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1.
Differentiate HRM and HRD.
Answer: Human resources are an essential section of any organization, company or institute. Recognizing this importance, separate branches geared towards the development and the safeguarding of this sector has evolved over time. HRD and HRM are two such subjects that cater to this growing need today. Definition of HRM Human Resource Management, shortly known as HRM refers to a systematic branch of management that is concerned with managing people at work so that they can give best results to the organisation. It is the application of management principles to the people working in the organisation. It aims at improving the performance and productivity of the organisation by finding out the effectiveness of its human capital. Therefore, HRM is an art of placing the right person at the right job, to ensure the best possible use of organisation’s manpower. The process involves an array of activities that begins with the recruitment, selection, orientation, & induction, training & development, performance appraisal, incentives & compensation, motivation, maintaining workplace safety, health & welfare policies, managing relationship with the organisation, managing change. Definition of HRD The term Human Resource Development or HRD refers to the development of people working in an organisation. It is a part of HRM; that aims at improving skills, knowledge, competencies, attitude and behaviour of employees of the organisation. The purpose of the HRD is to empower and strengthen the abilities of the employees so that their performance will get better than before. Human Resource Development involves providing such opportunities to the employees that will prove beneficial in their all around development. Such
opportunities include training & development, career development, performance management, talent management, coaching & mentoring, key employee identification, succession planning and so on. Nowadays, there are many organisations work for the human resource development of employees from the day they join the enterprise, and the process continues, until the end of their employment term.
Difference between HRD and HRM: HRD and HRM are both practices that deal with human resources of a company. Usually in large organizations, there exists entire departments dedicated to HRM where trained professionals work together solely towards the amelioration of this aspect, dealing with both HRD and HRM functions. HRD is human resource development. HRM is human resource management. • HRD deals with functions such as performance development and management, training, career development, mentoring, coaching, succession planning, tuition assistance, key employee identification, etc. HRM deals with functions such as employee training, recruitment, performance appraisals as well as duly rewarding the employees. • HRD is a part of HRM. HRM deals with all HR initiatives while HRD only deals with the development factor. • HRM functions are more formal than of HRD functions. Human Resource Management (HRM) is a branch of management; that is concerned with making best possible use of the enterprise’s human resources. On the other end, Human Resource Development (HRD) is a wing of HRM that keeps focusing on the development part of the organisation’s manpower. There are many people, to whom HRM and HRD convey the same meaning, but this is not true. We have compiled an article here, to make you understand the differences between HRM and HRD. Have a look. Basis of Comparison Meaning
HRM Human Resource Management refers to the application of principles of
HRD Human Resource Development means a continuous development function
management to manage the people working in the organization.
that intends to improve the performance of people working in the organization.
What is it?
Management function.
Function Objective
Reactive To improve the performance of the employees.
Subset of Human Resource Management. Proactive To develop the skills, knowledge and competency of employees.
Process Dependency Concerned with
Routine Independent People only
Ongoing It is a subsystem. Development of the entire organization.
Key Differences Between HRM and HRD The significant differences between HRM and HRD are discussed in the following points: 1.
Human Resource Management refers to the application of principles of management to manage the people working in the organisation. Human Resource Development means a continuous development function that intends to improve the performance of people working in the organisation.
2.
HRM is a function of management. Conversely, HRD falls under the umbrella of HRM.
3.
HRM is a reactive function as it attempts to fulfil the demands that arise while HRD is a proactive function, that meets the changing demands of the human resource in the organisation and anticipates it.
4.
HRM is a routine process and a function of administration. On the other hand, HRD is an ongoing process.
5.
The basic objective of HRM is to improve the efficiency of employees. In contrast to HRD, which aims at developing the skill, knowledge and competency of workers and the entire organisation.
6.
HRD is an organizationally oriented process; that is a subsystem of a big system. As opposed to HRM where there are separate roles to play, which makes it an independent function.
7.
Human Resource Management is concerned with people only. Unlike Human Resource Development, that focus on the development of the entire organisation. Conclusion HRM differs with HRD in a sense that HRM is associated with management of human resources while HRD is related to the development of employees. Human Resource Management is a bigger concept than Human Resource Development. The former encompasses a range of organisational activities like planning, staffing, developing, monitoring, maintaining, managing relationship and evaluating whereas the latter covers in itself the development part i.e. training, learning, career development, talent management, performance appraisal, employee engagement and empowerment.
2.
Define human resource audit.
According to R.D. Gray, “the primary purpose of audit is to know how the various units are functioning and how they have been able to meet the policies and guidelines which were agreed upon; and to assist the rest of the organization by identifying the gap between objectives and results for the end product of an evaluation should be to formulate plans for corrections or adjustments.”
Human Resource Audit is a comprehensive method of objective and systematic verification of current practices, documentation, policies and procedures prevalent in the HR system of the organization. An effective HR audit helps in identifying the need for improvement and enhancement of the HR function. It also guides the organization in maintaining compliance with ever-changing rules and regulations. HR audit, thus, helps in analyzing the gap between ‘what is the current HR function’ and ‘what should be/could be the best possible HR function’ in the organization.
Though HR auditing is not mandatory like financial auditing, yet, organizations these days are opting for regular HR audits in order to examine the existing HR system in line with the organizations policies, strategies and objectives, and legal requirements. HR auditor can be internal or external to the organization. Generally, HR consulting firms render the service of external HR auditors. It is necessary for the top management to establish the terms and scope of the audit clearly before the external firm to make the audit successful. This includes defining the exact purpose of audit, viz. examining compliance with legal requirements and organization’s policies, identifying problem areas to avoid crisis situation with appropriate planning, analyzing ways to better serve the needs of relevant parties – employees, partners or society, measuring the work processes, seeking HR related opportunities available within the organization, dealing with situation of merger and acquisitions, etc. Primary components of the HR system which are generally audited include – documentation, job descriptions, personnel policies, legal policies, recruitment and selection, training and development, compensation and employee benefit system, career management, employee relations, performance measurement and evaluation process, termination, key performance indicators, and HR Information Systems (HRIS). According to R.D. Gray, “the primary purpose of audit is to know how the various units are functioning and how they have been able to meet the policies and guidelines which were agreed upon; and to assist the rest of the organization by identifying the gap between objectives and results for the end product of an evaluation should be to formulate plans for corrections or adjustments.” The American Accounting Association’s Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as “the process of identifying and measuring data about human resources and communicating this information to interested parties”. HRA, thus, not only involves measurement of all the costs/ investments associated with the recruitment, placement, training and develop ent of employees, but also the quantification of the economic value of the people in an organisation.
Flamholtz (1971) too has offered a similar definition for HRA. They define HRA as “the measurement and reporting of the cost and value of people in organizational resources”. A periodic HR audit can qualify its effectiveness within an organization. HR audits may accomplish a variety of objectives, such as ensuring legal compliance; helping maintain or improve a competitive advantage; establishing efficient documentation and technology practices; and identifying strengths and weaknesses in training, communications and other employment practices. Objectives of the Human Resource Audit
To review the performance of the Human Resource Department and its relative activities in order to assess the effectiveness on the implementation of the various policies to realize the Organizational goals.
To identify the gaps, lapses, irregularities, short-comings, in the implementation of the Policies, procedures, practices, directives, of the Human Resource Department and to suggest remedial actions.
To know the factors which are detrimental to the non-implementation or wrong implementation of the planned Programmes and activities.
To suggest measures and corrective steps to rectify the mistakes, shortcomings if any, for future guidance, and advise for effective performance of the work of the Human Resource Department.
v To evaluate the Personnel staff and employees with reference to the Performance Appraisal Reports and suggest suitable recommendations for improving the efficiency of the employees.
To evaluate the job chart of the Human Resource Managers, Executives, Administrative Officers, Executive Officers, Recruitment Officers, whether they have implemented the directives and guidelines for effective Management of the Human resources in their respective Departments.
Benefits of Human Resource Audit Several benefits associated with Human Resource audit are listed below. An audit reminds member of HR department and others its contribution,
creating a more professional image of the department among manager and specialist. The audit helps clarify the department’s role and leads to greater uniformity, especially in the geographically scattered and decentralized HR function of large organisations. Perhaps most important, it finds problems and ensures compliance with a variety of laws and strategic plans in an organization.
Identifies the contribution of Human Resource department to the organization
Improves the professional image of the Human Resource department.
Encourages greater responsibility and professionalism among member of the Human Resource department.
Clarifies the HR department’s duties and responsibilities.
Stimulates uniformity of HR policies and practices.
Finds critical HR problems.
Ensures timely compliance with legal requirements.
Reduces human resource cost through more effective Human Resource procedure.
Creates increased acceptance of needed change in the Human Resource department.
Requires thorough review of Human Resource department’s information system.
Approaches to HR Audit: According to William Werther and Keith Davis, there are five approaches for the purpose of evaluation. These are briefly outlined as under: (1) Comparative Approach:
Under this approach auditors identify one model company and the results obtained of the organisation under audit are compared with it. (2) Outside Authority Approach: In outside authority approach a benchmark is set to compare own results. A standard for audit set by outside consultant is used as benchmark. (3) Statistical Approach: Under statistical approach the statistical information maintained by the company in respect of absenteeism, employee turnover etc. is used as the measures for evaluating performance. (4) Compliance Approach: Under compliance approach the auditors make a review of past actions to determine to see whether those activities are in compliance with the legal provisions and in accordance with the policies and procedures of the company. (5) MBO Approach: Under MBO approach specific targets are fixed. The performance is measured against these targets. The auditors conduct the survey of actual performance and compare with the goals set.
4.
What is Induction Programme?
Answer 4
An induction programme is the process used within many businesses to welcome new employees to the company and prepare them for their new role. Inductiontraining should, according to TPI-theory, include development of theoretical and practical skills, but also meet interaction needs that exist among the new employees. An Induction Programme can also include the safety training delivered to contractors before they are permitted to enter a site or begin their work. It is usually focused on the particular safety issues of an organisation but will often include much of the general company information delivered to employees. Induction of Employee is the first step towards gaining an employees' commitment, Induction is aimed at introducing the job and organization to the recruit and him or her to the organization. Induction involves orientation and training of the employee in the organizational culture, and showing how he or she is interconnected to (and interdependent on) everyone else in the organization. The new employee’s first contact with his or her physical and human working environment is extremely important, since it will condition his or her relationship with the company. The employee must feel supported and important. The first person he or she will meet is the immediate supervisor, who should present the corporate profile in addition to providing information on the organization’s background, values, clientele, services offered, staff, and expected behaviour. The immediate superior will also specify the newcomer’s role. The points listed below should be covered during this meeting. A good induction programme should cover the following: 1. The company, its history and products, process of production and major operations involved in his job. 2. The significance of the job with all necessary information about it including job training and job hazards. 3. Structure of the organization and the functions of various departments. 4. Employee’s own department and job, and how he fits into the organization. 5. Personnel policy and sources of information.
6. Company policies, practices, objectives and regulations. 7. Terms and conditions of service, amenities and welfare facilities. 8. Rules and regulations governing hours of work and over-time, safety and accident prevention, holidays and vacations, methods of reporting, tardiness and, absenteeism. 9. Grievances procedure and discipline handling. 10.
Social benefits and recreation services.
11. Opportunities, promotions, transfer, suggestion schemes and job satisfaction.
An induction programme consists primarily of three steps: General orientation by the staff: It gives necessary general information about the history and the operations of the firm. The purpose is to help an employee to build up some pride and interest in the organization. Specific orientation by the job supervisor: The employee is shown the department and his place of work; the location of facilities and is told about the organization’s specific practices and customs. The purpose is to enable the employee to adjust with his work and environment. Follow-up orientation by either the personnel department or the supervisor: This is conducted within one week to six months of the initial induction and by a foreman or a specialist. The purpose is to find out whether the employee is reasonably well satisfied with him. Through personal talks, guidance and counselling efforts are made to remove the difficulties experienced by the newcomer.
Case Detail : Mr. Kumar Nidhi has been working as a manager (Credit Appraisal) in State Bank of Mysore since, 1990. He got first rank in his M.A. from Karnataka University in 1989. He rose from Officer-Grade IV to Officer-Grade I in a short
span of 10 years. Personnel records of the bank shows that he is an efficient manager in Agricultural Credit, Industrial Credit and Credit to small business etc. The bank is planning to computerise the project appraisal department. In this connection, Mr. Kumar Nidhi was asked to take training in computer operations. But he was quite reluctant to undergo training.
1.
Why was Mr. Kumar Nidhi reluctant to undergo training? Discuss.
Answer: Many employees do not have a positive attitude toward training, whether that is due to fear of change or lack of engagement. The reason, Mr. Kumar Nidhi reluctant to undergo
training can be as follows:
One reason that Mr. kumar Nidhi may be resisting to take computer operation training program is because they are unable to see how it relates to them or what the outcome will be. When employees don’t feel as if the provided training is beneficial to their job performance, overall success or daily lives, they become disinterested and resist. Like wise here in the case is Nidhi is into credit appraisal (Agricultural Credit, Industrial
Credit and Credit to small business etc.) and now bank after the 10 years of his carrier in credit filed ask him to take computer operations training for the computerize project appraisal department. So it is hard for Nidhi to put into perspective what the training can do for him and they tend to take a “just get it done” mentality.
2.
Mr. Kumar Nidhi has been with the company for years, he may find resistance due to their level of experience. When an employee feels they are highly experienced and overqualified, they may resist training simply because they feel they already know everything they need to know. Likewise, Mr. kumar Nidhi in the above case can find anything they need to know on the internet or from other sources, and may resist simply because they feel they can find a better way.
The one more reason for the resistance of kumar Nidhi to take computer training program that he does not embrace changes and they may not see the value of ongoing training that useful.
What is job rotation?
Job rotation is a management technique that assigns trainees to various jobs and departments over a period of a few years.
A job design technique in which employees are moved between two or more jobs in a planned manner. The objective is to expose the employees to different experiences and wider variety of skills to enhance job satisfaction and to cross-train them. -------BusinessDictionary.com
Job rotation implies systematic movement of employees from one job to the other. Job remains unchanged but employees performing them shift from one job to the other. With job rotation, an employee is given an opportunity to perform different jobs, which enriches his skills, experience and ability to perform different jobs Job rotation gives an idea about the jobs to be performed at every level. Once a person is able to understand this he is in a better understanding of the working of organization Job rotation is done to decide the final posting for the employee e.g. in the above case Mr. Kumar Nidhi is assigned to the officer-Grade IV whole he learns all the jobs to be performed for officer-Grade IV at his level in the organization .after this he is shifted to the officer-Grade I. He is he is an efficient manager in Agricultural Credit, Industrial Credit and Credit to small business etc. And now bank is want him to take training in computer operation. After that bank can placed him in the department in which he shows the best performance.
3.
What are the determinants of learning from this case?
The above case study employs a training and development function framework to estimate determinants of learning outcomes. Although Kumar Nidhi has been working as a manager in credit appraisal department efficiently for last 10 years but when bank is planning to computerize the project appraisal department and asking to take training in computer operations. Now Kumar Nidhi can see this
training as an opportunity to learn about the different field and prove himself efficient in computer operations also other than credit appraisal.
MCQ 1. ________ are the resources that provide utility value to all other resources. A Men
2. The term procurement stands for A recruitment and selection
3. The characteristics of human resources are ________ in nature B heterogeneous
4. Identify the managerial function out of the following functions of HR managers. C organizing
5. Which of the following is an example of operative function of HR managers? C procurement
6. The scope of human resource management includes D All of the above
7. Human resource management is normally ________ in nature. A proactive
8. The human resource management functions aim at B helping the organization deal with its employees in different stages of employment
9. Which of the following aptly describes the role of line managers and staff advisors, namely HR professionals?
C Staff advisors are solely responsible for developing, implementing and evaluating the HR programmes while line managers are not all involved in any matters concerning HR. 10. In strategic human resource management, HR strategies are generally aligned with A business strategy
11. Which of the following is closely associated with strategic human resource management? D All of the above
12. Treating employees as precious human resources is the basis of the _______ approach. hard HRM soft HRM medium HRM None of the above
13. Strategic human resource management aims to achieve competitive advantage in the market through price product people process 14.
Wright and Snell made important contribution to the growth of
Strategic fit model Strategic labour allocation process model
Business-oriented model None of the above
15.
Strategic management process usually consists of _______ steps.
Four Five Six Seven
16.
One of the components of corporate level strategy is
growth strategy portfolio strategy parenting strategy All of the above
17. Creating an environment that facilitates a continuous and twoway exchange of information between the superiors and the subordinates is the core of High involvement management model High commitment management model High performance management model None of the above
18. Which one of the following is not a part of the external environment of an organization?
social factors political factors legal factors organizational culture 19.
Identify the odd one out of the following factors
organizational structure HR systems business strategy technology
20. The first recorded human resource management initiative was made during the pre-industrial revolution era the First World War era the Second World War era None of the above 21. What is the most important contribution of the Hawthorne studies? the discovery of the informal relationship and social groups among employees the significance of lighting and ventilation for performance the difference in the performance of male and female employees the relationship between the behaviour and performance
22.
The term environmental scanning stands for
gathering data about the organization and its surroundings
collecting information about the shareholders gathering information relating to the employees none of the above 23.
McGregor’s Theory X and Theory Y was introduced during
the First World War` the Industrial revolution the Second World War the human relations movement
24. One of the important assumptions of the ----------perspective is that uncertainty in environment is more of an internal problem and less of an external problem objective environment perspective perceived environment perspective enacted environment perspective none of the above
25. When an organization creates its own environment out of its knowledge of the environment, it has created a/an enacted environment perceived environment objective environment none of the above
26. job holder
Job analysis is a process of gathering information about the
job management organization
27. The final process of a job analysis is the preparation of two statements, namely, job observation and job description job specification and job observation job description and job specification None of the above
28.
Which of the following terms is not associated with job analysis?
task duty position competitor 29. The process of bringing together different tasks to build a job is called job evaluation job design job classification job description
30. The process of grouping of similar types of works together is known as
job classification job design job evaluation job description
31. The system of ranking jobs in a firm on the basis of the relevant characteristics, duties, and responsibilities is known as job evaluation job design job specification job description
32.
The written statement of the findings of job analysis is called
job design job classification job description job evaluation
33. A structured questionnaire method for collecting data about the personal qualities of employees is called functional job analysis management position description questionnaire work profiling system none of the above
34. The model that aims at measuring the degree of each essential ability required for performing the job effectively is known as Fleishman Job Analysis System common metric questionnaire management position description questionnaire functional job analysis
35. The method that depends mainly on the ability and experience of the supervisors for gathering relevant information about the job is called the task inventory analysis method technical conference method diary maintenance method critical incident method
36. Designing a job according to the worker’s physical strength and ability is known as ergonomics task assortment job autonomy none of the above
37.
Which of the following is not a component of job design?
job enrichment job rotation job reengineering
job outsourcing
38. Moving employees from one job to another in a predetermined way is called job rotation job reengineering work mapping job enrichment 39.
The basic purpose of human resource planning is to
identify the human resource requirements identify the human resource availability match the HR requirements with the HR availability All of the above 40. The primary responsibility for human resource planning lies with HR Manager general manager trade union leader line manager We Also Provide SYNOPSIS AND PROJECT. Contact www.kimsharma.co.in for best and lowest cost solution or Email:
[email protected] Call: 9971223030
