Intervention Strategies for Two Different HRD Subsystems Under Condition of Planned Change

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ASSIGNEMENT: HRD STRATEGIES AND SYSTEM 1 QUESTION NO:1 SUGGEST INTERVEN TION STR ATEGIES FOR TWO DIF FER ENT HRD SUB- SYSTEMS UNDER THE CONDITION OF PLANNED CHANGE => HRD functions are carried out through its systems and sub systems.The HRD needs of an organiza tion changes with changing conditions . Various types of organizatio nal needs described above may cha nge, result ing in the need for cha nge in HRD interventions. Therefore, it is useful to prepare a comprehensive HRD plan for the organization. Such a plan should indicate the HRD mechanisms to be used, their phasing, their interlinkages, and expected synergistic eff ects. For exa mpl e, when Larsen & Tou bro intro duc ed the HRD sys tem in 197 4-7 5 a complete blueprint was prepared for the introduction and strengthening of various HRD mechanisms. A ne w perf ormance appr aisal system was pl an ned to be introduced simultaneously with training to all officers on feedback and counselling. Tr ai ning was further st rengthened wi th linkages to appr ai sals. Subsequent in tr od uc ti on of a po tent ia l ap pr ai sa l system was al so pl anne d. Si mi la rl y, organizations like the State Bank of India (SBI) and its associate banks, Crompton Greav es Ltd. (CGL), Sundara m Fasteners Ltd. (SFL) , Bharat Earth Mover s Ltd. (BEML) , and Ind ian Oil Corpo rat ion (IOC) are ot her exa mpl es of organiza tio ns starting HRD in a planned way. Following is the brief discussion on intervention strategies for two HRD Sub-Systems under the condition of planned change:- Performance Appraisal Perfo rmanc e Appr aisa l is the syste matic evaluation of the performa nce of empl oyee s and to unde rstan d the abilities of a person for further growth and development. A growing number of front running organizations like Ford, Microsoft and Sun Microsystems, have adopted a performance appraisal model in which best-to- worst ranking methods are used to identify poor performers. The identified poor performers are then given a time period during which they have to show an improvement in their performance. In cases where the employee fails to improve his performance he is asked to leave the organizatio n gracefully and a severance package is offered to him. If the employee refuses to leave then his service is terminated and no compensation is offered. This system is called “rank and yank strategy”. Advocates of this system feel that it continually motivates employees to better the ir perfo rmance sin ce nob ody woul d li ke to be inclu ded in the poor performance band. But the flip side of this strategy is that employees become too competitive and team spirit is not nurtured. SUBMITTED TO: Dr. BIPASHA CHETIYA BARUA BY:TONMOY BORAH (ROLL NO:21,MBA(PT) 3 RD YEAR 

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ASSIGNEMENT: HRD STRATEGIES AND SYSTEM 1

QUESTION NO:1

SUGGEST INTERVENTION STRATEGIES FOR TWO DIFFERENT HRD SUB-SYSTEMS UNDER THE CONDITION OF PLANNED CHANGE

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HRD functions are carried out through its systems and sub systems.The HRD needsof an organization changes with changing conditions. Various types of organizationalneeds described above may change, resulting in the need for change in HRDinterventions. Therefore, it is useful to prepare a comprehensive HRD plan for theorganization. Such a plan should indicate the HRD mechanisms to be used, their phasing, their interlinkages, and expected synergistic effects.

For example, when Larsen & Toubro introduced the HRD system in 1974-75 acomplete blueprint was prepared for the introduction and strengthening of various

HRD mechanisms. A new performance appraisal system was planned to beintroduced simultaneously with training to all officers on feedback and counselling.Training was further strengthened with linkages to appraisals. Subsequentintroduction of a potential appraisal system was also planned. Similarly,organizations like the State Bank of India (SBI) and its associate banks, CromptonGreaves Ltd. (CGL), Sundaram Fasteners Ltd. (SFL), Bharat Earth Movers Ltd.(BEML), and Indian Oil Corporation (IOC) are other examples of organizationsstarting HRD in a planned way.

Following is the brief discussion on intervention strategies for two HRD Sub-Systemsunder the condition of planned change:-

Performance Appraisal

Performance Appraisal is the systematic evaluation of the performance of employees and to understand theabilities of a person for further growth and development.

A growing number of front running organizations like Ford, Microsoft and SunMicrosystems, have adopted a performance appraisal model in which best-to-worst ranking methods are used to identify poor performers. The identified poor performers are then given a time period during which they have to show animprovement in their performance. In cases where the employee fails to improvehis performance he is asked to leave the organization gracefully and a severancepackage is offered to him. If the employee refuses to leave then his service isterminated and no compensation is offered. This system is called “rank and yankstrategy”. Advocates of this system feel that it continually motivates employees tobetter their performance since nobody would like to be included in the poor performance band. But the flip side of this strategy is that employees become toocompetitive and team spirit is not nurtured.

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ASSIGNEMENT: HRD STRATEGIES AND SYSTEM 2

Objectives of Performance Appraisal 

Performance Appraisal can be done with followingobjectives in mind:

1. To maintain records in order to determine

compensation packages, wage structure, salariesraises, etc.

2. To identify the strengths and weaknesses of employees to place right men onright job.

3. To maintain and assess the potential present in a person for further growthand development.

4. To provide a feedback to employees regarding their performance and relatedstatus.

5. To provide a feedback to employees regarding their performance and related

status.

6. It serves as a basis for influencing working habits of the employees.

7. To review and retain the promotional and other training programmes.

HRD INTERVENTION INTO PERFORMANCE APPRAISAL:

Performance Planning (includes employee goal setting / objective

setting)

Ongoing Performance Communication

Data Gathering, Observation and Documentation

Performance Appraisal Meetings Performance Diagnosis and Coaching

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ASSIGNEMENT: HRD STRATEGIES AND SYSTEM 3

Traditional Methods of Performance Appraisal 

1. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as “Free Form method” involves adescription of the performance of an employee by his superior. The description isan evaluation of the performance of any individual based on the facts and oftenincludes examples and evidences to support the information. A major drawbackof the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance appraisal. In thismethod, the appraiser ranks the employees from the best to the poorest on thebasis of their overall performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this methodcompares each employee with all others in the group, one at a time. After all the

comparisons on the basis of the overall comparisons, the employees are giventhe final rankings.

4. CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the employee on thebasis of critical events and how the employee behaved during those incidents. Itincludes both negative and positive points. The drawback of this method is thatthe supervisor has to note down the critical incidents and the employee behaviour as and when they occur.

5. FIELD REVIEW

In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respectivesubordinates. A major drawback of this method is that it is a very time consumingmethod. But this method helps to reduce the superiors’ personal bias.

6. CHECKLIST METHOD

The rater is given a checklist of the descriptions of the behaviour of theemployees on job. The checklist contains a list of statements on the basis of 

which the rater describes the on the job performance of the employees.

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ASSIGNEMENT: HRD STRATEGIES AND SYSTEM 4

7. GRAPHIC RATING SCALE

In this method, an employee’s quality and quantity of work is assessed in agraphic scale indicating different degrees of a particular trait. The factors takeninto consideration include both the personal characteristics and characteristicsrelated to the on-the-job performance of the employees. For example a trait likeJob Knowledge may be judged on the range of average, above average,outstanding or unsatisfactory.

8. FORCED DISTRIBUTION

To eliminate the element of bias from the rater’s ratings, the evaluator is asked todistribute the employees in some fixed categories of ratings like on a normaldistribution curve. The rater chooses the appropriate fit for the categories on hisown discretion.

Modern-Method of Performance Appraisal 

ASSESSMENT CENTRES

An assessment centre typically involves the use of methods like social/informalevents, tests and exercises, assignments being given to a group of employeesto assess their competencies to take higher responsibilities in the future.Generally, employees are given an assignment similar to the job they would beexpected to perform if promoted. The trained evaluators observe and evaluateemployees as they perform the assigned jobs and are evaluated on job relatedcharacteristics.

The major competencies that are judged in assessment centres are interpersonal

skills, intellectual capability, planning and organizing capabilities, motivation,

career orientation etc. assessment centres are also an effective way to determine

the training and development needs of the targeted employees.

BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which

combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statementsdescribing important job performance qualities as good or bad (for eg. thequalities like inter-personal relationships, adaptability and reliability, jobknowledge etc). These statements are developed from critical incidents.

In this method, an employee’s actual job behaviour is judged against the desiredbehaviour by recording and comparing the behaviour with BARS. Developing andpracticing BARS requires expert knowledge.

HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource

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ASSIGNEMENT: HRD STRATEGIES AND SYSTEM 5

accounting method tries to find the relative worth of these assets in the terms of money. In this method thePerformance appraisal of the employees is judged interms of cost and contribution of the employees. The cost of employees includeall the expenses incurred on them like their compensation, recruitment andselection costs, induction and training costs etc whereas their contributionincludes the total value added (in monetary terms). The difference between thecost and the contribution will be the performance of the employees. Ideally, thecontribution of the employees should be greater than the cost incurred on them.

360 DEGREE PERFORMANCE APPRAISALS

360 degree feedback, also known as 'multi-rater feedback', is the mostcomprehensive appraisal where the feedback about the employees’performance comes from all the sources that come in contact with theemployee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e.

superior), subordinates, team members, customers, suppliers/ vendors -anyone who comes into contact with the employee and can provide valuableinsights and information or feedback regarding the “on-the-job” performance of the employee.

360 degree appraisal has four integral components:

1. Self appraisal

2. Superior’s appraisal

3. Subordinate’s appraisal

4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths andweaknesses, his achievements, and judge his own performance. Superior’sappraisal forms the traditional part of the 360 degree appraisal where theemployees’ responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on theparameters like communication and motivating abilities, superior’s ability todelegate the work, leadership qualities etc. Also known as internal customers,the correct feedback given by peers can help to find employees’ abilities towork in a team, co-operation and sensitivity towards others.

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ASSIGNEMENT: HRD STRATEGIES AND SYSTEM 6

Self assessment is an indispensable part of 360 degree appraisals andtherefore 360 degree Performance appraisal have high employee involvement

and also have the strongest impact on behavior and performance. It providesa "360-degree review" of the employees’ performance and is considered to beone of the most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because whenconducted at regular intervals (say yearly) it helps to keep a track of thechanges others’ perceptions about the employees. A 360 degree appraisal isgenerally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively usedacross the globe for performance appraisals. Some of the organizationsfollowing it are Wipro, Infosys, and Reliance Industries etc.

MANAGEMENT BY OBJECTIVES

The concept of ‘Management by Objectives’ (MBO) was first given byPeter Drucker in 1954. It can be defined as a process whereby theemployees and the superiors come together to identify common goals,the employees set their goals to be achieved, the standards to be takenas the criteria for measurement of their performance and contributionand deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the

measurement and the comparison of the employee’s actualperformance with the standards set. Ideally, when employeesthemselves have been involved with the goal setting and the choosingthe course of action to

be followed by them, they are more likely to fulfill their responsibilities.

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ASSIGNEMENT: HRD STRATEGIES AND SYSTEM 7

THE MBO PROCESS

Designing the Training And Development Through HRD Intervention

Key activities include:

• Setting objectives

• Selecting the trainer or vendor 

• Developing lesson plans

Selecting methods and techniques• Preparing materials

• Scheduling training

Objectives

• Three parts:

PerformanceWhat is to be done – e.g.,

Increase upper body strength

Assemble a chair 

Catch a football pass

Graduate from college

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ASSIGNEMENT: HRD STRATEGIES AND SYSTEM 8

Conditions

Conditions under which performance is done – e.g.,

… using standard conditioning equipment

… using a screwdriver and hammer  … at a full run under man-to-man coverage

… without cheating or outside help

Criteria

The level of acceptable performance – e.g.,

… by 25 percent within one year 

… within one hour without mistakes

… at least 80% of the time without penalties

… within 5 years and with a “B” average

HRD Interventions

Selecting the Trainer 

• Training competency

How well can he/she train?

If they can’t train, why are they employed?

• Subject Matter Expertise

How well is the material understood?

If No Subject-Matter Experts (SMEs) are Available…

Use a team to train

Use programmed instruction or CBT

Train your trainers…

You are training subject matter experts to be trainers

You are not  training trainers to be SMEs

Preparing Lesson Plans

Content to be covered

Activity sequencing

Selection/design of media

Selection of trainee activities

Timing and phasing of activities

Method(s) of instruction

Evaluation methods to be used

1. Selecting Training MethodsConsider the following:

Program objectives

Time and money available

Resources availability Trainee characteristics and preferences

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ASSIGNEMENT: HRD STRATEGIES AND SYSTEM 9

2. Training Materials

Program announcements

Program outlines

Training manuals and textbooks

Training aids, consumables, etc.

3. Scheduling TrainingMust be done in conjunction with:

Production schedulers

Shift supervisors

Work supervisors/managers

TraineesTraining During Normal Working HoursIssues to consider:

Day of week preferred

Time of day

Peak work hours

Staff meeting times Required travel

Training After Working Hours

Are workers/trainees getting paid? If so, by whom?

What about personal commitments?

What do you do for shift workers?

Registration and Enrollment Issues

• How, when, and where does one register?

• Who is responsible for logistics?

Travel

Lodging

Meals

Etc.

• How do one cancel/reschedule?

 

CONCLUSION

In this chapter we have seen the definition of HRD, various systems andsubsystems, the HRD processes and the sub processes. The sub systems andsub processes are not discussed in detail since the very purpose of this work is toprovide a quick and brief understanding of HRD rather than discuss themexhaustively. It is to be noted that body of knowledge relating to the sub themesmentioned above are already available in some form or the other. The HRDsources and the Bibliography given towards the end of this book may be used for 

further reading and elaboration.

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