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Human Resource DevelopmentDevelopment
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DEFINITION
It is a continuous process to ensure thedevelopment of employee competencies,dynamism, motivation and effectivenessin a systematic and planned way to meetcurrent and future job demands.current and future job demands.
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Human Resource Development includes
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Employee training
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Employee career development
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Performance management and development
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Organization development.
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Role of HRD
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• Better performance
• Develops constructivemind and overallpersonality
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• Develop each individual capabilities
• High motivation
• Need based training programsprograms
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• Competency andexcellence
• Contribute towards theexcellence of technical andmanagement education
• Promotes creativity,innovation, human
Contd….
innovation, humandevelopment, respect anddignity
• Achieve excellence in everyaspect of working life
• Character building.
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Manpower planning• Putting right number of people, right kind of people at the right
place, right time, doing the right things for which they are suited forthe achievement of goals of the organization. Human ResourcePlanning has to be a systems approach and is carried out in a setprocedure. The procedure is as follows:
• Analyzing the current manpower inventory• Analyzing the current manpower inventory• Making future manpower forecasts• Developing employment programmes• Design training programmes
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Steps in Manpower Planning1.Analysing the current manpower inventory- Before a manager
makes forecast of future manpower, the current manpower statushas to be analysed. For this the following things have to be noted-
• Type of organization• Number of departments• Number of departments• Number and quantity of such departments• Employees in these work units
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2. Making future manpower forecasts- Once the factorsaffecting the future manpower forecasts are known, planningcan be done for the future manpower requirements in severalwork units.
The Manpower forecasting techniques commonly employed bythe organizations are as follows:
Expert forecasts
Trend analysis
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Trend analysis
Work load analysis
Work force analysis
Other methods
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3. Developing employment programmes- Once thecurrent inventory is compared with future forecasts,the employment programmes can be framed anddeveloped accordingly, which will includerecruitment, selection procedures and placementplans.
4. Design training programmes- These will be basedupon extent of diversification, expansion plans,development programmes,etc. Training programmesdepend upon the extent of improvement intechnology and advancement to take place. It is alsodone to improve upon the skills, capabilities,knowledge of the workers.
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Meeting manpower needs
Replacement of manpower
Meeting growing manpower needs
Meeting challenges of technological environment
Importance of Manpower Planning
Coping with change
Adjusting manpower requirements
Recruitment and selection of employees
Placement and training
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Training Needs• Changing Technology• Quality Conscious Customer• Greater Productivity
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• Stable workforce
• Increased safety
• Better management
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Methods of Training
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On the Job Training
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Coaching
Job Rotation
Counseling
Job Rotation
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Off the job Training
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Classroom Method
Simulation
Sensitivity training
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Case Study Method
Conference
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Compensation & Wages
• It refers to widerange of financialand non financialrewards toemployees for theiremployees for theirservices
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Compensation & Wages• The system of
compensation shouldbe so designed that itachieves the followingobjectives:
• Capable employees areattracted towards theattracted towards theorganizations.
• The employees aremotivated for betterperformance.
• The employees do notleave the employerfrequently.ITFT College, Chandigarh 264/26/2014
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Consideration in developing a compensation plan
• Wage policies should be carefully developed, having in mind the interests of
• Management as the representative of the owners• The employees• The consumers• The community
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• Wages policies should be clearly expressed inwriting to ensure uniformity and stability.
• Wage decision should be checked against thecarefully formulated policies.
• Management should see to it that employeesunderstand and know the wage policy.
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• Wage policies should be evaluated from timeto time to make certain that they are adequatefor present need.
• Department performance should be checkedperiodically against the standards set inadvance.advance.
• Job description and performance ratingsshould be checked periodically to keep themup to date.
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Incentive programmes
Sales Incentives
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Bonus
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Skill Based Pay
Merit Pay
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Profit Sharing
Employee Stock
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Methods of Wage payments and Incentive Plans
• Time Wage System
• Piece Wage System
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Time Wage System: Advantages• It is the simplest and the oldest method. It is easy to
understand and workers can easily compute theirown remuneration.
• Earnings of workers are regular and fixed and they donot suffer from temporary loss of efficiency.not suffer from temporary loss of efficiency.
• As there is no pressure to speed up production, thequality of work can be kept high. A worker can showhis skill.
• Learners can concentrate on learning the bestmethods of work as their earning s are not dependenton the amount of work.
• It is an objective method.
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Disadvantages• The method provides no incentive for better performance
as reward is not proportionate to effort.• Guaranteed remuneration makes workers indifferent and
complacent.• Calculation of labor cost per unit is difficult as the total• Calculation of labor cost per unit is difficult as the total
wage bill does not change with the volume of production.• In the absence of an incentive to hard work, productivity
of labor becomes low unless close supervision is used.Thus, costs of supervision are high.
• Control over labor cost becomes difficult and morepayment may be made for the lesser amount of work.
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Time wage system is suitable under following conditions:
• Where units of output are non-measurable an in caseof office work and mental work is involved as in policyworking.
• When quality of work is especially important, e.g.,artistic furniture, fine jewelry, etc.artistic furniture, fine jewelry, etc.
• When supervision is good and supervisors know whatconstitutes a “fair day’s work”.
• When workers are new and learning the job.• When collective efforts of a group of persons are
essential for completing the job.
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Piece Wage System: Advantages• There is a direct relation between effort and reward;
workers who work hard and produce more get morewages. This provides an incentive to increaseproductivity.
• Ambitious and efficient workers are provided ample• Ambitious and efficient workers are provided ampleopportunity to utilize their talent and increase theirearnings and thereby improve their standard of livingand morale.
• The method is just and fair to all. Efficient workers getample reward, while shirkers are penalized. Itprevents soldiering on the job.
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• Management can distinguish betweenefficient and inefficient workers for thepurpose of promotion, etc.
• Increase in productivity results in higheroutput and lower costs of production per unit.
• The cost of labor per unit of output can beeasily calculated as the wage bill varies ineasily calculated as the wage bill varies indirect proportion to the output.
• As workers themselves have a stake inmaximization of efficiency, cost of supervisionis low.
•
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Disadvantages• It is very difficult to fix piece wage rates. Employers often cut the
piece rate when they find workers are producing largequantities.
• The earnings of workers are not stable and they may suffer dueto temporary delays or difficulties. They feel insecure anddissatisfied.dissatisfied.
• Employees may not stress quality so that rigid quality controlbecomes necessary.
• This system may create jealousy between efficient andinefficient workers. Trade unions do not like it as it affects theirsolidarity.
• Detailed records of production have to be kept so that theclerical work is increased. The method is not practicable whencontribution of individual workers cannot be calculated, i.e.,construction work.
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Piece wage system is suitable under the following conditions:• When work done by an individual worker can be measured
accurately, e.g., production of standardized goods in thefactory.
• When the quantity of output depends directly upon the skilland efforts of the worker.
• Where the flow of work is regular and interruptions areminimum i.e., repetitive jobs.minimum i.e., repetitive jobs.
• Where quality and workmanship are not very important.• In large scale production involving heavy overheads and
heads and broad supervision.• When methods of production are standardized and the job
is of a repetitive nature.
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Performance Appraisal• Performance appraisal is a method of evaluating the
behaviour of employees in the work place normallyincluding both the quantitative and qualitative aspectsof job performance.
• Performance refers to the degree of accomplishment ofthe tasks that make up an individual’s job. It indicateshow well an individual is fulfilling the job demands.
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Importance of Performance Appraisal
• Performance appraisal is the systematicdescription of an employee’s job relevantstrengths and weakness.strengths and weakness.
• The basic purpose is to find out how well theemployee is performing the job and establisha plan of improvement.
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• Appraisal is arranged periodically according toa definite plan.
• Performance appraisal is not job evaluation.Performance appraisal refers to how well;Performance appraisal refers to how well;someone is doing the assigned job. Jobevaluation determines how much a job isworth, to the organization and therefore,what range of pay should be assigned to thejob.
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Provide data for evolving
development plans for individuals
Provides inputs for decisions on
transfers, promotions etc.
Help to achieve organization’s task
through guided efforts of individuals
Objectives of Performance Appraisal
Performance appraisal system
Provide data in terms of needs aspirations of individuals to review company policies and
structure
Enables clarification of expectations between
superiors and subordinates
for individuals etc.
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Self Appraisal
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Peer evaluation
Staff evaluation
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360 Degree Appraisal
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QuestionsQ1 What is human resource development?
What are the roles of HRD?Q 2 What is Performance Appraisal? Explain the
various methods of performance appraisal?Q 3 What is Training? What are the various
methods of training?methods of training?Q 4 What are incentives? What are the various
considerations in developing compensation?
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