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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
organisations 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 enterprises
human resources. On the other end, Human Resource Development
(HRD) is a wing of HRM that keeps focusing on the development part of the
organisations 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 HRM HRD

Meaning Human Resource Human Resource
Management refers to Development means a
the application of continuous
principles of development function
 management to that intends to improve
manage the people the performance of
working in the people working in the
organization. organization.

What is it? Management function. Subset of Human

Resource Management.
Function Reactive Proactive
Objective To improve the To develop the skills,
performance of the knowledge and
employees. competency of
employees.

Process Routine Ongoing

Dependency Independent It is a subsystem.
Concerned with People only 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 organizations 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 Associations 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 departments 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 departments 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 departments

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 employees 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 organizations background, values, clientele, services offered, staff,
and expected behaviour. The immediate superior will also specify the
newcomers 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. Employees 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 organizations 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 dont 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.

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.

2. 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 two-

way 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. McGregors 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 analysis is a process of gathering information about the

job holder
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 workers 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.

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Email: amitymbaassignment@gmail.com
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