Human resource development

Description
This is a presentation highlighting on the definitions of HRM, history/development of HRM and key activities of HR function.

HUMAN RESOURCE DEVELOPMENT

HUMAN RESOURCE DEVELOPMENT
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CONCEPTS BACKGROUND NEEDS /OBJECTIVES IMPORTANCE OF HRM ROLES RELEVANCE GOALS SCOPE

Overview of Lecture
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Definitions of HRM History / Development of HRM Key Activities of HR Function

Defining Human Resource Management (1)
“HRM is a strategic and coherent approach to the management of an organisation?s most valued assets: the people working there who individually and collectively contribute to the achievement of its objectives”
(Armstrong, 2006, p3)

Defining Human Resource Management (2)
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„HRM is a distinctive approach to employment management which seeks to obtain competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques?
(Storey, 2001, p6)

The Development of HRM
(Torrington et al., 2005)

Stage 1: The Social Reformer
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Origins of personnel management lie in the 19th century ? Conditions of work in factories were poor ? First Personnel managers appointed

Stage 2: The Acolyte of Benevolence
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Late 19th century/early 20th century: ? Appointment of welfare officers ? Cadbury: Unemployment benefit, sick pay

Stage 3: The Humane Bureaucrat
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Change from a sole focus on welfare issues to meeting of other organisational objectives Personnel Managers - responsibilities in the areas of staffing, training and organisation design Focus on maximising efficiency of labour Fostering of social relationships and employee morale important

Stage 4: The Consensus Negotiator
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After 2nd world war -labour scare Growth in TU membership Statutory duty to to negotiate with unions Government encouraged appointment of personnel officers First specialist courses available in universities Personnel Management advisory service was set up (now ACAS)

Stage 5: Organisation Man
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Late 1960s: personnel specialists dealing

with management / managerial activity
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Development of career paths / opportunities personal growth

Stage 6: The Manpower Analyst
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1980s: Personnel specialists developing the capacity to undertake Manpower Planning (Human Resource planning)

Armstrong’s Main Characteristics of HRM
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Emphasis on the strategic management of people Comprehensive and coherent approach to the provision of mutually supporting employment policies and practices Importance placed on gaining commitment to the organisation?s mission and values „commitment orientated? Treatment of people as assets rather than costs Unitarist rather than pluralist approach to employee relations Performance and delivery of HRM as a line management responsibility (Armstrong, 2006)

Key Activities of HRM
(Armstrong, 2006)

1. Organisation
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Organisation Design
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developing an organisation which caters for all the activities required grouping activities together to encourage integration and cooperation Simulating, planning and implementing programmes designed to improve the effectiveness with the organisation functions Coping with change deciding on the content of jobs - duties and responsibilities

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Organisational Development:
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Job and Role Design –
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2. The Employment Relationship
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Improving the quality of the employment relationship Creating a climate of trust Developing a positive psychological contract Achieving a high commitment organisation

3. Resourcing
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Human Resource Planning
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assessing future people requirements (numbers / levels of skill and competence), formulating and implementing plans to meet requirements
Attracting, Retaining, Developing and Rewarding high quality people

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Talent management
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Recruitment and Selection
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Obtaining the number and type of people the organisation needs

4. Performance Management
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Getting better results from the organisation, teams and individuals by measuring and managing performance within agreed frameworks Assessing and improving performance Identifying and satisfying learning and development needs

5. Human Resource Development
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Organisational and Individual Learning
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Developing the business as a learning organisation Providing employees with learning opportunities Providing for career growth Providing learning and development opportunities which will increase the capacity of managers Planning and developing the careers of people with potential

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Management Development
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Career Management
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6. Reward Management
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Pay Systems
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Developing pay structures and systems which are equitable, fair and transparent Relating financial rewards to results, competence, contribution, skill and effort Providing employees with non-financial rewards recognition, increased responsibility and the opportunity to achieve and grow

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Contingent Pay
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Non-financial Rewards
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7. Employee Relations

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Industrial Relations
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Managing and maintaining formal and informal relationships with trade unions and their members
Giving employees an opportunity to have a say in management decisions that affect them Creating and transmitting information of interest to employees

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Employee Voice
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Communications
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8. Health and Safety
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Ensuring a healthy and safe environment Protecting employees from hazards and accidents

9. Welfare Services
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Providing employees with individual services Dealing with illness Provision of restaurants Provision of recreational facilities

10.Employment and HR Services
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Managing the employment relationship Administering HR Policies and Procedures Operating HR information systems

Key Activities of HRM Alternative Viewpoint
Foot and Hook (2005)

Key Activities of HRM (Foot and Hook, 2005) (1)
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Recruitment and Selection Training and Development Human Resource Planning Provision of Contracts Provision of Fair Treatment Equal Opportunities Assessing Performance of Employees Employee Counselling Employee Welfare Payment and Reward of Employees

Key Activities of HRM (Foot and Hook, 2005) (2)
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Health and Safety Disciplining Individuals Dealing with Grievances Dismissal Redundancy Negotiation Encouraging Involvement

Summary
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HRM is concerned with the management of an organisation?s most valuable asset – the employees! There are various activities to be undertaken by the HR Manager and the Line Manager

References
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Armstrong, M. (2006) A Handbook of Human Resource Management Practice, 10th Ed., London: Kogan Page. Foot, M. and Hook, C. (2005) Introducing Human Resource Management, 4th Ed., Harlow, Financial Times, Prentice Hall. Storey, J. (2001) Human Resource Management: A Critical Text, 2nd Ed., London: Thomson. Torrington, D., Hall, L. and Taylor, S. (2005) Human Resource Management. 6th Ed., Hemel Hempstead: Prentice Hall.

Study Questions
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Outline the roles and objectives of HRM Outline the evolution of Personnel and HR management Describe the main activities/functions of HRM

EVOLUTION OF HRM CONCEPT
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THR COMMODITY CONCEPT
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Labor was regarded as a commodity to be bought and sold Wages depended upon demand and supply Govt. did little to regulate / protect labor. Employer was king

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THE FACTOR OF PRODUCTION CONCEPT
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Labor was like any other factor of production, like money, material, land etc No protection from Governments

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THE GOODWILL CONCEPT
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Welfare measures like safety, lunch room, regulated working conditions, etc Labor laws were beginning to be introduced

EVOLUTION OF HRM CONCEPT
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THE PATERNILISTIC CONCEPT
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Management must assume a paternalistic role Went beyond providing employee needs like parents, also involved concerns attended to beyond office/ work

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THE HUMANITARIAN CONCEPT
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Productivity improved depending upon fulfillment of physical, social and psychological needs Group incentives, standards were seen more important than individual earnings

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THE HUMAN RESOURCE CONCEPT
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Employees are the most important resource in an organization Conscious effort to fulfill individual goals to fulfill organization goals Employee motivation seen as critical for organization development

EVOLUTION OF HRM CONCEPT
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EMERGENCE OF HRM
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Employees accepted / seen as partners for achieving business goals Employees expected to have a feeling that organization is their own Focus is on Human Resource development Profits will emerge out of Human satisfaction and happiness Importance of laws to regulate employment becoming less critical and voluntary emergence of employers concern for employees as basis of HRM

SHIFT IN HR MANAGEMENT IN INDIA
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TRADITIONAL HR PRACTICE ? Administrative role ? Reactive ? Separate, isolated from company mission ? Production focus ? Functional organization ? Individuals encouraged, singled out for rewards ? People as expenses

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EMERGING HR PRACTICE
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Strategic role Proactive Key part of organization mission Service focus Process/Customer focus Cross functional teams, focus on team work People as key investments/ assets

NEEEDS / OBJECTIVES
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To help organizations reach its goals To engage skills, competencies and abilities of workforce efficiently To provide organizations with well trained and motivated workforce To achieve the highest level of job satisfaction and fulfillment of employees To develop and maintain a quality of work/life balance which is critical to manpower To communicate HR policies to all employees To create stakeholders fulfillment To be ethically and socially responsible to society - CSR

Importance of HRM
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At the enterprise level
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To attract and retain the best people in the organization Train people for challenging roles for the present and the future To make an enterprise profitable, growth oriented and fulfill stake holder expectations

Importance of HRM
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At the Individual level
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To attract and retain the best of Resources To promote team work and team interdependencies To fulfill individual needs and expectations To support future employee growth To create and maintain work / life balance which is critical for individual growth

Importance of HRM
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At the society level
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Multiplication of employment opportunities To put to use abundance of talent and engage the same productively To ensure peace and happiness in society

Importance of HRM
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At the National level
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To exploit the nations natural resources productively Enrich nations GNP, create employment, Strengthen nation in the community of nations To be globally competitive to achieve nation?s destiny

ROLES OF HRD
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ADMINISTRATIVE ROLES
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Policy Maker Administrative expert Advisor House-keeper Counselor Welfare Officer Legal Consultant Discipline Keeper

ROLES OF HRD
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OPERATIONAL ROLES
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Manpower Planner Recruiter Trainer, Motivator Mentor, Buddy Coordinator / Linking Pin Mediator Employee Champion Wage and Salary Administrator

ROLES OF HRD
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STRATEGIC ROLES
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Change Agent
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Capacity builder Translate vision/mission to reality Advisor in bringing in new technology Eyes and ears of management Building a competent, consumer oriented work force Participate in planning organizational long term goals and objectives Answerable to stake holders interest Creating cost effective alternatives like outsourcing, outplacing, automations, etc

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Strategic Agent
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RESEARCH IN HRD –TRENDS & DIRECTIONS

Group break - outs
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Group exercise to list down changing trends and HR responses to assuage the same – 1 hour

CHARACTERISTICS OF AWARD WINNING ORGANIZATIONS
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THEY SEEM TO HAVE THE CAPABILITY TO COPE WELL WITH LEADERSHIP CHANGES
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Leadership changes have not adversely impacted more than 50% of companies which saw leadership changes Succession plans seem to have worked well. Seem to have built large amount of internal talent, competencies and have demonstrated sustaining capability E.g.. SAIL, Indian Oil, L&T, TISCO, ITC

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COPED WELL WITH LIBERALIZATION AND GLOBALIZATION
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No negative effect seen due to above Profitability and other financial parameters have improved

CHARACTERISTICS OF AWARD WINNING ORGANIZATIONS
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LIBERALIZATION HAS INCREASED QUALITY CONSCIOUSNESS AND CUSTOMER FOCUS
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Mission statements and vision has emerged from these companies competing globally HRD orientation seems to articulate their core values Gone for ISO, TQM, CMM, etc Reduced layers and restructured themselves Salary structures have also shown changes

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DEMONSTRATED LEARNING ORGANIZATIONS
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Emergence of wage systems in line with global markets HR policies are more global than local Employee satisfaction surveys done regularly Using large scale IT support to improve systems and processes Invested heavily in training

CHARACTERISTICS OF AWARD WINNING ORGANIZATIONS
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VERY EFFECTIVELY INITIATED AND MANAGED CHANGES
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Gained global reputation Preferred destination for several MNC’s People practices are globally on par Customer focus at a all time high The personnel and HRD function well integrated E.g. Eicher, SAIL, Modi Xerox, Sundaram Fasteners, etc

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INVESTED HEAVILY IN TRAINING
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Employee training budget gone up by more than three times in the past ten years Continue to sponsor for external programs Invest in new technologies Product development and Research is becoming more and more commonly outsourced to India

HRD – Trends and Directions
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Size of workforce
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Increased size pushing for better automation and systems driven rather than people driven Rising number of women, minorities Much younger workers have joined the fray Expectations to grow is on the rise Heterogeneous – across states creating new paradigms

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Composition of workforce
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HRD – Trends and Directions
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Employee Expectations
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Employee expectations on the rise India?s competitive advantage diminishing on this count Better educated, more demanding, high attrition, multiple opportunities Automation, computerization have altered skill set demands Old skills becoming redundant, creating needs for re-skilling

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Changes in Technology
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HRD – Trends and Directions
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Life style changes
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Double income, willing to relocate, willing to hop jobs Changes in expectations
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Working hours Choosing industry, technology Job satisfaction Career growth Corporate icons Preferred industry

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More disposable income

HRD – Trends and Directions
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Environmental challenges
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Public limited cos., privatizing ? Air India highest cost per person Rs. 5lacs /annum. Has 750 employees per aircraft – highest in the world. Delhi Public transport have 15000 people excess – Rs22 crores excess payment on salaries Pressure on sick units to close or privatize – HMT Environmentally polluting cos., being closed – Kudremukh steel plant Traffic congestions forcing working from homes or relocations Schooling becoming Pan India options forcing families to alter their locations

HRD – Trends and Directions
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HRD functions in the future
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Job redesign Career opportunities Enhancing productivity Refinement in recruitment and selection Learning organization Rewards management Safety, Welfare and Benefits management

HRD – Trends and Directions
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Future emphasis
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Competency building Balanced scorecards Lean and mean organizations High pay – high pressures in the workplace Longer working hours Flexi time Health care benefits Retention rather than recruiting Globally mobile

OCTAPACE CULTURE

CREATING HRD CLIMATE IN ORGANIZATIONS
Strategic HR

The HRM framework
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IR Personnel HRD OB OD HRIS

WHAT IS HRD?
HRD means Building…..
Competency in people ?Commitment in people ?Culture in the organization
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ASSUMPTIONS
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HRD Means ….Business Improvement ….Business Excellence Good People and Good Culture Make Good Organizations

HRD SYSTEMS
1. 2. 3.

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Career System Work System Development System Self-renewal System Culture System

These systems are tied to all facets of business goals on a yearly basis and reviewed at regular intervals

Career system
Attraction and retention of human resources
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Manpower planning Recruitment Career planning Succession planning Retention

Work system
Utilization of human resources
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Role analysis Role efficacy Performance plan Performance feedback and guidance Performance appraisal Promotion Job rotation Reward

Development system
Development of human resources
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Induction Training Job enrichment Self-learning mechanisms Potential appraisal Succession Development Counselling Mentors system

Self-Renewal System
Rejuvenating the organization through human resources

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Survey Action research OD Intervention Organizational Retreat

Culture System
Learning environment through human resources
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Mission Goals Values Communication Task force Small Group Get-together and celebration

Emerging HR systems and practices
HR vision and Mission ? Competency based HR Practices (CBHRP) ? HR Shared Services (HRSS) ? High Performance Work Systems (HPWS) ? Learning Organization (LO) ? Performance driven work culture ? Virtual Team Building and Team Work ? HR empowering systems and processes
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Emerging HR systems and practices
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PCMM ? e-HR ? HR Portals ? e-learning ? HR Score Card ? Knowledge Management ? Mergers and acquisitions- HR issues and challenges ? Career Anchors and Career Development

HR Techniques/Tools
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62 HR Tools/techniques-HRD in Real Time Ability to use crucial Technical HR

HR Techniques/Tools
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Competency mapping Assessment/Development Center 360-degree feedback and appraisal Appreciative Enquiry Fishbowl HRD Audit

HR Techniques/Tools
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LSIE/Future Search In basket Mind mapping Participatory Research Appraisal Action Research

HRD Fields
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HRD for Line Managers HRD for Unions and Associations HRD for NGO’s HRD for Government HRD for families HRD for Schools HRD in Higher Educations HRD for Terrorist groups

ORGANIZATIONAL EFFECTIVENESS MODEL

Integrated HR

WHAT IS AN INTEGRATED HR
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Some of the definitions of "integration" are: "It must be one program rather than a number of programs linked in some way." Well, it's results that count and if the user has a convenient way of working and reliability doesn't suffer we can't see what it matters how many programs are involved. "It must use just one database." It may be more convenient for the programmers of a system if it uses one database but, so long as the program presents the data to the user in the way the user wants to see it, what does it matter where it gets it from? The IT department might prefer one database (if they have to do the back-ups) but the user shouldn't notice any difference. "Data must be entered only once." This is getting nearer to the nub of the matter. Certainly, it should never be necessary to enter the same data, separately, into the two parts of the system but is that enough? The definition we use is more along the lines of: "All parts of the system must really be able to use the data regardless of where it is entered."

Challenges
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Organizations today use home made or bought out systems like People soft or some other HRIS packages Data inputs are in following areas
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Joining details Project details People details Skill / domain Details Training details Salary details including standard and non-standard inputs Rewards / Incentive details Training expected / Given details Start / end project details Travel details Passport details / Visa details



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