HUMAN RESOURCE

DEVELOPMENT IN INDIAMs. Anubha Rastogi

Astt. Prof, Vidya School Of Business2015-16

Leonard Nadler introduced the term HRD in 1969. He defined HRD

as “those learning expenses which are organized for a specific

time and designed to bring about the possibility of behavioral

change”

Meaning of HRD

Human Resource Management (HRM) encompasses many

functions.

Human Resource Development (HRD) is just one of the functions

within HRM.

In the early seventies 2 consultants Prof.Udai Pareek &

Prof.T.V.Rao from the IIM were approached by L&T for a review

exercise of their performance appraisal system. In 1974 the consultants studied the system and made recommendations for

improving it. They felt that a development oriented

performance appraisal system may not achieve its objectives

unless accompanied by other sub-systems like employee

counseling, potential appraisal, career planning and

development, training, OD etc. So a new HRD system was

introduced at L&T in the year 1975.

Emergence of HRD

1.

• To acquire capabilities (knowledge, perspectives, attitudes, values & skills) for performing tasks.

2.

• To develop their enabling capabilities so that they are able to discover & utilize their inner potential.

3.

• To develop an organizational culture where team work contributes to the organizational health & dynamism.

According to T.V.Rao, HRD is a process by which employees

of a organization are continuously helped in a planned way

ORIGIN OF HR

Its origin is dated back to 1800 BC., when wage and incentive plans were

included in the Babylonian code of Hammurabi.

The world’s first management book, titled “Artasastra” written by Kautilya, in

400 BC, codified many aspects of human resource practices in ancient India.

GROWTH OF HUMAN RESOURCE

HRM in India could be traced back to the period after 1920, when

emphasizes was on worker welfare.

In 1931, the royal commission on labor suggested the appointment of

labor officer to protect workers interests .

Appointment of labor officer

The second world war

Enactment of Industrial dispute Act

Enactment of Factories Act

1960 and after…..

FIRST PHASE

Immediately after independence the focus was on four

reasons :

Maintain discipline

Prevent their formation of and break-up the leadership of trade

unionism.

Prevent their formation of and break-up the leadership of trade

unionism

Handle recruitment and termination

Keep some form of attendance and personnel records.

SECOND PHASE

IN 1960S, Indian industrialization got a fillip with the

rise of the public sector. Hence 3 more functions

were added i.e.,

Labor welfare

Participative management

Industrial Harmony

In this period, the human relations movement of the

west also had its impact on Indian organization.

THIRD PHASE In 1970, the people management functions was neatly

divided into two :

Personnel officer

Establishment officers

Fourth Phase In 1976, birth of worker training institute and attitudinal

development.

Fifth Phase In 1985, organization shifted towards making HR Department

separately.

HRD and personnel function were clubbed together.

Sixth phase In early 1990s :

HRM was seen as strategy

Motivation and stress were considered to bring change in HRM

Focus on organization objectives

Seventh Phase In the mid of 1990s, sub specialization like :

Industrial Relations

Training & Development

Information system

Eight phase

HRM is not selective management any more

It became the part of Corporate Strategy formulation and

strategy implementation team

Late Arrival of HRM in India

Late arrival of factory system

Low status of industrial worker

Professionalization of Human resource

Management

Social responsibilities of Business

Change of government attitude

Factors Impending the

growth of HRM in India

Abundance of cheap labor

Weak labor movement

Highly Authoritarian culture

Technological Backwardness

Instability in Employment

Unhealthy growth of Trade unions

Migratory characteristic of Indian labor

Evolving Role of HRM in

India

Origin Of Human Resource Management in India

The police Man

The Welfare Man

The Law Man

The Liaison Man

The HR Man

Low Commitment from management

Since HRD is seen as a non-productive expenditure for the org the line managers are not serious.

Technological Impact

Focus may be on services which will be retained, re-skilled & deployed by the employees.

Changing Environment

Indian organizations have also undergone drastic transformation for vibrant new ideas.

Emerging Issues in HRD

HR Outsourcing

This might pose a threat to the internal HR talent over a period of time.

Employee Orientation

This requires adequate premium to be placed on individual growth & development.

Globalization

This compels them to increase their ability to learn and collaborate and manage diversity & uncertainity.

To develop capabilities of all individuals working in an organization in relation to their present role.

To develop capabilities of all such individuals in relation to their future role.

To develop better inter-personal and employer-employee relationships in an organization.

To develop team spirit.

To develop coordination among different units of an organization.

To develop organizational health by continuous renewal of individual capabilities keeping pace with technological changes.

Objectives of HRD

Principle of Development of Organizational Capability

Principle of Potential Maximization

Principle of Autonomy Maximization

Principle of Maximum Delegation

Principle of Participative Decision Making

Principle of Change Management

Principle of Periodic Review

Principles

70%

20%

10%

On the job

Relationship

building

Formal

programs

70% from real life and on-

the-job experiences,

tasks and problem

solving. This is the most

important aspect of any

learning and

development plan.

20% from feedback and

from observing and

working with role models.

10% from formal training

70/20/10 learning concept was

developed by Morgan McCall,

Robert W. Eichinger, and

Michael M. Lombardo at the

Center for Creative Leadership

The 70-20-10 Development Model

HRM HRDDeals with all aspects of HR

functions

It is a sub section of HRM

HRM is a routine function It is a continuous development

function

Independent One It is a sub system

Exclusive Responsibility Of

Personnel Dept.

Aims at developing capabilities of

all its mangers

Considers economic rewards, job

simplifications as important

motivators

Considers informal work groups,

job enrichment as main

motivators.

HRM Functions are mostly Formal HRD functions can be informal like

Mentorships.

HRM VS HRD

Difference Personnel Function HRD

Orientation Maintenance Oriented Development Oriented

Structure An independent function with independent sub-function

Consist of inter-dependent parts

Philosophy Reactive function, responding to the events as and when they take place

Proactive function, tryingto anticipate and get ready with appropriate responses

Responsibility Exclusive responsibility of personnel department

Responsibility of all managers in the organisation

Motivators Emphasis is put on monetary rewards

Emphasis is on higher-order needs such as design jobs with stretch, improve creativity and problem solving skills

Outcomes Improved performance is the results of improved satisfaction and moral

Better use of human resources leads to improved satisfaction and morale

Aims Tries to improve the efficiency of people and administration

It tries to develop the organisation as a whole and its culture

HRD VS Personnel Function

Role of HR Manager

The primary responsibilities of Human Resource managers are:

To develop a thorough knowledge of corporate culture, plans and

policies.

To act as an internal change agent and consultant

To initiate change and act as an expert and facilitator

To actively involve in company’s strategy formulation

To keep communication line open between the HRD function and

individuals and groups both within and outside the organization

To identify and evolve HRD strategies in consonance with overall

business strategy.

To facilitate the development of various organizational teams and their

working relationship with other teams and individuals.

To try and relate people and work so that the organization objectives

are achieved efficiently and effectively.

To diagnose problems and determine appropriate solution particularly in

the human resource areas.

To provide co-ordination and support services for the delivery of HRD

programmes and services

To evaluate the impact of an HRD intervention or to conduct research so

as to identify, develop or test how HRD In general has improved individual

and organizational performance.

Current Classification of HR Roles

So, HR play’s four key roles.1. Strategic Partner Role- turning strategy into results by

building organizations that create value

2. Change Agent Role- making change happen, and in

particular, help it happen fast

3. Employees Champion Role- managing the talent or the

intellectual capital within a firm

4. Administrative Role- trying to get things to happen better,

faster and cheaper.