HR Valuation and

Accounting

HRA is a process of

identifying and measuring

data about human resources
and communicating this
information to interested
parties.

HRA Objectives
To assist the management in taking suitable
decisions
To provide information to all people
concerned regarding the earning potential of
human resources of the organisation.
To assess efficiency of human resources in
obtaining productivity and profitability
To provide comparative information regarding
costs and benefits associated with investment
in human assets.

Significance HRA
Man power planning.
Appraisal of human resource
development programmes.
Identification of training needs.
Usefulness of cost reduction programmes
in view of their possible impact on
human relations.
Studying the impact of budgetary control
on motivation and morale of employees.
Facilitating allocation, conservation and
reward of human resources.

HRD Climate
HRD climate is an integral part
of organisational climate. It
can be defined as perceptions
the employee can have on the
developmental environment of
an organisation.

A tendency at all levels starting from top

management to the lowest level to treat the
people as the most important resource
A perception that developing the competencies in
the employees is the job of every
manager/supervisor
Faith in the capability of employees to change
and acquire new competencies at any stage of life
A tendency to be open in communications and
discussions rather than being secretive (fairly
free expression of feelings)
Supportive HRD practices including
performance appraisal, training, reward
management, potential development, jobrotation, career planning, etc.

HRD Climate
Categories
The elements of HRD climate can be grouped
into three broad categories general
climate, OCTAPAC culture and HRD
mechanisms.

The general climate items deal with the importance

given to human resources development in general by
the top management and line managers.
The OCTAPAC items deal with the extent to which
Openness, Confrontation, Trust, Autonomy,
Proactivity, Authenticity and Collaboration are
valued and promoted in the organisation.
The items dealing with HRD mechanisms measure
the extent to which HRD mechanisms are
implemented seriously.

Factors contributing to
HRD climate
Top
Management
Philosophy

Style

and

Personnel Policies
HRD Instruments and Systems
Attitudes of Personnel and HRD staf
Commitment of Line Managers

Potential
Potential appraisal may thus be
Appraisal
defined as a process of determining
an employees strengths and
weaknesses with a view to use this
as a predictor of his future
performance. This would help
determine the promotability of an
individual to a higher position and
help chalk out his career plan.

Potential Appraisal Steps

As a first step there should be clarity of roles and
functions associated with the roles in respect of
which the potential appraisal. There should also be a
detailed list of qualities required to perform these
roles.
As a second step the mechanism by which the
various qualities required for the role are going to be
assessed must be decided.
As a third step the organization must, formulate a
clear-cut promotion policy to promote its employees
who are found to possess the necessary potential for
higher roles.
Finally, the organization must link its Potential
Appraisal system.

HRD Process
Need assessment
Design
Implementation
Evaluation

HRD Process Model

Evolution of HRD
Early Apprenticeship
Training Programs

Early Vocational
Education Programs

Early Factory Schools

Early Training Programs for

Semiskilled and
Unskilled Workers

The Human Relations

Movement

The Establishment of
The Training Programme

Emergence of Human Resource

Development

HRD in The Indian

Context
With liberalisation of the Indian economy many

changes are taking place in the corporate sector.

Many public sector enterprises are being sold to
private hands.
There is increase in work load.
Ban on new recruitment.
Imposition of voluntary retirement schemes and
so on. The
Tenth Five Year Plan (2002~2007) recommends
reduction in the number of government
employees at the rate of 3% per annum for 5
years during the plan period.

HRD Challenges in
India
Restructuring of organisations
Technological changes
Work force empowerment
More research in HRD
More attention to special
categories of workers
Greater employee retention
and commitment

Multi-Skilling- These are

persons trained in more than one
area.

Develops flexible workforce

Employees can be arranged as per needs
Productivity increases
Helps in dealing with absenteeism
Decrease in costs
Efficient planning
Employee satisfaction
Motivation and morale boosting

HRD Strategies
TQM
KAIZIN means continuous
improvement(management,group,
individual)
Just in Time Production reduce
wastages in production
Empowerment
Benchmarking
Learning Organisation

Performance Planning
The basic premise in performance
planning is that an employee must
know what is expected of him or
her to be a highly effective
performer. This is done by the
supervisor and the employee
collaborating to develop individual
performance plans.

The process for the Performance

Planning phase is a meeting between
the supervisor and the employee very
early in the performance year in which
the following occur:The mission and goals of the Department
and organisation are reviewed.
The organisation goals and objectives (in
terms of programs and projects) are
discussed.
The individual and team performance
objectives are stated and discussed.

Performance Planning
Planning
Rewarding

Implementing

Monitoring

Rating
Developing

Coaching
A professional, collaborative and outcomes-driven
method of learning that seeks to develop an
individual and raise self-awareness so that he or
she might achieve specific goals and perform at a
more effective level.
A skilled conversation which enables the client to:
Develop and clarify their goals / desired state
Clarify their current reality
Develop ideas and options
Develop action plans which will lead to results

Coaching is about moving

FROM

TO

CURRENT STATE

DESIRED STATE
New Way
Of Being

Current Way
Of Being

Where do you want to be?

Where are you now?
What can you do to get there?

Egan

Benefits Of Coaching and Mentoring

INDIVIDUAL
Learn to solve own problems
Improve interpersonal skills
Able to identify and act on own
development needs
Greater self confidence and self
esteem
Be more positive and assertive
Greater self awareness
Gain new perspectives and
ways of thinking
Acquire new skills & abilities
Develop adaptability for change
Improve work / life balance
Reduce stress levels

ORGANISATION
Improve productivity, quality,
customer service
Gain increased employee
commitment = retention
Demonstrate commitment to
employees: developing them
& improving skills
Support newly promoted
employees
Change culture of org less toxicity
Support other training
initiatives

Cultural Diversity
Environment
The cultural diversity within an
organisation is defined as the
presence of employees
belonging to various cultures.
Managing this diversity in an
challenge for the group leader
or the organisation head.

Cross-Cultural
Education and Training
Common elements of cross-cultural
Programs
training:

Raise awareness of cultural differences.

Focus on ways that attitudes are
shaped.
Provide factual information about each
culture.
Build skills (e.g., language, non-verbal
communication, stress management,
and adjustment skills).

Task analysis
Task analysis is the process of
breaking a skill into smaller,
more manageable steps in order
to teach the skill. This breaking
helps in time saving and
improving the accuracy level of
the job to be completed.

Task analysis helps to

analyze people's jobs:

what people do

what things they work

with

what they must know

An Example
In order to clean the house
get the vacuum cleaner out
fix the appropriate attachments
clean the rooms
when the dust bag gets full, empty it
put the vacuum cleaner and tools away

Must know about:

vacuum cleaners, their attachments, dust

bags,
cupboards, rooms etc.

Approaches to task
Task
decomposition
analysis

splitting task into (ordered) subtasks

Knowledge based techniques

what the user knows about the task

and how it is organized

Entity/object based analysis

relationships between objects, actions and the

people who perform them

lots of different notations/techniques

Motivational aspects of
HRD
These are based on various theories
of motivation:Maslows Theory
ERG Theory(existing-relatednessgrowth)
Herzberg Theory
McGregors theory X Theory Y

Retraining of
Employees
It is training of already trained
employees.
This process is followed :For Employees who were layed off
To make employees more versatile
In case of sudden change in technology
or procedure
To refresh the employees