HUMAN RESOURCE DEVELOPMENT 1. HRD is part of HRM and constitute one wing of HRM department.

HRD is concerned with the training and qualitative development of employees. 2. Features of HRD HRD is a system of several interdependent sub-systems such as procurement, appraisal, development etc. II. HRD is a planned process of developing people on a continuous basis. III. HRD is an interdisciplinary concept as it uses principles of different areas such as psychology, economics, sociology etc. IV. HRD basically develops competencies at individual, groups and organizational level. 3. Role & Responsibilities of HRD (May 04) I. HRD makes effective use of manpower by employing right man to the right job at right time. II. HRD facilitates human resource planning and control by maintaining data about the manpower of organisation. III. HRD influence the employees to accept the change willingly. IV. HRD creates mutual trust and confidence leading to overall better performance. V. HRD maintains transparency in administration. VI. HRD encourages employees to show innovation while solving problems. VII. HRD Policy (May 04) HRD policy is a statement of an organisation, which provides a broad framework within which a decision on human resource can be made. HRD policy is formulated by the HRD department under the supervision of top management. HRD policy includes procedures, programmes and practices affecting human resources. This policy makes clear code of conduct thereby providing pleasant work atmosphere. HRD policy is a long life policy; they can be used repeatedly to solve recurring problems. I.

PERFORMANCE APPRAISAL (May 05, Nov. 06 ) Performance Appraisal is a systematic and orderly evaluation of performance of employees at work by their superiors or others who are familiar with the techniques of performance appraisal. Such appraisal is common in the case of blue collared employees (workers, supervisors etc.) and white collared employees (bank employees, government servants etc.). Performance appraisal is different from personal appraisal. This system was introduced by Scottish Millionaire Robert Owen in early 19th century. IMPORTNACE / USES OF PERFORMANCE APPRAISAL (Nov. 05, 08) It helps in Suitable Placements of subordinates as per their potential It provides Assistance in Self Improvement by giving details of strengths and weakness of employees through performance feedback. It acts as Incentive to Improve the Performance and to develop mew qualities to achieve higher position in the organisation. It suggests appropriate Training Programme as per the weaknesses of the employees. It helps in framing Sound Personnel Policies for promotion and transfers. It promotes Cordial Employee-Employer Relations as it minimise the employees grievances about transfer, promotions and increments.

It facilitates HR Planning and Development of existing manpower as per the future needs of enterprise. It facilitates Direct Employee Communication through appraisal interview and post-appraisal interview. It wins the High Employee Morale as they feel that the management is interested in their career development and well being STEPS IN PERFORMANCE APPRAISAL Establishing performance standards Communicating standards to employees Measuring accrual performance Comparing actual performance with the standard set Appraisal interview discussing actual performance with the employee Flow up training to improve the performance TECHNIQUES OF PERFORMANCE APPRAISAL (Nov. 03, 05, 08)

A] Traditional Methods
Confidential Reports: In this method, superiors are asked to prepare confidential report on his subordinates. Various aspects such as achievements, weaknesses, major mistakes etc. are recorded in such report. It is used even today in government departments and educational institutions. Grading: In this method, Rater evaluates the performance of an employee and places him into a grade. Grades may be like A (outstanding), B (very good), C (good), D (fair), and E (poor). Checklist: In this method, a list of the qualities of employees is prepared. While rating an employee, the rater is asked to put a plus sign, minus sign or a question mark against each quality statement. Forced Choice Rating: In this method, Rater is asked to select out of five qualities only one, which he feels is more characteristics and the one which is least applicable to him. Critical Incident: This method was developed during WWII and suggests that there is certain key acts of behaviour, which results in the success or failure in the job. These acts arise incidentally while performing the jab. The supervisor is required to note all such critical incidents and rate the performance of the subordinate. Essay Method: In this method, a superior is asked to write a small paragraph as regard his subordinates strengths, weaknesses, potentials, etc. Group Appraisal: In this method, a group of evaluators consists of supervisors; head of departments, personnel experts access the employees. Field Review: In this method, a training officer from HR department interviews line supervisor to appraise their subordinates. The supervisor is expected to answer the questions of interviewer prepared in advance. Ranking: In this method, each employee is compared with all others performing the same job and then is given a particular rank in descending order. It states that A is superior to B and B is superior to C and so on. Merits: It is simple to understand and easy to use It is less expensive and less time consuming. It does not require trained raters. Demerits: It does not specify how much on employee is superior to other. It is not possible to give objective proof for ranking Performance is not compared to standard performance There may be bias of raters in ranking It is highly subjective.

Graphic Rating Scale: In this method, a list of various factors like quantity of output, quality of output, initiative etc. is prepared and given a degree (outstanding, very good, good, fair, poor). While rating an employee, the rater is asked to mark in front of each respective degree of quality. Merits: (same merits of Ranking as above) Demerits: It puts heavy pressure on rater, as he has to consider 4 to 12 factors with five degree for each. Rate has to do lot of paper work There may be gap between two degrees e.g. very good and good. There may be bias of raters in rating.

B] Modern Methods
1] 360-DEGREE PERFORMANCE APPRAISAL (Nov. 01, 07) When the appraisal of a manager is made by the superiors, peers, subordinates and clients, it is called as 360-degree system of performance appraisal. This system was developed fits at General Electric, US in 1992. It is now used by Indian organisations like Reliance, Crompton Greaves, Godrej, Wipro, Infosys, and Thomas Cook etc.
Merits of 360 Degree Appraisal 1. Uses Multiple Rates such as findings from superiors, peers, subordinates and clients and hence it is more reliable and free from bias.

There is Systematic Performance Data Collection from superiors, peers, subordinates and clients. It provides greater Potentiality of Self Development as it provides broader perspective about an employees performance. Only Formal Communication is entertained in 360-degree appraisal. Hence employee feels more accountable. It Identify Special Traits like team building skills and interpersonal skills.
Demerits of 360 Degree Appraisal

Creates Sense of Insecurity when employees heard that the appraisal would be obtained from multiple of sources. It is Time Consuming, as it requires time to select right and multiple raters. All raters may not be equally close to the employee.

2] ASSESMENT CENTER (May 03 04, 05, Nov. 04, 05)

Assessment center may be defined as a central location where managers may come together to participate in job related exercises evaluated by trained observers. Features (May 05)

Here, the managers have to participate in job related exercises and their performance is judged by trained observers. In this, qualities like interpersonal skills, communication skills, self-confidence, decision-making ability etc. is assessed. It was first developed in UK and US by 1943 but now used by Indian companies like Crompton Greaves, HLL, and Modi Xerox etc. It is now used for performance appraisal of executives and supervisors. Process (May 05)
1. Employees are asked to participate in role-playing, business games, computer simulation and work groups without leaders.

Evaluators observe and rate employees as they perform jobs. After this, raters meet to discuss their observations. Then they make a summery report. Assessment is done mainly with a view to determine employee promotion.

Merits 1. It defines the criteria for selection and promotion.

(May 04)

It provides better forecasts for of future performance of executrices and managers. It helps to determined training and development needs of an employee. It provides fair and equal opportunity to prove merits of all candidates.
Demerits (May 04)

It is costly and time consuming method Raters are often influenced by subjective elements such as personality of candidates. Performers in day-to-day operations feel suffocated in stimulated environment and this adversely affect their performance. If the report of assessment center is negative, employee may feel demoralised and frustrated.
Objectives (Nov. 04)

3] MBO (May 05) Peter Drucker coined the term MBO in 1954. MBO is a way of managing which focuses on the accomplishment of well-defined objectives rather than on tasks and activities. In-basket Training Trainees are provided with basket or tray of papers and files related to their functional area. They are expected to study these and make recommendations on the problems.