Chapter 5

Human Resource
Development
and Management
Human Resource Development and
Management
1. What is Human Resource
Management?

2. What is the difference between Human

Resource Management and Personnel
Management?

3. What is the role of Human Resource

Management in TQM?
What is Human Resource Management?
 Human resource management is responsible for
how people are treated in organizations.
 It is responsible for bringing people into the
organization, helping them perform their work,
compensating them for their labors, and solving
problems that arise.
 There are seven management functions of a
human resources (HR) department that will be
specifically addressed: staffing, performance
appraisals, compensation and benefits,
training and development, employee and labor
relations, safety and health, and human
resource research.
What is the difference between HRM and HRD?

 HRM means just what it says--human resource

management--the management of people or
resources in an organization.

 HRM encompasses the traditional areas that most

people think of as HR, including compensation and
benefits, recruiting and staffing, employee and
labor relations and occupational health and safety.
What is the difference between HRM and HRD?

 On the other hand, HRD--human resource

development--is the development of the resources in a
company: organization development, performance
management, training and learning, and coaching.
 HRD includes evaluating the performance of employees,
helping employees learn and develop new skills, and
assisting them with weaknesses or areas of
development.
 HRD also includes helping an organization develop--
diagnosing problems with how people work together in
certain areas of an organization.
What is the role of TQM in
Human Resource Management?
Total quality management (TQM) has far-reaching
implications for the management of human resources.

It emphasizes self-control, autonomy, and creativity

among employees and calls for greater active
cooperation rather than just compliance.

Indeed, it is becoming a maxim of good management

that human factors are the most important dimension in
quality and productivity improvement.
The Baldrige Award Criteria for aligning HRM
with TQM practices
The key elements of how work force is enabled to develop its
full potential to pursue the company’s quality and operational
objectives. Also examined are the company’s efforts to build
and maintain an environment for quality excellence conducive
to full participation and personal organizational growth.
1. Human Resource Planning and Management 20
2. Employee Involvement 40
3. Employee Education and Training 40
4. Employee Performance and Recognition 25
5. Employee Well-being and Satisfaction 25
Total Points: 150
TQM and HRM
Following areas are of significant importance
in relation to TQM and HRM:

1. Employees Involvement
2. Employees Empowerment
3. Suggestion System
4. Training & Development
Involvement: A Central Idea of Human Resource
Utilization

 At the heart of the TQM is the concept of intrinsic

motivation-involvement in decision making by the
employees.

 Employee involvement is a process for empowering

members of an organization to make decisions and to
solve problems appropriate to their levels in the
organization.

 It’s use is credited for contributing to the success

enjoyed by Japanese in the world market place.
Involvement: A central idea of Human Resource
utilization

 Employee involvement is not the replacement for

management nor is the final word in quality
improvement.

 It is a means to better meet the organization’s goals for

quality and productivity at all levels of an organization.
Involvement: A central idea of Human Resource
utilization
 Knowledge of motivation can help us to understand the
utilization of employee involvement to achieve process
improvement.
 One of the first and most popular theory was developed
by Abraham Maslow.
 He explained the motivation could best be explained in
terms of a hierarchy of needs and that there were five
levels
 These levels are:
1. Survival
2. Security
3. Social
4. Esteem
5. Self-actualization
Involvement: A central idea of Human Resource
utilization

Self-actualization

Esteem

Social

Security

Survival
Involvement: A central idea of Human Resource utilization
Involvement: A central idea of Human Resource utilization

Empowerment
 The dictionary definition of empowerment is to invest
people with authority
 Empowerment should not be confused with delegation
or job enrichment. Delegation refers to distributing and
entrusting work to others.
 Employee empowerment requires that the individual is
held responsible for accomplishing the whole task.
 The employee becomes process owner- thus the
individual is not only responsible but also accountable.
Involvement: A central idea of Human Resource
utilization Involvement: A central idea of Human
Resource utilization
 The logic behind employee empowerment
us that the people closest to a problem or
opportunity are in the best position to make
decisions for improvement and to solve
problems appropriate to their levels in the
organization.
Andon-Fixed Position Stop System
Andon-Fixed Position Stop System
Andon-Fixed Position Stop System
Involvement: A central idea of Human
Resource utilization

“Suggestion System”
 Suggestion systems are designed to provide
the individual with the opportunity to be
involved by contributing to the organization.
 The key to an effective system is management
commitment. Management must make it easy
for employees to suggest improvements
 Stimulating and encouraging employee
participation starts the creative process
Five Ground Rules for Stimulating and
Encouraging Suggestion System
1. Be Progressive by regularly asking your employees for
suggestions
2. Remove fear by focusing on the process and not on the
person.
3. Simplify the process so it is easy to participate

4. Respond Quickly to suggestions and within specified

period of time
5. Reward the idea with published recognition so that
everyone knows the value of contribution.
Training and Development

Why Training is important in TQM based organizations?

As, at the heart of TQM is the concept of intrinsic

motivation-involvement in decision making by the
employees, it means more responsibility, which in turn
requires a greater level of skill.

This must be achieved through TRAINING.

Training and Development
Basic Steps of Effective Training Plans
1. The first step in training process is to make everyone aware
of what the training is all about. Thoughts suggestions should
be gathered.
2. The second step is to get acceptance. The trainees must feel
that training will be of value to them.
3. The third step is to adept to adapt the program. Is everyone
ready to buy into it? Does everyone feel they are a part of
what is going to take place?
4. The fourth step is to adept to what has been agreed upon.
What changes must be made in behavior and attitudes.
What kind of Training be imparted to the
employees?
 The type of training depends on the need of the
particular company. The areas that should be common
to all organizations’ training program is problem solving
and communication skills.

 In addition to above areas, all members should receive

training in quality awareness (TQM), statistical process
control (SPC), safety, and technical aspects of job.

 The only difference among types of training is that some

may be required more often and for greater length of
times than others.
Who Needs to Receive Quality Training?
Subject Matter Top Quality Other Specialists Facilitators Workforce
Management Managers Middle
Managers

Quality Awareness

Basic Concepts

Strategic Quality
Management
Personal Roles

Quality Processes
This Training Plan
Problem Solving Methods was suggested by
Basic Statistics Joseph Juran
Advanced Statistics

Quality in Functional
Areas

Motivation for Quality

Why Training Programs fail?
 There are many different reasons but they fail mainly
because the focus is usually on the training itself and
not on helping the organization improve in a real and
measurable way.

 Training should be action oriented so that results can be

obtained right away.
The Performance Appraisal
 The purpose of performance appraisal is to let employee
know how they are doing, and provide a basis of
promotions, salary increases, counseling.

 Many supervisors look at appraisals as one of the

unpleasant duties they must performance. Conversely
some supervisors feel it a pleasant duty and can reveal
how effective an employee is in contributing to the
success of organization.

 Every effort should be made to avoid errors in

performance evaluations. An unfair evaluation could
cost an organization a valuable employee.
Criticism on Performance Appraisal System
 Appraisals nourish short term performance and
destroy long-term planning
 Another criticism states that individual appraisal
destroys teamwork. If teams are to become a cohesive
unit of “all for one and one for all,” then individual
ranking would undermine the entire concept.
 A third concern is the assumption that an individual is
responsible for all results. In reality results are
frequently beyond an individual’s control, such as
processes and equipment. Deming has stated that 85%
of the problems are the result of the system.
 Last, there is a concern that appraisals are frequently
based on subjectivity and immeasurable.
The Deming's Reservation about performance
appraisal system

 The traditional performance appraisal

system has been criticized as being
counterproductive and unnecessary by
Deming.

 He once stated, "In practice, annual ratings

are a disease, annihilating long-term
planning, demobilizing teamwork, nourishing
rivalry and politics, leaving people bitter,
crushed, bruised, battered, desolate,
despondent, unfit for work for weeks after
receipt of rating, unable to comprehend why
they are inferior..."
Should individual performance appraisals be eliminated,
as suggested by Deming?

 The answer is: This unlikely in view of

historical and widespread use of human
resource management tool.
 Rather than scrap performance
appraisals, a number of practitioners
have suggested that the performance
appraisal system be improved.
What should then be a good performance
appraisal system
 First of all, there should be a good relationship between
the employee and appraiser
 Employees should be made aware of appraisal process,
what is evaluated and how often.
 Employees should be told how they are doing on a
continuous basis, not just at appraisal time.
 The appraisal should point out strength and weaknesses
as well as how performance can be improved.
 The performance must be based on standards that are
developed and agreed upon by the appraiser and
employee.
 And lastly, an employee should always be given an
opportunity to comment on the evaluation, to include
protesting, if desired.
Appraisal Formats
Type Description
Ranking Compares employees by ranking from
highest to lowest
Narrative Gives a written description of employees
strengths and weaknesses
Graphic Indicates the major duties performed by
the employees and rate each duty with a
scale, which is usually 1(poor) to 5
(excellent)
Forced Choice Places each employee in a category with a
predetermined percentage-for example,
excellent (10%), very good (25%), good
(30%), fair (25%), and poor (10%)
Compensation System
 The traditional compensation systems have been
based on:
1. Pay for performance
2. Pay for responsibility (a job description)

 Each of these are based on individual

performance, which creates a competitive
atmosphere among employees.
 If compensation criteria are focused exclusively
on individual performance, a company will find
that initiatives promoting teamwork will fail
Compensation System in TQM Philosophy
 The TQM Philosophy emphasizes flexibility, lateral
communication, group effectiveness, and responsibility
for an entire process that has the ultimate outcome of
customer satisfaction.

 A team based compensation approach is Gain Sharing

or Performance Bonus to all employees. It is a system
of management in which an organization seek higher
levels of performance through involvement and
participation of its people.

 The approach is a team effort and reinforces TQM,

partially because it contains common components,
such as involvement and commitment.
End of Chapter 5