Human Resource Development

1. Human Resource Development Tejashree Talpade

2. Definition of HRD • A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands.

3. Emergence of HRD • Employee needs extend beyond the training classroom • Includes coaching, group work, and problem solving • Need for basic employee development • Need for structured career development

4. Relationship Between HRM and HRD • Human resource management (HRM) encompasses many functions • Human resource development (HRD) is just one of the functions within HRM

5. Primary Functions of HRM • Human resource planning • Equal employment opportunity • Staffing (recruitment and selection) • Compensation and benefits • Employee and labor relations • Health, safety, and security • Human resource development

6. Secondary HRM Functions • Organization and job design • Performance management/ performance appraisal systems • Research and information systems

7. HRD Functions • Training and development (T&D) • Organizational development • Career development

8. Training and Development (T&D) • Training – improving the knowledge, skills and attitudes of employees for the short-term, particular to a specific job or task – e.g., • Employee orientation • Skills & technical training • Coaching • Counseling

9. Training and Development (T&D) • Development – preparing for future responsibilities, while increasing the capacity to perform at a current job • Management training • Supervisor development

10. Organizational Development • The process of improving an organization’s effectiveness and member’s well-being through the application of behavioral science concepts • Focuses on both macro- and micro-levels • HRD plays the role of a change agent

11. Career Development • Ongoing process by which individuals progress through series of changes until they achieve their personal level of maximum achievement. • Career planning • Career management

12. Learning & Performance

13. Critical HRD Issues • Strategic management and HRD • The supervisor’s role in HRD • Organizational structure of HRD

14. Strategic Management & HRD • Strategic management aims to ensure organizational effectiveness for the foreseeable future – e.g., maximizing profits in the next 3 to 5 years • HRD aims to get managers and workers ready for new products, procedures, and materials

15. Supervisor’s Role in HRD • Implements HRD programs and procedures • On-the-job training (OJT) • Coaching/mentoring/counseling • Career and employee development • A “front-line participant” in HRD

16. Organizational Structure of HRD Departments • Depends on company size, industry and maturity • No single structure used • Depends in large part on how well the HRD manager becomes an institutional part of the company – i.e., a revenue contributor, not just a revenue user

17. Sample HRD Jobs/Roles • Executive/Manager • HR Strategic Advisor • HR Systems Designer/Developer • Organization Change Agent • Organization Design Consultant • Learning Program Specialist • Instructor/Facilitator • Individual Development and Career Counselor • Performance Consultant (Coach) • Researcher

18. HR’s strategic role • Employees as organisation’s assets • Driving business strategy • Spanning organizational functions • HRD Deliverables: • Performance • Capacity Building • Problem solving/consulting • Org. change and development

19. Strategic HRD • Integration of HRD with strategy formulation and implementation • Long-term view of HR policy • Horizontal integration among HR functions • Vertical integration with corporate strategy • SHR as core competitive advantage

20. Firm Capitals • Human Capital • Knowledge, skills, abilities of individuals • Social Capital • Relationships in social networks • Structural, cognitive, relational dimensions • Intellectual capital • Knowledge and knowing capability of social collectivities • Procedural/declarative; tacit/explicit; individual/social • Value and Uniqueness of capitals

21. Multiple Roles for HR (Ulrich, 1997) Future/Strategic Focus Mgmt of Trans- Formation/Change Mgmt of SHR Processes People Mgmt of Employee Contributions Mgmt of Firm Infrastructure Day-to-day/Operational Focus

22. Definition of HR Roles

23. Importance of Human Resources • Human resources are an important part of the value chain • They can be unique, and thus a source of core competence in an organization • If a core competence is related to HR, then HR can contribute to competitive advantage

24. Strategic Analysis of HR: Purpose • People related strategies may be important to new strategy (for example, a change in the way the organization does business) • In today’s technologically complex business world, analysis of existing human resources is important in order to determine what options are available • The network of people within an organization and their relationships with people can be an important part of strategy

25. HR and Sustainable Competitive Advantage • In some industries, people are the most important factor in success - advertising and creative development - leisure and tourism - management consulting - hospitals and medical professions • The adaptability of people to changing environments is an important skill • “The ability to learn faster than your competitors may be the only sustainable advantage” – Arie De Geus, former head of planning at Royal Dutch Shell

26. Challenges for HRD • Changing workforce demographics • Competing in global economy • Eliminating the skills gap • Need for lifelong learning • Need for organizational learning

27. Competing in the Global Economy • New technologies • Need for more skilled and educated workers • Cultural sensitivity required • Team involvement • Problem solving • Better communications skills

28. Need for Lifelong Learning • Organizations change • Technologies change • Products change • Processes change • PEOPLE must change!!

29. Creating a learning organisation

30. Need for Organizational Learning • Organizations must be able to learn, adapt, and change • Principles: • Systems thinking • Personal mastery • Mental models • Shared visions • Team learning

31. Creating a Learning Organization • Senge suggests top managers follow several steps to build in learning: • Personal Mastery: managers empower employees and allow them to create and explore. • Mental Models: challenge employees to find new, better methods to perform a task. • Team Learning: is more important than individual learning since most decisions are made in groups. • Build a Shared Vision: people share a common mental model of the firm to evaluate opportunities. • Systems Thinking: know that actions in one area of the firm impacts all others.

32. A Framework for the HRD Process HRD efforts should use the following four phases (or stages): • Needs assessment • Design • Implementation • Evaluation

33. Training & HRD Process Model

34. Needs Assessment Phase • Establishing HRD priorities • Defining specific training and objectives • Establishing evaluation criteria

35. Design Phase • Selecting who delivers program • Selecting and developing program content • Scheduling the training program

36. Implementation Phase • Implementing or delivering the program

37. Evaluation Phase Determining program effectiveness – e.g., • Keep or change providers? • Offer it again? • What are the true costs? • Can we do it another way?

38. Motivation, Reward and Recognition System Management

39. Motivation Intensity Direction Persistence Motivation The force within us that activates our behavior. It is a function of three distinct components, Intensity, Direction, and Persistence.

40. Direction Persistence Motivation - Intensity Intensity refers to the amount of mental and physical effort put forth by the person. Motivation Intensity

41. Intensity Persistence Motivation - Direction The extent to which an individual determines and chooses efforts focused on a particular goal. Motivation Direction

42. Intensity Direction Motivation - Persistence The extent to which the goal-directed effort is put forth over time. Motivation Persistence

43. Intrinsic When doing the job is inherently motivating Extrinsic When rewards such as pay and formal recognition act as motivators Motivation: Intrinsic vs. Extrinsic

44. Two Basic Categories of Rewards Compensation Rewards: Those given in return for acceptable performance or effort. They can include nonfinancial compensation. Non-Compensation Rewards: Those beneficial factors related to the work situation and well-being of each person.

45. Motivation Intrinsic Extrinsic Sense of Accomplishment Pay Job security Promotion Personal Growth Opportunities Recognition Types of Rewards

46. Financial Compensation: Straight Salary Advantages • Salaries are simple to administer • Planned earnings are easy to project. • Salaries are useful when substantial development work is required. Disadvantages • Salaries offer little incentive for better performance. • Salaries represent fixed overhead.

47. Financial Compensation: Pay for Performance Reward Systems in most cases should be consistent with other HR systems. The Reward System is a key driver of: • HR Strategy • Business Strategy • Organization Culture

48. Skill-based pay Training Culture Rewards Overtime pay rules in contract Merit pay reinforces performance culture Labor Relations Performance Management Employment Sign-on Bonus Merit Pay Need for Consistency with Other HR Systems

49. Financial Compensation: Performance Bonuses Advantages • Organization can direct emphasis to what it considers important. • Bonuses are particularly useful for tying rewards to accomplishment of objectives. Disadvantages • It may be difficult to determine a formula for calculating bonus achievement if the objective is expressed in subjective terms.

50. Non-financial Compensation Opportunity for Promotion: • The ability to move up in an organization along one or more career paths Sense of Accomplishment: • The internal sense of satisfaction from successful performance