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Development of human resources is very essential for any organisation that would like to be a dynamic and growth-oriented. Unlike other resources, human resources have unlimited potential capabilities. The potential can be used only by creating a climate that can continuously identify, bring to surface, nurture and use the capabilities of these people. Human Resource Development (HRD) aims at creating such a climate. The concept of HRD was first introduced by Leonard Nadler in 1969 in a conference in US. “He defined HRD as those learning experience which are organized, for a specific time, and designed to bring about the possibility of behavioural change”. Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities.
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Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, succession planning, tuition assistance, and organization development. The focus of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers. It can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development can be informal as in employee coaching by a manager.
Environment in human recourse management The word Environment in a human resource management comprises all those forces which have their bearing on the functioning of various activities including human resource activities. Environment scanning helps HR manger become proactive to the environment which is characterised by change and intense competition. Human resource management is performed in two types of environments- internal and external. The internal environment An organization’s internal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture, which defines employee behaviour.
Although some elements affect the organization as a whole, others affect only the manager. A manager’s philosophical or leadership style directly impacts employees. Traditional managers give explicit instructions to employees, while progressive managers empower employees to make many of their own decisions. Changes in philosophy and/or leadership style are under the control of the manager. The following sections describe some of the elements that make up the internal environment. Mission statement. The mission statement describes what the organization stands for and why it exists. It explains the overall purpose of the organization and includes the attributes that distinguish it from other organizations of its type. It should be more than words on a piece of paper; it should reveal a company’s philosophy and its purpose. This declaration should be a living, breathing document that provides information and inspiration for the employees and members of the organization.
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A mission statement will give answers for the questions, “What are our values?” and “What do we stand for?” Effective mission statements lead to effective efforts. In today’s quality-conscious and highly competitive environments, an effective mission statement’s purpose is centred on serving the needs of customers. A good mission statement will be precise in identifying the following intents of a company: Customers— who will be served Products/services— what will be produced Location— where the products/services will be produced Philosophy— what ideology will be followed Company policies Company policies are guidelines that govern how certain organizational situations are addressed. Just as colleges maintain policies about admittance, grade appeals, prerequisites, and waivers, companies establish policies to provide guidance to managers who must make decisions about circumstances that occur frequently within their organization. Company policies are an indication of an organization’s personality and should coincide with its mission statement. Formal structure The formal structure of an organization is the ordered arrangement of tasks and people. This structure determines how information flows in the organization, which departments are responsible in which activities, and where are the decision-making power rests.
Organizational chart Some organizations use a chart to simplify the breakdown of its formal structure. This organizational chart is a picture display of the official lines of authority and communication in an organization. Organizational culture The organizational culture is an organization’s personality. Just as each person has a distinct personality, so does each organization. The culture of an organization distinguishes it from others and shapes the actions of its members. There are four main components make up an organization’s culture. Values are the basic beliefs that define employees’ successes in an organization. For example, many universities place high values on professors being published. If a faculty member is published in a professional journal, for example, his or her chances of receiving tenure may be enhanced.
The university wants to ensure that a published professor stays with the university for the duration of his or her academic career — and this professor’s ability to write for publications is a value. A hero is an exemplary person who reflects the image, attitudes, or values of the organization and serves as a role model to other employees. A hero is sometimes the founder of the organization (think Sam Walton of Wal-Mart). However, the hero of a company doesn’t have to be the founder; it can be an everyday worker, such as hard-working paralegal Erin Brockovich, who had a tremendous impact on the organization.
Rites and rituals, the third component, are routines or ceremonies that the company uses to recognize high-performing employees. Awards banquets, company gatherings, and quarterly meetings can acknowledge distinguished employees for outstanding service. The honorees are meant to exemplify and inspire all employees of the company during the rest of the year. The social network, is the informal means of communication within an organization. This network, sometimes referred to as the company grapevine, carries the stories of both heroes and those who have failed. It is through this network that employees really learn about the organization’s culture and values.
Organizational climate An organizational climate is the by-product of the company’s culture. The overall tone of the workplace and the morale of its workers are elements of organizational climate. Workers attitudes dictate the positive or negative “atmosphere” of the working place. The daily relationships and interactions of employees will indicate an organization’s climate. Resources Resources are the people, information, facilities, infrastructure, equipment, supplies, and finances in an organization’s disposal.
People are the paramount resources of all organizations. Information, facilities, equipment’s, materials, supplies, and finances are supporting, nonhuman resources that complement workers in their quests to accomplish the organization’s mission statement. The availability of resources and the way that managers value the human and nonhuman resources impact the organization’s environment. Philosophy of management Philosophy of managements are the manager’s set of personal belief and value about people and their work and as such, is something that the manager can control.
McGregor emphasized that a manager’s philosophy is creating a self-fulfilling prophecy. Theory X suggest that managers treat employees almost as children who need constant direction, while Theory Y sugges that managers treat employees as competent adults capable to participating in work-related decisions. These managerial philosophies have a subsequent effect on employee’s behaviour, leading to the self-fulfilling prophecy. As a result, organizational philosophies and managerial philosophies needs to be in a harmony. The number of co-workers involving in a problem solving or decision making process reflecting the manager’s leadership style. Empowerment means entrusting to subordinates decision making, freedom, knowledge and skills. Fortunately, most of the organizations and managers are making the move towards the active participations and teamwork that empowerment involves. When a guided properly, an empowered workforce can lead to heightened productivity and quality, reducing costs, much innovation, improved customer service, and much commitment from the employees of the organization. In addition, response time will improve, because information and decisions need not be pass up and down the hierarchy.
The External Environment All outside factors that may affect an organization make up the external environment. The external environment is divided into two parts: Directly interactive This environment has an immediate and firsthand impact upon the organization. A new competitor entering the market is an example. Directly interactive forces include owners, customers, suppliers, competitors, employees, and employee unions. Management has a responsibility to each of these groups. Here are some examples: Owners expect managers to watch over their interests and provide a return on investments.
Customers demand satisfaction with the products and services they purchase and use. Suppliers require attentive communication, payment, and a strong working relationship to provide needed resources. Competitors present challenges as they vie for customers in a marketplace with similar products or services. Employees and employee unions provide both the people to do the jobs and the representation of work force concerns to management. Indirectly interactive This environment has a secondary and more distant effect upon the organization. New legislation taking effect may have a great impact. For example, complying with the Americans with Disabilities Act requires employers to update their facilities to accommodate those with disabilities. These forces include sociocultural, political and legal, technological, economic, and global influences. Indirectly interactive forces may impact one organization more than another simply because of the nature of a particular business. For example, a company that relies heavily on technology will be more affected by software updates than a company that uses just one computer. Although somewhat removed, indirect forces are still important to the interactive nature of an organization. The sociocultural dimension is especially important because it determines the goods, services, and standards that society values. The sociocultural force includes the demographics and values of a particular customer base. Demographics are measures of the various characteristics of the people and social groups who make up a society.
Age, gender, and income are examples of commonly used demographic characteristics. Values refer to certain beliefs that people have about different forms of behavior or products. Changes in how a society values an item or a behavior can greatly affect a business. (Think of all the fads that have come and gone!) The political and legal dimensions of the external environment include regulatory parameters within which an organization must operate. Political parties create or influence laws, and business owners must abide by these laws. Tax policies, trade regulations, and minimum wage legislation are just a few examples of political and legal issues that may affect the way an organization operates. The technological dimension of the external environment impacts the scientific processes used in changing inputs (resources, labor, money) to outputs (goods and services).
The success of many organizations depends on how well they identify and respond to external technological changes. For example, one of the most significant technological dimensions of the last several decades has been the increasing availability and affordability of management information systems (also known as MIS). Through these systems, managers have access to information that can improve the way they operate and manage their businesses. The economic dimension reflects worldwide financial conditions. Certain economic conditions of special concern to organizations include interest rates, inflation, unemployment rates, gross national product, and the value of the U.S. dollar against other currencies.
A favorable economic climate generally represents opportunities for growth in many industries, such as sales of clothing, jewelry, and new cars. But some businesses traditionally benefit in poor economic conditions. The alcoholic beverage industry, for example, traditionally fares well during times of economic downturn. The global dimension of the environment refers to factors in other countries that affect U.S. organizations. Although the basic management functions of planning, organizing, staffing, leading, and controlling are the same whether a company operates domestically or internationally, managers encounter difficulties and risks on an international scale. Whether it be unfamiliarity with language or customs or a problem within the country itself (think mad cow disease), managers encounter global risks that they probably wouldn’t have encountered if they had stayed on their own shores Economic: Economic forces include growth rate and strategy, industrial production, national and per capita incomes, money and capital markets, competitions, industrial labour and globalisation.
All these forces have significant influence on wage and salary levels. Growing unemployment and reservation in employment also affect the choice for recruitment and selection of employees in organisations. Political: Political environment covers the impact of political institutions on HRM practices. For example, democratic political system increases the expectations of workers for their well being. The total political environment is composed of three institutions: 1. Legislature: This is called Parliament at the central level and Assembly at the state level A plethora of labour laws are enacted by the legislature to regulate working conditions and employment relations. 2. Executive: It is the Government that implements the law. In other words, the legislature decides and the executive acts. 3. Judiciary: This is like a watchdog above the two. It ensures that both the legislature and the executive work within the confines of the constitution and also in the overall interest of the people. These affect, in one way or the other, all HR activities from planning to placement to training to retention and maintenance.
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