Chapter 5Chapter 5

Human Resource Human Resource Development Development

and Managementand Management

Human Resource Development and Human Resource Development and ManagementManagement

1.1. What is Human Resource What is Human Resource Management?Management?

2.2. What is the difference between Human What is the difference between Human Resource Management and Personnel Resource Management and Personnel Management?Management?

3.3. What is the role of Human Resource What is the role of Human Resource Management in TQM?Management in TQM?

What is Human Resource What is Human Resource Management?Management? Human resource management is responsible for Human resource management is responsible for

how people are treated in organizations. how people are treated in organizations.

It is responsible for bringing people into the It is responsible for bringing people into the organization, helping them perform their work, organization, helping them perform their work, compensating them for their labors, and solving compensating them for their labors, and solving problems that arise.problems that arise.

There are seven management functions of a There are seven management functions of a human resources (HR) department that will be human resources (HR) department that will be specifically addressed: specifically addressed: staffingstaffing, , performance performance appraisalsappraisals, , compensation and benefitscompensation and benefits, , training and developmenttraining and development, , employee and labor employee and labor relationsrelations, , safety and healthsafety and health, and , and human human resource researchresource research..

What is the difference between HRM and What is the difference between HRM and HRD?HRD?

HRM means just what it says--human resource HRM means just what it says--human resource management--the management of people or management--the management of people or resources in an organization.resources in an organization.

HRM encompasses the traditional areas that most HRM encompasses the traditional areas that most people think of as HR, including compensation and people think of as HR, including compensation and benefits, recruiting and staffing, employee and benefits, recruiting and staffing, employee and labor relations and occupational health and safety.labor relations and occupational health and safety.

What is the difference between HRM and What is the difference between HRM and HRD?HRD?

On the other hand, HRD--human resource On the other hand, HRD--human resource development--is the development of the resources in a development--is the development of the resources in a company: organization development, performance company: organization development, performance management, training and learning, and coaching. management, training and learning, and coaching.

HRD includes evaluating the performance of employees, HRD includes evaluating the performance of employees, helping employees learn and develop new skills, and helping employees learn and develop new skills, and assisting them with weaknesses or areas of assisting them with weaknesses or areas of development. development.

HRD also includes helping an organization develop--HRD also includes helping an organization develop--diagnosing problems with how people work together in diagnosing problems with how people work together in certain areas of an organization.certain areas of an organization.

What is the role of TQM in What is the role of TQM in Human Resource Management?Human Resource Management?

Total quality management (TQM) has far-reaching Total quality management (TQM) has far-reaching implications for the management of human resources.implications for the management of human resources.

It emphasizes It emphasizes self-controlself-control, , autonomyautonomy, and , and creativitycreativity among employees and calls for greater active among employees and calls for greater active cooperation rather than just compliance.cooperation rather than just compliance.

Indeed, it is becoming a Indeed, it is becoming a maximmaxim of good management of good management that that human factors human factors are the most important dimension in are the most important dimension in quality and productivity improvement.quality and productivity improvement.

The Baldrige Award Criteria for aligning The Baldrige Award Criteria for aligning HRM with TQM practicesHRM with TQM practices

The key elements of how work force is enabled to develop its The key elements of how work force is enabled to develop its full potential to pursue the company’s quality and operational full potential to pursue the company’s quality and operational objectives. Also examined are the company’s efforts to build objectives. Also examined are the company’s efforts to build and maintain an environment for quality excellence conducive and maintain an environment for quality excellence conducive to full participation and personal organizational growth.to full participation and personal organizational growth.

1.1. Human Resource Planning and ManagementHuman Resource Planning and Management 2020

2.2. Employee InvolvementEmployee Involvement 4040

3.3. Employee Education and TrainingEmployee Education and Training 4040

4.4. Employee Performance and RecognitionEmployee Performance and Recognition 2525

5.5. Employee Well-being and SatisfactionEmployee Well-being and Satisfaction 2525

Total Points: 150Total Points: 150

TQM and HRMTQM and HRM

Following areas are of significant importance Following areas are of significant importance in relation to TQM and HRM:in relation to TQM and HRM:

1.1. Employees InvolvementEmployees Involvement

2.2. Employees EmpowermentEmployees Empowerment

3.3. Suggestion SystemSuggestion System

4.4. Training & DevelopmentTraining & Development

Involvement: Involvement: A Central Idea of Human A Central Idea of Human Resource UtilizationResource Utilization

At the heart of the TQM is the concept of intrinsic At the heart of the TQM is the concept of intrinsic motivation-involvement in decision making by the motivation-involvement in decision making by the employees.employees.

Employee involvement is a process for empowering Employee involvement is a process for empowering members of an organization members of an organization to make decisionsto make decisions and and to to solve problems appropriate to their levelssolve problems appropriate to their levels in the in the organization.organization.

It’s use is credited for contributing to the success It’s use is credited for contributing to the success enjoyed by Japanese in the world market place.enjoyed by Japanese in the world market place.

Involvement: Involvement: A central idea of Human A central idea of Human Resource utilizationResource utilization

Employee involvement is not the replacement for Employee involvement is not the replacement for management nor is the final word in quality management nor is the final word in quality improvement.improvement.

It is a means to better meet the organization’s goals for It is a means to better meet the organization’s goals for quality and productivity at all levels of an organization.quality and productivity at all levels of an organization.

Involvement: Involvement: A central idea of Human A central idea of Human Resource utilizationResource utilization Knowledge of motivation can help us to understand the Knowledge of motivation can help us to understand the

utilization of employee involvement to achieve process utilization of employee involvement to achieve process improvement.improvement.

One of the first and most popular theory was developed One of the first and most popular theory was developed by Abraham Maslow.by Abraham Maslow.

He explained the motivation could best be explained in He explained the motivation could best be explained in terms of a hierarchy of needs and that there were five terms of a hierarchy of needs and that there were five levelslevels

These levels are:These levels are:1.1. Survival Survival 2.2. SecuritySecurity3.3. SocialSocial4.4. EsteemEsteem5.5. Self-actualizationSelf-actualization

Involvement: Involvement: A central idea of Human A central idea of Human Resource utilizationResource utilization

Survival

Social

Security

Esteem

Self-actualization

Involvement:Involvement: A central idea of Human Resource A central idea of Human Resource utilization Involvement: A central idea of Human utilization Involvement: A central idea of Human Resource utilizationResource utilization

EmpowermentEmpowerment The dictionary definition of empowerment is to invest The dictionary definition of empowerment is to invest

people with authoritypeople with authority

Empowerment should not be confused with delegation Empowerment should not be confused with delegation or job enrichment. Delegation refers to distributing and or job enrichment. Delegation refers to distributing and entrusting work to others.entrusting work to others.

Employee empowerment requires that the individual is Employee empowerment requires that the individual is held responsible for accomplishing the whole task. held responsible for accomplishing the whole task.

The employee becomes process owner- thus the The employee becomes process owner- thus the individual is not only responsible but also accountable.individual is not only responsible but also accountable.

Involvement:Involvement: A central idea of Human A central idea of Human Resource utilization Involvement: A central Resource utilization Involvement: A central idea of Human Resource utilizationidea of Human Resource utilization

The logic behind employee empowerment us that the people closest to a problem or opportunity are in the best position to make decisions for improvement and to solve problems appropriate to their levels in the organization.

Andon-Fixed Position Stop Andon-Fixed Position Stop SystemSystem

Andon-Fixed Position Stop Andon-Fixed Position Stop SystemSystem

Andon-Fixed Position Stop Andon-Fixed Position Stop SystemSystem

Involvement: A central idea of Involvement: A central idea of Human Resource utilizationHuman Resource utilization

““Suggestion System”Suggestion System” Suggestion systems are designed to provide Suggestion systems are designed to provide

the individual with the opportunity to be the individual with the opportunity to be involved by contributing to the organization.involved by contributing to the organization.

The key to an effective system is management The key to an effective system is management commitment. Management must make it easy commitment. Management must make it easy for employees to suggest improvementsfor employees to suggest improvements

Stimulating and encouraging employee Stimulating and encouraging employee participation starts the creative processparticipation starts the creative process

Five Ground Rules for Stimulating and Five Ground Rules for Stimulating and Encouraging Suggestion SystemEncouraging Suggestion System

1.1. Be ProgressiveBe Progressive by regularly asking your employees for by regularly asking your employees for suggestionssuggestions

2.2. Remove fearRemove fear by focusing on the process and not on the by focusing on the process and not on the person.person.

3.3. Simplify the processSimplify the process so it is easy to participate so it is easy to participate

4.4. Respond QuicklyRespond Quickly to suggestions and within specified to suggestions and within specified period of timeperiod of time

5.5. Reward the ideaReward the idea with published recognition so that with published recognition so that everyone knows the value of contribution.everyone knows the value of contribution.

Training and DevelopmentTraining and Development

Why Training is important in TQM based organizations?

As, at the heart of TQM is the concept of intrinsic motivation-involvement in decision making by the employees, it means more responsibility, which in turn requires a greater level of skill.

This must be achieved through TRAINING.

Training and DevelopmentTraining and DevelopmentBasic Steps of Effective Training PlansBasic Steps of Effective Training Plans

1.1. The first step in training process is to make everyone aware The first step in training process is to make everyone aware of what the training is all about. Thoughts suggestions should of what the training is all about. Thoughts suggestions should be gathered.be gathered.

2.2. The second step is to get acceptance. The trainees must feel The second step is to get acceptance. The trainees must feel that training will be of value to them.that training will be of value to them.

3.3. The third step is to adept to adapt the program. Is everyone The third step is to adept to adapt the program. Is everyone ready to buy into it? Does everyone feel they are a part of ready to buy into it? Does everyone feel they are a part of what is going to take place?what is going to take place?

4.4. The fourth step is to adept to what has been agreed upon. The fourth step is to adept to what has been agreed upon. What changes must be made in behavior and attitudesWhat changes must be made in behavior and attitudes . .

What kind of Training be imparted What kind of Training be imparted to the employees?to the employees? The type of training depends on the need of the The type of training depends on the need of the

particular company. The areas that should be common particular company. The areas that should be common to all organizations’ training program is problem solving to all organizations’ training program is problem solving and communication skills.and communication skills.

In addition to above areas, all members should receive In addition to above areas, all members should receive training in quality awareness (TQM), statistical process training in quality awareness (TQM), statistical process control (SPC), safety, and technical aspects of job.control (SPC), safety, and technical aspects of job.

The only difference among types of training is that some The only difference among types of training is that some may be required more often and for greater length of may be required more often and for greater length of times than others.times than others.

Who Needs to Receive Quality Training?Who Needs to Receive Quality Training?Subject MatterSubject Matter Top Top

ManagementManagementQualityQuality

ManagersManagers

Other Other

Middle Middle

ManagersManagers

SpecialistsSpecialists FacilitatorsFacilitators WorkforceWorkforce

Quality AwarenessQuality Awareness

Basic ConceptsBasic Concepts

Strategic QualityStrategic Quality

ManagementManagement

Personal RolesPersonal Roles

Quality ProcessesQuality Processes

Problem Solving MethodsProblem Solving Methods

Basic StatisticsBasic Statistics

Advanced StatisticsAdvanced Statistics

Quality in Functional Quality in Functional AreasAreas

Motivation for QualityMotivation for Quality

This Training Plan was suggested by

Joseph Juran

Why Training Programs fail?Why Training Programs fail?

There are many different reasons but they fail mainly There are many different reasons but they fail mainly because the focus is usually on the training itself and because the focus is usually on the training itself and not on helping the organization improve in a real and not on helping the organization improve in a real and measurable way.measurable way.

Training should be action oriented so that results can be Training should be action oriented so that results can be obtained right away.obtained right away.

The Performance AppraisalThe Performance Appraisal

The purpose of performance appraisal is to let employee The purpose of performance appraisal is to let employee know how they are doing, and provide a basis of know how they are doing, and provide a basis of promotions, salary increases, counseling.promotions, salary increases, counseling.

Many supervisors look at appraisals as one of the Many supervisors look at appraisals as one of the unpleasant duties they must performance. Conversely unpleasant duties they must performance. Conversely some supervisors feel it a pleasant duty and can reveal some supervisors feel it a pleasant duty and can reveal how effective an employee is in contributing to the how effective an employee is in contributing to the success of organization.success of organization.

Every effort should be made to avoid errors in Every effort should be made to avoid errors in performance evaluations. An unfair evaluation could performance evaluations. An unfair evaluation could cost an organization a valuable employee.cost an organization a valuable employee.

Criticism on Performance Appraisal Criticism on Performance Appraisal SystemSystem Appraisals Appraisals nourish short term performance and nourish short term performance and

destroy long-term planningdestroy long-term planning

Another criticism states that individual Another criticism states that individual appraisal appraisal destroys teamworkdestroys teamwork. If teams are to become a cohesive . If teams are to become a cohesive unit of “all for one and one for all,” then individual unit of “all for one and one for all,” then individual ranking would undermine the entire concept.ranking would undermine the entire concept.

A third concern is the assumption that A third concern is the assumption that an individual is an individual is responsible for all resultsresponsible for all results. In reality results are . In reality results are frequently beyond an individual’s control, such as frequently beyond an individual’s control, such as processes and equipment. Deming has stated that 85% processes and equipment. Deming has stated that 85% of the problems are the result of the system.of the problems are the result of the system.

Last, there is a concern that Last, there is a concern that appraisals are frequently appraisals are frequently based on subjectivity and immeasurablebased on subjectivity and immeasurable..

The Deming's Reservation about The Deming's Reservation about performance appraisal systemperformance appraisal system

The traditional performance appraisal The traditional performance appraisal system has been criticized as being system has been criticized as being counterproductive and unnecessarycounterproductive and unnecessary by by Deming.Deming.

He once stated, "In practice, annual ratings He once stated, "In practice, annual ratings are a disease, annihilating long-term are a disease, annihilating long-term planning, demobilizing teamwork, planning, demobilizing teamwork, nourishing rivalry and politics, leaving nourishing rivalry and politics, leaving people bitter, crushed, bruised, battered, people bitter, crushed, bruised, battered, desolate, despondent, unfit for work for desolate, despondent, unfit for work for weeks after receipt of rating, unable to weeks after receipt of rating, unable to comprehend why they are inferior..."comprehend why they are inferior..."

Should individual performance appraisals be Should individual performance appraisals be eliminated, as suggested by Deming?eliminated, as suggested by Deming?

The answer is: This unlikely in view of The answer is: This unlikely in view of historical and widespread use of human historical and widespread use of human resource management tool.resource management tool.

Rather than scrap performance Rather than scrap performance appraisals, a number of practitioners appraisals, a number of practitioners have suggested that the performance have suggested that the performance appraisal system be improved.appraisal system be improved.

What should then be a good What should then be a good performance appraisal systemperformance appraisal system First of all, there should be a First of all, there should be a good relationship between good relationship between

the employee and appraiserthe employee and appraiser Employees should be made Employees should be made aware of appraisal process, aware of appraisal process,

what is evaluated and how often.what is evaluated and how often. Employees should be told Employees should be told how they are doing on a how they are doing on a

continuous basis, not just at appraisal time.continuous basis, not just at appraisal time. The appraisal should point out The appraisal should point out strength and weaknessesstrength and weaknesses

as well as as well as how performance can be improvedhow performance can be improved.. The The performance must be based on standardsperformance must be based on standards that are that are

developeddeveloped and and agreed agreed upon by the appraiser and upon by the appraiser and employee.employee.

And lastly, And lastly, an employee should always be given an an employee should always be given an opportunity to comment on the evaluationopportunity to comment on the evaluation, to include , to include protesting, if desired. protesting, if desired.

Appraisal FormatsAppraisal Formats

TypeType DescriptionDescriptionRankingRanking Compares employees by ranking from Compares employees by ranking from

highest to lowesthighest to lowest

NarrativeNarrative Gives a written description of employees Gives a written description of employees strengths and weaknessesstrengths and weaknesses

GraphicGraphic Indicates the major duties performed by Indicates the major duties performed by the employees and rate each duty with a the employees and rate each duty with a scale, which is usually 1(poor) to 5 scale, which is usually 1(poor) to 5 (excellent)(excellent)

Forced ChoiceForced Choice Places each employee in a category with a Places each employee in a category with a predetermined percentage-for example, predetermined percentage-for example, excellent (10%), very good (25%), good excellent (10%), very good (25%), good (30%), fair (25%), and poor (10%)(30%), fair (25%), and poor (10%)

Compensation SystemCompensation System

The traditional compensation systems have been The traditional compensation systems have been based on:based on:

1.1. Pay for performancePay for performance2.2. Pay for responsibility (a job description)Pay for responsibility (a job description)

Each of these are based on individual Each of these are based on individual performance, which creates a competitive performance, which creates a competitive atmosphere among employees.atmosphere among employees.

If compensation criteria are focused exclusively If compensation criteria are focused exclusively on individual performance, on individual performance, a company will find a company will find that initiatives promoting teamwork will failthat initiatives promoting teamwork will fail

Compensation System in TQM Compensation System in TQM PhilosophyPhilosophy The TQM Philosophy emphasizes The TQM Philosophy emphasizes flexibility, lateral flexibility, lateral

communication, group effectiveness, and responsibility communication, group effectiveness, and responsibility for an entire process that has the ultimate outcome of for an entire process that has the ultimate outcome of customer satisfaction.customer satisfaction.

A team based compensation approach is A team based compensation approach is Gain SharingGain Sharing or or Performance BonusPerformance Bonus to all employees. It is a system to all employees. It is a system of management in which an organization seek higher of management in which an organization seek higher levels of performance through involvement and levels of performance through involvement and participation of its people.participation of its people.

The approach is a team effort and reinforces TQM, The approach is a team effort and reinforces TQM, partially because it contains common components, partially because it contains common components, such as involvement and commitment.such as involvement and commitment.

End of Chapter 5End of Chapter 5