CHAPTER II

HUMAN RESOURCES DEVELOPMENT

1
(HRD)
HRD is a profession today. It has a body of knowledge and this knowledge is
transferred to younger generations through management institutes in India. By now
HRD is a well-recognized function in organizations. HRD has professional bodies
supporting its knowledge generation, knowledge dissemination and capacity building
in organizations. HRD has also generated consulting firms which proide e!clusie
HRD serices for organizations in need. "hus HRD is a well-recognized profession
in India today.
"he subse#uent topics of this chapter take the readers through arious aspects of this
profession.
$. %H$" I& HRD'
HRD is based on the two assumptions( HRD makes sense only when it contributes
towards business improement and business e!cellence. HRD also strongly beliee
that good people and good culture make good organizations.
HRD means building(
)ompetency in people
)ommitment in people
)ulture in the organization
HRD means building competencies. "he most important HRD function is to build
competencies in each and eery indiidual working in an organization. )ompetencies
are to be built and multiplied in roles and indiiduals.
HRD means building commitment in people. )ompetencies will not make sense
without commitment. "hink of an organization where all the employees are
competent but not willing to put into use their competencies. Hence, competencies
without commitment will not contribute towards effectieness.
HRD is all about building a deelopment culture in an organization. HRD ensures
that culture-building practices are adopted from time to time to create a learning
enironment in the organization. It builds such a culture that the built-in culture in
turn will build competencies and commitment in the people who work with the
organization.
HRD can be defined as the branch of human resources management function that
endeavors to build competencies, commitment and a learning culture in
*
+, -omon ./0012. HRD in Real "ime
organizations with the purpose of bringing in competitive advantages to achieve
business excellence in all its operations.
B. HRD &3&"4+&
HRD functions are carried out through its systems and sub systems. HRD has fie
ma5or systems and each of the systems has sub systems as elaborated below( the first
three systems iz., )areer system, %ork system and Deelopment system, are
indiidual and team oriented while the fourth and the fifth systems iz. &elf renewal
system and )ulture &ystems are organization based.
1. Career system( $s an HRD system, career system ensures attraction and retention
of human resources through the following sub-systems.
+anpower planning
Recruitment
)areer planning
&uccession planning
Retention
2. Wor system! %ork-planning system ensures that the attracted and retained human
resources are utilized in the best possible way to obtain organizational ob5ecties.
6ollowing are the sub systems of the work planning system.
Role analysis
Role efficacy
7erformance plan
7erformance feedback and guidance
7erformance appraisal
7romotion
-ob rotation
Reward

". De#e$o%me&t system! "he enironmental situation and the business scenario is fast
changing. "he human resources within the organization hae to raise upto the
occasion and change accordingly if the organization wants to be in business. "he
deelopment system ensures that the retained .career system2 and utilized .work
system2 human resources are also continuously deeloped so that they are in a
position to meet the emerging needs of the hour. 6ollowing are some of the
deelopmental sub - systems of HRD that make sure that human resources in the
organization are continuously deeloped.
Induction
"raining
-ob enrichment
&elf-learning mechanisms
7otential appraisal
&uccession Deelopment
)ounselling
+entor system
'. Se$()re&e*a$ system! It is not enough to deelop indiiduals and teams in the
organizations but occasionally there is a need to renew and re-5uenate the
organization itself. 6ollowing are some of the sub systems that can be utilized to
renew the organization.
&urey
$ction research
8rganizational Deelopment interentions
8rganizational Retreats
+. C,$t,re system! Building a desired culture is of paramount importance in today9s
changed business scenario. It is the culture that will gie a sense of direction, purpose,
togetherness, and teamwork. It is to be noted that whether an organization wants it or
not along with the time common ways of doing things .culture2 will emerge. If not
planned carefully and built systematically such common traits may not help the
business but may become a stumbling block. Hence it is ery important to hae
cultural practices that facilitate business. &ome of the culture building subsystems are
gien below(
:ision, +ission and ,oal
:alues
)ommunication
,et-togethers and celebrations
"ask forces
&mall ,roups
). HRD 7R8)4&&4&
HRD is a process-oriented function. HRD functions in many organizations fail
because the processes inoling the systems are not ade#uately addressed. "he
concept of process essentially concerns the #uestion of ;how< and to a great e!tent the
#uestion of ;why ;. It emphasises the behaioural and interactional dimensions. $ll
the HRD processes are centred around four constituents of an organization iz, the
employee, role, teams and the organization itself. 4ach of the unit has its own
behaioural patterns and framework, which, if not addressed ade#uately may not
bring in the desired outcomes. It is through these processes that the HRD systems are
effectiely implemented. Implementations of the HRD systems are, in turn indented
to bring in right processes in organizations. Hence HRD systems and HRD processes
are closely linked. "heir relationships are well e!plained by Rao .*==02.
1.I&-.#.-,a$( Indiidual is the basic constituent of an organization. $ll the
behaioural pattern and dynamisms emerge from indiiduals. Hence indiidual based
HRD process e!plained below are ital for HRD function and for implementation of
the HRD systems.
4fficacy
4ffectieness
&tyles
>eadership

2.Ro$e( Role is a dynamic entity which inoles the e!pectations of significant others
and self from the position of the role holder. $ large number of behaioural patterns
and dynamism in organizations are centred around the roles. "he role occupier and all
others who hae some linkage or relationship to that role form a constituent.
6ollowing are some of the role related, HRD processes in organizations.
)ompetencies for 5ob performance
)ommitment
+otiation
6rustration,
&tress ? Burnout

".Teams! %ork in organizations are performed through teams or groups. %hen
indiiduals begin to work in team, behaioural patterns and dynamisms emerge.
6ollowing HRD processes are to be addressed if team work should bring in the
desired results.
)ommunication
6eedback
)onflict resolution
)ollaboration
'.Or/a&.0at.o&! $ large number of HRD processes are organization related. @nless
and until these processes are in place, HRD cannot take off. Howeer, in a number of
organizations as a result of implementation of HRD systems, these processes were set
right. HRD systems can contribute towards the deelopment and maturity of these
processes.
8rganizational )limate
)ommunication
>earning 8rganization
8rganizational )hange
8rganizational Deelopment
D. )8A)>@&I8A
In this chapter we hae seen the definition of HRD, arious systems and
subsystems, the HRD processes and the sub processes. "he sub systems and sub
processes are not discussed in detail since the ery purpose of this work is to
proide a #uick and brief understanding of HRD rather than discuss them
e!haustiely. It is to be noted that body of knowledge relating to the sub themes
mentioned aboe are already aailable in some form or the other. "he HRD
sources and the Bibliography gien towards the end of this book may be used for
further reading and elaboration.
2. How will you evaluate the effectiveness of training
programme ? If there are short-comings in training. What
steps will you take to overcome these ?
Donald L irkpatrick!s "#our steps to measuring training effectiveness$

This model uses four separate stages for the evaluation of the effectiveness of a training
program.

The four stages are:-
Reaction
Learning
Behaviour
Results
Level %

The first stage is about the reaction of the trainee to the training. This sort of measurement is
concerned with how the trainees "feel about the course. The usual course feedback sheets
are an eample of the !irkpatrick level " evaluation. #ost organisations do not do an$ more
than this t$pe of measurement and anal$sis. The drawback is that we do not reall$ know if the
trainee has actuall$ learnt an$thing. %hat reall$ seems to be being asked of the trainee was
how "happ$ were $ou with the course& hence the somewhat derogator$ description that is
often applied to the "happ$ sheets' %e will now look at the net level of evaluation concerned
with Learning.

Level 2

Things can be improved b$ using a pre-test and post-test and comparing the results. The
(uestions need to be ob)ective and closel$ related to the course ob)ectives *more about that
later+. ,n this wa$ we can determine if the training actuall$ delivered knowledge and this was
understood b$ the trainees at the time. -n organisation that does this can be confident that
the trainee has actuall$ learnt something at that time. %h$ do , make the point that we have
to make the measurement and consider the learning at a certain time. %ell because we do
not know if the learning has had time to be internalised and become "concrete. -ll too often
trainees *and delegates at conferences for eample+ will have difficult$ remembering what
was in the course or seminar the$ attended a few da$s later let alone months later. There are
various techni(ues that we can emplo$ to improve the level of recall but basicall$ "if we don/t
use it we will lose it'

Level &

This is concerned with "behaviour. B$ that we mean the measurable change in an individual
as a result of their attendance on the training course. This is0 in m$ opinion0 the least we
should be epecting from an$ training program. -fter all what is the point of spending mone$
and using resources if the training does not effect some measurable change in the behaviour
of the trainee.

Level '

!irkpatrick is now concerned with the training to determine if it has actuall$ been translated
into tangible benefits to the organisation. 1uite simpl$ has productivit$ and or (ualit$ been
improved. 2ave the number of accidents or incidents been reduced. 2as plant availabilit$
and or plant utilisation been improved. 2as the morale of the workforce changed for the
better. These are metrics which reall$ have an impact on the "bottom line and for that reason
feature in the companies balance sheets and !3,s. %e have to ask ourselves is this not the
real reason for training. Training has to make a real difference in performance and
effectiveness& this is tied closel$ to competence. Training has be proven to deliver results and
be cost effective. ,t might sound simple but it is not for most organisations. The reason is that
most do not have in place an$ s$stem for measuring the improvement in competence of the
individual& let alone a s$stematic approach to identif$ing the most effective means of assisting
the individual to becoming competent.
Benefits can include:-
Better productivit$
Lower insurance premiums
,mproved morale
4nhanced reputation
Reduced stress
5o legal costs
5o compensation cases
Lower staff turnover
4mplo$er of choice
Levels of evaluation
Four levels of training evaluation .
Level 1: Reaction
At this level, evaluation measures how those who participated in the training have reacted
to it. In a sense, it is a measure of immediate customer satisfaction.
*Determine what ou want to find out.
* Design a form that will !uantif reactions.
* "ncourage written comments and suggestions.
* #et 1$$ per cent immediate response.
*#et honest responses.
* Develop accepta%le standards.
* &easure reactions against standards, and ta'e appropriate action.
*(ommunicate reactions as appropriate.
Level ): "valuating learning
*his level o%tains information on the e+tent to which learning o%,ectives have %een
attained. It will aim to find how much 'nowledge was ac!uired, what s'ills were developed
or improved, and as appropriate, the e+tent to which attitudes have
in the desired direction. -o far as possi%le, the evaluation of learning should involve the
use of paper and pencil or performance tests, %efore and after the programme.
Level .: "valuating %ehaviour
*his level evaluates the e+tent to which %ehaviour has changed as re!uired when people
attending the programme have returned to their ,o%s. *he !uestion to %e answered is the
e+tent to which 'nowledge, s'ills and attitudes have %een transferred from the classroom
to the wor'place. Ideall, the evaluation should ta'e place %oth %efore and after the
training. *ime should %e allowed for the change in %ehaviour to ta'e place. *he evaluation
needs to assess the e+tent to which specific learning o%,ectives relating to changes in
%ehaviour and the application of 'nowledge and s'ills hav e %een achieved.
Level /: "valuating results
*his is the ultimate level of evaluation, and provides the %asis for assessing the %enefits of
the training against its costs. *he evaluation has to %e %ased on %efore and after
measures, and has to determine the e+tent to which the fundamental o%,ectives of the
training have %een achieved in areas such as increasing sales, raising productivit,
reducing accidents or increasing customer satisfaction. "valuating results is o%viousl
easier when the can %e !uantified. 0owever, it is not alwas eas to prove the
contri%ution to improved results made % training as distinct from other factors.
Application of training evaluation
Li'e the similar levels of evaluation 1reactions, learning, ,o% %ehaviour, impact on unit and
organi2ational performance3 the levels defined *raining produces reactions, which lead to
learning, which leads to changes in ,o% %ehaviour, which lead to results at unit and
organi2ational level. *rainees can react favoura%l to a course 4 the can en,o the
e+perience 4 %ut learn little or nothing. *he might learn something, %ut %e una%le or
unwilling to appl it. *he might appl it %ut it does no good within their own areas, or it
does some good in their function, %ut does not improve organi2ational effectiveness.
raining can %e measured with respect to three sets of criteria:
1. In4course evalution of participants5 progress. *his is an appraisal of the effects
of training at the 6training4room6 level. &ore specificall it
involves an assessment of:
a3 increased 'nowledge7
%3 ac!uired s'ills7
c3 changes in e+pressed attitudes7
d3 indications of interest7
e3 degree of participation7
f3 acceptance of training given.
In short, this set of criteria is used to measure the effectiveness of the training
as a process.
). Impact on the participants after training. *his is an appraisal of the effects of training as
revealed % su%se!uent, modified %ehavior on the ,o%. It involves measures of: a3 the
transfer of instruction into changed %ehaviors and attitudes on the ,o%7 %3 the e+tent and
duration of such change7 (3 whether the changes are positive, contri%uting to improved
efficienc, production, and emploee satisfaction7 d3 whether progress has %een made in
meeting the specific o%,ectives of the training. *his set of criteria is used to determine the
effect of the training on people in the organi2ation.
.. Impact on the organi2ation. *his involves a determination of thee+tent to which training
has plaed a part in organi2ational success. *he 'inds of things that indicate significant
contri%utions to organi2ational success include: a3 an improved supervisor and
management force7 %3 improved interdepartmental functioning7 c3 improved productivit
and morale7 d3 improved communication, verticall and hori2ontall7 e3 greater customer
or pu%lic satisfaction with goods produced or services rendered7f3an ade!uate reservoir of
talent to meet present promotion and future e+pansion needs.
Evaluation by Return on Investment (ROI) Analysis (or the Fifth Level of
Evaluation)
6ome training professionals consider R7, anal$sis to be one method for
determining the results of !irkpatrick/s fourth level of evaluation. 7thers consider
R7, its own level and make it the 8th level of evaluation. ,n an$ case0 this method
is an effective wa$ to measure the success of $our training program.
R7, anal$sis gives the trainer data about the financial impact training programs
have on the organi9ation. ,t differs from Level ,: evaluation in the sense that
Level ,: takes into consideration nonfinancial data such as emplo$ee
satisfaction. R7, anal$sis deals strictl$ with the financial impact of training. ,t
answers the (uestion ;<or ever$ dollar invested in training0 how man$ dollars
does the emplo$er get back.
2ere are three great reasons to use R7, anal$sis:
". ,t/s a concrete wa$ to validate $our training program as a business tool.
=. ,t can be used to )ustif$ the cost of $our training program to upper
management.
>. ,t can be a useful tool for choosing future training methods.
#an$ business eecutives view training as a business epense and0 therefore0
measure its worth in terms of profits made or savings earned from this epense.
?ou need to make sure training is seen as beneficial to $our compan$. @se the
following formula when measuring the R7, for $our compan$ to get the
percentage of profit earned for ever$ training dollar spent.
ROI Formula:
ROI (%) = Monetary Benefts - Training
Costs x 1
Costs
To get the figures for this formula0 keep track of training costs0 including:
Aesign and development
3romotion
-dministration
Aeliver$ *staff or technolog$+
#aterials
<acilities
4mplo$ee wages
4valuation
-fter training0 keep track of monetar$ benefits0 including:
Labor savings
3roductivit$ increases
,ncome generation
5ew leads
5ew products
Lower turnover costs
2ere/s an eample for -ce %idget Bompan$. -ssume that a widget-making skills
training session increased production b$ =CD and that a "D increase in
production $ielded EFC0CCC in annual
revenue.
EGCC0CCC total benefits
E=CC0CCC in total cost
H*GCC0CCC-=CC0CCC+I=CC0CCCJ "CCK>CCD
6o in this eample for ever$ E" spent on training0 the organi9ation gained a net
benefit of E>.
R7, -nal$sis is fast becoming an essential level of evaluation for companies who
invest in
training.
Evaluation by Return on Investment (ROI) Analysis (or the Fifth Level of
Evaluation)
6ome training professionals consider R7, anal$sis to be one method for
determining the results of !irkpatrick/s fourth level of evaluation. 7thers consider
R7, its own level and make it the 8th level of evaluation. ,n an$ case0 this method
is an effective wa$ to measure the success of $our training program.
R7, anal$sis gives the trainer data about the financial impact training programs
have on the organi9ation. ,t differs from Level ,: evaluation in the sense that
Level ,: takes into consideration nonfinancial data such as emplo$ee
satisfaction. R7, anal$sis deals strictl$ with the financial impact of training. ,t
answers the (uestion ;<or ever$ dollar invested in training0 how man$ dollars
does the emplo$er get back.
2ere are three great reasons to use R7, anal$sis:
". ,t/s a concrete wa$ to validate $our training program as a business tool.
=. ,t can be used to )ustif$ the cost of $our training program to upper
management.
>. ,t can be a useful tool for choosing future training methods.
#an$ business eecutives view training as a business epense and0 therefore0
measure its worth in terms of profits made or savings earned from this epense.
?ou need to make sure training is seen as beneficial to $our compan$. @se the
following formula when measuring the R7, for $our compan$ to get the
percentage of profit earned for ever$ training dollar spent.
ROI Formula:
ROI (%) = Monetary Benefts - Training
Costs x 1
Costs
To get the figures for this formula0 keep track of training costs0 including:
Aesign and development
3romotion
-dministration
Aeliver$ *staff or technolog$+
#aterials
<acilities
4mplo$ee wages
4valuation
-fter training0 keep track of monetar$ benefits0 including:
Labor savings
3roductivit$ increases
,ncome generation
5ew leads
5ew products
Lower turnover costs
2ere/s an eample for -ce %idget Bompan$. -ssume that a widget-making skills
training session increased production b$ =CD and that a "D increase in
production $ielded EFC0CCC in annual
revenue.
EGCC0CCC total benefits
E=CC0CCC in total cost
H*GCC0CCC-=CC0CCC+I=CC0CCCJ "CCK>CCD
6o in this eample for ever$ E" spent on training0 the organi9ation gained a net
benefit of E>.
R7, -nal$sis is fast becoming an essential level of evaluation for companies who
invest in
training.
2,'
Basicall$ it is a c$clic process - to overcome an$ shortcomings during the evaluation of
training steps taken r :
". )ust revise the contents as per feedback of the said trg. prg. to make it more effective for
future trg prg. *like topics to be dropped 0 topics to be added+
=. facult$ pla$s a imp. role in the effectiveness so as per the evaluation we can change the
facuilt$ or give him etra time I sessions as per the evauated report.
further i would that it all depends on the shortfalls detected I observed b$ evalation so onl$
accordingl$ we can take measures. *process of evaluation also pla$s imp. role in evaluation of
effectivess properl$+
u pl. provide details the evaluation report of the trg. prg. than onl$ measures can be
suggested to enhance the effcetiveness.
attribution http:IIwww.citehr.comI">LGG-training-steps-overcome-an$-shortcomings-
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