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Human Resource Development Notes

Masters of Business Administration (Dr. A.P.J. Abdul Kalam Technical University)

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HRD (HR PAPER) HR & FINANCE SPECIALIZATION

(17E00306) HUMAN RESOURCE DEVELOPMENT

Objective:The objective of the course is to provide an understanding of the human

resources development framework and focuses on management best practices, tools and
models to implement an effective HRD system

1.Introduction to Human Resource Development: Meaning, significance and objectives

of Human Resource Development, Human Resource Management and Human Resource
development functions, Human Resource Development challenges

2.HRD Need Assessment & Designing of HRD programs: Strategic/ Organizational

Analysis- Task Analysis- Person Analysis- prioritizing HRD needs, defining the objectives of
HRD Intervention - Selecting the trainer - Selecting the Training methods - Preparing
training material Scheduling an HRD program

3.Implementation &Evaluation of HRD programs: Training methods - Classroom training

Approaches - Computer based Training, Purpose of HRD Evaluation- Kirkpatrick’s
evaluation frame work - Data collection for HRD Evaluation - Assessing the impact of HRD
programs in Monetary Terms

4.Career Management and Development: Introduction to Career management, meaning

- Stages of life and Career Development - process of career Development - Issues in career
development.

5.HRD & Diversity: Introduction - Organizational culture - Labor market changes and
discrimination adapting to demographic changes

Text books:

 Jon M Werner,Randy L DeSimone : Human Resource development

(Thomson/Cengage)
 Raymond A Noe : Employee Trainee Development ( Tata McGraw Hill)
References:

 John P. Wilson Human Resource Development ( Kogan Page Business Books)

 Tripathi P.C : Human Resource Development ( Sultan Chand & Sons)
 Uday Kumar Haldar : Human Resource Development (Oxford)

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UNIT 1

INTRODUCTION TO HUMAN RESOURCE DEVELOPMENT

1.MEANING

 It refers to the vast field of T&D provided by organizations to increase knowledge,

skills & objectives of their employees.
 In many organizations the HRD process begins upon the hiring of a new employee
*& continues throughout that employee’s tenures with the organizations.
 It is designed to give employees the information they need to adapt to that
organization. Culture & to do their jobs effectively.

Human resource development means building 3CS – Capabilities, commitment & culture.

CAPABILITY

Capability building requires developing the knowledge & skills of a person.

COMMITMENT

Commitment comes through desire to excel (proficient in an activity), positive attitude

towards work, co-operative, involvement.

CULTURAL

 Cultural is the way life. It involves creating an awareness of what is ideal &
desirable.
 HRD is the concerned with improving performance within the work environment &
not with improving people health or their personal relations with their family.

1.1DEFINATION OF HRD

1. ACCORDING TO UDAI PAREEK& T.V RAO

HRD is primary concerned with developing employees through training feedback
and cancelling by the senior offers & other development efforts.
2. ACCORDING TO HARRIS & DESIMONE
A set of systematic & planned activities designed by an organization to provide its
members with the necessary skill to meet & future job demands.

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3.ACCORDING to SOUTH PACIFIC COMMISSION

HRD is equipping people with relevant skills to have a healthy & satisfying life.

PROFITABILITY

 At the firm wide level HRD leads to increased revenues at reduced costs for the
company.
 Most companies today are focused on hiring a well trained & competitive work
force in order to develop a unique selling point & enhance their profitability.

2.SIGNIFICANCE OF HUMAN RESOURCE DEVELOPMENT

Significance:

Develops competent HR employee commitment job Satisfaction

.
1. DEVELOPS COMPETENT HR
 Competence is the ability of an individual to do a job properly.
 Development people in time according to the organization needs with the help of
training & development programs.
 To develop emplacements skill & competencies different training & development
programmers are launched.
2. EMPLOYEE COMMITMENT
 Employee commitment is the loyalty & support of work force towards the goals of
an organist ion.
 Strong relationship between superior & subordinate creates healthy employs
commitment plays a vital role in the development of each & every organization all
over the world.
 Committed employees bring added value to the organization through their
determination support high productivity & awareness of quality.

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3. JOB SATISFACTION
 Job satisfaction can be defined as the extent of positive feelings that individual
have towards their jobs.
 When a person says that he has high job satisfaction it means that he really likes his
job.
 Job satisfaction is very important because most of the people spend a major
portion of their life at their working place.
 It usually depends on the mind of employees worker.
4. PERFORMANCE DEVELOPMENT
 Performance development is the on-going process between supervisor & employee
of communications & clarifying position responsibilities & priorities and
performance expectations to enhance effectiveness in achieving the mission &
goals of an organization.
 It provides a structured process tools, forms & other sources to facilities effective
communication about performance between supervisors & staff.
5. INCREASE IN PRODUCTIVITY
 All successful business understands how important productivity is in a work
environment.
 An employee’s productivity can help the company in utilizing the capacity of their
available work force.
 Motivation is an essential factor to ensure productivity in the work place.
 HR can make employees happier & more productive by providing positive training
& enjoyable work environment that help retain talent.

6.Employee Satisfaction
 Employee relations specialists in HR help the organization achieve high
performance, morale and satisfaction levels throughout the workforce, by creating
ways to strengthen the employer-employee relationship.
 They administer employee opinion surveys, conduct focus groups and seek
employee input regarding job satisfaction and ways the employer can sustain good
working relationships.

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7.Training and Development

 HR training and development specialists coordinate new employee orientation, an
essential step in forging a strong employer-employee relationship.
 The training and development area of HR also provides training that supports the
company's fair employment practices and employee development to prepare
aspiring leaders for supervisory and management roles.
3.OBJECTIVES OF HRD

 To develop capability of all individuals working in an organization in relation to their

present role
 To develop team spirit.
 To develop co-ordination among different units of an organization.
 To develop organization health by continuous reveal of individual capability
keeping peace with the technological changes.
 It practices in an organization should be to put efforts to develop the full potential
of the work force.
 It can be make clear when we highlight the importance of HR in line with the
examination process of the balding award which is given at an international level to
a quality organization.
 To develop better interpersonal & employer-employee relationships in an
organization.

3.1 OTHER OBJECTIVES OF HRD

EQUITY EMPLOYEBILITY ADAPTABILITY

1. EQUITY
 Recognizing every employee at per irrespective of caste creed religion & language,
it can create a very god environment in an organization.
 It must ensure that the organization creates a culture & provides equal
opportunities to all employees in point of carried planning, promotion, T&D.

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2. EMPLOYEBILITY
 It means the ability skills& competencies of an individual to seek gainful
employment anywhere.
 HRD Should aim at improving the skills of employs like to motivate them to work
with effectiveness.
3. ADAPTABILITY
 Continuous training that develops the professional skills of employees plays an
important role in HRD.
 This can help the employees to adapt themselves to organization change that takes
place on a continuous basis.

4.To retain, attract and motivate the talented employees

 An organization concluding HRD programme has the tendency of attracting and

retaining the talented employees.

 People would get an impression that organization is providing a convenient

platform to fully stretch their capacities and the talented people would get
motivated when their intelligence and knowledge get recognized and
acknowledged by the organization

5. To provide a comprehensive platform for the development of Human Resources In

the organization
 Every HRD programmed starts with providing a framework within the organization
so that employees would be given freedom to express their feeling with the
superiors.

 The superiors also respect the feelings of employees and suggest them (not in a
critical tone) so that they develop.

6 To provide a climate for employees to discover, develop, and use their knowledge for
the betterment of organization:
Another basic objective of HRD programmer is to create a work climate in the
organisation whereby the employees contribute their best in the organization.

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4. HUMAN RESOURCE MANAGEMENT AND HUMAN RESOURCE DEVELOPMENT

FUNCTIONS

4.1 HUMAN RESOURCE MANAGEMENT

HRM DEFINATION

 HRM can be defined as the effective selection & utilization of employees to best
achieve the goals & strategies of the organizations as well as the goals & needs of
employees.
 The HRM function is carried out varies from one organization to other organization.

ORGANISATION CHART OF A LARGE HRM DIVISION

V.P – (HRM)

HR research & planning staffing employees relations HRD compensations & benefits

director Director director director

4.2 PRIMARY HUMAN RESOURCE MANAGEMENT FUNCTIONS

1. HUMAN RESOURCE PLANNING

 HRP activities are used to predict how change in management strategy will affect
future HR needs.
 HR planners must continually chart the course of the organization & its plans
programs etc.
 These activities are critically important with the rapid changes in eternal market
demands.
2. EQUAL EMPLOYMENT OPPORTUNITY
 Activities are intended to satisfy both the legal & moral responsibilities of the
organization through the prevention of the discriminatory policies procedures &
practices.
 It includes decisions affecting hiring training appraising compensating employers.
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3. STAFFING RECRUITMENT SELECTION

 These are designed for the timely identification of potential applicants for current
& future openings & for assessing & evaluating applications to make selection &
placement decisions.

4.3 OTHER FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

MANAGERIAL FUNCTIONS

PLANNING ORGANIZING DIRECTING CONTROLLING

1. PLANNING
 It is necessary to determine the goals of the organization & lay down policies &
procedures to reach the goals.
 To get things done through the sub-ordinates a manager must plan ahead.
 In this HR manager will take care about check job descriptions & determination of
the sources of recruitment.
 Plans are developed to eliminate the forecast shortages exams of particular
categories of HR.
2. ORGANIZING
 To reach plans & programs to employment HR must design & develop organization
to carry out the various operations.
 Assignment of different functions to different individuals.
 Delegation of authority according to the tasks assigned & responsibility involved.
3. DIRECTING
 It involves encouraging people to work willingly & effectively for the goals of the
enterprises.
 HR manager can motivate the employers in an organization through career
planning salary administration safety measures & welfare of employee.
 He must have the ability to identify the needs of employees & methods of satisfying
those needs.

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4. CONTROLLING
 It helps the HR manager to evaluate the control the performance of the HR
department in terms of various operative functions.
 Kit involves regulation of activities in accordance with the plans on the basis of the
objective of the organization.
 It involves the observation and comparison of result with the standards.

5. HUMAN RESOURCE DEVELOPMENT FUNCTIONS

HUMAN RESOURCE DEVELOPMENT FUNCTIONS FUNCTIONS

TRAINING & DEVELOPMENT ORGANISATION DEVELOPMENT CARRER DEVELOPMENT

1. TRAINING DEVELOPMENT
 It focus on changing or improving the knowledge skills, & attitudes of individual
 It began when new employees enters the organization usually in the form of
employee orientation and skills training
 Once new employment have become proficient in their joins HRD activities should
focus more on development activities.
 It helps to employees in achieving both personal & organizational goals.
 HRD professional are responsible for co-coordinating T&D programs to ensure that
managers & supervisions have the knowledge & skills to be effective in their
positions.
2. ORGANIZATION DEVELOPMENT
 It is defined as the process of enhancing the effectiveness of an organization & the
well-being of its members through planned interventions.
 The role of HRD professionals involved in an on-intervention is to function as a
change agent.
 He may also become directly involved incurring out the intervention strategy like
facilitating a meeting of the employees responsible for planning & implementing
the actual change process.

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3. CAREER DEVELOPMENT
 It is an on-going process by which individuals progress through a series of stages of
stages each of which is characterized by a relatively set of themes & tasks.
 It involves taking the necessary steps to achieve that plan & generally focuses more
on what the organization can faster employee career development.
 It can be implemented, at least in part, through an organizations training programs

6.HUMAN RESOURCE DEVELOPMENT CHALLENGES

Increasing workforce computing in a eliminating the

Diversity globaleconomy skill gap

1. INCREASING WORK FOCE DIVERSITY

 Today organizations are facing the problem of diversity of the employees in terms
of cultural& gender lines.
 An HRD professional should introduce sessions which cover diversity issues & act as
a cataluyst of unity.
 These diversities affet the efficiency of individual and a team.

2. COMPUTING IN A GLOBAL ECONOMY

 It requires more than educating & training worker to meet new challenges for
retaining the workforce successful companies will institute quality improvement
processes & introduce change efforts.
 Continuous assessment should be done by line managers to improve work
effectiveness.
 Cultural sensitivity training should be provides to employees for better
communication & conduct differently in different countries.
 Additionally employees are learning & implementing new ways of managing their
employees.

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3. ELIMINATING THE SKILL GAP

 Many companies have started internships apprenticeship and vocational trainings
for the young college and school graduates.
 This will help them to understand the companies working environment &
accounted with the practical aspect of the job.
 It helps in gaining the practical knowledge with the theoretical concepts.
 This helps to remove the skill gap between the required skills by the employer &
what the recruited employees possess.

6.1OTHER HUMAN RESOURCE DEVELOPMENT CHALLENGES

 Increased pressure for outcomes in terms of productivity and cost-effectiveness.

 Increased pressure to demonstrate improved quality and value.
 Accelerated emphasis on customer service and satisfaction.
 Increased sophistication in HRD tools, technologies, methods and theories.
 Increased pressure due to workforce diversity in demographics and values.
 Pressure to meet increased expectations of worker creativity, risk taking and
adaptation to change.
 Increased use of systems. 8. Business strategies that concentrate on human
resources.
 Pressure due to changed organizational emphasis from loyalty to merit.
 Increasing pressure of globalization.
 More workforce demand for meaning and participation in work.
 More team changes due to flatter and more flexible organizations.

PREPARED BY :

B.V.LAKSHMI, M.B.A, Assoc. Professor, BALAJI INSTITUTE OF IT & MANAGEMENT,

KADAPA.

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(17E00306) HUMAN RESOURCE DEVELOPMENT

Objective:The objective of the course is to provide an understanding of the human resources

development framework and focuses on management best practices, tools and models to implement an
effective HRD system

1.Introduction to Human Resource Development: Meaning, significance and objectives of Human

Resource Development, Human Resource Management and Human Resource development functions,
Human Resource Development challenges

2.HRD Need Assessment & Designing of HRD programs: Strategic/ Organizational Analysis- Task
Analysis- Person Analysis- prioritizing HRD needs, defining the objectives of HRD Intervention - Selecting
the trainer - Selecting the Training methods - Preparing training material Scheduling an HRD program

3.Implementation &Evaluation of HRD programs: Training methods - Classroom training Approaches -

Computer based Training, Purpose of HRD Evaluation- Kirkpatrick’s evaluation frame work - Data
collection for HRD Evaluation - Assessing the impact of HRD programs in Monetary Terms

4.Career Management and Development: Introduction to Career management, meaning - Stages of life
and Career Development - process of career Development - Issues in career development.

5.HRD & Diversity: Introduction - Organizational culture - Labor market changes and discrimination
adapting to demographic changes

Text books:

 Jon M Werner,Randy L DeSimone : Human Resource development (Thomson/Cengage)

 Raymond A Noe : Employee Trainee Development ( Tata McGraw Hill)
References:

 John P. Wilson Human Resource Development ( Kogan Page Business Books)

 Tripathi P.C : Human Resource Development ( Sultan Chand & Sons)
 Uday Kumar Haldar : Human Resource Development (Oxford)

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UNIT -2

HRD NEED ASSESMENT & DESIGNING OF HRD PROGRAMS

INTRODUCTION ABOUT NEED ASSESSMENT

 Need assessment is a process by which an organization’s HRD needs are

indemnified. And
 It is the starting point of the HRD & Trains process.
 A systematic inquiry for the purposes of identifying priorities and making decisions,
and b. Allocating finite resources in a manner consistent with identi fied program
goals and objectives.
 Identifying and analysing expressed and unexpressed needs.
 A plan to develop strategies that address such needs.

A NEED ASSESTMENT CAN IDIENTIFY

 An organization goals & effectiveness in reaching these goals.

 Discrepancies between employee’s skills & the skills required for effective
current job performance.
 Discrepancies between current skills & the skills needed to perform the job
successful in the future.

1.STRATEGIC/ORGANIZATIONAL ANALYSIS

 Need assessment at the organizational level is usually conducted by performing an

organizational analysis.
 Organizational analysis is a process used to better understand the characteristics of
the organization to determine where training and HRD efforts are needed and the
conditions within which they will be conducted.
 An organizational analysis can also show you what is right with a company.
 Organizational analysis focus on the structured & decision of the organization and
how the organizations systems, capacity & functionality influence outputs.
 The organizational characteristics studied may include goals & objectives reward
systems planning & communization systems.
 Organizational analysis also knows is internal analysis company analysis.

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1.1 COMPONENTS OF ORTGANISATIONAL/STRATEGIC NEED ANALYSIS

According to IRWIN GOLDSTEIN an organizational analysis should be identify

Organizational goals organizational resources organizational climate

A. ORAGANISATIONAL GOALS
 Understanding the organizational goals & strategy provides a starting point in
identifying the effectiveness of the organization.
 Areas where goals are not being met should be examined further & targeted for
HRD OR other appropriate HR or management efforts.
B. ORGANISATIONAL RESOURCES
 An awareness of the organizational resources is particularly careful in establishing
HRD needs.
 Identify organizational core competencies/competitive strengths. Money plays a
part in deterring HRD efforts.
For example: if there is no class room or conference room facilities within the
organisation the scheduling and location of an HRD program that requires such
facilities can become very difficult & expensive.
C. ORGANISATIONAL CLIMATE
 The climate within the organization is an important factor in HRD success.
 It the climate is not conducive (making a certain situation or outcome) to HRD
designing & implementing a program will be difficult.
For example-if managers & employees’ do not trust one another, employees may
not participated fully & freely in a training program.

1.2ADVANTAGES OF CONDUCTING AN ORGANISATIONAL/STRATEGIC ANALYSIS

 An organizational analysis reveals where HRD is needed & the organizational &
environmental conditions that may efficient the HRD effort.
 The strategic plan can be valuable source of information for organizational analysis
where as HRD efforts can become a major component of carrying out the strategic
plan.
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 For example-it an insurance company decides as part of its strategic plan to expand
the services it others to clients (eg. Person management). It is likely that the current
employees will require training in the new service area to ensure successful
implementation of the plan.

LIST OF QUESTIONS TO ASK DURING AN ORGANISATION ANALYSIS

 Are there any unspecified organizational goals that should be translated into
training objectives.
 Are the various levels in the organizational committed to the training objectives?
 Will trainees be rewarded on the job for the appropriate leaned behavior ?
 In top management willing to commit the necessary resources to maintain the
organization & work flow while individuals are being trained?

2.TASK ANALYSIS

 Task analysis (sometimes) called operational analysis.

 Task analysis is a systematic collection of data about a specific job or group of jobs
to determine what employees should be taught to achieve optimal performance.
 Results of a task analysis include the appropriate standers of performance, how
tasks should be performance to meet the standards & the knowledge skills, ability
(KSA) & others characteristics that employee need to posses in orders to meet the
standards.

2.1 PROCESS

Develop an overall job description

Task identification

Describe KSAOs needed to perform the job

Identify areas that can benefit from training

Priorities areas that can benefit from training

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1. DEVELOP OVERALL JOB DSESCRIPTION

 Job description is an informative documentation of the scope, duties, tasks,

responsibility & working conditions related to the job listing in the organization
through the process of job analysis.
 In some organizations job descriptions are readily available and are up-dated
regularly.
 Without up-to-date job descriptions. It may be necessary to conduct job analysis.
 A job analysis is a systematic study of a job to identify its major components.
 Job description gives all the relevant & necessary details about a job. The details
which can help one decide whether the job is relevant or not.

2.TASK IDENTIFICATION

 Task identification focuses on the behaviors performed within the job

 In task identification the following information about the job is determined &
clearly described.
 The major takes within the job
 How each task should be performed (i.e. performance standards)
 The variability of performance (how the tasks area actually performed in day-to-
day operations.)

FIVE METHODS FOR TASK IDENTIFICATE INCLUDES

Stimulus response feedback time sampling critical incident technique job inventories job duty

Task methods

A.STIMULUS-RESPONSE-FEEDBACK-METHODS

 This method breakdown each task in 3 components.

 The first component is the STIMULUS OR CUE that lets an employee know it is time
to perform a particular behavior.

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 The second component is the RE-SPONSE or BE-HAVIOUR that the employee is to
perform.
 The third component is the FEED BACK the employee receives about how well the
behavior was performed.

For example

When a buzzer (the stipules) signals that French fries are done cooking, a fast-food
worker should respond by lifting the basket of fries out of the cooking oil & hanging it on
a rack to drain (the behavior) whether the basket stays in place or falls is the feedback on
how well the behaviors was performed.

B. TIME SAMPLING

Time sampling (the second method) involves having a trained observer watch & note the
nature & frequency of an employees activities.

C.CRITICAL INCIDENT TECHNIQUES (CIT)

 CIT developed by JOHN FLANAGAN can also be used for task identification.
 The CIT involves having individuals who are familiar with the job record incidents of
particularly effective & in-effective behavior that they have seen over a job period
of time (like 1 year). This can be done by individuals or in groups.
D. JOB INVENTORIES
 In job inventories-a questionnaire is developed by asking people familiar with
the job to identify all of its tasks.
 This method allows for input from many people and gives numerical information
about each task that can be used to compute indexes & be analyzed.
E. .Job-duty-task method
 In this method the job is divided into is sub-parts, providing a comprehensive list
that identifies the job title.
 And finally (KSAOs) required to performing each subtask k-knowledge, s-skill, a-
abilities, o-other characteristics.

3.DESCRIBE KSAOS NEEDED TO PERFORM THE JOB

 Successful task performance requires that employees possess the KSAOS to

perform the task.
 The HRD professional must specify the KSAO s because it is there competencies
that employees must develop or acquire during the training program.

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 Clear KSAO statements should be written & then evaluated as to their importance
to job performance, learning difficulty & the opportunity to acquire them on the
job.

DEFINATION OF KSAOs

A. KNOWLEDGE
An understanding of a body of information usually of a factual or procedural
nature, that makes for successful performance of a task.
B. SKILL
An individual’s level of proficiency or competency in performing a specific task.
Level of competency is usually expressed in numerical terms.
C. ABILITY
A more general, enduring trait or capabilities on individuals possess when he or she
first begins to perform a task. Eg-the power to perform a physical or mental
function.
D. OTHER CHARACTAERISTICS
Includes personalities, interests and attitudes.

4.IDENTIFY THE AREAS THAT CAN BE BENEFIT FROM TRAINING

 In this step the focus is on determining which tasks & capability should be included
in HRD programs.
 Both rating of tasks as well as ratings of KSOs should be examined.
 KSAOs ratings should be studied for their importance, the difficulty of learning, &
opportunity to acquire them on the job.
 It is also important to remember that not all problems are appropriately dealt with
through HRD programs.
 Other HR or management approaches may be better suited for particular issues &
situations.

5.PRIORITIZE AREAS THAT CAN BE BENEFIT FROM TRAINING

 It should be clear which tasks & KSAOs should benefit from training.
 These tasks & KSAOs be prioritized to determine which ones should be addressed
first.

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3.PERSON ANALYSIS

 Person analysis is directed at deterring the training needs of the individual

employee.
 Someone who can observe the employee’s performance on a regular basis.
 Traditionally, person analysis has involved an employees and that employee’s
immediate supervisor.
 Immediate supervisions play a particularly important role in person analysis.
 Also access to HRD programs in many organizations requires the supervisor’s
nomination & support.
 The sources for person analysis data include performance evaluation direct
observation, terms questionnaires etc.
 Person analysis helps to identify employees who need training, i.e. whether
employee’s current performance or expected performance indicates a need for
training.
 The person analysis is also conducted through questionnaires, 360 feedback,
personal interviews etc.
 Performance appraisal can be valuable tool for collecting person analysis data.

3.1 A MODEL OF PERFORMANCE APPRAISAL IN THE PROCESS OF PERSON ANALYSIS

Determine
Appraisal individual Identify this source of Select
employees captaincies discrepancies intervention
performance

Integrate information
Compare individuals from organization job
behavior & traits to and person analysis
others behavior & traits
to an ideal

Internal factors
External factors

Motivational Knowledge, skills Inadequate

deficiency or abilities equipment, adverse
deficiency conditions.

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4.PRIORITIZING HRD NEEDS

 The prioritizing of HRD needs works best when individuals throughout the
organization are involved.
 Some HRD departments regularly solicit ideas from employees, & this information
can be used to refines improve ongoing programs as well to gauge the demand for
future program.
 By involving others in critical HRD decisions there is a greater likelihood that more
people in the organization will support the total HRD effort.
 Companies mainly run on limited resource and it is very challenging to determine
what resource (like machines, equipment, workforce & building) will be allocated to
each unit.
A. THE HRD ADVISORY CIOMMITTEE
 One way to continuously reflect the needs of employees & assist in prioritizing
needs is to establish an HRD advisory committee.
 The organization should be also recognizes those employees who volunteer their
time to serve on advisory & their committees.
 The role of committee is to meet regularly & review needs assessment & evaluation
data & other advice on the type & content of HRD programs to be offered.
 The advisory committee should be composed of members from a cross-section of
the organization.
B. PARTIACIPATION IN THE PRIORITIZATION PROCESS
 The prioritizing of HRD needs works best when individuals throughout the
organization are involved.
 With this input there is a greater likelihood that more employees will perceive the
HRD programs as being relevant to the organization & to themselves.

5.DEFINING THE OBJECTIVES OF HRD INTERVENTION

 Defining the objectives for the training or HRD program is one of the first things an
HRD professional should do-after completing the needs assessment.
 As such HRD or training programs objectives describes the intent & the desired
result of the HRD program.
 The results can be achieved in many ways (like lectures, role play & coaching), but
this is not specified in the objectives.

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 Rather objectives are used as the basis for determining which methods should be
used to achieve the specified outcome.
 Needs assessment data are useful for defining programs objectives or challenges to
be addressed.
 Objectives are essential to a successful training or HRD program.
 Objectives tell you where the program is going & how to know when you have
reached your desired target.

5.1 HRD PROFESSIONALS MUST ENGAGE IN A NUMBER OF SIGNIFICANT ACTIONS

 Identify the kinds & levels of KSAOs that employees need to attain high levels of
performance & to achieve organizational systems.
 Develop a maintain organization-structures conditions & climates that are
conductive to learning.
 Generate & provide the necessary resources to conduct a program design.
 Indentify & provide access to off-the-job as well as on the job learning resources.
 Provide individual assistance & feedback on various dimensions of individual’s
performance.
 Develop efficient learning process that take into account individual learning styles
abilities and work & life circumstances.
 The objective of this program will be determined by the specific deficiencies client
preferences concerns & other factors identified in the need assessment.
 Writing objectives is a challenging but essential aspect of effective HRD.

SOME QUESTIONS TO ASK WHEN WRITING OBJECTIVES

1. Is your main interest stated (concerning what you want the trainee to do)
2. Have you described all the conditions that will influence trainee performance?
3. Have you described how all the trainee must perform for his or her performance to
be considered acceptable?

5.2GUIDE LINES FOR DEVELOPING USEFUL OBJECTIVES

 An objective is a collections of words symbols pictures/diagrams describing what

you indent for trainees to achieve.
 An objective will communicate your intent to the degree that you describe.
 What the learner will be doing when demonstrating achievement or mastery of the
objectives the important conditions of the doing & the criteria by which
achievement will be judged.

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To prepare a useful objectives continue to modify a draft until these questions are
answered;
 What do I want trainees to be able to do ?
 What are the important conditions or constraints under which I want them to
perform?
 How well must trainees perform for me to be satisfied.
 Write separate statement for each important outcome or intent.
 If you give your written objectives to your trainees you may not have to do much
else why? Because often employees are already able to do what you are asking
them to do & will be happy to demonstrate their ability now that they know what is
expected of them.
 Danny Langdon has promoted the idea of moving beyond objectives to what he
terms developing performs. “Proformas”
 His approach suggest 6 issues that should emphasized :

Inputs,Process,Outputs,Consequences,
conditions & feedback

6.SELECTING TRAINING METHODS

 Training methods come in all shapes and sizes. Fortunately, training and
development options are not one-size-fits-all ,choose the training method that is
the most effective option for your needs.
 The training method you choose can vary by the group of attendees or even the
training topic. choose one technique for one type of training, you can go through
this exercise to choose the right method for each training initiative. Many benefit
from our free consulting for choosing the right training method and platform.
1.DETERMINE THE GOALS FOR THE TRAINING

 The reasons that companies choose to offer training sessions to employees varies.
Some training provides new skills to employees, while other training offers new
techniques for applying existing skills.
 Other types of training instill practices that make the company a safer place to
work or a better place to work.

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2.Recognize the Audience

 It sounds like a marketing concept, but it applies to training as well. You have to
know your audience before choosing a training method.
 The way you train employees varies according to the whether the attendees are
new employees, seasoned employees or upper management or executives of the
company.
 Additionally, the skill level of the audience can also affect the chosen training
method (Example: The computer/web skills of the attendees are non-existent. This
can make web or computer-based training more challenging).

3.Constraints
 Even an ideal situation, companies have to offer training under certain constraints.
While classroom training might be ideal for upper management learning leadership
skills and techniques, the company might not be able to afford this face-to-face
training method.
 Instead, a computer-based or web-based option might better fit into the training
budget. Other constraints to consider include time and the training resources and
materials available for the training topic.

6.1TRAINING METHODS
The top five training methods available include:

a. Classroom Training method :

 Classroom method or lecture method is well-known to train white collar or

managerial level employees in the organization.
 Under this method employees are called to the room like that of classroom to give
training by trainer in the form of lectures.
 This method is effectively used for the purpose of teaching administrative aspects
or on management subject to make aware of procedures and to give instructions
on particular topic.

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b.Induction training:
 Also known as orientation training given for the new recruits in order to make them
familiarize with the internal environment of an organization.
 It helps the employees to understand the procedures, code of conduct, policies
existing in that organization.
c. Seminars or Conferences:
 The seminar or conference approach is well adapted to conveying specific informa-
tion — rules, procedures, or methods.

 The use of audio-visual or demonstrations can often make formal seminar

presentations more interesting while increasing retention and possibly clarifying
more difficult points.

7.PREPARING TRAINING MATERIAL SCHEDULING AN HRD PROGRAM

 Training materials are a necessary part of any program or activity that involves
knowledge acquisition and retention. The best approach to developing instructional
materials is to start by examining the training plan and available resources.
 Designing training materials is like planning a dinner party, coming up with a menu,
and writing the recipes. It’s the “plan before you do” phase of training creation.

7.1 While you’re designing your materials, keep the following points in mind:

 Only create training content and assessments that relate directly to your learning
objectives
 Remember the adult learning principles
 Include as much hands-on practice or simulation as possible: people learn by doing
 Whenever possible, put the employees in control of the learning process (instead of
the trainer)
 Do everything possible to let the employees talk and interact with the trainer and
with each other during the training
 Make sure there’s plenty of opportunity for feedback during training
 Break your training materials up into small “chunks” that are easier to take in and
understand
 Order your “chunked” training materials in a logical manner—one step that builds
on top of another, or chronologically, etc.

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 Try to appeal to a variety of your workers’ senses during training—sight, hearing,
touch, smell, and taste (when appropriate and not dangerous). Sight is by far the
most important sense for learning, but adding the others when possible does help.

7.2 create a variety of training materials using several different tools

 Word, Excel, and similar “Office” programs to create handouts for employees and
to create training outlines and notes for the instructor of any instructor-led
components
 Materials for hands-on elements and/or role-playing elements of the training
PowerPoint for in-class projections and/or handouts to deliver to employees.
 Beware of PowerPoint presentations that are nothing but screen after screen of
bullet points, however.
 Flip-charts, posters, transparencies, and/or computer-generated graphics for
presenting visual materials during training
 E-learning authoring tools such as Articulate Studio and Storyline or Adobe
Captivate for creating computer-based e-learning modulesThese are just a few
ideas, and technology is bringing new possibilities every day, including virtual
reality and augmented reality.
 Be creative and mix and match these to best fit the employees’ training needs.
While creating materials, always keep in mind two primary concerns:
(1) The things that will help your employees learn most effectively
(2) The learning objectives.

PREPARED BY :

B.V.LAKSHMI, M.B.A, Assoc. Professor, BALAJI INSTITUTE OF IT & MANAGEMENT,

KADAPA.

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(17E00306) HUMAN RESOURCE DEVELOPMENT

Objective: The objective of the course is to provide an understanding of the human resources
development framework and focuses on management best practices, tools and models to implement an
effective HRD system

1. Introduction to Human Resource Development: Meaning, significance and objectives of Human

Resource Development, Human Resource Management and Human Resource development functions,
Human Resource Development challenges

2.HRD Need Assessment & Designing of HRD programs: Strategic/ Organizational Analysis- Task
Analysis- Person Analysis- prioritizing HRD needs, defining the objectives of HRD Intervention - Selecting
the trainer - Selecting the Training methods - Preparing training material Scheduling an HRD program

3. Implementation &Evaluation of HRD programs: Training methods - Classroom training Approaches -

Computer based Training, Purpose of HRD Evaluation- Kirkpatrick’s evaluation frame work - Data
collection for HRD Evaluation - Assessing the impact of HRD programs in Monetary Terms

4. Career Management and Development: Introduction to Career management, meaning - Stages of life
and Career Development - process of career Development - Issues in career development.

5. HRD & Diversity: Introduction - Organizational culture - Labor market changes and discrimination
adapting to demographic changes

Text books:

 Jon M Werner,Randy L DeSimone : Human Resource development (Thomson/Cengage)

 Raymond A Noe : Employee Trainee Development ( Tata McGraw Hill)
References:

 John P. Wilson Human Resource Development ( Kogan Page Business Books)

 Tripathi P.C : Human Resource Development ( Sultan Chand & Sons)
 Uday Kumar Haldar : Human Resource Development (Oxford)

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UNIT-3

IMPLEMENTATION AND EVALUATION OF HRD PROGRAMES

1. TRAINING METHODS
 Training is intended to increase the expertise of trainees in a particular area.
 Training methods can be classified by whether they take place on the job versus
away from the employee’s normal work setting.

1.1ON- THE JOB TRAINING METHODS

 On the job training involves conducting training at a trainees regular work station
(desk, machine, etc)
 This is the most common form of training most employees receive at least some
training and coaching on the job.

 On-the-job-training is the heart and soul of all training in business and industry. OJT
as it is known or sometimes called “Shop Training” is the most universal form of
employee development.
 This is the traditional method of learning, which is designed to maximise learning
while allowing the employee to perform his job under the supervision and guidance
of a trained worker or instructor, providing him practical application and making
principles and concepts of learning meaningful and realistic.

The main advantages of on-the-job training (OJT) are as follows:

 OJT is the type of training which can be tailored to suit the specific requirements
of each trainee, in terms of his background, attitudes, needs, expectations, goals
and future assignments.
 This method is very economical because no additional space, equipment,
personnel or other facilities are required for training. The trainee produces
while he learns.
 The trainee learns the rules, regulations and procedures by observing their day
to day applications.
 OJT is specific, practical and tangible.
 OJT is most suitable for unskilled and semi-skilled jobs where the job operations
are simple, easy to explain and demonstrate within a short span of time.
 The supervisors feel greater responsibility and work more willingly and zealously
for the development of their subordinates, while imparting OJT.
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Demerits:
 In OJT there is a tendency to neglect, disregard and even to do away with, in
some cases, the essentials of principles and theory in favour of immediate
production.
 Trainee while learning may damage equipment, waste materials, cause
accidents frequently.
 The work place, with environment charged with hustle and noise and the pace
of skilled workers, is most likely to affect the learning and may create a feeling
of frustration in the mind of a trainee.
 Experienced workers cannot use the machinery while it is being used for
training.

A. JOB INSTRUCTION TRAINING (JIT)

 Job instruction training is defined as a sequence of instructional procedures used by
the trainer to train employees while they work in their assigned job.
 It is a step by on the job training method. It involves an orderly period of instruction
provider by a designated trainer someone familiar with the jo0b tasks well versed
in training techniques.
 It involves all necessary steps in the job like,

PREPARATION

INSTRUCTION

PERFORMANCE

FOLLOWS UP

STEP-1 – PREPARATION

 The trainer breaks down the job into small tasks prepares all the equipment and
supplies necessary to do the tasks and allocates a timeframe to learn each task.
 The trainer needs to understand the background capabilities and attitudes of
trainers as well as nature of the tasks to be performed before choosing a technique
or combination of technique.

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STEP – 2 – INSTRUCTION

 This step involves telling showing explaining and demonstration the task to the
trainee.
 Allow the trainee to show the demonstration on his or her own and follows up to
provide feedback and help.
 Point out possible difficulty as well as safety procedures encourage questions.

STEP – 3 – PERFORMANCE

 The trainee performs the task under the trainer’s guidance and the trainer provides
feedback and re informant each task is learned in a similar way until the whole job
can completed without error.
 Try to ensure initial success. Ask the trainee to explain the steps
 Gently suggests improvements where necessary.
 Provide feedback on performance reinforce correct behaviors

STEP – 4 – FOLLOWS UP
 Once the performance step is complete the trainee will be left on his/her own to
perform the task the trainer monitors the trainees performance.
 It is important that the trainer keeps of trainee’s performance and provide support
and feedback.
 The trainer should leave the trainee to work alone indicate when and where to find
help if necessary supervise closely and check performance periodically and then
gradually tapper (a person who works at a specific occupation) of instructions as
the employees gains confidence and skill.
B. COACHING
 Coaching is one to one training. It helps in identifying the weak areas and tries to
focus on them.
 Coach makes an analysis of trainees work performance and tries to improve it with
suitable guidance.
 Coach (senior manger) must play an active role in guiding and teaching skills.
 The coach ay diverts the trainee executive from routine work and assigns him to
handle some complex problems and observe his performance.
 The trainee executive acquires the skills and knowledge to perform a job and also
acquire the teaching or coaching ability

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Benefits to coaching an individual include:

 improvement in individual’s performance, targets and goals

 increased openness to personal learning and development
 increased ability to identify solutions to specific work-related issues
 greater ownership and responsibility
 development of self-awareness
 improvement of specific skills or behaviour
 greater clarity in roles and objectives
 the opportunity to correct behaviour/performance difficulties

Benefits of coaching to an organisation:

 allows fuller use of individual’s talents/potential
 demonstrates commitment to individuals and their development
 higher organisational performance/productivity
 increased creativity, learning and knowledge
 motivates people
 facilitates the adoption of a new culture/management style
 improves relationships between people and departments

C. MENTORING

 Mentoring is a long term development process mentoring is one of the

individual and informal activities that mainly occur through encouraging
experienced workers to share their knowledge with those who are less
experienced and encouraging workers to take further training.
 Mentoring involves a senior manager or other experienced employees providing
job and career related information to a mentee.
 Mentoring refers to a relationship between a junior and senior member of the
organization that contributes to the career development of both member.
 In many organizations mentoring relationships are formed as a result of the
party’s mutual attraction.
 Some organizations like apple computer federal express etc have created formal
mentoring programs in which mentors and protégés (protected) are paired by
the organizations and provided with support for the relationship.
 The mentoring relationship serves both career and psychological functions.
 One mentor has a chance to serve as a role model and share what he or she
knows with someone who can benefit from such knowledge.

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Types of Mentoring:

1. Formal mentoring:
 Formal mentoring is a process where two parties, preferably of the same
department, are paired together in a mentor-mentee relationship.
 Here, both the older as well as the junior (new employee) share a relationship of a
teacher-student, which is assigned as a responsibility of the mentor.
 At times, this one on one relationship may be a result of replacement. When an
experienced employee is about to retire or resign he or she is replaced by another
candidate.
 Thus, the mentor-mentee relationship indirectly works for the company’s capital
benefit. It saves the cost of training for the new employees.
 Moreover, it also saves the time. Therefore, one can say that there is an indirect
relationship between the mentor and the training management.
Group mentoring:
 Group mentoring is also called as team mentoring. Here, a senior worker guides all
the junior mentees in a group. These groups of junior mentees go through a timely
scheduled meeting, once a week or month. This method helps in improving and
getting familiar with the company environment.
 Moreover, the timely meeting in a group also increases the motivating factor in the
trainees. These meeting sometimes include a structural outline like the formal way
of mentoring.
 However, an informal mentoring method is also put to work at times. Here, the
competitive spirit of working and striving better is encouraged due to the majority
of the trainees.
ADVANTAGES
 The learner has opportunities to interact with experienced managers to improve
performance. He gains confidence and self-awareness.
 There is rapid feedback of action on performance improvement to the learner.
 Learner is self-motivated to learn with confidence.
 It is not limited to performance-related problems. It focuses on future growth
 Mentoring includes training, support, encouragement, advice and guidance from
people who have both ‘done it before’ and are usually independent of the
mentee’s current organization
 It is not limited to performance-related problems. It focuses on future growth.
 Both the mentees and mentors gain confidence and leadership skills
 Mentees report the benefits of a different perspective
 Mentees are more likely to plan and apply for promotions

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 Mentors and mentees can gain insights into best business practices in other
companies
 The process allows mentors and mentees to make useful networking connections,
and have access to role models
Disadvantages Of Mentoring

 Heavy reliance is placed on the wisdom and abilities of the mentor. This may limit
the scope for development.
 Current management styles and practices are focused.
 The senior managers may be unwilling for mentoring.

2. COMPUTER BASED TRAINING

 Computer based training can be conducted in either a classroom or individual self
paced format.
 With the increased availability of networker’s computer labs there can be an almost
limitless interplay between instructor led and individual based computer training.
 Computer based training involves the use of a personal or networked computer for
the delivery and access of training programs.
 CBT can be most cost efficient when designed to train a larger number of students.
 The interaction between the learner and the computer in many CBT programs
mirrors the one on one relationship between student and tutor questions and
responses c go back and forth resulting in immediate feedback.
 In this type of training method managers involvement is very high for the purpose
of preparing the training material. This prepared material is uploaded on computer
software.

Advantages

a.Cost Effective
 Initial costs of setting up a computer-based training center can be expensive,
particularly if you choose to create a customized system.
 According to Penn State Staff, less expensive pre-made training systems are
available, and many can be customized for your company needs.
 Aside from those initial setup costs, computer-based training can provide your
company with a 24-hour trainer that has virtually unlimited simultaneous student
capacity.

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 Trainees usually don't have the added expense of traveling for training, and a
computer-based system can be customized to focus on individual sections of the
material needed by each person that's being trained.
 Combined, the overall training costs and training time needed per employee can
be significantly lowered.

b. Flexible And Comfortable

 Computer-based training allows trainees to work at their own learning pace and
style, both of which can be adjusted to match the individual needs of each trainee.
 Computer-based training is non-threatening and non-judgmental while providing
immediate feedback as the training progresses.
 The immediate interactive feedback of the computer based training system allows
trainees to review sections of the material as frequently as needed, privately and
without feeling embarrassed by mistakes.

1.2Off-the-job Training Methods:

Off-the-job training methods are conducted in separate from the job environment, study
material is supplied, there is full concentration on learning rather than performing, and
there is freedom of expression. Important methods include:

A. Lectures and Conferences:

 Lectures and conferences are the traditional and direct method of instruction.
Every training programme starts with lecture and conference. It’s a verbal
presentation for a large audience.
 However, the lectures have to be motivating and creating interest among trainees.
The speaker must have considerable depth in the subject.
 In the colleges and universities, lectures and seminars are the most common
methods used for training.
B. Vestibule Training:
 Vestibule Training is a term for near-the-job training, as it offers access to
something new (learning).
 In vestibule training, the workers are trained in a prototype environment on
specific jobs in a special part of the plant.
 An attempt is made to create working condition similar to the actual workshop
conditions.
 After training workers in such condition, the trained workers may be put on similar
jobs in the actual workshop.
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 It prevents trainees to commit costly mistakes on the actual machines.

C. Simulation Exercises:
 Simulation is any artificial environment exactly similar to the actual situation.

 There are four basic simulation techniques used for imparting training management
games, case study, role playing, and in-basket training.

D.Management Games:

 Properly designed games help to ingrain thinking habits, analytical, logical and
reasoning capabilities, importance of team work, time management, to make
decisions lacking complete information, communication and leadership capabilities.
Use of management games can encourage novel, innovative mechanisms for coping
with stress.
 Management games orient a candidate with practical applicability of the subject.
These games help to appreciate management concepts in a practical way.
 Different games are used for training general managers and the middle
management and functional heads – executive Games and functional heads.
E. Case Study:
 Case studies are complex examples which give an insight into the context of a
problem as well as illustrating the main point.
 Case Studies are trainee centered activities based on topics that demonstrate
theoretical concepts in an applied setting.
 A case study allows the application of theoretical concepts to be demonstrated,
thus bridging the gap between theory and practice, encourage active learning,
provides an opportunity for the development of key skills such as communication,
group working and problem solving, and increases the trainees” enjoyment of the
topic and hence their desire to learn.
F.Role Playing:
 Each trainee takes the role of a person affected by an issue and studies the impacts
of the issues on human life and/or the effects of human activities on the world
around us from the perspective of that person.

 The steps involved in role playing include defining objectives, choose context &
roles, introducing the exercise, trainee preparation/research, the role-play,
concluding discussion, and assessment.

 Types of role play may be multiple role play, single role play, role rotation, and
spontaneous role play.

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3. PURPOSE OF HRD EVALUATION

 HRD evaluation is defined as the systematic collection of descriptive and

judgmental information necessary to make effective training decisions related to
the selection adoption value and modification of various instructional activities.
 This definition makes served important points,
 When conducting an evaluation both descriptive and judgmental information may
be collected descriptive information provides a picture of what is happening or has
happened.
 Evaluation involves the systematic collection of information according to
predetermined plan to ensure that the information is appropriate and useful.
 Finally evaluation is conducted to help mangers employees and HRD professionals
make informed decisions about particular programs and methods.
 Determining accomplishment of specific training objectives.
 Determining cost effectiveness of training. Explain program failure, if it occurs.
 Enhancement of the credibility of training and development if tangible benefits to
an organization are proved.Determine whether the program is meeting the
intended objectivesIdentify strengths and weaknesses
 Determine cost-benefit ratioIdentify who benefited most or least
 Determine future participantsProvide information for improving HRD programs
 Reinforce major points to be madeGather marketing information
 Determine if training program is appropriateEstablish management database
ZENGER AND HARGIS identified 3 additional reasons for conducting HRD
evaluations,
 If HRD cannot substantiate its contribution to the organization its funding and
programs may be cut during the budgeting process especially when the
organization faces tough times.
 Evaluation can build credibility with top managers and others in the organization.
 Senior management often wants to know the benefits of HRD programs.

4. KIRPATRCIK’S EVALUATION FRAME WORK

 The most popular and influential frame work for training evaluation war articulated
by Kirkpatrick.
 Kirkpatrick’s argues that training can be evaluated to four criteria like reaction
learning behavior and results.

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A. REACTION
 Reaction involves measuring the satisfaction of the participants.
 At this level the focus is one the trainee’s perceptions about the program and its
effectiveness.
 The trainees asked whether the resources provided in the training were useful or
not.
 Positive reactions to a training program may make programs.

EXAMPLES OF RESOURCES AND TECHNIQUES FOR LEVEL ONE

 Interviews
 Did the training meet the participant’s needs?
 Are the participants happy with the instructors?
 Especially encourage written comments
 Try to get honest response and feed backs.

LEVEL – 2

LEARNING

 Did the trainees learn what the HRD objectives said they should learn are?
 This is an important criterion that an effective HRD program should satisfy.
 It can be assessed with the help of paper and pencil tests job simulations and skill
practices.
 New skills/knowledge/attitudes what was learned and what was not leaned.

EXAMPLES OF TOOLS AND PROCEDURES FOR LEVEL TWO

 Exams, interviews or assessments prior to and immediately after the training

 Observations by peers and instructions
 Interview printed or electronic type examinations can be carried out.
 Strategies for assessment should be relevant to the goals of the training programs.

LEVEL – 3

BEHAVIOR

 Does the trainee use what was learned in training back on the job? This is also a
critical measure of training success.
 Was the leaning being applied by the attendees
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 Measuring whether training has transferred to the job requires observation of the
trainee’s on the job behavior or viewing organizational records
 (Example, reduced customer complaints, reduction in scrap rate)
 In this level the focus is on how the training programme has changed the trainee’s
behaviors in a positive way.

This level starts 3 -6 months after training

EXAMPLES OF ASSESSMENT RESOURCES AND TECHNIQUES FOR LEVEL THREE

 Were the learned knowledge and gained skills used?

 This can be carried out through observation and interviews.

LEVEL – 4

RESULT

 Has the training or HRD effort improved the organizations effectiveness?

 Is the organizations more efficient more profitable or better able to serve it clients
or customers as a result of the training program?
 The main focus here is on assessing the utility profitability and improvement in
customer services.
 Meeting this criterion is considered the bottom line as far as must mangers are
concerned.

TYPES OF ASSUMENT STRATEGIES AND TOOLS USED FOR LEVEL 4

 Allow enough time to measure/evaluate

 No final results can be found unless a positive change takes place.
 The process is to determine which methods and how these procedures are relevant
to the participant’s feedback.
5. DATA COLLECTION FOR HRD EVALUATION
 Data collection is very important for the purpose of training because it act as the
basis for its evaluation and monitoring
 Usually the professional of the performance training and human resource depends
on the accurate data due to the following reasons.
 To compare the best and the current level of performance of employee.
 To decide the present status of training in some special skill.
 To perform the analysis of needs of training of employees.

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5.1METHODS OF DATA COLLECTION FOR HRD EVALUATION

question
naire

observati
tests
on
method
s

attitude
iterviews
survers

1. QUESTIONNAIRE
 Questionnaire is a systematic process of gathering information for any research.
 In questionnaire a set of questions is given to people in order to collect facts and
figures for any particular research.
 Questionnaire if properly designed can give the most accurate information.
 The questionnaire is likely to be a less expensive procedure than the interview as it
is simply mailed to the respondents with a minimum of explanation.
 Further, the questionnaire can often be sent to a large number of individuals
simultaneously With a given amount of funds,
 It is usually possible to cover a wider area and obtain information from more
people by means of questionnaires than by personally interviewing each
respondent.
 The impersonal nature of a questionnaire-its standardized wording, its
standardized order of questions, its standardized instructions for recording
responses-ensures some uniformity from one measurement situation to another.
2. TESTS
 Test is a basic parameter for evaluating the training and development of the
organization.
 Generally tents in dude written test which is conducted to test the trainee’s
knowledge and performance.

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3. ATTITUDE SURVEYS
 It is a very different type of questionnaire for gathering the information related to
training evaluation.
 It gathers information regarding employee attitude work place policies procedures
supervisors and organization to see the changes in attitude before and after
programme measurements are done.
 Employee Attitude surveys provides a picture of your organization's needs. These
surveys can be used to solicit employee opinions on a variety of issues such as the
company's success in communicating its mission to employees, or local issues such
as quality of the working environment.
 Dramatic improvements can be made to enhance employee productivity,
commitment and satisfaction once an organization can pinpoint the areas where
employees are most frustrated.

Uses for Employee Attitude Surveys include:

 Focusing of Employee Development Programs
 Enhancing Management/Employee Relations
 Training Needs Assessment
 Evaluation of Training
 Organizational Climate Survey
 Customer Satisfaction Survey
 Facilitate the company’s development and organizational change
 Focus on specific company needs or gaps in service, training and professional
development
 Enhance communication between employees and management
 Provide employee feedback on company morale and the health of the organization
 Offer feedback on the impact of company policies and procedures
 Identify ways to motivate employees, increase job satisfaction and improve the
bottom line

4. INTERNVIEWS
 Interviews are a very helpful source of training evaluation but these are not used
often like other methods.
 Training staff, the participant’s supervisor or an outside third party can organize the
interviews.
 Sufficient information can be collected through the interview process

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Advantages:

 Collect complete information with greater understanding.

 It is more personal, as compared to questionnaires, allowing us to have higher
response rates.
 It allows for more control over the order and flow of questions.
 We can introduce necessary changes in the interview schedule based on initial
results (which is not possible in the case of a questionnaire study/ survey)

Disadvantages:

 Data analysis—especially when there is a lot of qualitative data.

 Interviewing can be tiresome for large numbers of participants.
 Risk of bias is high due to fatigue and to becoming too involved with
interviewees
5. OBSERVATION
 Observations methods are very much related with attitude surveys and it is a
continuous process of observing the employee starting from the beginning till the
end.
 After observation evaluators record the changes in the behavior of employees for
observation to be effective it is very important that the personnel acting as
observes should have proper training.

Advantages

 Excellent for assessing training needs for physical/psychomotor skills

 Creates a step-by-step procedure that can be standardized for all learners in the
form of a flowchart, diagram, graphic, list of steps, or a job aid
 Identifies job environment conditions that help or hinder performance
 Allows the observer to hypothesize nontraining issues in the job environment that
are important
 Can be augmented with a critical incident interview to “observe” job performer’s
mental processes

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Disadvantages

 Difficult to identify where a specific task begins and ends

 Misses the performer’s mental processes in making choices at each step unless
accompanied by a critical-incident interview
 Some performers will act differently than normal because they know they are being
watched. Interviewing the performer after observation can help control for this
effect

7. Assessing the impact of HRD programs in Monetary Terms

7.1Evaluation of Training Costs

Cost-benefit analysis

Compares cost of training to benefits gained such as attitudes, reduction in accidents,

reduction in employee sick-days, etc.

Cost-effectiveness analysis Focuses on increases in quality, reduction in scrap/rework,

productivity, etc
 Direct costs
 Indirect costs
 Development costs
 Overhead costs
 Compensation for participants
Direct Costs
 Instructor
 Base pay
 Fringe benefits
 Travel and per diem
 Materials
 Classroom and audiovisual equipment
 Travel
 Food and refreshments
Indirect Costs
 Training management

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 Clerical/Administrative
 Postal/shipping, telephone, computers, etc.
 Pre- and post-learning materials
 Other overhead costs
Development Costs

 Fee to purchase program

 Costs to tailor program to organization
 Instructor training costs

Overhead Costs
 General organization support
 Top management participation
 Utilities, facilities
 General and administrative costs, such as HRM

PREPARED BY :

B.V.LAKSHMI, M.B.A, Assoc. Professor, BALAJI INSTITUTE OF IT & MANAGEMENT,

KADAPA.

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(17E00306) HUMAN RESOURCE DEVELOPMENT

Objective:The objective of the course is to provide an understanding of the human

resources development framework and focuses on management best practices, tools and
models to implement an effective HRD system

1.Introduction to Human Resource Development: Meaning, significance and objectives

of Human Resource Development, Human Resource Management and Human Resource
development functions, Human Resource Development challenges

2.HRD Need Assessment & Designing of HRD programs: Strategic/ Organizational

Analysis- Task Analysis- Person Analysis- prioritizing HRD needs, defining the objectives of
HRD Intervention - Selecting the trainer - Selecting the Training methods - Preparing
training material Scheduling an HRD program

3.Implementation &Evaluation of HRD programs: Training methods - Classroom training

Approaches - Computer based Training, Purpose of HRD Evaluation- Kirkpatrick’s
evaluation frame work - Data collection for HRD Evaluation - Assessing the impact of HRD
programs in Monetary Terms

4.Career Management and Development: Introduction to Career management, meaning

- Stages of life and Career Development - process of career Development - Issues in career
development.

5.HRD & Diversity: Introduction - Organizational culture - Labor market changes and
discrimination adapting to demographic changes

Text books:

 Jon M Werner,Randy L DeSimone : Human Resource development

(Thomson/Cengage)
 Raymond A Noe : Employee Trainee Development ( Tata McGraw Hill)
References:

 John P. Wilson Human Resource Development ( Kogan Page Business Books)

 Tripathi P.C : Human Resource Development ( Sultan Chand & Sons)
 Uday Kumar Haldar : Human Resource Development (Oxford)
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UNIT-4

CAREER MANAGEMENT AND DEVELOPMENT

1. INTRODUCTION TO CAREER MANAGEMENT

 The study of careers and how they develop is one of the most active areas of
inquiry in the social sciences.
 Understanding and finding ways to influence the careers of employees in an
organization in also an integral part of HRD.
 Career development provides a future orientation to HRD activities.
 Career management as a process for enabling employees to better understand and
develop their career skills and interests, and to use these skills and interests most
effectively both within the company and after they leave the firm.
 Career management is the process through which employees Become aware of
their own interests, values, strengths and weaknesses.
 Obtain information about job opportunities within the company. Identify career
goals.
 Establish action plans to achieve career goals Successful career management is
accomplished through regular habits of building relationships, engaging in career
development conversations, updating your career development plan, and setting
new goals as life and career needs change.
 Being proficient at career management also means possessing basic skills related
to job searching and managing changes in a resilient manner

WHAT IS A CAREER?
 The work career means many things to many people. It also has different meanings
among researchers.
 A career is unique to each person and created by what the person chooses or does
not choose.
 Both the individual and organization have needs and priorities and it is important to
remember that both are critical to the development of one’s career.

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1.1DEFINITION OF CAREER
According to HALL a career can be defined a s the individually perceived sequence
at work related experiences and activities over the span of the person’s life.

1.3Objectives of Career Planning:

 To identify positive characteristics of the employees.
 To develop awareness about each employee’s uniqueness.
 To respect feelings of other employees.
 To attract talented employees to the organization.
 To train employees towards team-building skills & to create healthy ways of dealing
with conflicts, emotions, and stress.

2. MEANING
 Career management is a process that enables the employees to better understand
their career skills, develop and give direction to it and to use those skills and
internet most effectively both within and outside the organization.
 Career management and career planning activities are complementary and can
reinforce each other.
 Career management can also be regarded as lifelong self monitored process of
career planning.
 Career management is the process of through which employee like,
 Become aware of their own interests values strengths and weakness.
 Identify career goals and establish action plans to achieve.

2.1Career Development:
 Career development is an activity of the organisation considering the long term
benefits and success of personnel and organisational effectiveness A long term
career development programme can be chalked out to reap various benefits.

 The organisation spends heavy amount on training the staff and development of its
executives so that it get the required talents from within the organisation. It does
not have to search them from outside.

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The following are the advantages of career development:

 Career development becomes essential because of changing job requirements due

to changes in technology. Instead of searching the resources elsewhere it is always
better to develop the resources from the organisation.
 It will benefit both the organisation as well as the employees for they get better
prospects in the same organisation as their career is further developed by their
organisation. This increases the sense of belonging to the organisation and boost
up their morale.
 Employee’s respect for their employer goes up as he feels obliged. Through career
development employer expresses its concern for the employees and helps them
planning their own career. Personnel development is attained through career.
Personnel development is attained through career development.
 Career development helps in attracting the talents from other organization. Any
talented person wants the opportunity which is challenging and satisfies him.
 For meeting the challenges talents get attracted towards the organization which
gives scope and further develop their talents to suit the job requirements.
 Organisation through effective career development programmes can develop their
talents and give them a fair chance to go up and contribute to the organisation.
 Women are emerging very strong on every field. They do not need sympathies or
anybody’s help. They have tremendous potentials in them. Career development
can play significant role in this respect.
 Career development boosts up morale of the employees and removes frustration
from their minds. The career development gives chance to highly educated to move
upward. The employees can match their expectations with career advancement.
 Through effective career counseling the question of aspirations and career
dimensions can easily be tackled. All these efforts should result into effective
management of human resources.

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3. STAGES OF LIFE AND CAREER DEVELOPMENT

 Career stages are identified on the basis of various changes in the work life of
individual their needs their targets and their priorities.
 Each and every stage of career is comprised of numerous activities preparing an
individual for further psychological change.
 Every individual has to go through certain stages separated by transition periods in
order to develop their career in a systematic way these stages are as follows,

A. EXPLORATION STAGE
 The exploration stage is the pre employment stage where in the individuals is in
their mid twenties and enters from their college life to the work environment.
 In order to enhance the skills of new employee organization can also conduct some
training and development programmes.
 Providing comfortable environment for the new employee by making him aware of
various job positions using job rotation methods seminar etc.

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 By providing entire history of the company to the fresher and the different job
opportunities that an individual can enjoy while working in the company.
B. ESTABLISHMENT
 In this stage an individual looks out for his first job. As the journey for jo0b hunting
ends in this stage the individual starts gaining his first job experiences.

MANAGEMENT AT ESTABLISHMENT STAGE

 Individuals having excellent skills that can prove out to be beneficial for the
company in future is acknowledge by the management.
 Proper feedback is given by the company on the performance of the employee this
helps the employee to identify their positive and negative points.

C. MID CAREER STAGES

 This stage lies between the age group of 35-50 and the individual is not considered
as a fresher or learner.
 Usually in this stage some people may grow due to their improved performance
and bring good results for the company but there are also some people who
become less enthusiastic with the passage of time and their level of performance
starts diminishing.
 Giving the employees more challenging job so that they get motivated to perform.
 Establishing certain policies that can motivate the employees going through the
stage of platform utilize their skills to the fullest platform.
D. LATE CAREE STAGE
 After 50’s begins the late career phase in which a bit relaxation is given to the
individuals.
 Employees of this stage as a source of stimulation for others.
 The management should give important to the employees of this stage as they
have vast experience and knowledge which proves out to be very beneficial to the
organization.
 They also act as the counselor because they can provide right guidance to the other
employees and they even play the role of trainer and thus can transfer their entire
knowledge and skills to the younger generation.
E. DECLINE STAGE
 This is also known as retirement stage of career. In this stage individual tends to
spend his entire time with family and friends.
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 Whether an individual has lead a successful or an unsuccessful career one has to
leave behind all this and move on in this life.
 Understanding retirement process in such a way that it does not harm the self
esteem of the employees.
 Utilizing the knowledge creatively and experience of retrieving employees by
creating leisure job opportunities for them.

4.PROCESS OF CAREER DEVELOPMENT

Information, opportunities & support from

Need to make
Decision Awareness B of
Career self & Goal setting
exploration A environment

Career appraisal Feedback

H work/G non
work

Progress toward Strategy Strategy

goal F implementation development
E

Educational, family, work & societal institutions

 Individuals face a number of decisions in managing their careers.

 This model stages that effective career management begins as the individual
responds to the need to make a career decisions
 It is important to note that the career management process is cyclical and ongoing.
 This model can assist both employees and organizations in understanding what
should be done to effectively manage careers.

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 Assisting employees in conducting this process can help the organization ensure
that the human resources available will be adequate to perform important tasks
and accomplish organizational objectives?
A. CAREER EXPLORATION/SELF ASSESSMENT

 The first step is self evaluation will lead the individual to a deeper self awareness
and an understandings of both opportunities and constraints present in the
environment.
 For example, a young woman engaged in career exploration could collect
information about her values skills etc, and as well as information about the
possible jobs ad organizations available to her in the environment.

B. AWARENESS OF SELF AND ENVIRONMENT /CAREER AWARENESS

 Successful career exploration will lead the individual to a deeper self awareness
and an understanding of both opportunities and constraints present in the
environment.
 This awareness of self and environment can lead the individual to set or revise
career goals or if such goals are already set it would lead to strategies development
C. GOAL-SETTING
 A career goal is an outcome the individual decides to try to obtain such goals may
be specific (example, I want to become a partner in my accounting company/firm
by age 35) or general (example, I want to a successful and respected chef)
 The following points must be considered while the current user.
 Essential competencies to be inculcated for career growth and success.
 Discussion with superiors regarding work performance aptitudes and knowledge is
essential and feedback should be sought regularly.
D. STRATEGY DEVELOPMNET
 An effective strategy should include the actions that should be carried out and a
time table for performing them.
 The strategy will be more effective if it is based on realistic self awareness and
environment awareness.

Greenhow list seven career strategies like,

 Competency in current job

 Increased involvement in work
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 Developing skills
 Developing opportunities
 Cultivating mentor relationships
 Image building
 Engaging in organizational politics
E. STRATEGY IMPLEMENTATION
 Strategy implementation involves carrying out the strategy the individual has
developed. It is easier to set where you want to go if you have a plan to follow
 Some people may develop elaborate plays but then fail to implement them.
 Strategy implementation can lead to progress toward the goal and feedback from
work and non work sources.
F. PROGRESS TOWARD THE GOAL
 This is extent to which the individual is nearing the career goal.
G. FEEDBACK FROM WORK AND NON WORK SOURCES
 Valuable information about the progress toward the career goal can be obtained
from both work sources like co workers supervisors and specialist and non work
sources family, friends and teachers.
H. CAREER APPRAISAL
 Feedback and information on progress toward the career goal permit the
individual to appraisal his or her career.

5. Issues in career development.

a. Career Plateau:
 Career plateau is the common phenomenon in most of the organization. This may
be because of the pyramidal structure of the organizations.
 The organization structure is flatter at the bottom and narrower at the top as a
result very few posts are available at the top resulting into a fierce competition
among the executives.
 Only a few can ride the ladder others have to be content on the plateau.
 The employee has to wait for more time to get promotion as his length of service
increases.
 This is a common feature in India in almost all organizations and especially in
government organizations and public sector units.
 Employees have to wait for 10 to 15 years to get first promotion in their career. The
distance between the two promotions is increasing.

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 Career plateau leads to poor performance, dissatisfaction among employees. Some
may think of leaving the organization because of plateau career.
 Career plateau has serious effects executives. Lack of further chances to go up
frustrate them, their efficiency goes down considerably.
 This results into leaving the organization and joining the other.
 To save employees and executives from such a embarrassing position, the
organization should create more promotional posts carrying higher pay, higher
status and responsibility both laterally and vertically so that most of the staff be
accommodated in the career path after a short interval of time.

Career plateau is shown in the diagram given below:

B.Career Motivation

 Career motivation is the desire to exert effort to enhance career goals. People who
are high in career insight have an accurate understanding of their strengths and
weaknesses and set clear career goals. Career identity is the direction component.
 This is the extent to which people define themselves by their careers. People who
are high in career identity are highly involved in their jobs, their organizations,
and/or their professions.
 They strive for advancement, recognition, and a leadership role. Career motivation
has been measured by developmental assessment centers and questionnaires.
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C.Emphasis on Career Development

 Too great an emphasis on career development and enhancement can be

detrimental to organizational effectiveness.

 Employees with an extreme careerist orientation can become more concerned

about their image than their performance. There are certain warning signs
managers should watch for:

 Is the employee more interested in capitalizing on opportunities for advancement

than in maintaining adequate performance?
 Does the employee devote more attention to managing the impressions he or she
makes on others than to reality?
 Does the employee emphasize networking, flattery, and being seen at social
gatherings over job performance?
 In the short run, people who engage in these tactics often enjoy advancement.
However, sooner or later they run into workplace duties or issues they are not
equipped to deal with.
 Managers should be aware that a career development program can have serious
side effects, including employees dissatisfaction, poor performance, and turnover if
it fosters unrealistic expectations for advancement
D.Lack of Awareness
 A lack of awareness about skills, values and interests can cause problems when
trying to choose a career.
 While this is a typical problem for people newly entering or re-entering the
workforce, it can affect anyone who is out of touch with what he wants from a
career.
 Career aptitude tests and career counseling can help a person determine the type
of careers he should pursue.

PREPARED BY :

B.V.LAKSHMI, M.B.A, Assoc. Professor, BALAJI INSTITUTE OF IT & MANAGEMENT,

KADAPA.

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(17E00306) HUMAN RESOURCE DEVELOPMENT

Objective:The objective of the course is to provide an understanding of the human resources

development framework and focuses on management best practices, tools and models to
implement an effective HRD system

1.Introduction to Human Resource Development: Meaning, significance and objectives of

Human Resource Development, Human Resource Management and Human Resource
development functions, Human Resource Development challenges

2.HRD Need Assessment & Designing of HRD programs: Strategic/ Organizational Analysis-
Task Analysis- Person Analysis- prioritizing HRD needs, defining the objectives of HRD
Intervention - Selecting the trainer - Selecting the Training methods - Preparing training
material Scheduling an HRD program

3.Implementation &Evaluation of HRD programs: Training methods - Classroom training

Approaches - Computer based Training, Purpose of HRD Evaluation- Kirkpatrick’s evaluation
frame work - Data collection for HRD Evaluation - Assessing the impact of HRD programs in
Monetary Terms

4.Career Management and Development: Introduction to Career management, meaning -

Stages of life and Career Development - process of career Development - Issues in career
development.

5.HRD & Diversity: Introduction - Organizational culture - Labor market changes and
discrimination adapting to demographic changes

Text books:

 Jon M Werner,Randy L DeSimone : Human Resource development (Thomson/Cengage)

 Raymond A Noe : Employee Trainee Development ( Tata McGraw Hill)
References:

 John P. Wilson Human Resource Development ( Kogan Page Business Books)

 Tripathi P.C : Human Resource Development ( Sultan Chand & Sons)
 Uday Kumar Haldar : Human Resource Development (Oxford)

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5. HRD & Diversity

1.Introduction

 Thomas defines managing diversity as “a comprehensive

managerial process for developing an environment
(organizational culture) that works for all employees.”
 This approach goes beyond both affirmative action and valuing
diversity because it focuses on building a positive environment for
everyone and on full utilization of the total workforce.
 It does not exclude women or minorities, nor does it exclude
whites or males. It is an attempt to create a level playing field for
all employees without having regard for cultural distinction
 Managing the diversity approach requires
 a long- term commitment to change;
 substantive changes in organizational culture;
 a modified definition of leadership and management roles;
 both individual and organizational adaptation; and
 Structural changes.

 It's important to understand how these dimensions affect

performance, motivation, success, and interactions with others.
Institutional structures and practices that have presented barriers
to some dimensions of diversity should be examined, challenged,
and removed
 Managing diversity is defined as "planning and implementing
organizational systems and practices to manage people so that
the potential advantages of diversity are maximized while its
potential disadvantages are minimized.

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 Managing diversity well provides a distinct advantage in an era

when flexibility and creativity are keys to competitiveness.
 An organization needs to be flexible and adaptable to meet new
customer needs.
 Heterogeneity promotes creativity and heterogeneous groups
have been shown to produce better solutions to problems and a
higher level of critical analysis. This can be a vital asset at a time
when the campus is undergoing tremendous change and self-
examination to find new and more effective ways to operate.
 With effective management of diversity, the campus develops a
reputation as an employer of choice. Not only will you have the
ability to attract the best talent from a shrinking labor pool, you
can save time and money in recruitment and turnover costs..
 Managing diversity focuses on maximizing the ability of all
employees to contribute to organizational goals. managing
diversity emphasizes business necessity.

2. Organizational culture

 Organizational culture is a system of shared assumptions, values,

and beliefs, which governs how people behave in organizations.
 These shared values have a strong influence on the people in the
organization and dictate how they dress, act, and perform their
jobs.
 Every organization develops and maintains a unique culture,
which provides guidelines and boundaries for the behavior of the
members of the organization.
 Let's explore what elements make up an organization's culture.

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 It includes a shared perception of reality, regarding how things are

and how things should be.
 Furthermore, community and group culture determine the
willingness and conditions for knowledge sharing with other
members of the organization.

Culture is how organizations ‘do things’.” —

Robbie Katanga

 Knowledge, and knowledge sharing, are thus inseparable from

organizational culture.
 Culture also provides guidelines regarding training & development
of the employees. It is the surrounding in which employee and
organization connects each other.

Types of organizational culture

The basic types of organizational culture are

bureacratic

clan

enterpren
market
eurial

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A.Bureaucratic Culture:

 In this type of culture the behaviour of employees is governed by

formal rules and standard operating procedures.
 Such a culture perpetuates stability
 Organizations with bureaucratic culture tend to produce
standardized goods and services, examples: Government
ministries Fast food establishments

B.Clan Culture:

 In a clan culture the behaviour of individuals are shaped by

tradition, loyalty, personal commitment, extensive socialization
and self-management.
 A clan culture achieve unity through socialization. Long-term
employees serve as mentors Members are aware of the
organization’s history and have an understanding of the expected
manner of conduct and organizational style.
 Members share feelings of pride in membership. Peer pressure to
adhere to important norms is strong

C.Market Culture:

 In a market culture, the values and norms reflect the significance

of achieving measurable and demanding goals mainly concerning
those that are financial and market based.
 Companies with a market culture tend to focus on Sales growth
Profitability Market share In a market culture the relationship
between individuals and the organization is contractual
(previously agreed).
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 Individuals are responsible for their performance; whereas the

organization promises specific rewards for levels of performance.
 Managers are not judge on their effectiveness as role models or
mentors; but on monthly, quarterly, and annual performance
goals based on profit.

D.Entrepreneurial Culture:

 Organizations existing in the context of an entrepreneurial culture

are characterized by high levels of risk taking and creativity.
 There is a commitment to experimentation, innovation.

2.1 Building a strong organizational culture:

 A common behavioral style must be shared by managers and

employees.
 Have the same basic approaches to solving problems, meeting
goals, and dealing with stakeholders.
 Have share common norms that guide rule governing rewards and
punishment.
 A strong organizational culture assists in the creation of a stable
organization, the consequence of which lead to the achievement
of the company’s strategic goals.
 The top management people should become the positive role
models. They should set the examples through their own
behaviour.
 As employees learn the culture through stories, symbols and
rituals, the old stories, rituals and symbols should be replaced by
creating new ones which are currently in vogue.

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 Adding new members, particularly at the higher level, is a

powerful strategy to change the culture, provided the new
members bring in new culture.
 The socialization processes should be redesigned to align with the
new values.
 Reward system establish and reinforce specific cultural
behaviours and therefore, a change in culture can be initiated and
supported by change in corporate reward systems.
 Unwritten norms and beliefs should be replaced with formal rules
and regulations that are tightly enforceable.
 Extensive use of job rotations should be made to shake current
subcultures.
 Change in the top management can have significant impact on
others in the organisation, because he may be, in a real sense, the
personification of the culture.
 Change in culture will be comparatively easy if peer group
consensus is got through use of employee participation and
creation of a climate with a high level of trust.

Factors which affect the organization culture:

A.Individual working with the organization.

 The employees in their own way contribute to the culture of the

workplace.
 The attitudes, mentalities, interests, perception and even the
thought process of the employees affect the organization culture.

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 Example - Organizations which hire individuals from army or

defence background tend to follow a strict culture where all the
employees abide by the set guidelines and policies.
 The employees are hardly late to work. It is the mindset of the
employees which forms the culture of the place.
 Organizations with majority of youngsters encourage healthy
competition at the workplace and employees are always on the
toes to perform better than the fellow workers.

B.The sex of the employee

 The sex of the employee Also affects the organization culture.

 Organizations where male employees dominate the female
counterparts follow a culture where late sitting is a normal
feature.
 The male employees are more aggressive than the females
who instead would be caring and softhearted.

C.The nature of the business

 The nature of the business also affects the culture of the

organization. Stock broking industries, financial services,
banking industry are all dependent on external factors like
demand and supply, market cap, earning per share and so on.
 When the market crashes, these industries have no other
option than to terminate the employees and eventually affect
the culture of the place.

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 Market fluctuations lead to unrest, tensions and severely

demotivate the individuals.
 The management also feels helpless when circumstances can
be controlled by none. Individuals are unsure about their
career as well as growth in such organizations.

D.The culture of the organization is also affected by its goals and

objectives.

 The strategies and procedures designed to achieve the targets of

the organization also contribute to its culture.
 Individuals working with government organizations adhere to the
set guidelines but do not follow a procedure of feedback thus
forming its culture.
 Fast paced industries like advertising, event management
companies expect the employees to be attentive, aggressive and
hyper active.

E.The management and its style of handling the employees

 It also affect the culture of the workplace. There are certain

organizations where the management allows the employees to
take their own decisions and let them participate in strategy
making.
 In such a culture, employees get attached to their management
and look forward to a long term association with the organization.
 The management must respect the employees to avoid a culture
where the employees just work for money and nothing else.
 They treat the organization as a mere source of earning money
and look for a change in a short span of time.

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3. LABOUR MARKET CHANGES

3.1 INTRODUCTION

 A labour market in an economy functions with demand and

supply of labour. In this market, labour demand is the firm's
demand for labour and supply is the worker's supply of labour.
 The supply and demand of labour in the market is influenced by
changes in the bargaining power.
 Labor markets continue to be affected by three principal forces of
change: globalization of competition; technological advances; and
changes in the demographic structure of the workforce.
 Some industries, such as construction, are very sensitive and
prone to peaks and troughs, as well as significant regional
variations.
 Despite economists’ best efforts, some changes are not foreseen,
making some labour market predictions, especially in the long-
term, unreliable, and vulnerable to, for example, changes in
government policy or world events.
 Everyone needs to be aware of skill shortage areas and of the fact
that employers expect an increasingly better qualified workforce.
 Young people need to fulfil their academic
 Potential and develop strong employability skills to compete in
the job market.

Definition :

A labor market is the place where workers and employers interact

with each other. In the labor market, employers compete to hire the
best, and the workers compete for the best satisfying job

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3.2Important Classification of Labour Market suggested by Clark Ker is

a. The perfect market

 This kind of market is made up of a large number of relatively
small and undifferentiated buyers and sellers.
 There is a complete freedom of entry and exit, complete
knowledge and complete mobility of all resources within the
market area. Under such circumstances, the single price prevails
and the market is regularized.
b. The neo-classical market
 The neo-classical market recognizes the existence of
‘imperfections.’ The supply of skilled workers cannot be expanded
suddenly because it takes time for a worker to acquire skill.
 In spite of the imperfections, it is assumed that wages will tend
towards equality for workers in a given skill classification.
c. The natural market
 In the natural market, the typical worker has a very limited
knowledge of the market as a whole and unless he is unemployed
or just entering the labor force, he is not ‘actively in the market.’
 The workers’ knowledge of the labour market may be limited to
his own office jobs about which he has general information.
 Workers do not regularly weigh the advantages of the jobs they
hold against other alternatives.
 They also do not grudge against the employers not constantly
hiring and firing workers in an effort to find the greatest bargains
in the labour market.

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d. The institutional market

 The institutional market is one in which the policies of unions,
employers and the government have more to do with wage
movements than free competitive forces. Indeed, the objective of
policies developed by all three unions, employers and the
government is to limit the free operation of the forces of demand
and supply.
 Institutional policies, rather than the market, set the upper and
lower limits of wages and these clearly reduce the mobility of
labor.
 Uniform wages are often found for a given grade of workers in
the institutions markets but this is because of the influence of
institutions and not a result of the interaction of demand and
supply.
e. The management market
 The management market, like the perfect market, does not exist
in the real world. The objective of management market would be
to tie the wage setting and labor movement more closely
together than they are in the natural market.
 This would proceed along with the imposition of state controls on
wage setting and on allocation of labour.
 The long run trend in India has been towards the institutional
labor^ market where the influence of demand and supply is
considerably curtailed by policies of unions, employers and the
government.

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3.3Forces of Change

1. Demographics-
 Labour force growth has slowed and a retirement bulge looms.
Female participation in the labour force has grown over the last
25 years, but has now plateaued.
 Immigration is increasingly relied upon to meet the demand for
skilled workers and support economic growth.
 The ageing of the labour force presents a key challenge. Will
skill needs be met? Will Canadians be able to realize their
aspirations (regarding learning, work, and retirement) in their
older years.
 Our ageing, ‘top heavy’ population has major implications for
the labour market – people will be working for longer. Young
people trying to launch careers will be competing against an
older, experienced workforce.
 There is increasing demand for scientists and health care
workers to deal with the implications of ill health in the elderly
2.Technological Change-
 Changes in technology have had a number of impacts on the
labour market. They have contributed to the shift in Canada’s
industrial structure away from primary and manufacturing
industries and towards services.
 Massproduction systems (large scale, standardized methods,
highly delineated jobs) have been transformed into production
systems characterized by smaller scale, greater flexibility in the
organization of work, greater emphasis on skill, and flatter
hierarchies.
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 Technological change has also increased the demand for highly

skilled work relative to that for less skilled work, a phenomenon
referred to in the economics literature as ‘skill-biased’
technological change. As a result of rapid technological change,
companies today face shorter business cycles and truly global
competition.
 Few industries are safe from disruption. Automation, facilitated
by better artificial intelligence, is poised to have a major impact
on jobs. Up to 47 percent of U.S. jobs in 2010 were rated as highly
likely to become computerized in the next 10-20 years.
 Even as old roles are swept away, technology is facilitating the
emergence of new work models that may help solve some of the
current labour market issues
 It is one of many solutions emerging and, as in times past, human
ingenuity enabled by new technologies will make our world more
prosperous for all.

3. Globalization

 The globalization of the economy has been characterized by:

 more mobile capital (resulting in part from greater protections for
foreign investors in trade agreements such as NAFTA or through
the WTO);
 freer trade in goods and services; enhanced mobility of highly-
skilled workers; enhanced mobility of Human Resource
Development –highly-skilled jobs (e.g., information technology
work for North American companies being located in Asia);

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 Globalization, by making the markets for goods and services more

competitive, has heightened the need for economic and social
policies to foster competitiveness.
 It has also put a higher premium on workplace practices that
support flexibility and adaptability, such as multi-skilling,
teamwork, and pay-for-performance schemes.
 There is also evidence that globalization has contributed to a
reduction in wage differentials across countries for labour of
similar skill, but has (along with technological change) led to an
increase in wage inequality between lower and higher skill levels
within high-wage countries.
 Fortunately, the present dysfunction and apparent contradictions
are spurring changes. Rather than returning to business as usual
after the recession, the labour market is settling into a new
normal.
 If we chart our course well we can navigate the changing world of
work and unleash new employment opportunities and economic
growth for the Fourth Industrial Revolution.

i. Shifting demographics, dynamic workforces

 Trends like aging and declining birth rates mean the days of
abundant labour are drawing to an end in much of the world.
Sixty percent of people now live in countries with stagnant or
shrinking workforces.
 China’s working age population peaked in 2010; by 2050 more
than a quarter of its people will be over 65, up from eight percent
today. In Germany, the labour force will shrink by six million

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workers over the next 15 years—this is one reason their

politicians are more open to migrants.
 Faced with labour shortages, employers and policymakers are
being forced to think differently about talent sourcing. In Japan,
where a quarter of the population is over age 65 (compared to 15
percent in the U.S.)
 A more intense search for talent is beginning, and we are already
seeing interesting people practices emerge. Aerospace
companies, faced with graying workforces, have pioneered
flexible working, phased retirements, “encore careers,” and a
slew of knowledge transfer programs to train the next generation.
 Companies that can’t find the talent they need in one country use
remote working to employ people elsewhere.
 Around the world, employers are experimenting with new policies
to better appeal to underrepresented groups—women, young
people, minorities, people with disabilities, migrants, etc.

ii. The rise of individual choice

 Theirs is a new mindset. Rather than hanging on to a job for life,

the goal today is to be employable to develop the skills,
experience and expertise necessary to move on or up, regardless
of your employer.
 Ideally, this gives people greater choice and flexibility to ride
career waves or slow down at different stages of their longer
working lives.
 As employers adapt to this workforce trend, wages and
opportunities will increasingly be dictated by skills, not tenure.

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 they are able to manage their own careers and command higher
salaries. Helping this group to upskill is the defining labour
challenge of our time, and requires extraordinary efforts from
educators, policymakers and most of all employers.
 In the near term, individual choice is causing problems in the
labour market. Companies understandably ask: why should I train
you if you’ll leave and work for my competitor? However, with
talent shortages looming, the need to retain employees may soon
tip the balance back towards greater investment in development
programs. By providing learning opportunities, employers become
a talent destination.
 Focusing on employment for life, rather than protecting specific
jobs in companies, will increase workforce mobility, protect the
individual and encourage lifelong learning and development.
 people practices and work models. An uncertain transition state is
never easy, but we will ultimately emerge stronger for it.

4. Discrimination adapting to demographic changes

 Demographic change is the main reason organizations need to

adapt their practices in order to respond to increasing diversity
within labor markets.
 Diversity alters pools of potential employees, and the needs of
employees, as well as influencing broader business objectives like
service provision.
 In addition, the constantly changing demographic profile of the
broader population means that organizations need to develop
strategies that will meet the needs and desires of the country’s

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citizens. In most countries there will be stakeholder groups

interested in workplace issues that include diversity.
 These include government agencies interested in work,
immigration, government employment bodies, industry groups,
human rights groups, trade unions, specialized stakeholder
agencies;
 These demographic changes will have profound implications for
organizations and managers in the coming decades.
 Implications include: the need to have better understanding and
awareness of different cultures including their practices and
religious beliefs;
 An appreciation of how diversity can benefit organizations; need
to implement flexibility in work whilst ensuring quality of work is
not eroded; the creation of non-discriminatory environments
within organizations; and better integration of work and life so
that workplaces are more family-friendly.
 Diversity brings business benefits. These include the following: the
development of economically beneficial partnerships; new
markets; legal compliance; products and services that are
culturally sensitive and appropriate;
 people who are adept at social networking and team-work; social
and environmental responsibility;
 A diverse workforce brings its own rewards in terms of increasing
cultural awareness, sensitivity and awareness in individuals and
firms.
 There are a number of demographics that can affect a business.
Demographics are various traits that can be used to determine
product preferences or buying behaviors of consumers.

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 Most companies identify their key customers through these

various traits. They then target consumers with like characteristics
in their advertisements and promotions. Targeting consumers
with similar demographic characteristics helps maximize a
company's sales and profits.

a.Income Influence
 Income is one demographic variable that can affect businesses. A
company's products usually appeal to certain income groups. For
example, premium products such as high-end woman's clothing
usually appeal to women with higher incomes.
 Conversely, people with comparatively lower incomes are more
sensitive to price and, therefore, may prefer purchasing discount
products. People with lower incomes have less disposable
income.
 Value is a major determinant in the products they purchase.
Hence, a company may best reach lower-income people through
discount retailers and wholesalers and attract higher-income
buyers in specialty retail shops.
b.Age Variables
 Age is another demographic element that impacts businesses. A
company's products and services are more likely to appeal to
certain age groups.
 Younger people under 35 are often the first consumers to
purchase high-tech products like cell phones, electronic books and
video games. The millennial generation is increasing buying power
and growing market share while baby boomers remain a large and
viable group as well.

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C.Geographic Region
 People's buying preferences also vary by geographic region, which
is another type of demographic. Those who meet buyers' needs
and requirements in certain geographic regions can earn higher
sales and profits.
 For example, people often prefer certain food and drink flavors in
certain markets. Companies that sell the flavors consumers desire
in various areas are more likely to profit. Those who do not offer
these flavors may risk losing customers to other competitors.
Obtaining Demographic Information
 One of the best ways to collect consumer demographic data is
through market research surveys. These surveys can be
conducted by phone, mail, Internet or in person.
 The key is collecting as much demographic information as
possible. Other demographic variables, besides age, income and
geography, include household size, education, occupation,
gender, race and employment status.
 Most marketing research professionals include demographic
questions at the end of their surveys. Warranty cards are another
way to collect this information from customers.
PREPARED BY :

B.V.LAKSHMI, M.B.A, Assoc. Professor, BALAJI INSTITUTE OF IT &

MANAGEMENT, KADAPA.

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