• “Ofall the tasks of management,

managing human components is

the central and most important
task because all else depends on
how well it is done”..Rensis
Likert
 HRM and HRD
• HRM:- Deals with optimum utilisation of
human capital.
• HRD:- deals with development and up
gradation of human capital.
• Human capital refers to the knowledge,
education, training, skills and expertise of a
firm’s workers.
• HRD= Human Resource + Development
• Human resourse refers to talents and energies
of people who are available to an organisation
as potential contributors to the creation and
realization of the organisation’s mission,
vision, values and goals.
• Development refers to a process of active
learning from experience, leading to
systematic and purposeful development of
whole person : body, mind and spirit.
• Thus HRD is the integrated use of training,
organisational development and career
development efforts to improve individual,
group and organisational effectiveness.
 HRD definition
• Human Resource Development is
the process of increasing the
capacity of human resource
through development (ASTD)
 Features of HRD
• Systematic approach:
HRD is a systematic and planned
approach through which the efficiency of
employees is improved. The future goals
and objectives are set by the entire
organization, which are well planned at
individual and organizational levels.
• Continuous process:
HRD is a continuous process for the
development of all types of skills of employees
such as technical, managerial, behavioural, and
conceptual. Till the retirement of an employee
sharpening of all these skills is required.
• Multi-disciplinary subject:
HRD is a Multi-disciplinary subject which draws
inputs from behavioural science, engineering,
commerce, management, economics, medicine,
etc.
• All-pervasive:
HRD is an essential subject everywhere, be it a
manufacturing organization or service sector
industry.
• Techniques:
HRD embodies with techniques and processes such
as performance appraisal, training, management
development, career planning, counselling,
workers’ participation and quality circles.
 Objectives of HRD
• Equity:
Recognizing every employee at par irrespective
of caste, creed, religion and language, can create
a very good environment in an organization. HRD
must ensure that the organization creates a
culture and provides equal opportunities to all
employees in matters of career planning,
promotion, quality of work life, training and
development.
• Employability:
• Employability means the ability, skills, and
competencies of an individual to seek gainful
employment anywhere. So, HRD should aim at
improving the skills of employees in order to
motivate them to work with effectiveness.
• Adaptability:
Continuous training that develops the
professional skills of employees plays an
important role in HRD. This can help the
employees to adapt themselves to
organizational change that takes place on a
continuous basis.
 Goals of HRD
• The goals of HRD are to develop:
• The capabilities of each employee as an individual
• The capabilities of each individual in relation to his or
her present role
• The capabilities of each employee in relation to his or
her expected future role(s)
• The dyadic relationship between each employee and
his or her supervisor,
• The team spirit and functioning in every
organisational unit
 Challenges
• Increasing Workforce Diversity

• Competing in a Global Economy

• Eliminating the Skills Gap

• The Need for Lifelong Learning

• Facilitating Organizational Learning
 HRD system
• The purpose of HRD system is to build the
competencies and commitment of Individuals,
Teams and the entire organization as a whole
through a variety of instruments.
• However, it is necessary to have a formal and
systematic way of achieving this. Such formal
way of developing human resources (various
human units) is the HRD system.
 Cont….
• HRD system can be broken down into sub-
systems. An integrated combination of all
these sub-systems is the HRD system.
 HRD system
• Career system
• Work planning system
• Development system
• Self- renewal system
• Culture subsystem
 Career system
• Attraction and Retention of HR

• Career systems are concerned with the advancement of the

individual employees in their careers in the organisation.

• The first step is taken by introducing career development plans

so that employees joining at an any point are helped to go
through various experiences which may help them to move up
in the organisation and may give them opportunities to prove
themselves capable of taking up higher responsibilities.
 Cont….
• Career planning is concerned with charting career
paths for the individual employees who have spent
enough time in the organization, and have proved
their competence.
• The third element, which has been used only in a few
organisations in India, is mentoring that ensures
individual attention to young potential employees
(protéges) for their possible fast growth in the
organisation.
 Work planning system
• Work planning system ensures that the attracted and
retained human resources are utilised in the best
possible way to obtain organisational objectives.

• Understanding of organisations mission and

objectives help employees to plan and realize their
work outputs effectively in order to achieve the
mission and objectives of the organisation
 Development system
• The development system ensures that the retained
(career system) and utilized (work system) human
resource are also continuously developed so that they
are in a position to meet the emerging needs.

• Competencies and skills of employees needs to be

continuously developed by the organization through
training, learning, coaching to meet org. requirements
and challenges.
 Self-renewal system
• It is not enough to develop individuals and
teams in the organisation but occasionally
there is a need to renew and re-juvenate the
organisation itself.
 Culture system
• It is the culture that will give a sense of direction,
purpose, togetherness and teamwork.

• It is to be noted that whether an organisation wants it or

not along with the time common ways of doing things
(culture) will emerge.

• If not planned carefully and build systematically such

common traits may not help the business but may
becomes a stumbling block.
 Cont….
• Hence it is very important to have cultural
practices that facilitate business.
HRD subsystem
 HRD subsystems
• Role Analysis • Data bank

• Selection, Induction and • Appraisal

placement
• Counseling • Self-development

• Training • Manpower forecast

• Corporate Planning • Succession Planning

• Career Planning Job rotation and Transfer

 Role Analysis
• It is the process of collecting, analyzing and recording
information about the requirements of roles in order to
provide the basis for a role profile.

• It lays emphasis over the demands made by the role holder,

of what they need to learn and of what they are capable of
performing.

• However, such analysis should be conducted periodically

and must be designed according to the constant changes
taking place in internal and external environment.
 Data bank
• It is the process of maintaining systematic
information about the individual employees including
history, characteristics, performance record, potential
record, mobility and significant achievements.

• This data bank becomes the foundation on which

various subsets of HRD such as performance
appraisal, career planning and development,
succession planning etc. are developed to enhance
organisational improvement.
 Selection, Induction and placement

• Selection is the process of choosing potential

employees who have relevant qualifications to
fill jobs in an organization. The basic purpose
is to choose the individual who can most
successfully perform the job from the group of
qualified candidates.
 induction
• Induction is the task of introducing the new
employees to the organization and its policies,
procedures and rules. A typical formal
orientation programme may last a day or less
in most organizations. During this time, the
new employee is provided with information
about the company, its history its current
position the benefits for which he is eligible,
leave rules, rest periods, etc.
 placement
• After selecting a candidate, he should be
placed on a suitable job. Placement is the
actual posting of an employee to a particular
job. It involves assigning a specific rank and
responsibility to an employee.
 Performance Appraisal
• It is an indispensable aspect of HRD of analyzing the
performance of employees which enables the
management to understand where their people stand,
what is been expected from them and what they are
actually contributing.

• The purpose of conducting such an analysis is to

assess the present position of employees and to
forecast the need for training.
 Potential Appraisal
• The term ‘potential’ refers to the abilities and skills
possessed by an employee. It is different from
performance appraisal which shows an employee’s
current performance in his existing role.
• Nowadays, organizations are diversifying their
operations which demands cognizability on the part
of employees working in an organization. To meet
these needs, organizations may require employees
which are competent enough to beat the competition
of today’s dynamic world. Therefore they have to
make a potential appraisal of the present employees
so that they can undertake a variety of tasks
 Counseling:

• It serves several purposes. Counseling is a service

provided to the employees regarding their personal
problems. For this purpose services of professional
counselors need to be obtained. It reduces employee
turnover, absenteeism, tardiness and helps in
strengthening the superior subordinate & relationship,
understanding problems of juniors and seniors
thereby facilitating better communication and
effective decision making.
 Cont…
• Through counseling employees can
understand their strengths and weaknesses
and overcome the problems arising out of
their ignorance in the work performance. It
helps in avoiding stress.
 Training
• Training is an attempt to improve current or
future employee performance by increasing
an employee’s ability to perform through
learning usually by changing the employee’s
attitude or increasing his or her knowledge.
 Career Planning
• Planning of Career is of utmost importance for
the growth of employees. The first and the
foremost step in career planning is to make
one’s SWOT analysis-an analysis of Strengths,
Weaknesses, Opportunities and Threats
present in an individual. Career must be
planned in accordance with the education,
training, job search an them work experience
 Corporate planning
• It is the process of formulation of methods by
which organisations goals and objectives are
to be achieved.
 Succession planning
• It is designed to ensure the continued
effective performance of an organization by
working to ensure the development and
replacement of key people over time.
 Job rotation and transfer
• Job Rotation implies systematic movement of
employees form one job to the other. Job remains
unchanged but employees performing them shift from
one job to the other. This is described as job rotation.
With job rotation, an employee is given an
opportunity to perform different jobs, which enriches
his skills, experience and ability to perform different
jobs. However, the jobs offered under job rotation are
more or less of the same nature. As a result, he will be
skilled to a new job which is more or less similar to
his earlier job.
 JOb transfer
• In business organizations, employees are shifted from
one post to the other or from one department to other
or one unit/ branch/ plant of the company to the other.
This is called as job transfer of transfer of employees.

• A transfer is defined as, “a change in job where the

new job is substantially equal to the old in term of
pay, status and responsibilities.”
 HRD strategies
• A strategy is a course of action planned to be
undertaken to achieve desired goals.
• HRD strategy indicates the desired course of
action planned by an organization to achieve
HRD goals or HRD outcomes.
 Major HRD strategies
• Communication strategy: continuous
communication with employees, their family
members and the society at large is crucial to an
organisation.
• Given continuous changes it is essential to educate
and train employees about the need for change and
seeking their commitment is critical factor in success
of any change management process.
• Organisation also need to integrate and develop the
larger social system they are pert of.
 Ownership & Accountability strategy
• Ownership & Accountability means individuals and
teams taking accountability for the quality and
success of both the output and outcomes of their
work. Both of these are important, as ownership
doesn’t mean perfection. It means knowing why you
are doing the work (the outcome) and making sure
that what you produce (the output) is fit-for-purpose.
Ownership is the state of mind where you feel fully in
charge and do not give any excuses (or blame anyone
else) for what needs to be done. It also means
understanding, learning, and challenging rather than
mindlessly following instructions.
 Cont….
• Employees accountability and ownership leads
to higher productivity and customer
acceleration.
• Therefore fostering accountability and
ownership through HR development process
and systems such as performance appraisal,
career planning and development, counseling
and mentoring, quality of work life etc.
 Quality strategy
• Quality is the foundation of any organization.
• Quality is mindset which needs to be fostered in the
employees through training and development.
• Quality should be promoted in everything an
organization does through various quality
management tools.
• Quality improvement needs continuous commitment,
support and ownership of employess at all levels at
all time.
 Cost reduction strategy
• Every employee’s contribution in savings is crucial as
small contributions from each employee can be
pooled by organizations to save substantial savings at
the end of a given period and enhance its competitive
strategy .
• Strategies include:
• Business Process Improvement
• Shutdowns, Turnarounds, and Outages (STO)
• Supply Chain Management
• Safety Performance
• Corrective & Preventive Action Management (CAPA)
• Quality Improvement
 Intrapreneurship strategy
• Every employee needs to be an independent
entrepreneur, who can generate ideas and
bring them to reality by using the existing
resources and support of the org to create
innovative and creative products and services.
• This require developing assertive risk taking in
the employees.
 Culture building strategy
• Org’s valuing its employees have a sustainable
competitive edge over competitors because
employees are highly charged, motivated and
commitment to the org.
• A strong culture fosters higher employee
commitment towards the goals and objectives
of the org.
 Systematic Training Strategy
• The planning and organization of formal on-
job training and off-job training leads to
improving vital employee characteristics, build
and sustain appropriate work culture and
brings in more professionalism in action.
 Learning Strategy
• Continuous development and learning
environments promote self development of
employees, of self and by self.
 Getting Big Picture
• Understanding of business strategy to
highlight the key deriving forces of the
business such as:
• Technology
• Distribution
• Competition
• Markets
 Developing a Mission statement
• mission statement should relate to people
side of the business. The words or references
should not be idealistic statements-it is the
actual process of thinking through the issues
in a formal manner.
 Conducting SWOT analysis of the
organization
• Focus should be on internal strength and
weakness of the people side such as current
skills & capability and research the external
business and market environment to highlight
the opportunities and threats.
 Conducting a detailed HR Analysis
• It concentrate on the organization’s culture,
organizational structure, people and COPS
(Culture, org, people, systems). Then gap
analysis can be undertaken by examining
present status and desired status.
 Determining critical people issues
• The business strategy is reviewed and
examined against SWOT and COPS analysis to
identify the critical people issues namely
those issues that must be addressed so as to
have a key impact on the delivery of business
strategy.
Developing consequences and solution

• For each critical issue the options for

managerial action generated needs to be
highlighted, elaborated and created. Then
action plans around the critical issues is to be
developed with set targets and dates for the
accomplishment of the key objectives.
Implementation and evaluation of the action
plans
• The ultimate purpose of developing a human
resource development strategy is to ensure
that the objectives set are mutually supportive
so that reward sys are integrated with
employee training and career development.
 HRD Climate
• Climate, this is an overall feeling that is conveyed by
the physical layout, the way employees interact and
the way members of the organization conduct
themselves with outsiders. (It is provided by an
organization.)

• “Organizational climate is a set of characteristics of

an organization which are referred in the descriptions
employees make of the policies, practices and
conditions which exist in the working environment”.
Abraham
 What is needed to Develop Organizational Climate in
Organization
• Top to Bottom effort : - Organization is considered to
be complete organization after including top authority
to bottom line of workers. And whenever we talk
about development at organizational level effort is
needed from top level to bottom level. Top authority
should not have thinking in their mind that their task
is to only take decisions but they should also
emphasized on proper implementation of decision by
adopting various controlling technique. Bottom level
workers should have loyal mind-set towards their
organization. Bottom level workers have to work with
dedication. They should have realisation that
organization is their organization.
• Motivator role of Manager and Supervisor : - To
prepare Human Resource Development Climate,
Manager and Supervisor’s responsibilities are more
or we can say that they are the key players. Manager
and Supervisors have to help the employees to
develop the competencies in the employees. To help
the employees at lower level they need to updated
properly and they need to share their expertise and
experience with employees.
• Faith upon employees : - In the process of
developing HRD Climate employer should have
faith on its employees capabilities. Means
whatever amount is invested that should be
based on development of employees. Top
management should trust the employees that
after making huge effort to develop employees,
employees will work for the well being of
organization and for human being also.
• Free expression of Feelings : - Whatever Top
management feels about employees they have
to express to employees and whatever
employees think about top management it
must be express in other words we can say
that there should not be anything hidden while
communication process. Clear communication
process will help to establish the HRD Climate.
• Feedback : - Feedback should be taken
regularly to know the drawbacks in system.
This will help to gain confidence in employees
mind. Employee will trust on management
and he can express his opinion freely which is
very good for HRD Climate. Feedback will help
to remove the weakness.
 ELEMENTS OF HRD CLIMATE

• The elements of HRD climate can be grouped

into three broad categories– :
• General climate
• OCTAPAC culture
• HRD mechanisms
 General climate
• The general climate items deal with the importance
given to human resources development in general by
the top management and line managers.
• A general supportive climate is important for HRD if
it has to be implemented effectively. Such supportive
climate consists of not only top management, line
management’s commitment but good personnel
policies and positive attitudes towards development.
 OCTAPAC culture
• The OCTAPAC items deal with the extent to
which Openness, Confrontation, Trust,
Autonomy, Proactivity, Authenticity and
Collaboration are valued and promoted in the
organisation.
 Cont….
• OCTAPAC culture is essential for facilitating HRD.
• Openness is there when employees feel free to
discuss their ideas, activities and feelings with each
other.
• Confrontation is bringing out problems and issues
into the open with a view to solving them rather than
hiding them for fear of hurting or getting hurt.
• Trust is taking people at their face value and
believing what they say
 Cont….
• AutonomyAutonomy is the willingness to use power without
fear and helping other to do same. Basically Autonomy is all
about Using and giving freedom to plan and act in one’s own
sphere.

• Pro-activity Taking initiative, preplanning and taking

preventive action is the measures of term Proactive.
Organisation must be proactive in terms of their planning.
They must be ready for future.

• Authenticity is the tendency on the part of people to do what

they say.
• Collaboration is to accept interdependencies, to be helpful to
each other and work as teams.
 HRD mechanisms
• The items dealing with HRD mechanisms measure
the extent to which HRD mechanisms are
implemented seriously.
• Successful implemented of HRD involves an
integrated look at HRD and efforts to use as many
HRD mechanisms as possible. These mechanisms
include performance appraisal, potential appraisal,
career planning, performance rewards, feedback and
counseling, training, employee welfare for quality
work life, job-rotation, etc.
WHAT CONTRIBUTES TO HRD CLIMATE?

• Top Management Style and Philosophy: A

developmental style, a belief in the capability
of people, a participative approach, openness
and receptivity to suggestions from the
subordinates are some of the dimensions that
contribute to the creation of a positive HRD
climate.
 Personnel Policies
• Personnel policies that show high concern for
employees, that emphasize equity and
objectivity in appraisals, policies that
emphasize sufficient resource allocation for
welfare and developmental activities, policies
that emphasis a collaborative attitude and
trust among the people go a long way in
creating the HRD climate.
 HRD Instruments and Systems
• A number of HRD instruments have been
found to generate a good HRD climate.
Particularly open systems of appraisal with
emphasis of counseling career development
systems, informal training mechanisms,
potential development systems etc. contribute
to HRD climate.
 Self-renewal Mechanisms
• Organisations that have built in self-renewal
mechanisms are likely to generate a positive
HRD climate.
 Attitudes of Personnel and HRD staff

• A helpful and supportive attitude on the part

of HRD and personnel people plays a very
critical role in generating the HRD climate. If
the personnel behavior of any of these agents
is not supportive, the HRD climate is likely to
be vitiated.
 Commitment of Line Managers
• The commitment of line managers to the
development of their subordinates is a very
important determiner of HRD climate. If line
managers are willing to spend a part of their
subordinates, it is likely to have a positive
impact.
 Development system
• The development system ensures that the retained
(career system) and utilized (work system) human
resource are also continuously developed so that
they are in a position to meet the emerging needs.

• Competencies and skills of employees needs to be

continuously developed by the organization
through training, learning, coaching to meet org.
requirements and challenges.
 Developmental sub - systems of HRD

• developmental sub - systems of HRD make

sure that human resources in the organization
are continuously developed.
• Induction • Training • Job enrichment • Self-
learning mechanisms • Potential appraisal •
Succession Development • Counseling •
Mentor system
 Induction
• Induction is the task of introducing the new
employees to the organization and its policies,
procedures and rules. A typical formal
orientation programme may last a day or less
in most organizations. During this time, the
new employee is provided with information
about the company, its history its current
position the benefits for which he is eligible,
leave rules, rest periods, etc.
 Induction covers the following:
• History- The organization’s traditions,
customs, myths, background of founders and
the present members in the top management.
• Company goals- goals of the organization with
rules, values or principles directing the
organization.
• Language- Jargons, slangs, and technical terms
unique to the organization.
 Cont….
• Politics- Ways and means to gain formal and
informal information about jobs and
relationships/power structures in the
organization.
• People- Nuances in initiating and maintaining
relationships with peers.
• Performance Proficiency- Effectiveness in
acquiring and using knowledge, skills and
abilities needed for the job.
 Cont….
• In addition to the above, induction includes
communication of HRM policies such as work
hours, pay procedures, overtime
requirements/company benefits, and duties
and responsibilities of new members
 orientation or induction programme should
provide the following information
I. Company history and its products and operation.
ii. Organization structure of the company.
iii. Policies, rules and regulations.
iv. Location of the department and daily work
routine.
v. Facilities available and safety measures
provided.
vi. Terms and conditions of service.
 Cont….
vii. Payment of salaries and wages, working
hours, overtime, holidays etc.
viii. Rules regarding disciplines.
ix. Opportunities for training, promotion,
transfer etc.
x. Grievance procedures and suggestion
schemes.
 Job enrichment
• Job enrichment is a management concept that involves
redesigning jobs so that they are more challenging to
the employee and have less repetitive work.
• Herzberg called it “vertical job loading factors”, and
Hackman renamed it “implementing concepts” giving
employee such tasks previously performed by
inspection and supervisory staff, and decreasing
discretion and accountability as well as variety and
meaning. It is used to achieve organizational goals
effectively and efficiently.
 There are five ways to enrich the job.

• Formation of natural work unit: The

formation of natural work units is about
grouping interrelated tasks together. This
creates ownership of the tasks and allows the
employee to see the result of their work,
leading to an increase in ownership, task
identity, and perceived task significance.
 Establishment of workers-client
relationships
• Workers seldom come in contact with the
ultimate user of their product or service. If
such relationship is maintained, job
commitment and motivation will usually be
enhanced.
 Cont….
• It contributes towards three core dimensions: skill
variety, autonomy and feedback. Skill variety
increases because a worker has a chance to maintain
and manage a relationship with client. Autonomy
increases because the worker is given responsibility
to decide how to mange relationships with client.
Feedback increases because direct contact has free
movement of views and worker can receive both
praise and criticism for his work.
 Combination of task
• A series of simple tasks are combined to form
a new and larger work schedule. It also
contributes to skill variety and task identity.
 Vertical loading
• It occurs when the gap between doing and
controlling aspects of the jobs is reduced. The
reserved responsibilities are now delegated to
workers as a part of their job. It contributes to
task significance and autonomy.
 Opening of feedback channels
• There are ways of opening of feedback
channels so that each worker can monitor his
or her performance. This principle helps to
overcome the problem of failure to tell people
how well they are doing.
 Task identity
• Task identity refers to helping employees understand
the relation between their job and other activities in
the organization. When some employees are not
aware of the relation between their job and other
organizational activities, at the completion of their
task they don’t feel they have achieved something.
On the other hand if they feel the relation between
their job and other organizational activities, they will
find out that what they do is important in
achievement of organization’s goals and they will try
to enhance and improve their vocational knowledge.
 Task significance

• It is the impact of an individual’s job on the lives and

jobs of other people. It refers to the degree to which
a job affects other people’s lives and jobs, either in
the immediate organization or in the external
environment. It includes the significance and
influence of a job over lives and well-being of co-
workers and consumers. If employees understand the
significance of their tasks they will try to increase
their capabilities and learning.
 potential appraisal
• The potential appraisal is made up of two
words viz. potential and appraisal. Potential
means the abilities of an employee which are
required for meeting the challenges of future
assignments while appraisal means the
evaluation of that abilities in present status of
an employee.
 Potential appraisal
• The potential appraisal refers to the appraisal
involving identification of the hidden talents and
skills of a person. The person might or might not be
aware of them.

• Potential appraisal is a future-oriented appraisal

whose main objective is to identify and evaluate the
potential of the employees to assume higher positions
and responsibilities in the organizational hierarchy.
• Many organizations consider and use potential
appraisal as a part of the performance
appraisal processes. Potential appraising is
different from appraising performance.
 Potential Appraisal Vs. Performance
Appraisal

• Potential Appraisal is forward looking process

whether performance appraisal is backward
looking process. Any good or worse
assessment results of performance appraisal
may not be a good factor for potential
appraisal. But current performance of an
employee could show evidance somewhere
whether he/she is flexible for new working
conditions.
 The purposes of a potential review are

• to inform employees of their future prospects;

• to enable the organization to draft a
management succession programme;
• to update training and recruitment activities;
• to advise employees about the work to be
done to enhance .their career opportunities.
Requirements of potential appraisal system

Role Description: A good potential appraisal

system would be based on clarity of roles and
functions associated with the different roles in
an organization. This requires extensive job
descriptions to be made available for each job.
These job descriptions should spell out the
various functions involved in performing the job.
 Cont….
• Qualities Required: Besides job descriptions, it is
necessary to have a detailed list of qualities required
to perform each of these functions. These qualities
may be broadly divided into four categories –

(1) technical knowledge and skills,

(2)managerial capabilities and qualities,

(3) behavioral capabilities, and

(4)conceptual capabilities.
• Indicators of Qualities: A good potential appraisal system
besides listing down the functions and qualities would also
have various mechanisms for judging these qualities in a given
individual. Some of the mechanisms for judging these qualities
are –

(a) rating by others,

(b) psychological tests,
(c) simulation games and exercises,
(d) performance appraisal records.
• Organizing the System: Once the functions, the
qualities required to perform these functions,
indicators of these qualities, and mechanisms for
generating these indicators are clear, the
organization is in a sound position to establish and
operate the potential appraisal system. Such
establishment requires clarity in organizational
policies and systematization of its efforts.
• Feedback: If the organization believes in the
development of human resources it should attempt
to generate a climate of openness. Such a climate is
required for helping the employees to understand
their strengths and weaknesses and to create
opportunities for development. A good potential
appraisal system should provide an opportunity for
every employee to know the results of assessment.
 Counseling
• It is an essential instrument of HRD. It is a process of
dealing with the emotional problems and issues of the
employees to make them feel light and relaxed at
work. It may be of different types viz; appraisal
counseling, career counseling, disciplinary
counseling etc. It is being done to enable the
employees to have positive attitude towards work and
to improve their performance.
 Cont….
• Employee counseling is a process of handling
the psychology of the employees and making
them happy at work so that they could feel
gratified while working which ultimately leads
to improved and enriched performance.
• “There is no success
without a successor.”
 Succession planning
• Succession planning is a strategic, systematic
and deliberate activity to ensure an
organizations future capability to fill vacancies
consistent with the merit principle.
• It specifically focuses on ensuring the
availability and sustainability of a supply of
capable staff that are ready to assume key or
critical organizational roles as they become
available.
 Cont….
• Succession Planning is the process of training
& preparing employees in an organization so
that there will always be someone to replace
an employee who leaves
 When counsel??
• Unrealistic Targets
• Excessive Workload
• Absenteeism and Late Coming
• Lack of awareness of policies & procedures
• Performance Issues
• Slipping Deadlines
• Career Problems
• Responsibility & Accountability
• Lack of team spirit
• Inter personal relations with superiors &
subordinates
• Problems in adjusting to organizational
culture
• Family Problems
• Behavioral issues/tendencies
 types of employee counseling
• Performance Counseling: If the performance of an
employee starts declining at the workplace, the need
for performance counseling arises. The counselor
should try to identify the underlying causes behind
the employee’s poor performance. The reasons could
be office stress, unachievable deadlines, problems in
interpersonal relations with other employees, etc.
After recognizing the problem, the counselor can
advise about how to deal with it.
 Disciplinary Counseling

• This type of counseling takes place when an

employee’s behavior falls short of the standards
expected. An employee may suddenly start picking up
fights, become irritable, be absent from work for
long, etc. The counselor should interview the
employee and confront him about his behavioural
problems.
 Con t….
• He should try to analyze all the reasons that could be
causing the behavioral lapses. An employee may be
frustrated because of personal problems; high
absenteeism may be due to bullying by co-workers in
the office. The counselor may give tips on how to
face the situation and improve his behavior.
 Personal Counselling

• Workplace problems are not the only

problems that employees face; personal and
family problems also affect their performance.
Families and friends are integral parts of any
human being’s life; tension in a worker’s
personal life affects his work performance
adversely.
 Cont….
• Personal problems could include sickness of a
family member, marital conflicts,
dysfunctional family life, problem with
children, , etc. The counselor should lend a
sympathetic ear to the employee’s personal
problems and support them in resolving them
so that the employee is able to concentrate on
his job wholeheartedly.
 Stress Management in Workplace

• Working in the modern job environment is

very stressful with so many deadlines to meet
and targets to achieve. Employees may
become anxious and tense due to their high
pressure workload. This not only affects their
productivity on the job, but also their mental
health.
 Cont….
• It is the duty of the organization to take care
of the employees’ well-being and provide
them guidelines for dealing with stress. Bigger
organizations may engage experts for
providing psychiatric counseling to employees
as part of employee welfare programs.
 Process of Employee Counseling

• Rapport Building: In the rapport building phase, a

good counselor attempts to establish a climate of
acceptance, warmth, support, openness and mutuality.
This phase involves generating confidence in the
employee to open up frankly, share his perceptions,
problems, concerns, feelings etc. The subordinate
must be made to feel wanted and that his superior is
genuinely interested in his development.
• This involves developing mutual
understanding openness and acceptance
between counselor and counseled. This
rapport building is essential to initiate the
counselling.
 Exploration
• This involved understanding with the help of the
counseling, the counselee's own situation, his
feelings, his strengths and weakness, his problems
and needs.
• The counselor allows the counselee to talk about
anything even apparently unrelated to the issue. It is
important for the counselor to achieve a free flow of
expression-often through rumblings – of the
employee.
• The counselor has to help the counselee in
concentrating more on the problem and
getting deeper into it and to discover the basic
problems by himself.
 Formulating action plan
• Counseling interviews should end with specific plans
of action for development of the employee. The main
contribution of the superior in this phase is in helping
the employee think of alternative ways of dealing
with a problem.
• This involved exploring possible solutions and
formulating action plan for implementing them to
make the counselee the normal person.
 employee counseling types
• Directive Counseling: It is full counseling. It is the
process of listening to an employee’s problem,
deciding with the employee what should be done and
telling and motivating the employee to do it. This
type of counseling mostly does the function of
advice, reassurance and communication. It may also
perform other functions of counseling.
• It centers on the counselor. The counselor, after
hearing the problems of an employee, decides what
should be done and gives advice and suggestion to
him to resolve the problem. But directive counseling
seldom succeeds, as people do not wish to take up
advice normally, no matter how good it might be.
 Non-Directive Counselling:

• It is the process of skillfully listening to the emotional

problems of an employee, understand him/her and
determine the course of action to be adopted to
resolve his problem. It focuses on the counselee
hence it is called ‘client centered’ counseling.
Professional counselors usually adopt this method of
counseling.
• The unique advantage of this type of counseling is its
ability to cause the employees reorientation. The
main stress is to ‘change’ the person instead of
dealing with his immediate problem only.
 Cooperative Counseling:

• the process in which both the councilor and

client mutually cooperate to solve the
problems of the client. It is not neither wholly
client centered nor wholly counselor centered
but it is centered both councilor and client
equally.
 Mentoring
• Mentoring is the Employee training system
under which a senior or more experienced
person (the mentor) is assigned to act as an
advisor, counselor, or guide to a junior or
trainee. The mentor is responsible for
providing support to, and feedback on, the
person in his or her charge.
• According to Jacobi, ‘mentoring is a one to
one helping relationship or nurturing process’.

• According to Vickie L. Nadolski, ‘mentoring is

linking an experienced person (mentor) with a
less experience person (mentee) to help their
personal and professional growth’.
 Characteristics of Mentoring:

• Mentoring requires a high degree of mutual trust

between the mentor and the mentee.
• Effective communication is the key to the mentoring
programmes.
• Mutual respect between each other is also required.
• It is a systematic process of building a partnership.
• It is a systematic process of building a partnership.
• The success of mentoring depends on the availability
of the mentor and predictability.
 Principles of mentoring
• Reciprocal exchange
• Mutual trust and respect
• Mutually beneficial
• Dynamic in nature
• Open and effective communication
• Confidentiality
 Qualities of a good mentor
• An effective communicator
• Open minded
• Shares personal experiences and knowledge
• Offer feedback and support
• Committed to the development of people and
organization
• Good listener
• Willingness to share failures and successes
• Good motivator
 Qualities of a mentee
• Eagerness to learn
• Patient
• Risk taker
• Positive attitude
• High maturity
 Types of mentoring
• Natural mentoring: natural mentoring occurs
all the time and always has been there. It
happens when one person (usually senior)
reaches out to another, and a career helping
relationship develops. This type of mentoring
most often occurs between people who have
a lot In common. This is because we are
usually more comfortable with those who are
most like ourselves.
 Supervisory mentoring
• In the workplace this type of mentoring is very
important. All supervisors should mentor their
subordinates. Mentors share valuable information
about the organisation and provide meaningful work
and developmental learning opportunities.
• However this type of mentoring does have drawbacks
like manager may not be an expert on the subject
matter, manager may be heavily tasked and not able
to spend an ample amount of time with the employee
etc.
 Situational mentoring
• Situational mentoring is the right help at the
right time. Situational mentoring is usually
short-lived and happens for a specific purpose.
 Informal mentoring
• Informal mentoring is a natural component of
relationships that occurs throughout the
society, in the workplace, as well as in social,
professional, and family activities. Informal
mentoring occurs in a relationship between
two people where one gains insight,
knowledge, wisdom, friendship, and support
from the other.
 Formal mentoring
• Formal mentoring programs are pervasive.
• Many people may not have the opportunity to
develop a mentoring relationship in an
informal way.
• Formal mentoring programme are structured
programmes in which an organisations
matches mentors with mentees.
 Career system
• Manpower planning
• Recruitment
• Career planning
• Succession planning
• Retention
 Manpower planning
• Manpower Planning which is also called as
Human Resource Planning consists of putting
right number of people, right kind of people at
the right place, right time, doing the right
things for which they are suited for the
achievement of goals of the organization.
The procedure is as follows:
• Analyzing the current manpower inventory
• Making future manpower forecasts
• Developing employment programmes
• Design training programmes
Analysing the current manpower inventory-

Before a manager makes forecast of future manpower,

the current manpower status has to be analysed. For
this the following things have to be noted-
 Type of organization
• Number of departments
• Number and quantity of such departments
• Employees in these work units
Once these factors are registered by a manager, he
goes for the future forecasting.
• It is also called staff audit. During the audit,
current practices, policies and procedures are
reviewed through HR information system
(HRIS). HRIS contains: name of the personnel,
department, qualifications, skills, experience,
sex, age, time joined the organisation etc
 Making future manpower forecasts

• Once the factors affecting the future

manpower forecasts are known, planning can
be done for the future manpower
requirements in several work units. The
Manpower forecasting techniques commonly
employed by the organizations are as follows:
• Expert Forecasts: This includes informal decisions, formal
expert surveys and Delphi technique.
• Trend Analysis: Manpower needs can be projected through
extrapolation (projecting past trends), indexation (using base
year as basis), and statistical analysis (central tendency
measure).
• Work Load Analysis: It is dependent upon the nature of work
load in a department, in a branch or in a division.
• Work Force Analysis: Whenever production and time period
has to be analyzed, due allowances have to be made for getting
net manpower requirements.
• Other methods: Several Mathematical models, with the aid of
computers are used to forecast manpower needs, like budget
and planning analysis, regression, new venture analysis.
Developing employment programmes

• Once the current inventory is compared with

future forecasts, the employment
programmes can be framed and developed
accordingly, which will include recruitment,
selection procedures and placement plans.
 Design training programmes
• These will be based upon extent of
diversification, expansion plans, development
programmes,etc. Training programmes
depend upon the extent of improvement in
technology and advancement to take place. It
is also done to improve upon the skills,
capabilities, knowledge of the workers.
 Recruitment
• “Recruitment is the process of searching for
prospective employees and stimulating and
encouraging the to apply for the job.” – (Flippo
EB,1980)“
 Recruitment needs are of three types:
 Planned:Arises from changes in organization and
retirement policy.
 Unexpected: Arises during resignations, deaths,
accidents and illness.
 Anticipated: Refers to those movements in
personnel which an organization can predict by
studying trends in the internal and external
environments.
 PURPOSE AND IMPORTANCE OF
RECRUITMENT
• Attract and encourage candidate to apply for
the post in the organization.
• Determine present and future requirements of
the organization.
• Create a pool of candidate at the low cost.
• Begin identifying and preparing potential
applicants who will be appropriate candidates.
FACTORS DETERMINING RECRUITMENT
• Size of the business.
• Employment conditions in the locality of recruitment.
• The past recruiting policy of the organization in
retaining good workers.
• Working environment and compensation package that
influence employees to continue or take exit from the
organization.
• The rate of growth of the organization; future,
cultural, legal and economic factors.
• Cost of recruitment.
 SOURCES OF RECRUITMENT
• Recruitment from internal sources:
• TRANSFERS: It involves shifting from one
department to another department. It does
not involve any drastic change in the
responsibilities, pay and status of employee.
• PROMOTION: It leads to shifting of
employees to a higher position,
RECRUITMENT FROM EXTERNAL SOURCES

• ADVERTISEMENT: It is the most effective

means used to search for the potential
employees. Advertisements in the leading
newspapers, Television ads etc help in
searching the qualified and experienced
personnel for vacant jobs.
• ENPLOYMENT AGENCIES: Employment
agencies run by government are regarded as
important source of recruitment. The
employment exchanges bring employees in
contact with the job seekers.
• DEPUTATION: This method is also quite
common. The employees of one organization
are selected or taken on deputation from other
organization for filling the vacancies.
• CAMPUS RECRUITMENT: In this method a
preliminary search for prospective employees
is done by conducting interviews at the
campus of various institutions, universities
and colleges on predetermined dates and
suitable candidate are selected.
 Career Planning
• Career is an occupation or a profession, that one
undertakes for a long period of his life time & derives
monetary benefit from it.
• If someone is painting pictures for a long time, but
does not expect to gain any monetary reward, that
will be considered as his hobby rather than career.
• Similarly if he paints & exhibits his paintings in a
gallery for prospective buyers, then painting will be
considered as his Profession.
• A career may be defined as ‘ a sequence of
jobs that constitute what a person does for a
living’.
• According to Schermerborn, Hunt, and
Osborn, ‘Career planning is a process of
systematically matching career goals and
individual capabilities with opportunities for
their fulfillment’.
 Career planning processes
There are five steps to active planning:
• Self Assessment
• Exploration and Research
• Decision making
• Taking action
• evolution
 Self Assessment

• Self Assessment Self assessment revolves

around the thoughtful consideration,
reflection, and evolution of your interests,
personality characteristics, values, and skills
through variety of methods, such as the use of
a whole host of career-related tools and
instruments.
 Exploration and Research

• Exploration and Research The career planning

component consisting of exploration and
research is all about being in information
gathering mode. This is the time to explore,
collect, and organize all available resources to
eventually begin analyzing them to see what
top option arise.
 Decision making

• The decision making step of the career

planning process is when you put all the
pieces of information carefully collected
career information together as best as
possible to produce a list of career related
goals and options.
 Taking action

• Taking action is one of those things that’s

easier said than done. This stage is about
literally being proactive with your career plans
and following through with what you’ve
decided on doing.
 evalution

• After you have made career related decisions

and identified your goals, keep in mind that
many of the folks who achieve career success
are the one who continually evaluate and
assess their status. They keep track of their
career progress throughout work.
 Retention

• "A bird in the hand is worth two in the bush“

• Employee retention refers to the ability of an
organization to retain its employees.
Or
• Employee retention refers to the various
policies and practices which let the employees
stick to an organization for a longer period of
time.
 Why do Employees Leave ?
• Leave an organization out of frustration
• Constant friction with their superiors orother
team members.
• Low salary
• Lack of growth prospects
• Lack of motivation
• Lack of recognition
• Lack of teamwork
• Lack of tools and resources
• Excessive workload
• Lack of training
• Poor senior leadership
• Poor communications
• Poor management
 Why retention is important?
• The Cost of Turnover
• Loss of Company Knowledge
• Disruption of Customer Service
• Turnover spirals into more turnover
• Known devil is better than
unknown angel
• “There is no success without a
successor.”
 Succession planning

• Succession Planning is the process of training

& preparing employees in an organization so
that there will always be someone to replace
an employee who leaves.
• The continual business of monitoring and
developing internal talent to assure that
employees have the knowledge, skills and
abilities necessary to succeed in future
leadership roles.
 coaching
• Coaching is A directive process by a manager
to train and orient an employee to the
realities of the workplace and to help the
employee remove barriers to optimum work
performance
• In the coaching process, individuals are
encouraged to accept responsibility for their
actions, to address any work-related
problems, and to achieve and sustain superior
levels of performance. Coaching involves
treating employees as partners in achieving
both personal and organisational goals.
• Coaching typically occurs between an
employee and that person’s supervisor and
focuses on examining employee performance
and taking actions to maintain effective
performance and correct performance
problems.
 Coaching is not training
• Training is about skill building
• Its telling your employee how to improve a
particular skill.
BUT
• Coaching is about discovering what may be
preventing your employee from learning a new
skill.
• When you coach you do a whole lot of asking and
very little telling
 Coaching is not mentoring
• Mentoring is about passing your experiences.
• Usually to junior employee in order to help
them build business acumen.
BUT
• Coaching is all about giving an employee room.
• When you coach you let them use their own
expertise to grapple with problem and discover
their own solutions.
 Coaching is not counseling
• Counseling is looking at their past.
• When you counsel you break down the past to
discover what could be affecting their current
behavior.
BUT
Coaching is looking at their future.
When you coach you look at their present behavior
to discover what could be effect their future
success
 Types of coaching
• Performance Coaching:- The term performance
coaching is generally applied within the context of
organizations where the key focus is the improvement
of performance. Organizations employing this style
of coaching will expect to see a measurable
improvement in competencies, skills and overall
effectiveness of employees.
• The focus on such coaching is about
developing the individual’s competence and
confidence in order that they can perform in
such a way that enables them to achieve
either personal goals or that of the
organisation they are working for.
 Personal Coaching

• The aim of personal coaching is to help you, as

an individual, identify and achieve personal
goals. This style of coaching can take many
forms and sometimes is also known as life
coaching where you may look to improve any
aspect of your life.
 Skills coaching
• Skills coaching combine a holistic approach to
personal development with the ability to focus
on the core skills and the competencies
employees need to perform their role.
• Skills coaching must be provided by highly
experienced and competent personnel.
 Employee coaching process
• Preparing the learner
• Demonstrating the operation
• Creating a positive atmosphere
• Inducing the learner to perform the operation
• feedback
 Preparing the learner

• Barriers to effective coaching include the

learners fear of change or of appearing
incompetent.
• The learner might be defensive.
• The manager can help the learner to relax by
empathizing with him. Then he can find out
what the learners already knows.
• This way the manager/ coach can proceed
from the familiar to unfamiliar.
 Demonstrating the operation

• Manager should explain to the learner exactly

what is being done during a demonstration,
moving from the simple to the complex. He
must allow the learner the opportunity to ask
questions. Explaining the relationship
between what the learner is doing and the
overall operation is vital for the success of
employee coaching.
 Creating a positive atmosphere

• Manager should be patient with the learner

and give positive reinforcement to the learner.
This will help on creating conducive
environment for learning.
 Inducing the learner to perform the operation

• Manager should encourage and facilitate the

active participation of the learner. Active
participation is essential for instilling long
term learning.
 feedback

• Evaluate learning is crucial to the success of

the overall coaching. Manager should check
up on the learners progress to demonstrate
his availability to answer questions and to
discover any new problems.
 Principle of employee coaching
• Principle of communication
• Principal of specific objectives
• Principle of motivation
• Principle of self esteem
• Principle of support
 Principle of communication

• For effective employee coaching the

communication between coach and learner
should be strengthened.
• It is the fundamental basis of employee
coaching. Coaching is meant to help the
employee in problem identification and
resolution.
• active listening on the part of the manager is
essential.
 Principal of specific objectives

• Coaching is given to employees with certain

pre-determined objectives. Therefore specific
objectives must be set before embarking upon
employee coaching.
• Coaching must help the employee to attain
the required objectives.
 Principle of motivation

• Coaching should motivate employee to build

commitment to action plan to solve his
problem/ improve deficiency.
• Unless an employee is committed to the
determined course of action for improvement,
coaching will not be effective
 Principle of self esteem

• Coaching should maintain and increase the

employees self esteem in order to come to the
desired level of expectations.
• While coaching manager should not hurt the
self worth of the employee and should
concentrate on the problem being faced by
the employee with the purpose of solving it.
 Principle of support

• Coaching is a process of providing support to

an employee to face and surmount the
challenges posed by certain problems.
• Hence employee coaching consists of ongoing,
sometimes spontaneous meetings between
manager and their employee to discuss the
employees overall career goal and
development.
 HRD intervention
• Any intervention designed to enhance the
capabilities of employees and contribute to
overall organizational growth can be called as
HRD intervention. There are a number of
ways in which HRD tools, instruments and
interventions can be designed to develop
human capabilities.
success of the HRD systems depends on how
you select the particular HRD intervention. It is
important to recognize that the choice of an
HRD intervention is itself a crucial decision.
Knowledge about prevailing culture is the key for
making the decisions.
• Pareek and Rao (1975) outlined a philosophy
for the new HRD system. They outlined 14
principles to be kept in mind in designing HRD
system. These principles deal with both the
purpose of HRD systems and the process of
their implementation. Some of these
principles include:
• HRD system should help the company to
increase enabling capabilities. The capabilities
outlined in their report include: Development
of human resource in all aspects,
organizational health, improvements in
problem solving capabilities, diagnostic skills,
capabilities to support all other systems in the
company, etc.
• HRD systems should help individuals to
recognize their potential and help them to
contribute their best various organizational
roles they are expected to perform.
• HRD systems should help maximize individual
autonomy through increased responsibility.
• HRD systems should facilitate decentralization
through delegation and shared responsibility.
• HRD system should facilitate participative
decision making.
• HRD system should attempt to balance the
current organizational culture along with
changing the culture.
• HRD should balance differentiation with
integration.
• HRD should balance specialization with diffusion
of the function.
• The HRD system should ensure responsibility.
• HRD should build feedback and reinforcement
mechanism.
• HRD should maintain balance quantification
and qualitative decisions.
• There should be balance between external
and internal help.
• The HRD systems should plan the evolution of
the function.
• There should be a continuous review and
renewal of the function.
 Organisation development
• Organisation development (OD) is defined as the
process of enhancing the effectiveness of an
organisational capabilities and the well-being of its
members through planned interventions that apply
behavioral science concepts. OD emphasizes both
macro and micro level organisational changes; macro
changes are intended to ultimately improve the
effectiveness of the organisation, whereas micro
changes are directed at individuals, small groups, and
teams.
• The role of the HRD professionals involved in an OD
intervention is to function as a change agent.
Facilitating change often requires consulting with and
advising line managers on strategies that can be used
to effect desired change. The HRD professional may
also become directly involved in carrying out the
intervention strategy, such as facilitating a meeting of
the employees responsible for planning and
implementing the actual change process.
 Quality Circles
• Quality circle (QC) is one of the employee
participation methods.
• Quality circle is a small group of 6 to 12 employees
doing similar work who voluntarily meet together on
a regular basis to identify improvements in their
respective work areas.
• It implies the development of skills, capabilities,
confidence and creativity of the people through
cumulative process of education, training, work
experience and participation.
• nobody is forced to join, and nobody is
penalized for not taking part.
• Quality circle is a group of employees of an
organization normally belonging to same department
who meet periodically to identify and study problems
faced by them to suggest ways and means of solving
these problems to the management or to take
necessary steps to solve these problems themselves.
The quality circles were started in japan in1962.
• The concept of quality circles includes the quality of
everything that an organization is involved with, like
the quality of management and work organization
productivity, turnover, satisfaction, reliability value
for money, after sales service and support, customer
information and training case of maintenance, speed
of service as well as organization usage and customer
confidence in it.
Employee Relations and Grievance Management.

• Effective and cordial employee relations and

satisfactory or convincing grievances management is
imperative for an organization to have a highly
dedicated, committed workforce. HRD intervention
through improved relations between the organization
and the employees will gain higher productivity by
way of upgrading of conceptual, managerial,
behavioral and technical skills and thereby has a
contended labor force.
 Rewarding

• Employees can be motivated by way of rewarding

them for their performance. It is easy to extract the
best out of an individual by recognizing his worth and
his abilities, rewards lubricate relations between the
employee and the organization rewards encourage the
employees to acquire and apply positive attitudes and
skills.
 Human Resource Information and
Communication
• An effective employee relation as HRD
intervention requires that, there should be
good organization communication, which
provides information to all workers.
Communication is the process of meaningful
interaction among persons in an organization.
• Communication is a two way process while
one person is communicating the other is
receiving the communication. The
communicator must be aware of both sides of
this communication equation. Taking the
other side for granted is often the cause for
miscommunication.
HRD approaches to organisational change

• Organizational change :- Organizational

change occurs when business strategies or
major section of an organization are altered.
• It is defined as a change that has significant
effects on the way work is performed in an
organization.
 Change Management
• Change management is a structured approach
to shifting individuals, teams and
organizations from a current state to a desired
future state.
• kotter defines change management “ as the
utilization of basic structures and tools to
control any organizational change effort. ”
• Goal of change management is to minimize
the change impacts on workers and avoid
distractions.
• Change agents are responsible for managing
change activities .
 change agent
• A change agent is a person from inside or outside the
organization who helps an organization transform
itself by focusing on such matters as organizational
effectiveness, improvement, and development. A
change agent usually focuses his efforts on the effect
of changing technologies, structures, and tasks on
interpersonal and group relationships in the
organization. The focus is on the people in the
organization and their interactions.
• A change agent is basically a consultant, either from
within the organization or brought in as an outsider.
They often play the role of a researcher, trainer,
counselor, or teacher. Sometimes they will even
serve as a line manager. While some change agents
specialize in one role, most will shift their roles
depending upon the needs of the organization.
 SOME BASIC FORMS OF CHANGE
• PLANNED CHANGE
• UNPLANNED CHANGE
• RADICAL CHANGE
• TRANSFORMATIONAL CHANGE
• Planned change Its a change resulting from a
deliberate decision to alter the organization.
• Unplanned change It is imposed on the organization
and is often unforeseen. Changes in government
regulations and changes in the economy.
• Radical Change It is a process by which firms regain
competitive advantage after it has been lost or
threatened significantly.
• Transformational change Transformational
change occurs when organizations incur
drastic changes and must essentially transform
themselves.
 FORCES FOR CHANGE
• Most organizations prefer stability to change because
the more predictable and routine activities are, the
higher the level of efficiency that can be obtained.
But organizations are not static; they are
continuously changing in response to a variety of
forces coming from both inside and outside.
 EXTERNAL FORCES
• Nature of the workforce: Almost every organization
must adjust to a multicultural environment,
demographic changes, immigration and outsourcing.
• Technology :Is continually changing jobs and
organization. Ex: faster, cheaper and more, mobile
computers and handheld devices.
• Economic shocks: Rise and fall of global housing
market, financial sector collapse, global recession.
• Competition: Is changing Competitors are as likely to
come from across the ocean as from across town. Ex:
increased government regulation of commerce.
• Social trends: Don’t remain static Companies must
continually adjust product and marketing strategies
to be sensitive to changing social trends.
 INTERNAL FORCES
• Declining effectiveness: is a pressure to
change. A company that experiences its third
quarterly loss within a fiscal year is
undoubtedly motivated to do something
about it.
• A crisis situation: also may stimulate change in
an organization. Strikes or walkouts may lead
management to change the wage structure.
• Changes in employee expectations: also can trigger
change in organizations. A company that hires a
group of young newcomers may be met with a set of
expectations very different from those expressed by
older workers.
• Changes in the work climate at an organization: can
also stimulate change. A workforce that seems
lethargic, unmotivated, and dissatisfied is a symptom
that must be addressed.
 RESISTANCE TO CHANGE
• SELF INTEREST
• FEAR OF THE UNKNOWN
• FEAR OF LOSS
• FEAR OF FAILURE
• POOR COMMUNICATION
• DISRUPTION OF INTERPERSONAL RELATIONSHIPS 
• PERSONALITY CONFLICTS
• INTERNAL AND EXTERNAL POLITICS
• CULTURE ASSUMPTION AND VALUES 
• LACK OF TRUST
 STRATEGIES FOR MANAGING RESISTANCE TO
CHANGE
• EFFECTIVE COMMUNICATION:- Educating employees
on new work procedures is often helpful.
• Providing accurate and timely information about the
change.
• Open communication in a culture of trust is a key
ingredient for successful change
• The drawback of this approach is that it is expensive
to implement and does not always yield the desired
results.
• PARTICIPATION AND INVOLVEMENT:-
:Participation helps employees gain
understanding
• increase the quality of the change decision
• Employees must be engaged and involved in
order for change to work
 LEADERSHIP
• A capable leader can reinforce a climate of
psychological support for change.
• Greater the prestige and credibility of the
person who is acting as a change agent.
• A strong and effective leader can exert
emotional pressure on his subordinates to
bring about the desired change.
 FACILITATION AND SUPPORT
• Removing physical barriers
• Supportive efforts
• Emotional support
 NEGOTIATION AND AGREEMENT
• Negotiation and Agreement technique is used
when costs and benefits must be balanced for
the benefit of all concerned parties.
• Negotiation before implementation can make
the change go much more smoothly, even if at
the later stages if some problems arise, the
negotiated agreement can be referred to.
 MANIPULATION AND CO-OPTATION
• Used in the situation, where other methods are
not working or are not available.
• Managers can resort to manipulation of
information, resources and favors to overcome
resistance.
• They can resort to co-optation, which means to
co-opt an individual, perhaps a key person with
in a group, by giving him a desirable role in
designing or carrying out the change process.
APPROACHES TO MANAGING
ORGANISATIONAL CHANGE:
 Driving forces
• Driving forces are forces that push in a
direction that causes change to occur.
• Driving forces facilitate change because they
push the person in the desired direction.
• They cause a shift in the equilibrium towards
change.
 Restraining force
• Restraining forces are forces that counter
driving forces.
• Restraining forces hinder change because they
push the person in the opposition direction
• Restraining forces cause a shift in the
equilibrium which opposes change
 Equilibrium
• Equilibrium is a state of being where driving
forces equal restraining forces and no change
occurs
• Equilibrium can be raised or lowered by
changes that occur between the driving and
restraining forces.
 UNFREEZING
• Finding a method of making it possible for people to
let go
• Necessary to overcome the strains
• Unfreezing can be achieved by the use of these
three methods:-
• Increase the driving forces that direct behavior away
from the existing situation or status quo.
• Decrease the restraining forces that negatively affect
the movement from the existing equilibrium
• Find a combination of the two methods listed above
 CHANGE
• Change in thoughts, feeling & behavior.
• Once team members have opened up their
minds, change can start. The change process can
be dynamic.
• To take on new tasks and responsibilities, which
entail a learning curve that will at first slow the
organization down.
• An investment, both in terms of time and the
allocation of resources
 REFREEZING
• Change will only reach its full effect if it’s made
permanent. Once the organizational changes
have been made and the structure has
regained its effectiveness, efforts should be
made to cement them and make sure the new
organization reaches the standard.
• “Re-freezing” gives people the opportunity to
thrive in the new organization and take full
advantage of the change