, the work-study method is more suitable for repetitive and manual jobs.
Job method should not change frequently.
3. Ratio- Trends Analysis
This method helps to calculate the ratios on the basis of past data. Firstly, it calculates the future ratios on
the basis of the time series analysis/extrapolation, after making allowances for the changes in the
organization, method, and jobs, if any.
Extrapolation is mathematical extensions of past data into the future time period. Moving averages  and
exponential smoothing can help for projections. The company estimates the demand for human resources
on the basis of ratios.
4.Mathematical Models
A mathematical model shows the relationship between independent variables and the dependent variables.
These models express various factors influencing manpower needs in the form of a formula.
There are several types of models, e.g., regression, optimization models, probabilistic models, etc. These
are complex and suitable only for large organizations.
5.Delphi Technique:
Delphi technique is also very important technique used for estimating demand of human resources. This
technique takes into consideration human resources requirements given by a group of experts i.e.
mangers. The human resource experts collect the manpower needs, summarizes the various responses and
prepare a report. This process is continued until all experts agree on estimated human resources
requirement.

Future demand for human resources depends on several factors, some of which are given below:
(a) Employment Trends
By comparing and analyzing the staff during the past five years, the company can judge it’s trends in the
manpower.
(b) Replacement Needs
These depend on firstly retirement, and then on death, resignation, and termination of
employees. Its assessment is on the basis of past experience and retirement situation in the future.
(c) Productivity
Improvements in productivity effects manpower needs. better utilization of existing manpower is one
method of securing gains in productivity. Automation and computerization is another method of
productivity improvement. It will affect both the quantity and quality of manpower. Matching of skills
with job requirements is the third method. Hence, Job analysis techniques are helpful in such a matching.

Requisites for successful HRP

 Recognize of corporate planning
 Backing of top management for HRP
 HRP responsibilities should be centralized
 Personnel record must be complete, up-date and readily available
 The time horizon of plan should be long for remedial action
 The techniques of planning should be best suit
 Plans should be prepared by skill level
 Data collection, analysis, techniques of planning should be constantly revised

Barriers to HRP
 People question the importance of making HR practices future oriented and role assigned to HR
practitioners in formulation of organizational strategies
 HR practitioners are perceived as expert in handling personnel matters, but are not experts in
managing business.
 HR information often is incompatible with the information used in strategy formulation.
 Conflicts may exist between short term and long term HR needs.
 Conflicts between quantitative and qualitative approaches to HRP.
 Non-involvement of operating managers renders HRP ineffective.

Training and Development

Training and Development is a structured program with different methods designed by professionals in
particular job. It has become most common and continuous task in any organisation for updating skills
and knowledge of employees in accordance with changing environment. Optimisation of cost with
available resources has become pressing need for every organisation which will be possible only by way
of improving efficiency and productivity of employees, possible only by way of providing proper
employee training and development conditioned to that it should be provided by professionals.
Training is the process of improving and polishing the required Skills to an employee in order to make
him/her skilled and perfectionist in the job which he / she does. Training is purely job focused but
development is psychology and soft skills oriented.
Previously many authors have defined the difference between training and development, but still there is
little confusion in understanding the difference. In fact many organisations are using term "training and
development" as one and same. Mostly we hear the term "training" for the purpose of the inducing skills
and knowledge among employees. Both training and development are continuous and core tasks of
organisation, but employee training will be for the particular job to develop skills in concern particular
job for a particular period and will be given periodically whenever updating of skills needed for
performing particular job and moreover training is meant for the purpose of development of technicality
among employees. Training is mainly provided for making employee aware on how to handle particular
job, technology or equipment for doing particular task or function in the organisation. ultimately training
of employees will be by way of teaching by the professional in particular job which involves technicality
to develop skill.
Employee development is psychological oriented mainly provided for people who deals with managerial
tasks.
According to Edwin Flippo “Training is the act of increasing the knowledge & skill of an employee for
doing a particular job.”
Training is a systematic process through which an organization’s human resources gain knowledge and
develop skills by instruction and practical activities that result in improved corporate performance.

TRAINING AND DEVELOPMENT OBJECTIVES

The principal objective of training and development division is to make sure the availability of a skilled
and willing workforce to an organization. In addition to that, there are four other objectives: Individual,
Organizational, Functional, and Societal.
 Individual Objectives – help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organization.
 Organizational Objectives – assist the organization with its primary objective by bringing
individual effectiveness.
 Functional Objectives – maintain the department’s contribution at a level suitable to the
organization’s needs.
 Societal Objectives – ensure that an organization is ethically and socially responsible to the
needs and challenges of the society.
Importance of Training and Development
For companies to keep improving, it is important for organizations to have continuous training and
development programs for their employees. Competition and the business environment keeps changing,
and hence it is critical to keep learning and pick up new skills. The importance of training and
development is as follows:
1, Optimum utilization of resources
2. Development of skills like time management, leadership, team management etc.
3. To increase the performance, productivity and motivation
4. To imbibe the team spirit
5. For improvement of organization culture
6. To improve quality
7. To increase profitability and bottom line by acquiring new skills
8. Improving brand image by having well trained employees

Relation and Difference between Training and Development

There is a relation between training and development, and there is clear difference between the two based
on goals to be achieved. Development is made to answer the training problems:

TRAINING DEVELOPMENT

Training is meant for operatives Development is meant for executives

It is reactive process It is pro- active process

AIM: To develop additional skills AIM: To develop the total personality

It is short term process It is continuous process

OBJECTIVE: To meet the present need of an OBJECTIVE: To meet the future need of an
employee employee

Initiative is taken by the management Initiative is taken by an individual.

Need for Training and Development
Training and development of employees is a costly activity as it requires a lot quality inputs from trainers
as well as employees. But it is essential that the company revises its goals and efficiencies with the
changing environment. Here are a few critical reasons why the company endorses training and
development sessions.
1. Improvement-
When management thinks that there is a need to improve the performances of employees
2. Benchmarking-
To set up the benchmark of improvement so far in the performance improvement effort
3. Specific Role Requirement-
To train about the specific job responsibility and skills like communication management, team
management etc.
4. Testing-
To test the new methodology for increasing the productivity

Advantages of training and development

Training and development has a cost attached to it. However, since it is beneficial for companies in the
long run, they ensure employees are trained regularly. Some advantages are:
1. Helps employees develop new skills and increases their knowledge.
2. Improves efficiency and productivity of the individuals as well as the teams.
3. Proper training and development can remove bottle-necks in operations.
4. New & improved job positions can be created to make the organization leaner.
5. Keeps employees motivated and refreshes their goals, ambitions and contribution levels.

Disadvantages of training and development

Even though there are several advantages, some drawbacks of training and development are mentioned
below:
1. It is an expensive process which includes arranging the correct trainers and engaging employees for
non-revenue activities.
2. There is a risk that after the training and development session, the employee can quit the job.

Reasons to go for Training and Development

When management thinks that there is a need to improve the performances of employees
  To set up the benchmark of improvement so far in the performance improvement effort
 To train about the specific job responsibility
 To test the new methodology for increasing the productivity

Process of Training

Assessment Stage Training Stage Evaluation Stage

Organizational Needs
Assessment

Task Need Assessment

Development of Training Design & Select Procedures Measure Training Results

Objectives

Development of Criteria for Train Compare Results to Criteria

Training Evaluation

Feedback

Nine Steps in the Training Process

1. Assessing training needs

2. Preparing training plan
3. Specifying training objectives
4. Designing the training program(s)
5. Selecting the instructional methods
6. Completing the training plan
7. Implementing the training program
8. Evaluating the training
 9. Planning future training

Training Methods
I. On the job method
It involves learning by doing itself in this method. The individual is placed on a regular job and
taught the skills necessary to perform that job the trainee learns under the supervision and
guidance's of a qualified worker or instructor.
1. Job rotation: This type of training involves the movement of the trainee from one
job to another. The trainee receives job knowledge and gains experience from his
superior or trainee in each of the different assignments. Trainees are rotated from job
to jobs in work shop jobs. This method gives an opportunity to the trainee to
understand the problems of employees on other and respect them.
2. Coaching: The trainee is placed under a particular supervisor who functions as a
coach the supervisor provides feedback to the trainee on his performance and offers
him some suggestions for improvement.
3. Job instruction: 4 Training through step by step by step. It involves listing of all
necessary steps involved in job performance with a sequential arrangement of all
steps. It provides information to the trainees about the job’s importance, general
description, duties and responsibilities.
4. Apprenticeship: Each trainee is given a program of assignments according to a
predetermined schedule which provides training in the concerned trade. Individuals
entering industry in skilled trades like machinist, electrician and laboratory technician
are provided with through instruction.
5. Mentoring: A senior manager acts as a friend, philosopher, and grade to a new
recruit and provide him the support that the latter needs. The mentor helps in the
forms of emotional support, teaching, coaching, counseling and guiding. 6.
Committee assignments: A group of trainees are given and asked to solve an actual
organizational problem. The trainees solve the problem jointly. It develops team
work.
II. Off the job methods
The trainee is separated from the job situation and his attention is focused upon learning the
material related to his future job performance. He can place his entire concentration on learning
the job rather than spending his time in performing it.
1. Vestibule training: In this method actual work conditions are simulated in a
classroom. People will learn and develop skills while working in the situations similar
to what they will face after they are put on the actual job. It consists of two parts
a. There is lecture method which focuses on theoretical framework and principles
involved in the job performance.
b. There is practical exercise based on the theoretical aspects in production department.
2. Lecture of conferences: The instructor organizes the materials and gives it to a group
of trainees in form of a talk. The lecture must motivate and create interest among the
trainees. This method can be used for large group of employees. Conferences: this
method involves a group of people who pose ideas, share facts, test assumptions and
draw conclusions.
3. Syndicate: It refers to group of trainees and involves the analysis of a problem by
different groups each consisting of 8 to 10 members. Each group works on the problem
on the basis of briefs and background papers provided by the resource person, after the
preliminary exercise, a group presents its ideas on the issues involved along with other
groups after. The presentation of ideas is evaluated by group members with the help of
resources person.
4. Brain storming: It is a technique to stimulate idea generation for decision making.
The participants (a group of 10 to 15) should be connected with the problem directly or
closely. The problem on which decision is required is given to the group. Each member is
asked to give idea through which the problem can be solved.
5. Sensitivity training (10 to 12 members) or (T group): It is a small group interaction
process in the unstructured form which requires people to became sensitive to others
feelings. The objectives of this training are:
a. To make participants aware of and sensitive to the emotional reactions and expressions
in themselves and others.
b. To increase the ability of participants to perceive and to learn from, the consequences
of their actions and other’s feelings.
c. To develop achievement of behavioral effectiveness in participants.
There are three types of T groups
Stranger-lab: All participants are from different organizations and they are strangers to
each other.
 Cousin-lab: All participants are from the same organization but form different units. They
may know each other but not well.
Family-lab: All participants are from the same unit and know each other quite well.
6. Role playing: It was introduced by ‘Moreno’. Role playing technique is used in groups
where various individuals are given the roles of different managers who are required to
solve a problem or to arrive at a decision. It is spontaneous acting in a situation involving
two or more persons under training situation.
7. In basket exercise: A variety of situations is presented in this exercise which would
usually be dealt by a manager in his typical working day. One method of this exercise is
to present mails of various types to a trainee whose reactions on these are noted.

Training Need Assessment

Training needs analysis is a systematic process of identifying which kind of training is required
and providing the details related to training implementation. It is also known as a tool to identify
the new skills, knowledge, and attitudes that employees need to acquire in order to improve
performance.

The training Needs Analysis (TNA) helps organizations to find out the gap in terms of skills and
training in their existing employees to perform the current and upcoming Jobs efficiently.  The
Training Manager uses the Analysis very carefully to design the right Training program to meet
the skill and training requirements of the employees to enhance productively and ultimately
achieve the goals and objectives set by the organization.

Role of Training Needs Analysis 

Every leader or manager of the organization wants their employee to perform better and reach
their optimum. In order to achieve the set goals and improve the productivity of the organization,
it is important that employees have full capabilities and competencies to perform their assigned
job.
Fundamentally the role of training needs analysis in HRM is to understand the difference
between the current and desired performance of the employee and provide information about-

o Which employee needs training?

 o What kind of training is required?
o How a company can design an effective training program for such employees?
o What will be the impact of this training on the performance of the employee?
o What will be the cost and resource requirement of these training programs?

Requirement of Training Needs Analysis

Training needs analysis is always considered a first step toward helping an employee to improve
their output at work. The requirement of training needs analysis is to

o Understand the performance improvement needed by the organization

o To relate this performance improvement with required skills, capabilities, and
competencies
o To figure out the exact course work or skill set training program employees need to
attend
o To design the appropriate training program to bridge the gap between the present
productivity of the organization and desired output.

Training Needs Analysis Process

There are different stages of training needs analysis that are used by the organization based on
the job profile of the employees. However, there is a fixed process that is followed in all types of
training needs analysis. Here is 4 steps process of training needs analysis:

Step 1- Performance Gap Analysis: Here the current and desired operation results of the
employee performance are compared to identify the performance gaps. These performance
gaps can also be termed as the difference between the required and actual productivity of the
organization.
Step 2- Root Cause Analysis: Root cause analysis is a way to determine the basic issue
behind the performance gaps. The issues are classified into 5 categories as skill, resources,
incentives, motivation, and information such as feedback. Using rood cause analysis it is
identified which area is leading to a lack of performance and which area needs improvement.
Step 3- Needs Analysis: A detailed analysis is carried out to design and implement the
appropriate intervention to resolve the performance issues. Based on the categories identified
in the root cause analysis a specific need for improvement is addressed in this step. This
 analysis includes analysis of the audience of training, job analysis, task analysis, environment
analysis, and cost-benefit analysis.
Step 4- Recommendations: In this step, an appropriate training solution is proposed. It
identifies the right kind of training program that an organization should run to improve the
overall work productivity.

Objectives of training need analysis 

o To ensure that the product/service requirement of customers have been met with the help
of skilled employees
o To help the organization set appropriate goals and achieve them
o To create an appropriate performance benchmark that can be used to judge the employee
productivity
o To enable employees to evaluate their current skill sets and continuously upgrade their
knowledge to improve their performance levels
o To highlight the work quality issues in the organization and identify focus areas that need
improvement.

Components of Training Needs Analysis

McGhee and Thayer’s Three Level Analysis is popularly used in the organization to understand
the big picture of learning and development. This model of training needs analysis of three
components at different levels which need analysis to identify the training needs in the
organization.

1. Organizational Level
Providing training to employee which are not aligned with the business goals is considered a
wastage of resources. It is very vital that training programs conducted in the organization would
help the employees to achieve the strategic business goals of the organization. The organizational
level training need analysis using data sources such as business goals, skill inventory, employee
inventory, organizational culture, and customer satisfaction data to identify the training needs of
the employees.

The organizational level of training need analysis to provide answers to the questions such as-

o Which department needs training the most?

 o Which training program will act as a solution to resolve the business issues?
At organizational level analysis, clear and measurable outcomes of the training are identified to
improve the success of the training program.

2. Operational Level
It is a job level analysis that is used to determine what kind of training is needed by the employee
in order to achieve the desired level of work proficiency. It identifies the knowledge and skill
required to execute a specific job in the organization. The operational level training need analysis
using data sources such as work performance standards, job description, job specifications, and
analysis of operational problems to determine the training needs of the employee.
The operational level of training need analysis to provide answers to the questions such as:

o What is the standard performance expected for the job?

o How an employee should execute the task to need the set performance standards?
o What training program is appropriate to improve the skills, abilities, and knowledge of
the employee to complete the job successfully?
3. Individual Level
At the individual level, the training need analysis to verify the way employee performs their job.
The difference between the expected and actual performance of the employee is analyzed to
arrive at the training need of the employee. The individual-level training need analysis using data
sources such as performance appraisals, assessment of employee skills, interviews and
questionnaires, customer surveys, and work samples to determine the training needs of the
employee.

The individual level of training need analysis to provide answers to the questions such as-

o Whether the employees have the essential skills and knowledge?

o What are the barriers to proficient performance?
o What is the appropriate training program to help the employee to meet desired
performance standards?

Advantages of Training Needs Analysis

 1. It determines the population which needs the training most in order to perform well in the
organization.
2. It determines what kind of training is required in terms of skills, knowledge, abilities,
competency, and behavior of the employee.
3. It helps the management to direct resources to regions of greatest priority of training.
4. It helps employees and organizations to  improve work productivity
5. It helps the company to improve their quality of services and thus helps in customer
retention.
6.
Disadvantages of Training Needs Analysis
1. Training need analysis can be a time-consuming process as it includes a lot of
assessments and surveys.
2. Training need analysis can be a costly affair for the company as often tired party is hired
to conduct the training need analysis
3. The low response rate of the employees to the internal surveys can have a negative
impact on the effectiveness of the training need analysis
4. Many times when the long process of training needs analysis is completed the
management is no longer looking to fulfill the same business goals.
5. Employees often hesitate to provide an honest response on self-assessment which can
affect the result of training needs analysis.