XAVIER INSTITUTE OF SOCIAL SERVICE

Introduction to Human Resource Development

Submitted to : Prof. S. Lakra

Submitted by : Group 6 Adrija Moitra Sneha Tiru Sourabh Bhaduri Ridhika Sultania Siben Biswas Abhilasha Biruli Bibhas Biswas Prerna Jyoti Shristi Jain Debika Biswas Tania Seraphim Swati Dwivedi 06 12 18 24 33 39 45 51 57 63 69 75
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TABLE OF CONTENTS

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Topics Covered

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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Introduction Introduction to Human Resource Management Human Resource Development Concept of Learning Organization HRD process Challenges in HRD HRD strategies Developing HRD strategies 70/20/10 development model HRD process mapping Conclusion Bibliography

3-4 5 6-9 10 - 11 12 - 13 14 15 16 17 - 18 19 20 21 22

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INTRODUCTION
Changes in technology, especially information technology, generate knowledge spreading up at tremendous speed, as well as its quick obsolesce. In the period between 1900 and 1950, the amount of human knowledge doubled, and since then it has doubled every 5 to 8 years. Knowledge is becoming obsolete so quickly that all of us need do double our knowledge every 2 to 3 years in order to keep up with the changes. On the other hand, the increasing complexity, turbulence and uncertainty of the environment require different and greater knowledge. Modern business requires more and more knowledge and skills that are still inadequately present in the formal school education, i.e. the gap between business requirements and the knowledge acquired at school is growing. The period of mass producing is over and the customers are very selective. Increased consumer demands require new solutions and knowledge. Due to increasing competition, the organization is required to constantly revise its product and service mix, managerial methods, and to increase productivity. Modern conditions of dynamic competition, sophisticated information technology, knowledge economy, market globalization, have changed the relation to importance of human resources in organization. These conditions actualize the human capital as the strategic resource of every organization. Differences between the organizations exist exactly due to the differences between human capital, i.e. the organizations human resources, ways of their management and development. In a more and more global, complex and turbulent environment, knowledge is the only reliable source of competitive advantage. Traditional factors of manufacturing as the soil, labor and capital did not disappear, but their significance is not primary anymore. Knowledge is viewed as the key of realization of a competitive advantage. Therefore the question of where the corporative knowledge is located, how to release it and develop to achieve organizational goals has become very important. Since the organizational knowledge is largely located inside the human mind, i.e. the head of employees, as carriers of knowledge and activities, human resources are becoming the key factor of business success. Organizational development is always conditioned by human knowledge and skills. That is why; contemporary organizations pay more and more attention to the development of their employees. Thus, employee education and training are becoming an optimal answer to complex business challenges, and the management of human resources is taking central role in modern management.

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Through the process of employee training and development, the management of human resources provides constant knowledge innovation, creates conditions for mutual knowledge and experience exchange and proactive behaviour, in this way contributing to competitive advantage and satisfaction of all participants in business procedures. As a consequence of these procedures a learning organization has formed. The aim of this paper is to point to the fact that education and development of human potential are the basic factor for creation of basis for transformation from traditional to a learning company. Learning organization is organization that promotes learning of all of its members and it transforms permanently. Individuals and societies that do not have enough knowledge are in inferior position, compared to societies and organizations that have it and even permanently acquire new knowledge. That is the reason why we say that success is not among the educated but among those that are learning permanently and everything changes except knowledge acquirement, which is constant. The fore mentioned statements in the best way show the direction in which learning organizations move.

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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource Management is defined as the people who staff and manage organization. It comprises of the functions and principles that are applied to retaining, training, developing, and compensating the employees in organization. It is also applicable to non-business organizations, such as education, healthcare, etc Human Resource Management is defined as the set of activities, programs, and functions that are designed to maximize both organizational as well as employee effectiveness. Scope of HRM without a doubt is vast. All the activities of employee, from the time of his entry into an organization until he leaves, come under the horizon of HRM. The divisions included in HRM are Recruitment, Payroll, Performance Management, Training and Development, Retention, Industrial Relation, etc. Out of all these divisions, one such important division is training and development. Human Resource Management is the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. Good HR Practices help attract and retain talent train people for challenging roles develop skills and competencies promote team spirit develop loyalty and commitment increase productivity and profits improve job satisfaction enhance standard of living generate employment opportunities

In the field of human resource management, training and development is the field concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. It has been known by several names, including employee development, human resource development, and learning and development.

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HUMAN RESOURCE DEVELOPMENT

Human Resource Development (HRD) is concerned with the development of human resources in an organization. The term 'Human Resource Development' has two parts namely: 'Human Resource' and 'Development'. "Human Resource" may be thought of as "the total knowledge, skill, creative abilities, talents and aptitudes of an organization's work force, as well as the values, attitudes and benefits of an individual involved (Panigrahy,1990) in the organization. "Development" means enhancing improving skills capabilities of an individual in the present job as well as bringing into the light the hidden qualities of an individual for a future job assignment (Gupta, 1996). These skills capabilities have to seek congruence correlation between organizational and individual goals. The essence of Human Resource Development (HRD) is to bring out the best in man. To bring out the best in people means the better performance of the employees at all levels in the jobs they hold. Better performance or higher productivity depends upon the levels of knowledge, skills, capacities and positive work attitudes and values of all employees in the organization. It is a process of raising increasing potentialities of manpower resources (Singh, Kaur and Kumar, 1995). This process may result in integration of the goals of individuals with organization goals, improving performance of individuals and effective groups (Panigrahy, 1990). The organization as a whole aims at optimum utilization of human resources in the organization. To achieve this, organizations should provide a development climate as well as opportunities to the employees. Evolution of HRD in India can be traced back from 1974 onwards when Larsen and Toubro Limited had set up a separate HRD department. On 2nd March, 1985 the National HRD network, an institute was created by eminent academics, social scientists, professionals and CEOs of the country for providing a forum for sharing experiences and learning from each other by introducing the concept of `networking'.

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The emergence of National HRD Network and the growth of profession are already known to the corporate sector much before Indian economy has opened its gate for foreign investors and more flexibility for Indian business community to do business with foreign partners. One major factor for the growth of human resource development has been found as knowledge dissemination. HRD Newsletter, published by the National HRD Networks, and XLRI, Jamshedpur was a product of a few visionaries to meet this need. Mechanisms suggested by Rao (1985) and Pareek and Rao(1984) aid in better understanding of HRD and facilitate implementation and establishment of the linkage between each of the sub-systems. They have conceptualized the process mechanisms in the following manner. Working Definition of HRD : Human Resource Development, as assessed by this instrument, is defined as the integrated use of systems, policies and practices to recruit maintain and develop employees in order for the organization to meet its desired goals. HRD is most effective in an organization when its authority is located at the senior management level. In a decentralized system the HRD function should be located at a senior level. Role of HRD 1. Performance Appraisal An HRD oriented performance appraisal is used as a mechanism to: (a) Understand the difficulties of their subordinates and try to remove these difficulties and encouraging them to accept more responsibilities and challenges. (b) Understand the strength and weakness of their subordinates and help the subordinates to realize them. (c) Help the subordinates to become aware of their positive contributions. 2. Potential Appraisal and Development It is assumed under this system that the company is growing continuously. A dynamic and growing organization needs to continually review its structure and systems, creating new roles and assigning new responsibilities. Capabilities to perform new roles and responsibilities must continually be developed among employees.

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3. Feedback and Performance Coaching Supervisors in HRD system have the responsibility for ongoing observation and feedback to subordinates about their strengths and their weaknesses, as well as for guidance in improving performance capabilities. 4. Career Planning The HRD philosophy says that people perform better when they feel trusted and see meaning in what they are doing. In the HRD system, corporate growth plans should not be kept secret. Long-range plans for the organization are made known to the employees. Most people want to know the possibilities for their own growth and career opportunities. Because managers and supervisors have information about the growth plans of the company, it is their responsibility to transmit information to their subordinates and to assist them in planning their careers within the organization. 5. Training Training is linked with performance appraisal and career development. Employees generally are trained on the job or through special-in-house training programs. 6. Organization Development This function includes research to ascertain the psychological health of the organization. This generally is accomplished by means of periodic employee surveys. Efforts are made to improve organizational health through various means in order to maintain a psychological climate that is conducive to productivity. 7. Rewards Rewarding employee performance and behavior is an important part of HRD. Appropriate reward is not only to recognize and motivate employees, but also communicate the organization's values to the employees. In HRD systems, innovations and use of capabilities are rewarded in order to encourage the acquisition and application of positive attitudes and skills. 8. Employee Welfare and Quality of Work Life Quality-of-work-life programs generally focus on the environment within the organization. HRD systems focus on employee welfare and quality of work life by continually examining employee needs and meeting them to the extent feasible.

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Benefits of Human Resource Development to Your Organization: Systematic planning to support organizational mission Increased capacity to achieve the organizations goals Clear definition of each employees work responsibilities and link to organization mission Greater equity between compensation and level of responsibility Defined levels of supervision and management support Increased level of performance and efficient utilization of employees skills and knowledge Cost savings through improved efficiency and productivity Increased ability to manage change HRD Functions Training and development (T&D) Organizational development Career development Training and development encompasses three main activities: training, education, and development. However, to practitioners, they encompass three separate, although interrelated, activities: Training - This activity is both focused upon, and evaluated against, the job that an individual currently holds. Education - This activity focuses upon the jobs that an individual may potentially hold in the future, and is evaluated against those jobs. Development - This activity focuses upon the activities that the organization employing the individual, or that the individual is part of, may partake in the future, and is almost impossible to evaluate.

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CONCEPT OF A LEARNING ORGANIZATION

Every individual should appreciate lifelong learning, and every successful organization has to become a permanently learning organization. Many successful organizations describe themselves as learning organization or one of their strategic goals is to become such an organization. Companies such as Coca-Cola, Motorola, General Electrics and Cisco have assigned vice presidents for knowledge, learning or intellectual capital whose task is to create knowledge management systems that enable them to quickly adopt development tendencies, influencing in that way the customers, competitors, distributors and suppliers. The organization is not only the user of knowledge, but also its creator. According to the views of Peter Senge described in the book named "The Fifth Discipline", the learning organization implies free flow of knowledge, i.e. lifting of all barriers on developing knowledge and new ideas at the very beginning. In the future it will not be possible to "unthread things from above" and for all the others to follow the "big brother's" instructions anymore. The top organizations of the future will be distinguished by their knowledge about how to encourage engagement and develop the learning potential on each organizational level. Peter Senge's model of a learning organization is very interesting since it recognizes the organization as a whole, i.e., in his organization, through their functions and sectors within the organization, all the employees influence the course of business procedures, and the knowledge creation, consequently the creation of new values both for the organization and its customers. With this definition, Senge has made significant qualitative progress compared to the classical organization, since he emphasized the necessity of ability development through the process of learning. Besides Senge, Chris Argyris was a great popularize of a learning organization as well. In his book "Teaching smart people how to learn", he says: "Any company that aspires to succeed in the tougher business environment must first resolve a basic dilemma: success in the marketplace increasingly depends on learning, yet most people don't know how to learn. What's more, those members of the organization that many assume to be the best at learning are, in fact, not very good at it. I am talking about the welleducated, high-powered, highly committed professionals who take up key leadership positions in the modern corporation." Organizations learn only through the learning individuals. Individual learning does not guarantee organizational learning. But without it there is no organizational learning as well. The ability to learn faster than the competitors may be the only sustainable competitive advantage. Thus, the learning organization is the organization that learns and encourages people to learn in the organization.

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It motivates information exchange between employees and creates staff with different knowledge. Chris Argiris explains this: "On the other hand, there is a problem of existence of individuals within the organization who know how to learn, but that doesn't create automatically conditions for the organization to learn as well. This is due to the indisputable view that knowledge is still the only private property the man owns. This means that individual learning, and even learning of all the employees, doesn't imply the existence of a learning organization. To have a learning organization, it is necessary to know how to transfer individual into organizational knowledge, i.e. into organizational learning." The starting point of knowledge management concept is in the fact that power does not come from knowledge, but from the exchange of knowledge. It starts from the synergic effect. By exchanging knowledge, combining individual knowledge, we get much more qualitative knowledge than the individual knowledge. Obtaining and sharing knowledge is the core of the learning organization. The reasons to become a learning organization are the following: people are developing (greater motivation, flexibility of employees, people are more creative, improved social interaction), better working teams and groups (knowledge sharing, mutual dependence), benefiting organizations (greater work productivity, more qualitative products/services/ procedures, competitive advantage, profit).

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HUMAN RESOURCE DEVELOPMENT PROCESS

As a dynamic and proactive process HRD believes in the need for the continuous development of personnel to face the challenges in the organization. No organization can grow and survive in the present day environment without the growth and development of its people.HRD essentially focus all enabling people to self actualize through a systematic process for developing their existing potentials and creation of new one, unfolding and taping potentialities both in the present and the future. HRD facilitates the integrated growth of employees. In every organisation the management should provide adequate opportunity for the development of human resource and also personally participate in the development process. The HRD process includes role clarity, awareness of competencies required for the job performance, proactive orientation, trust, collaboration and team work, risk taking, value generation, better communication and fair reward. Initially HRD was perceived as a moral duty later it was considered as precondition of industrial efficiency. After that need for HRD was felt to cope up with the challenges of trade unionism. The concept of humanization of work was considered as the third phase of development process. Factors responsible for the Development : 1. Technological change : Demand changes in system, structure, skills and these changes create conflict, stress and obsolescence and need innovative solution 2. Competition : Increasing competition requires higher efficiencies in the people and focus on core competencies 3. Consumerism : Consumerism is an economic theory that says the more people buy, the better it is for the economy. Therefore HRD is important factor for encouraging the purchase of goods and service. 4. Social change : HRD is affected by the social change which includes change in the thought process in humans. 5. Political changes : The change in the government polices also affects the development of the human resource.

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6 Structural change : Every organizational has its different requirements which is affected by its structure, therefore the organizations design the HRD process keeping in mind the structure of that organization.

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CHALLENGES IN HRD
The major challenges faced by an HRD Manager are: i) CHANGING WORKFORCE DEMOGRAPHIES ii) COMPETING IN GLOBAL ECONOMY iii) ELIMINATING THE SKILL GAP iv) NEED FOR LIFELONG LEARNING v) NEED FOR ORGANISATIONAL LEARNING CHANGING WORKFORCE DEMOGRAPHIES : One of the major challenges the field of human resource development is the frequent change in workforce demography in an organization. While the Governments HRD policy has been campaigning for employers and organizations to equip employees with the skills and knowledge to become knowledge workers, the HRD practitioners in the manufacturing firms are faced with the challenge of coping with the demand for knowledgeable and competent employees. Three critical factors describe the challenge faced by HRD practitioners in coping with the demand for knowledge workers: 1) hiring and retaining technical expertise and a competent workforce; 2) the education level of the workforce; and 3) the increase in the ageing workforce. COMPETING IN GLOBAL ECONOMY: Globalization impacts on HRD in various ways. Thus compared to the past, enterprises will need to update much more regularly the skills mix of their employees to respond to the opportunities or threats created by globalization and rapid technological change. Indeed intense global competition is reconfiguring the market place. Enterprises increasingly have to compete by differentiating themselves from their competitors by the quality of the human systems and processes behind their products and services (Jeanne C. Meister, 1994). The attitudes, knowledge and skills of the workforce of the enterprise and its contractors and suppliers will determine the quality of the human system and processes behind its products and services. Competition will be less and less in terms of how the features and benefits of one's product/services compare with those of another as more products are perceived to be at parity by customers (product convergence). ELIMINATING THE SKILL GAP :The issue of skills shortages in the available labour pool appears to be growing . In fact, according to a recent SHRM (Society for Human Resource Management) poll, 58% of HR professionals reported that some workers lack competencies needed to perform
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their jobs, up from 54% in 2005 . Further, more than one-half of HR professionals (55%) who responded to the poll agreed that workers entering the job market in the next 10 years will lack the competencies that will make them successful in the workplace . While the inadequate workforce readiness of recent graduates is well noted and there has been much discussion around improving the education systems preparation of future entrants to the labour pool, it has rightly been argued that employers need strategies to deal with the talent shortage in the short ter m . A solution with an immediate benefit to todays workplace and the economy is a focus on building capabilities and the development of skills and competencies within the current workforce. NEED FOR LIFELONG LEARNING:This perspective of HRD argues that learning is the mechanism for empowering individuals by equipping them with skills and knowledge required for technological and occupational change. If practice is driven by a humanistic orientation, it often involves learners planning their own development. It also attempts to enhance the capacity of individuals for critical reflectivity by recognizing that individual identity and growth are integral to learning. On the other hand, when skill formation and learning is driven by a more instrumental approach and based on industry- or enterprise-based competency standards, orthodox training classes and on-the-job coaching and assessment of competencies are common. NEED FOR ORGANISATIONAL LEARNING: HRD professionals must become skilled systems thinkers who can design and conduct measurement and analysis across the organization and pinpoint the influences of HRD efforts on employee productivity and organizational performance, linking past research results to current practice. HRD professionals must have the skills to identify valid measures of learning and growth and develop meaningful and accurate interpretations, while being ever mindful of the myriad of intervening variables that can influence learning and performance curves in work settings (Preskill & Russ-Eft, 2003). Ethical engagement in measurement work will maintain integrity around the complexity of learning and performance processes and will protect against laying shortfalls on the backs of learners and those who facilitate their learning.

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HRD STRATEGIES
HRD Strategies are a plan that defines how the human resource would be utilized through the use of an integrated array of training, organizational development and career development effort to achieve individual, organizational objectives. 1. Communication strategy - Strategic Communication refers to policy-making and guidance for consistent information activity within an organization and between organizations. 2. Accountability and ownership strategy Employees accountability and ownership leads to higher productivity and customer acceleration. 3. Quality strategy Quality needs to be fostered in the employees through training and development. 4. Cost Reduction strategy Every employees contribution in savings is crucial as small contribution from each employee can be pooled by organization to save substantial savings at the end of a given period and enhance its competitive strategy. 5. 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 organization to create innovative and creative products and services. 6. Culture building strategy Organizations valuing its employees have a sustainable competitive edge over competitors because employees are highly charged, motivated and commitment to the organization. 7. Systematic training strategy The planning and organizing of formal on-job training and off-job training leads to improving vital employee characteristics, build and sustain appropriate work culture and bring in more professionalism in action. 8. Learning strategy Continuous development and learning environments promote self development of employees of self and by self.

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DEVELOPING HRD STRATEGY

1. Getting the big picture: Understand your business strategy. Highlight the key driving forces of your business. What are they? e.g. technology, distribution, competition, the markets. What are the implications of the driving forces for the people side of your business? What is the fundamental people contribution to bottom line business performance?

2. Developing a Mission Statement: That relates to the people side of the business. Do not be put off by negative reactions to the words or references to idealistic statements - it is the actual process of thinking through the issues in a formal and explicit manner that is important.

What do your people contribute?

3. Conducting a SWOT Analysis: Focus on the internal strengths and weaknesses of the people side of the business. Consider the current skill and capability issues. Vigorously research the external business and market environment. High light the opportunities and threats relating to the people side of the business.

What impact will/ might they have on business performance? Consider skill shortages? The impact of new technology on staffing levels?

From this analysis you then need to review the capability of your personnel department. Complete a SWOT analysis of the department - consider in detail the department's current areas of operation, the service levels and competences of your personnel staff. 4. Conducting a detailed HR Analysis : Concentrate on the organization's COPS (culture, organization, people, HR systems) Consider: Where you are now? Where do you want to be? What gaps exists between the reality of where you are now and where you want to be? Exhaust your analysis of the four dimensions.

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5. Determining critical people issues : Go back to the business strategy and examine it against your SWOT and COPS Analysis

Identify the critical people issues namely those people issues that you must address. Those which have a key impact on the delivery of your business strategy. Prioritize the critical people issues. What will happen if you fail to address them?

Remember you are trying to identify where you should be focusing your efforts and resources. 6. Developing consequences and solutions : For each critical issue highlight the options for managerial action generate, elaborate and create - don't go for the obvious. This is an important step as frequently people jump for the known rather than challenge existing assumptions about the way things have been done in the past. Think about the consequences of taking various courses of action. Consider the mix of HR systems needed to address the issues. Do you need to improve communications, training or pay? What are the implications for the business and the personnel function? Once you have worked through the process it should then be possible to translate the action plan into broad objectives. These will need to be broken down into the specialist HR Systems areas of:

employee training and development management development organization development performance appraisal employee reward employee selection and recruitment manpower planning communication

Develop your action plan around the critical issues. Set targets and dates for the accomplishment of the key objectives. 7. Implementation and evaluation of action plans : The ultimate purpose of developing a human resource strategy is to ensure that the objectives set are mutually supportive so that the reward and payment systems are integrated with employee training and career development plans. There is very little value or benefit in training people only to then frustrate them through a failure to provide ample career and development opportunities.
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THE 70/20/10 DEVELOPMENT MODEL

The 70/20/10 Model is a Learning and Development model based on research by Michael M. Lombardo and Robert W. Eichinger for the Center for Creative Leadership. The concept states that development typically begins with realization of a need and motivation to do something about it, and that a blend of different learning approaches "in concert" can provide powerful learning. Lombardo and Eichinger stated that "the odds are that development will be": about 70% from on-the-job experiences, tasks, and problem solving. about 20% from feedback and from working around good or bad examples of the need. about 10% from courses and reading. Many businesses and learning institutions have embraced this approach. Some have been calling for 70-20-10 to be the new learning model for across the organization, however, since it is a prescriptive remedy for developing managers to senior and executive positions, it does not mean that it is a useful model for developing skills in the daily learning and work flows that takes place within organizations because it is being applied in an entirely different context than what it was designed for. Parts or perhaps all of 70-20-10 may be useful for developing professionals other than senior managers, but since the learning ratios vary greatly between various groups of learners (and even individual learners within a group [see bullet number 2 in the section below]), one has to be very careful about taking this approach.

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HRD PROCESS MAPPING

Meaning : Structural analysis of a process flow (such as an order-to-delivery cycle), by distinguishing how work is actually done from how it should be done, and what functions a system should perform from how the system is built to perform those functions. In this technique, main activities, information flows, interconnections, and measures are depicted as a collage on a large sheet of (commonly brown) paper, with different colored 'Post-it' notes or slips of paper. This graphic representation allows an observer to 'walk-through' the whole process and see it in its entirety. Also called brown papering. Every organization for HRD requires to perform process mapping duly understanding what is being currently done and what needs to be done, keeping the core perspective of value addition. To determine the future HRD processes, organizations draw a blueprint within the ambit of policies, procedures and structure, keeping in view the desired changes in the HR pattern.

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CONCLUSION
Business conducting and survival in the present day turbulent environment are relying on organizational knowledge in a sense of a giving timely and appropriate answer to challenges. The ability of individuals and organizations to obtain and master new knowledge has become the key comparative advantage. The concept of knowledge management and management of human resources, especially the function of employee training and development within the learning organization, are engaged with the basic resource of modern business, i.e. with knowledge and its utilization. Renewing knowledge is an imperative for the organization, and not an option. The rate of learning has to be greater than the rate of changes. HRD is a continuous procedure which is the only meaningful and logical approach in the condition of knowledge obsolescence, dynamic changes and increasing need for constant product and service innovations. Human resources represent intellectual capital which is the new source of organizational resources, and the organization could increase them only through training, development and motivation of employees. The prosperity of organizations becomes explicitly dependent on the intellectual capacity of their employees and their ability to change and adjust to the dynamic business environment.

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BIBLIOGRAPHY
1. Krishnaveni, R (2010), Human Resource Development a researchers perspective, Excel Books, New Delhi 2. Desimone, L & Harris (1998), Human Resource Development, The Dryden Press, London 3. http://www.nsdcindia.org/pdf/education-skill-development.pdf accessed on 1st July, 2013 4. http://www.aimwa.com/Programs_Seminars_Events/Management_and_Leader ship / Loop_Premium/2013/501_Introduction_to_Human_Resource_Management accessed on 1st July, 2013 5. Werner & DeSimone (2006) 6. T.V.Rao, Human Resource Development: Experiences, Interventions, Strategies 7. R. Krishnaveni, Human Resource Development: A researchers perspective 8. Dr.D.K.Bhattacharya, Human Resource Development

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