M.Com.

4th Semester Course: MC404 HRM (a)

HUMAN RESOURCE DEVELOPMENT

(DSE)

Lesson 1 to 20

By: Rajneesh Kumar

INTERNATIONAL CENTRE FOR DISTANCE EDUCATION AND OPEN LEARNING

(ICDEOL)
HIMACHAL PRADESH UNIVERSITY
SUMMER HILL, SHIMLA, 171005

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 CONTENT

S. NO TOPICS PAGE NO.

1 INTRODUCTION TO HUMAN RESOURCE DEVELOPMENT 5

2 HISTORICAL PERSPECTIVE 17

3 CONTEMPORARY ISSUE IN HUMAN RESOURCE DEVELOPMENT 25

4 SOCIAL CAPITAL THEORY 37

5 LEARNING NETWORK THEORY 43

6 SYSTEM THEORY TO HRD 50

7 HUMAN CAPITAL THEORY 62

8 SCREENING THEORY 71

9 HUMAN RESOURCE DEVELOPMENT PROCESS 80

10 HRD PROGRAMME 90

11 HRD INTERVENTION 108

12 THEORY OF LEARNING 122

13 TRANSFER OF LEARNING 134

14 STRATEGIC LEARNING AND LEADERSHIP 143

15 LEARNING ORGANIZATION 159

16 PERFORMANCE MANAGEMENT 170

17 MENTORING 178

18 PERFORMANCE MANAGEMENT 185

19 VIRTUAL HRD 192

20 WORKFORCE DIVERSITY 201

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 MC404 HRM (a): HUMAN RESOURCE DEVELOPMENT (DSE)
Max. Marks 80

Internal Assessment 20

Note: There will be Ten (10) questions in all spreading into Five Units consisting of two
Questions from each unit. The candidate will require to attempt one question from each
unit. Each question will carry Sixteen (16) marks

Learning Objective: The objective of this course is to build a critical perspective of human
resource development (HRD) in an organizational, national and international context.

Course Contents:

Unit I

Introduction to Human Resource Development: Historical perspective, emergence of

HRD, conceptualizing critical HRD; Contemporary realities and future of HRD; Andragogy
and life-long learning.

Unit II

Theoretical approaches to Human Resource Development: Social capital theory, learning

network theory, relevance of systems theory to HRD, human capital theory and screening
theory of HRD.

Unit III

Human Resource Development Process: Identifying HRD needs; Designing and

developing effective HRD programs; Evaluating effectiveness of HRD Programs; HRD
interventions.

Unit IV

Integrating learning with work: Theories of learning, trends in workplace learning, learning
interventions; Transfer of learning; Strategic learning and leadership; Learning
organizations and organizational learning.

Unit V

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Human Resource Development Trends: New ways of working and employability;
Coaching, mentoring and management of performance; Virtual HRD; Workforce diversity
and HRD.

Course outcome

After learning of the course, the students will be able:

• To build critical perspective of human resource evaluation for their development.

References:

Bandura, A. (2018), Towards a psychology of Human Pathways and Reflections,

Perspectives on Psychological Science, 13(2)130-136.

Bennet, Elisabeth E. (2014). Introducing New Perspectives on Virtual Human Resource

Development Advances in Developing Human Resources. 16(3) 263 –280

Cast, C. (2018). 6 ways to take control of your career development if your company does
not care about it, Harvard Business review, web article 1-4

V Cho, Y. & Egan, T. M. (2009). Action Learning Research and Conceptual Framework.
Human Resource Development Review 8, 431-462

Mankin, D., (2009). Human Resource Development, Oxford University Press Chapter- 4,
6, 7, 9

McLean, Gary N., McLean L. (2001). If we can‘t define HRD in one country, how can we
define it in an international context? Human Resource Development International, 4(3),
313–326.

Poell, Rob F., Tonette S. Rocco and Gene L. Roth Lee, M. (2015). The Routledge
Companion to Human resource Development, Chapter -1, 12-15.

Rao, T.V., (2005). Future of HRD, Macmillan Publishers India. Chapter 1 & 6

Schultz, Theodore W. (1961). Investment in Human Capital. The American Economic

Review. 51(1):1-17

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 CHAPTER-1

INTRODUCTION TO HUMAN RESOURCE DEVELOPMENT

STRUCTURE

1.0 Learning Objectives

1.1 Introduction
1.2 Concept of Human Resource Development
1.3 Relationship Between HRD and HRM
1.4 Difference Between HRD and HRM
1.5 Need for HRD
1.6 HRD Functions
1.7 Features of Human Resource development
1.8 Benefits of Human Resource Development
1.9 Summary
1.10 Glossary
1.11 Self-Check Questions
1.12 Answer to Self-Check Questions
1.13 Terminal questions
1.14 Answer to terminal questions
1.0 Learning Objectives
After studying the lesson, you should be able to:-
 Describe the concept of Human Resource Development
 Need for Human Resource Development
 Benefits of Human Resource Development
 Features of Human Resource Development

1.1 INTRODUCTION

The concept of Human Resource assumes that human beings are a great asset to an
organization. They can contribute a great deal to the achievement of organisational goals.
This positive view of people working in the organisations as an asset with unlimited
potential is the core of the concept of the human resource system.

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HRD is a process of helping people to acquire competencies. HRD is needed by any
organisation that wants to be dynamic and growth-oriented or to succeed in a fast-
changing environment. Organisations can become dynamic and grow only through the
efforts and competencies of their human resources

Any organisation that is interested in improving its services and its effectiveness needs
to develop its employee competencies to perform the tasks required to bring about such
improvements

The HRD is required for:

 Growth of organisation.

 Diversification in an organisation

 Renewing itself to become more effective

 Improving the systems and services of an organisation

 Change and becoming more dynamic

 Playing leadership roles

Development of human resources is essential for any organisation that would like to be
dynamic and growth-oriented. Unlike other resources, human resources have rather
unlimited potential capabilities. The potential can be used only by creating a climate that
can continuously identify, bring to surface, nurture and use the capabilities of
people. Human Resource Development (HRD) system aims at creating such a climate.
A number of HRD techniques have been developed in recent years to perform the above
task based on certain principles. This unit provides an understanding of the concept of
HRD system, related mechanisms and the changing boundaries of HRD.

HRD concept was first introduced by Leonard Nadler in 1969 in a conference in US. “He
defined HRD as those learning experience which are organized, for a specific time, and
designed to bring about the possibility of behavioral change”.

Human Resource Development can be formal such as in classroom training, a college

course, or an organizational planned change effort. Or, Human Resource Development

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can be informal as in employee coaching by experts in the industry or by a manager.
Healthy organizations believe in Human Resource Development and cover all of these
bases.

Introduction to HRM

Definitions of HRD

HRD (Human Resources Development) has been defined by various scholars in various
ways. Some of the important definitions of HRD (Human Resources Development) are as
follows:

 According to Leonard Nadler, "Human resource development is a series of

organised activities, conducted within a specialised time and designed to produce

behavioural changes."

 In the words of Prof. T.V. Rao, "HRD is a process by which the employees of an

organisation are helped in a continuous and planned way to (i) acquire or sharpen
capabilities required to perform various functions associated with their present or
expected future roles; (ii) develop their general capabilities as individual and
discover and exploit their own inner potential for their own and /or organisational
development purposes; (iii) develop an organisational culture in which superior-
subordinate relationship, team work and collaboration among sub-units are strong
and contribute to the professional well being, motivation and pride of employees."
.

 According to M.M. Khan, "Human resource development is the across of increasing

knowledge, capabilities and positive work attitudes of all people working at all
levels in a business undertaking."

1.2 CONCEPT OF HUMAN RESOURCE DEVELOPMENT

Human resource development in the organisation context is a process by which the

employees of an organisation are helped, in a continuous and planned way to:

1. Acquire or sharpen capabilities required to perform various functions

associated with their present or expected future roles;

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 2. Develop their general capabilities as individuals and discover and exploit
their own inner potentials for their own and/or organisational development
purposes; and

3. Develop an organisational culture in which supervisor-subordinate

relationships, teamwork and collaboration among sub-units are strong and
contribute to the professional well being, motivation and pride of employees.

This definition of HRD is limited to the organisational context. In the context of a state or
nation it would differ.

HRD is a process, not merely a set of mechanisms and techniques. The mechanisms and
techniques such as performance appraisal, counselling, training, and organization
development interventions are used to initiate, facilitate, and promote this process in a
continuous way. Because the process has no limit, the mechanisms may need to be
examined periodically to see whether they are promoting or hindering the process.
Organisations can facilitate this process of development by planning for it, by allocating
organisational resources for the purpose, and by exemplifying an HRD philosophy that
values human beings and promotes their development.

1.3 RELATIONSHIP BETWEEN HRM AND HRD

In some organisations, training is a stand-alone function or department. In most

organisations, however, training or human resource development is part of a larger
human resource management system. Human resource management (HRM) can be
defined as the effective selection and utilization of employees to best achieve the goals
and strategies of the organisation, as well as the goals and needs of employees. An
important point of emphasis is that the responsibility of the HRM is (or, at least, should
be) shared by human resource specialists and line management. Some organisations
have a centralized HRM department with highly specialized staff, but in other
organisations, the HRM function is decentralized and conducted throughout the
organisation. HRM can be divided into primary and secondary functions. Primary
functions are directly involved with obtaining, maintaining, and developing employees.
Secondary functions either provide support for general management activities or are

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involved in determining or changing the structure of the organisations. These functions
are detailed below:

 Human resource planning activities are used to predict how changes in management
strategy will affect future human resource needs. These activities are critically
important with the rapid changes in external market demands. HR planners must
continually chart the course of the organisation and its plans, programs, and actions.
 Equal employment opportunity activities are intended to satisfy both the legal and
moral responsibilities of the organisations through the prevention of discriminatory
policies, procedures, and practices. This includes decisions affecting hiring, training,
appraising, and compensating the employees.
 Staffing (recruitment and selection) activities are designed for the timely
identification of potential applicants for current and future openings and for
assessing and evaluating applicants in order to make appropriate selection and
placement decisions.
 Compensation and benefits administration is responsible for establishing and
maintaining an equitable internal wage structure, a competitive benefits package, as
well as incentives tied to individual, team, or organisational performance.
 Employee (labor) relations activities include developing a communication system
through which employees can address their problems and grievances. In a
unionized organisation, labor relations will include the development of working
relations with each labor union, as well as contract negotiations and administration.
 Health, safety, and security activities seek to promote a safe and healthy work
environment. This can include actions such as safety training, employee assistance
programs, and health and welfare programs.
 Human resource development activities are intended to ensure that organisational
members have the skills or competencies to meet current and future job demands.

Other functions that may be shared by HRM units include the following:

 Organisation/job design activities are concerned with interdepartmental relations

and the organisation and definition of jobs.

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  Performance management and performance appraisal system are used for
establishing and maintaining accountability throughout the organisation.
 Research and information systems (including Human Resource Information
Systems) are necessary to make enlightened human resource decisions.

Thus, the relationship between the HRM and HRD can be explained as:

 HRM is the large system in an organisation. HRD is a sub system of the large system
and HRD activities cannot be performed in isolation.
 HRM function is largely maintenance oriented and a function of management. HRD
is an ongoing process and it is development oriented, aiming to enhance both
personal and professional growth.
 HRM believes that an increase in the business results would lead to increase in the
performance or productivity. But HRD believes that the improvement in the
performance would be the result of the continuous increase in its activities.
 HRM is more result oriented, whereas HRD is more process oriented.
 HRM focuses more on the improvement in performance and on improvement in the
capabilities of employees productivity.
 HRM aims at creating a successful business result for the organisation and HRD
aims at creating learning organisation for improving organisational capabilities and
thereby successful business results.

1.4 DIFFERENCE BETWEEN HRD AND HRM

Both are very important concepts of management specifically related with human
resources of organisation. Human resource management and human resource
development can be differentiated on the following grounds:

 The human resource management is mainly maintenance oriented whereas

human resource development is development oriented.

 organization structure in case of human resources management is

independent whereas human resource development creates a structure,
which is inter-dependent and inter-related.

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  Human resource management mainly aims to improve the efficiency of the
employees whereas aims at the development of the employees as well as
organisation as a whole.

 Responsibility of human resource development is given to the

personnel/human resource management department and specifically to
personnel manager whereas responsibility of HRD is given to all managers
at various levels of the organisation.

 HRM motivates the employees by giving them monetary incentives or

rewards whereas human resource development stresses on motivating
people by satisfying higher-order needs.

1.5 NEED FOR HRD

HRD is needed by any organisation that wants to be dynamic and growth-oriented or to

succeed in a fast-changing environment. Organisations can become dynamic and grow
only through the efforts and competencies of their human resources. Personnel policies
can keep the morale and motivation of employees high, but these efforts are not enough
to make the organisation dynamic and take it in new directions. Employee capabilities
must continuously be acquired, sharpened, and used. For this purpose, an “enabling”
organisational culture is essential. When employees use their initiative, take risks,
experiment, innovate, and make things happen, the organisation may be said to have an
“enabling” culture.

Even an organisation that has reached its limit of growth, needs to adapt to the changing
environment. No organisation is immune to the need for processes that help to acquire
and increase its capabilities for stability and renewal.

1.6 HRD FUNCTIONS

The core of the concept of HRS is that of development of human beings, or HRD. The
concept of development should cover not only the individual but also other units in the
organisation. In addition to developing the individual, attention needs to be given to the
development of stronger dyads, i.e., two-person groups of the employee and his boss.

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Such dyads are the basic units of working in the organisation. Besides several groups
like committees, task groups, etc. also require attention. Development of such groups
should be from the point of view of increasing collaboration amongst people working in
the organisation, thus making for an effective decision-making. Finally, the entire
department and the entire organisation also should be covered by development. Their
development would involve developing a climate conducive for their effectiveness,
developing self-renewing mechanisms in the organisations so that they are able to adjust
and pro-act, and developing relevant processes which contribute to their effectiveness.
Hence, the goals of the HRD systems are to develop:

1. The capabilities of each employee as an individual.

2. The capabilities of each individual in relation to his or her present role.

3. The capabilities of each employee in relation to his or her expected future

role(s).

4. The dyadic relationship between each employee and his or her supervisor.

5. The team spirit and functioning in every organisational unit (department,

group, etc.).

6. Collaboration among different units of the organisation.

7. The organisation’s overall health and self-renewing capabilities which, in

turn, increase the enabling capabilities of individuals, dyads, teams, and the
entire organisation.

1.7 FEATURES OF HUMAN RESOURCE DEVELOPMENT

The essential features of human resource development can be listed as follows:

 Human resource development is a process in which employees of the organisations

are recognized as its human resource. It believes that human resource is most
valuable asset of the organisation.

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 It stresses on development of human resources of the organisation. It helps the
employees of the organisation to develop their general capabilities in relation to their
present jobs and expected future role.

 It emphasise on the development and best utilization of the capabilities of individuals

in the interest of the employees and organisation.

 It helps is establishing/developing better inter-personal relations. It stresses on

developing relationship based on help, trust and confidence.

 It promotes team spirit among employees.

 It tries to develop competencies at the organisation level. It stresses on providing

healthy climate for development in the organisation.

 HRD is a system. It has several sub-systems. All these sub-systems are inter-related
and interwoven. It stresses on collaboration among all the sub-systems.

 It aims to develop an organisational culture in which there is good senior-subordinate

relations, motivation, quality and sense of belonging.

 It tries to develop competence at individual, inter-personal, group and organisational

level to meet organisational goal.

 It is an inter-disciplinary concept. It is based on the concepts, ideas and principles of

sociology, psychology, economics etc.

 It form on employee welfare and quality of work life. It tries to examine/identify

employee needs and meeting them to the best possible extent.

 It is a continuous and systematic learning process. Development is a life long process,

which never ends.

1.8 BENEFITS OF HUMAN RESOURCE DEVELOPMENT

Human resource development now a days is considered as the key to higher productivity,
better relations and greater profitability for any organisation. Appropriate HRD provides
unlimited benefits to the concerned organisation. Some of the important benefits are
being given here:
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  HRD (Human Resource Development) makes people more competent.
HRD develops new skill, knowledge and attitude of the people in the
concern organisations.

 With appropriate HRD programme, people become more committed to their

jobs. People are assessed on the basis of their performance by having a
acceptable performance appraisal system.

 An environment of trust and respect can be created with the help of human
resource development.

 Acceptability toward change can be created with the help of HRD.

Employees found themselves better equipped with problem-solving
capabilities.

 It improves the all round growth of the employees. HRD also improves team
spirit in the organisation. They become more open in their behaviour. Thus,
new values can be generated.

 It also helps to create the efficiency culture In the organisation. It leads to

greater organisational effectiveness. Resources are properly utilised and
goals are achieved in a better way.

 It improves the participation of worker in the organisation. This improve the

role of worker and workers feel a sense of pride and achievement while
performing their jobs.

 It also helps to collect useful and objective data on employees programmes

and policies which further facilitate better human resource planning.

1.9 SUMMARY

Human Resource Development (HRD) is the framework for helping employees develop
their personal and organizational skills, knowledge, and abilities. Human Resource
Development includes such opportunities as employee training, employee career
development, performance management and development,
coaching, mentoring, succession planning, key employee identification, tuition

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assistance, and organization development. The focus of all aspects of Human Resource
Development is on developing the most superior workforce so that the organization and
individual employees can accomplish their work goals in service to customers.

1.10 GLOSSARY

HRD: HRD is a process of helping people to acquire competencies. HRD is needed by

any organisation that wants to be dynamic and growth-oriented or to succeed in a fast-
changing environment. Organisations can become dynamic and grow only through the
efforts and competencies of their human resources

HRM: Human resource management (HRM) involves coordinating, managing, and

allocating human capital, or employees, in ways that move an organisation's goals
forward. HRM focuses on investing in employees, ensuring their safety, and managing all
aspects of staffing, from hiring to compensation and development.

1.11 SELF-CHECK QUESTIONS

1. Define Human Resource Development.

2. Discuss the relationship between HRD and HRM.

1.12 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 1.1

2. For answer refer to section 1.3

1.13 TERMINAL QUESTIONS

1. What do you mean by human resource development? Explain the features of hrd.

2. Explain the concept of human resource management in detail.

3. Discuss the difference between human resource management and human resource
development.

4. Discuss the benefits and need of human resource development in detail

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1.14 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 1.1, 1.2, and 1.7

2. For answer refer to section 1.2

3. For answer refer to section 1.4

4. For answer refer to section 1.5, 1.8

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 CHAPTER-2

HISTORICAL PERSPECTIVE

STRUCTURE

2.0 Learning objectives

2.1 Introduction
2.2 Evolution of human resource development
2.2.1 Early Vocational Education Programs
2.2.2 Early Factory Schools
2.2.3 Early Training Programs For Semiskilled And Unskilled Workers
2.3 Human Relations Movement
2.4 Establishment of the Training Profession
2.5 Emergence of Human Resource Development
2.6 Summary
2.7 Glossary
2.8 Self-Check Questions
2.9 Answer to Self-Check Questions
2.10 Terminal questions
2.11 Answer to terminal questions

2.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the historical perspective of human resource development
 Discuss the evolution of human resource development
 Describe the human relations movement
 Discuss the emergence of human resource development

2.1 INTRODUCTION

Human Resource Development (HRD) is the process of helping people to acquire

competencies and skills so as to ensure their usefulness to the organisation in terms of
both present and future organizational conditions. It also helps the employees to

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understand their own capabilities better so that they can best utilise them and also fulfill
their expectation both professional and personal.

Human Resource Development (HRD) is a recent new systematic approach to proactively

deal with issues related to individual employees, teams and the total organisation.

People need competencies (knowledge, attitudes, values and skills) to perform tasks.
Higher degree and quality of performance of tasks requires higher level of degree of skills.
Without continuous development of competencies in people, an organisation is not likely
to achieve its goals.

2.2 EVOLUTION OF HUMAN RESOURCE DEVELOPMENT

Although the term human resource development has been in common use since the
1980s, the concept has in vogue longer than that. To understand its modern definition, it
is helpful to briefly recount the history of this field. Early Apprenticeship Training Programs
The origin of HRD can be traced to apprenticeship training programs in the eighteenth
century. During this time, small shops operated by skilled artisan produced virtually all
household goods, such as furniture, clothing, and shoes. To meet a growing demand for
their products, the craft shop owners had to employ additional workers. Without vocational
or technical schools the shopkeepers had to educate them and train their own workers.
For little or no wages, these trainees, or apprentices, learned the craft of their master,
usually working in the shop for several years until they became proficient in their trade.
Not limited to the skilled trades, the apprenticeship model was also followed in the training
of physicians, educators, and attorneys. Even as late as the 1920s, a person apprenticing
in a law office could practice law after passing a state-supervised exam.

Apprentices who mastered all the necessary skills were considered “yeomen,” and could
leave their master and establish their own craft shops; however, most remained with their
masters because they could not afford to buy the tools and equipments needed to start
their own craft shops. To address a growing number of yeomen, master craftsmen formed
a network of private “franchises so they could regulate such things as product quality,
wages, hours, and apprentice testing procedures. These craft guilds grew to become
powerful political and social forces within their communities, making it even more difficult

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for yeomen to establish independent craft shops. By forming separate guilds called
“yeomanry,” the yeomen counterbalanced the powerful craft guilds and created a
collective voice in negotiating for higher wages and better working conditions.
Yeomanries were the forerunners of modern labor unions.

2.2.1 EARLY VOCATIONAL EDUCATION PROGRAMS

In 1809, a man named DeWitt Clinton founded the first recognized privately funded
vocational school, also referred to as a manual school, in New York City. The purpose of
the manual school was to provide occupational training to unskilled young people who
were unemployed or had criminal records. Manual schools grew in popularity, particularly
in the Midwestern states, because they were a public solution to a social problem: what
to do with “misdirected” youths. Regardless of their intent, these early forms of
occupational training established a prototype for vocational education. In 1917, United
states Congress passed the Smith-Hughes Act, which recognized the value of vocational
education by granting funds (initially $7 million annually) targeted for state programs in
agricultural trades, home economics, industry, and teacher training. Today, vocational
instruction is an important part of each state’s public education system. In fact, given the
current concerns about a “skills gap” (especially for technical skills), vocational education
has become even more relevant.

2.2.2 EARLY FACTORY SCHOOLS

With the advent of the Industrial Revolution during the late 1800s, machines began to
replace the hand tools of the artisans. “Scientific management” principles recognized the
significant role of machines in better and more efficient production systems. Specifically,
semiskilled workers using machines could produce more than the skilled workers in small
craft shops. This marked the beginning of factories as we know them today.

Factories made it possible to increase production by using machines and unskilled

workers, but they also created a significant demand for the engineers, machinists, and
skilled mechanics needed to design, build, and repair the machines. Fueled by the rapid
increase in the number of factories, the demand for skilled workers soon outstripped the
supply of vocational school graduates. To meet this demand, factories created

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mechanical and machinist training programs, which were referred to as “factory schools.”
The first documented factory school was located at Hoe and Company, a New York
manufacturer of printing press in 1872. This was soon followed by Westinghouse in 1888,
General Electric and Baldwin Locomotive in 1901, International Harvester in 1907, and
then Ford, Western Electric, Goodyear, and National Cash Register. Factory school
programs differed from early apprenticeship programs in that they tended to be shorter in
duration and had a narrow their focus on the skills needed to do a particular job.

2.2.3 EARLY TRAINING PROGRAMS FOR SEMISKILLED AND UNSKILLED

WORKERS

Although both apprenticeship programs and factory schools provided training for skilled
workers, very few companies during this time offered training programs for unskilled or
semiskilled workers. This changed after two significant historical events. The first was the
introduction of the Model T by Henry Ford in 1913. The Model T was the first car to be
produced on a large scale using an assembly line, in which production required only the
raining of semiskilled workers to perform several tasks.

The new assembly lines cut production costs significantly and Ford lowered its prices,
making the Model T affordable to a much larger segment of the public. With the increased
demand for the Model T, Ford had to design more assembly lines, and this provided more
training opportunities. Most of the other automobile manufacturers who entered the
market used assembly line processes, resulting in a proliferation of semiskilled training
programs.

Another significant historical event was the outbreak of World War I. To meet the huge
demand for military equipment, many factories that produced non - military goods also
had to retool their machinery and retrain their workers, including the semi skilled. For
instance, the U.S. Shipping Board was responsible for coordinating the training of
shipbuilders to build warships. To facilitate the training process, Charles Allen, director of
training, instituted a four-step instructional method referred to as “show, tell, do, check”
for all the training programs offered by the Shipping Board. This technique was later
named as job instruction training (JIT) and is still in use for training many workers on the
job.

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2.3 HUMAN RELATIONS MOVEMENT

One of the undesirable by-products of the factory system was the frequent abuse of
unskilled workers, including children, who were often subjected to unhealthy working
conditions, long hours, and low pay. The appalling conditions spurred a national anti-
factory campaign. Led by Mary Parker Follett and Lillian Gilbreth, the campaign gave rise
to the “human relations” movement advocating more humane working conditions. Among
other things, the human relations movement provided a more complex and realistic
understanding of workers as people instead of merely “cogs” in the wheel of a machine.

The human relations movement highlighted the importance of human behavior on the job.
This was also addressed by Chester Barnard, the president of New Jersey Bell
Telephone, in his influential 1938 book the functions of the Executive. Barnard described
the organisation as a social structure integrating traditional management and behavioral
science applications.

The movement continued up to 1940s, with World War II as a backdrop. Abraham Maslow
published his theory on human needs, stating that people can be motivated by both
economic and noneconomic incentives. He proposed that human needs are arranged in
terms of lesser to greater potency (strength), and distinguished between lower order
(basic survival) and higher order (psychological) needs. Theories like Maslow’s serve to
reinforce the notion that the varied needs and desires of workers can become important
sources of motivation in the workplace.

2.4 ESTABLISHMENT OF THE TRAINING PROFESSION

With the outbreak of World War II, the industrial sector was once again asked to retool
its factories to support the war effort. As was with World War I, this initiative led to the
establishment of new training programs within larger organisations and unions. The
federal government established the Training With in Industry (TWI) Service to coordinate
training programs across defense-related industries. TWI also trained company
instructors to teach their programs at each plant. By the end of the war, the TWI had
trained over 23,000 instructors, awarding over 2 million certificates to supervisors from
16,000 plants, unions, and services. Many defense-related companies established their

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own training departments with the instructors trained by TWI. These departments
designed, organized, and coordinated training across the organisations. In 1942, the
American Society for Training Directors (ASTD) was formed to establish some standards
within this emerging profession. At the time, the requirements for full membership in
ASTD included a college or university degree plus two years of experience in training or
a related field, or five years of experience in training. A person working in a training
function or attending college was qualified for associate membership.

2.5 EMERGENCE OF HUMAN RESOURCE DEVELOPMENT

During the 1960s and 1970s, the professional trainers realized that their role extended
beyond the training in classrooms. The move toward employee involvement in many
organisations required trainers to coach and counsel employees. Training and
development (T&D) competencies therefore expanded to include interpersonal skills such
as coaching, group process facilitation, and problem solving. This additional emphasis on
employee development inspired the ASTD to rename itself as the American Society for
Training and Development (ASTD).

The 1980s saw even greater changes affecting the T&D field. At several ASTD national
conferences held in the late 1970s and early 1980s, discussions centered on this rapidly
expanding profession. As a result, ASTD approved the term human resource
development to encompass this growth and change. Books by individuals such as
Leonard and Zeace Nadler appeared in late 1980s and early 1990s, and these helped to
clarify and define the HRD field. Further, in the 1990s and up to today, efforts have been
made to strengthen the strategic role of HRD, that is, how HRD links to and supports the
goals and objectives of the organisation.

There was also an emphasis within ASTD (and elsewhere) on performance improvement
as the particular goal of most training and HRD efforts, and on viewing organisations as
high performance work systems. In 2004, ASTD had approximately 70,000 members in
over 100 countries, and remained the leading professional organisation for HRD
professionals. Recent emphasis on HRD (and within ASTD) will be discussed more in the
following sections. First it would be helpful to discuss the relationship between human
resource management and HRD.

22
2.6 SUMMARY

Human Resource Development (HRD) is the process of helping people to acquire

competencies and skills so as to ensure their usefulness to the organisation in terms of
both present and future organizational conditions. It also helps the employees to
understand their own capabilities better so that they can best utilise them and also fulfill
their expectation both professional and personal.

To understand its modern definition, it is helpful to briefly recount the history of this field.
Early Apprenticeship Training Programs The origin of HRD can be traced to
apprenticeship training programs in the eighteenth century. During this time, small shops
operated by skilled artisan produced virtually all household goods, such as furniture,
clothing, and shoes. To meet a growing demand for their products, the craft shop owners
had to employ additional workers. Without vocational or technical schools the
shopkeepers had to educate them and train their own workers. For little or no wages,
these trainees, or apprentices, learned the craft of their master, usually working in the
shop for several years until they became proficient in their trade.

2.7 GLOSSARY

Human Resource Development: Human Resource Development is a recent new

systematic approach to proactively deal with issues related to individual employees,
teams and the total organisation.

2.8 SELF-CHECK QUESTIONS

1. What do meant by Human resource development?

2. Explain the establishment of training profession.

2.9 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 2.1

2. For answer refer to section 2.4

2.10 TERMINAL QUESTIONS

23
1. What do you mean by human resource development? Describe the historical
perspective of human resource development.

2. Discuss the evolution of human resource development in detail.

3. Describe the human relations movement in detail.

4. Discuss the emergence of human resource development in detail.

2.11 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 2.1

2. For answer refer to section 2.2

3. For answer refer to section 2.3

4. For answer refer to section 2.5

24
 CHAPTER-3

CONTEMPORARY ISSUE IN HUMAN RESOURCE DEVELOPMENT

STRUCTURE

3.0 Learning Objectives

3.1 Introduction
3.2 Concept of human resource development
3.3 Contemporary issue in human resource development
3.4 Andragogy
3.5 Implications of andragogy
3.6 Life-long learning
3.7 Benefits of life-long learning
3.8 Challenges of life-long learning
3.9 Best practices of life-long learning
3.10 Summary
3.11 Self-Check Questions
3.12 Answer To Self-Check Questions
3.13 Terminal questions
3.14 Answer to terminal questions

3.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Discuss the concept of human resource development
 Describe the contemporary issue in human resource development

3.1 INTRODUCTION

HRD stands for Human Resource Development. It is a part of Human Resource

Management that focuses on the training and development of employees. HRd aims to
improve the knowledge, skills, and abilities of employees, as well as their well-being and

25
performance. HRd also helps to create a positive work environment that fosters
productivity and growth.

Some of the objectives of HRd are:

 To enhance the competence and potential of employees to perform their current

and future roles.
 To facilitate the learning and development of employees through various methods,
such as job training, coaching, mentoring, career development, etc.
 To align the individual goals of employees with the organizational goals and vision.
 To foster a culture of continuous learning, innovation, and excellence in the
organization.
 To improve the quality of work life and employee satisfaction.

Some of the functions of HRd are:

 Conducting training needs assessment and designing training programs for

employees.
 Evaluating the effectiveness and impact of training and development activities.
 Providing feedback and guidance to employees on their performance and career
progression.
 Developing and implementing policies and practices that support employee
development and retention.
 Creating and maintaining a learning environment that encourages collaboration,
creativity, and diversity.

3.2 CONCEPT OF HUMAR RESOURCE DEVELOPMENT

HRD is mainly concerned with developing the skills, knowledge and competencies of
people and it is people-oriented concept. When we call it a people-oriented concept, the
question arises, whether people will be developed in the larger or national context or in
the smaller organisational context? Is it different at the macro and micro level? HRD can

26
be applied both for the national level and organisational level. The concept of HRD is not
yet well conceived by various authors though they have defined the term from their
approach as it is of recent origin and still is in the conceptualising stage. It is an
understanding of the term i.e., new or rather was new. HRD is not Training and
Development.

The concept of HRD was formally introduced by Leonard Nadler in 1969 in a conference
organised by the American Society for Training and Development. Leonard Nadler
defines HRD as “those learning experiences which are organised for a specific time and
designed to bring about the possibility of behavioural change.”

Among the Indian authors, T. Ventateswara Rao worked extensively on HRD. He defines
HRD in the organisational context as a process by which the employees of an
organisation are helped in a continuous, planned way to-

(i) Acquire or sharpen capabilities required to perform various functions associated with
their present or expected future roles;

(ii) Develop their general capabilities as individuals and discover and exploit their own
inner potentials for their own and/or organisational development purposes;

(iii) Develop an organisational culture in which superior-subordinate relationship, team

work and collaboration among sub-units are strong and contribute to the professional
well- being, motivation and pride of employees.

According to Pulapa Subba Rao, HRD from the organisational point of view is a process
in which the employees of an organisation are helped/motivated to acquire and develop
technical, managerial and behavioural knowledge, skills and abilities and mould the
values, beliefs and attitudes necessary to perform present and future roles by realising
the highest human potential with a view to contribute positively to the organisational,
group, individual and social goals.

Technical skills and knowledge are provided through training, managerial skills and
knowledge are provided through management development and behavioural skills and
knowledge are provided through organisation development.

27
A comparative analysis of these definitions shows that the third definition seems to be
comprehensive and elaborate as it deals with the developmental aspects of all the
components of human resources. Further, it deals with all types of skills, the present and
future organisational needs and aspects of contribution not only to organisational but also
other goals.

The analysis of the third definition further shows that there are three aspects, viz.- (i)
employees of an organisation are helped/motivated; (ii) acquire, develop and mould
various aspects of human resources and (iii) contribute to the organisational, group,
individual and social goals. The first aspect deals with helping and motivating factors for
HRD.

These factors may be called ‘Enabling Factors’ which include: organisation structure,
organisational climate, HRD climate, HRD knowledge and skills of managers, human
resources planning, recruitment and selection. The second aspect deals with the
techniques or methods which are the means to acquire develop and mould the various
human resources.

These techniques include- Performance appraisal, Potential appraisal, Career planning

and Development, Training, Management development, Organisational development,
Social and Cultural programmes, and workers’ participation in management and quality
circles. The third category includes the outcomes’ contribution of the HRD process to the
goals of the organisation, group, individuals and the society.

3.3 CONTEMPORARY ISSUE IN HUMAN RESOURCE DEVELOPMENT

Every HR team faces problems both in the running of their department and in the
consistent enforcement of policies across the company in general. Here are the top ten
issues facing HR teams in the UK and how they can be addressed.

1. Retention

Many people think that the main task of Human Resources is to source and employ new
talent. However, the truth is that most HR activities revolve around retaining existing
talent. Employees are the lifeblood of every company, providing the skills and experience

28
required to keep productivity levels up. Your business will also have invested significant
time and money into ensuring maximum productivity wherever possible. And the key HR
responsibility is to protect this valuable asset. Employee retention is a fine balancing act
between company culture, remuneration and incentives. The HR department needs to
provide each employee with the right combination of all three to satisfy the employee
without compromising company interests in the process. They also need to keep accurate
records of these combinations to ensure that the agreed packages are being delivered to
employees.

2. Recruitment

Whether to complement the existing workforce or to replace staff lost through natural
attrition, the second major challenge facing the Human Resources’ department is
recruitment of talent. Finding staff with the correct blend of skills, personality and
motivation is difficult, even when the pool of available candidates is relatively large.
Whether recruitment is handled solely by the internal HR department, or with the
assistance of a third party, it is essential that the process is managed centrally and
effectively. Where there are dozens of applications, the details of each will need to be
recorded for review and comparison. An HR software platform allows for storage of
applications, CVs and contact details for easy analysis and comparison. Depending on
company data retention policies, applications can be stored for months or years in
anticipation of new roles becoming available in that period. As an added benefit, having
the details of a selection of suitable candidates available for easy consideration cuts
future recruitment costs and shortens the time taken to plug a skills gap. Speeding the
recruitment process in this way prevents drops in productivity and morale.

3. Productivity

With the workforce headcount issues sorted, the Human Resources team must next look
at productivity levels to ensure that the business is operating efficiently.
Where productivity is low, HR needs to know whether the problem is caused by poor
working practices or lack of resources. This determination is often made by carrying out
a Time and Motion (T&M) study to define who does what and how. This study can then
be used to identify potential efficiency gains and pave the way for future capital investment

29
to improve productivity and conditions. Using an integrated HR software platform, senior
management and the HR team can store and analyse the T&M data collaboratively. The
HR system can also retain this data to provide historical context for later studies to provide
a benchmark and to accurately measure improvements made.

4. Training and Compliance

Training is an essential aspect of employee development, both for their own education but
also to ensure you continue to get the best from your workforce. Certain roles demand
official training and certification, such as CORGI registration for gas installers, many of
which also have a lifespan for renewal. Although the employee bears some responsibility
for keeping a track of their own professional registrations, if your business relies on their
certified skills, it makes sense to track this information for your own records. If your
business has agreed to pay for exams or registration fees, you can keep track of when
these payments are due. You can also alert the employee involved, schedule cover for
absence during exams, and arrange payments to prevent lapses. Even where training
takes place in-house, recording course attendance in a central HR system allows for at-
a-glance assessment of workforce skills and regulatory compliance. Has every member
of staff received their full induction training? Has anyone missed the annual fire alarm
training and needs a refresher? Have internal promotion candidates completed all the
relevant courses for the new role? Keeping details of training can help answer all these
questions and more.

5. Health and Safety

Your company is required to record details of health and safety information for legal
reasons, similar to maintaining records about professional qualifications and membership
of trade bodies. Health and safety records help keep your employees feat work and
ensure that the company is meeting its legal obligations towards both them and the public.

Whenever a health and safety issue arises, HR is called upon to demonstrate

that the business has done all that is expected of it. Where proof cannot be shown, the
business is at risk of legal ramifications and fines. Once again, the way to mitigate such
problems is through the use of accurate records of courses attended, documents issued,

30
and anything else specific to health and safety legislation that your business does as a
matter of course. If an employee attends any course aimed at increasing their personal
safety and that of the people around them, the details need to be recorded in case of
query or dispute in future. Because course attendance and training is closely linked to
general employee records, the HR department is the best equipped to record this
information. And the HR software used throughout your business unifies health and safety
data with employee records for quick and easy retrieval and analysis.

6. Discrimination and Diversity

If your business has any involvement with public sectors, or has a company policy
regarding diversity, you will need to be able to demonstrate your commitments with hard
facts from time to time. Where a company advertises commitments to diversity and a
desire to reduce discrimination, they will be required to demonstrate their progress
towards these goals. To avoid these requests turning into a rushed census of the
workforce, it makes sense to record demographics data when a new recruit is hired. As
part of the employment contract, a simple set of tick-boxes can be added to record
demographic and diversity data, which should be stored with employee records in the HR
system. It is also important to record any workplace incidents that appear to involve any
form of discrimination. Your business can then carry out disciplinary actions based on
company policies and further demonstrate a commitment to these core principles. Your
HR software should also help quickly verify whether any staff suspected of participating
in discriminatory activities have agreed to act in accordance with company policies as
part of their employment contracts.

7. Discipline

Discipline is always one of the least popular issues to tackle in the workplace, and also
the point at which the HR department can help resolve incidents satisfactorily for
employer and employees. The disciplinary process requires plenty of evidence, and the
HR department will often need to obtain statements, records and other supporting data
to resolve issues legally and ethically, all of which is time consuming. It is therefore
important to keep accurate records of any disciplinary issue, to ensure that the issue is
dealt with properly. This includes minutes of meetings, letters between employer,

31
employee and trade union representatives, and any follow-up activities that need to
be undertaken. These records also provide a point of reference to ensure that all parties
are meeting their agreed obligations in the event of further disputes. As before, these
records need to be easily stored and retrieved, along with any relevant contract details.
By using an integrated HR system that supports your process, much of the evidence
gathering is simplified, helping to reduce much of the legwork and time associated with
resolving discipline issues.

8. Outsourcing

Freelancers and contracts provide an attractive way to augment your company workforce
skills and abilities, without the need to permanently hire new staff. This is particularly
relevant to projects and contracts that require specialist knowledge, but which are unlikely
to become a routine part of your company requirements. However, outsourced employees
present new challenges when trying to ensure they meet internal standards and
requirements. Do they hold qualifications or industry body memberships? Have they
undergone standard company induction training? You may need to know this kind of
information at some point in the future, even if it does not seem particularly relevant at
the start of their contract. In the same way that you record the employment details of
permanent staff, it is essential to keep the same information about contractors,
consultants and outsourced employees. Your ideal HR system should let you maintain
clearly labelled records of temporary staff for easy retrieval in the event of a future dispute.
Or even just to make it easier to re-hire the same people in future.

9. Payroll

. Responsibility for payroll falls between the remits of the accounts and HR departments,
often leading to problems with accurate payments to staff. HR maintains records about
salary, benefits, bonuses and attachments of earnings, whilst accounts are tasked with
actually making the payments. This creates a potential disconnect that can lead to the
payroll being run late or employees receiving the wrong sums in their wage packet. To
maintain morale and prevent future pay problems, your business should investigate the
potential of using a dedicated payroll solution that interfaces directly with your HR
software and account system. By uniting both departments electronically, most of the

32
manual headaches associated with pay can be resolved automatically. Dedicated payroll
software helps ensure staff get paid what they are entitled to, when they expect it. Your
HR department will also benefit from a reduction in queries, helping to better spread the
workload throughout the rest of the month

10. Employee queries

The HR department provides the interface between “the company” and the staff. This
means that when it comes to employment issues, disputes or queries relating to work, the
HP department is the point of first enquiry.Dealing with queries on pay, perks and
performance management reviews on areasonably regular basis is routine, but also
extremely time consuming, particularlywhere data is not readily available. Every time a
member of the HR department needsto chase down a payment detail, or the specifics of
a contract variation, they areunable to focus on any of their other responsibilities.A
dedicated HR system keeps employment data centralised ready for easy retrievaland
significantly reducing the time taken to answer each query. More advanced system allow
“self - service” style access to some data, allowing staff to answer many of their own more
basic questions themselves.Easy data access is key to resolutionsThe HR team deals
with all manner of issues, but the key to resolving them quickly isthe same in most cases
- easy access to relevant data. In almost all cases, a fully-featured HR and payroll system
will provide the storage, retrieval and analysis toolsrequired to answer employment issues
and improve departmental efficiency ingeneral.

3.4 ANDRAGOGY OF HRD

Andragogy is the art and science of helping adults learn, as opposed to pedagogy, which
is the art and science of teaching children. Andragogy is based on the following
assumptions about adult learners:

 They are self-directed and autonomous

 They have accumulated life experiences that serve as a rich resource for learning
 They have learning needs that are related to their changing social roles
 They are problem-centered and seek immediate application of knowledge
 They are motivated by internal factors such as self-esteem, curiosity, and satisfaction

33
3.5 IMPLICATIONS OF ANDRAGOGY

Human resource development (HRD) is the process of developing and unleashing human
potential through learning and performance interventions for the purpose of improving
individual, team, and organizational effectiveness. HRD can benefit from applying
andragogical principles to design and deliver learning programs that are relevant,
engaging, and effective for adult learners.

Some of the implications of andragogy for HRD are:

 Involve learners in the planning, implementation, and evaluation of learning activities

 Recognize and utilize learners’ prior experiences and knowledge
 Align learning objectives and outcomes with learners’ personal and professional goals
 Provide learners with choices and options for learning methods, materials, and
resources
 Facilitate learners’ self-directed and collaborative learning
 Provide learners with feedback and support for their learning progress and
achievements
 Create a learning environment that is respectful, supportive, and conducive to learning

3.6 LIFE-LONG LEARNING

Life-long learning of human resource development (HRD) is the continuous process of

enhancing the skills, knowledge, and competencies of employees and other stakeholders
in an organization. It aims to improve individual and organizational performance, as well
as contribute to social and economic development.

3.7 BENEFITS OF LIFE-LONG LEARNING

 It helps employees adapt to changing work environments and technologies, and

prepare for new roles and responsibilities.
 It fosters a culture of learning and innovation, and encourages knowledge sharing and
collaboration among employees.
 It increases employee engagement, motivation, and satisfaction, and reduces turnover
and absenteeism.

34
 It supports the development of leadership and management skills, and facilitates
succession planning and career progression.
 It enhances the reputation and competitiveness of the organization, and attracts and
retains talent.

3.8 CHALLENGES OF LIFE-LONG LEARNING

 It requires a clear vision and strategy, and alignment with the organizational goals and
values.
 It demands a commitment of time, resources, and support from the top management
and the stakeholders.
 It involves identifying the current and future skills gaps, and designing and delivering
effective and relevant learning interventions.
 It necessitates a culture of feedback and evaluation, and measuring the impact and
return on investment of learning activities.
 It faces external factors such as globalization, digitalization, and environmental and
social issues that affect the demand and supply of skills.

3.9 BEST PRACTICES OF LIFE-LONG LEARNING

 Conducting a comprehensive learning needs analysis, and involving the employees

and the stakeholders in the planning and implementation of learning programs.
 Offering a variety of learning methods and formats, such as formal, informal, and non-
formal learning; online, blended, and face-to-face learning; and individual, group, and
organizational learning.
 Providing opportunities for experiential learning, such as on-the-job training, coaching,
mentoring, job rotation, and project-based learning.
 Creating a supportive learning environment, such as providing access to learning
resources, tools, and platforms; recognizing and rewarding learning achievements; and
fostering a learning community and network.

35
 Integrating learning and work, such as aligning learning objectives with work tasks and
performance indicators; embedding learning in the work processes and systems; and
applying and transferring learning to the work context.

3.10 SUMMARY

HRD is mainly concerned with developing the skills, knowledge and competencies of
people and it is people-oriented concept. When we call it a people-oriented concept, the
question arises, whether people will be developed in the larger or national context or in
the smaller organisational context? Is it different at the macro and micro level? HRD can
be applied both for the national level and organisational level. The concept of HRD is not
yet well conceived by various authors though they have defined the term from their
approach as it is of recent origin and still is in the conceptualising stage. It is an
understanding of the term i.e., new or rather was new. HRD is not Training and
Development.

3.11 SELF-CHECK QUESTIONS

1. Define life-long learning.

2. Discuss the benefits of life-long learning.

3.12 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 3.6

2. For answer refer to section 3.7

3.13TERMINAL QUESTIONS

1. Explain the concept of human resource development in detail.

2. Discuss the contemporary issues of human resource development in detail.

3.14 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 3.1, 3.2

2. For answer refer to section 3.3

36
 CHAPTER- 4

SOCIAL CAPITAL THEORY

STRUCTURE

4.0 Learning Objectives

4.1 Introduction
4.2 When to use social capital theory
4.3 Types of social capital
4.4 Advantages of social capital theory
4.5 Limitations of social capital theory
4.6 Criticism of social capital theory
4.7 Summary
4.8 Glossary
4.9 Self-Check Questions
4.10 Answer To Self-Check Questions
4.11 Terminal questions
4.12 Answer to terminal questions

4.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the social capital theory and discuss when to use social capital theory
 Discuss the types of social capital
 Describe the advantages of social capital theory
 Discuss the limitations of social capital theory
 Discuss the criticism of social capital theory

4.1 INTRODUCTION

Social capital theory is an analytical tool used in management that examines the value
of relationships and networks among individuals or organizations. It argues that
the quality of connections and interactions between people, as well as the ability to build,
maintain and leverage those relationships, can be a source of competitive advantage.

37
Social capital theory suggests that the strength of these connections can be used to
create, share and accumulate resources, knowledge and influence. It emphasizes how
the nature, quality and structure of relationships can shape social and economic
outcomes.

Example of social capital theory

 A company’s ability to make connections with others in the industry can be a source
of competitive advantage. For example, having a strong network of contacts in the
banking industry can provide access to capital and financing.
 The ability to build and maintain relationships with key customers can
increase customer loyalty and provide an edge over competitors. For example,
a company that invests in customer relationship management (CRM) technology can
track customer interactions and build strong relationships that can be leveraged for
future business.
 Social capital theory can be used to understand how organizations can use their
relationships to access resources and knowledge. For example, a company may use
connections within its industry to access new technology or gain access to the latest
industry trends. Additionally, the company may be able to leverage its relationships to
find the best suppliers and access new markets.

4.2 WHEN TO USE SOCIAL CAPITAL THEORY

 Social capital theory can be used to understand and analyze a wide variety of
phenomena, such as strategic alliances, organizational effectiveness, competitive
advantage, and social networks.
 It can also be used to explore how economic and social relationships shape patterns
of behavior, as well as how resources are distributed, used, and exchanged.
 It can be used to study how social structures and networks influence cooperation,
trust, and information exchange within and between organizations.
 It can be used to analyze the impact of social networks on decisions and outcomes,
as well as how information, resources, and power are distributed within and across
organizations and networks.
38
 In addition, social capital theory can be used to explore how individuals and groups
can use their relationships to promote collective action and achieve collective goals.

4.3 TYPES OF SOCIAL CAPITAL

Social capital theory encompasses different types of social relationships and networks
that can create value within an organization. These include:

 Bonding Capital: This type of capital refers to strong, close relationships between
individuals or groups that can lead to increased trust and loyalty. It is often derived
from shared values, beliefs and experiences.
 Bridging Capital: This type of capital is associated with weak, casual relationships that
are formed between individuals or groups who are often from different backgrounds
or have different interests. These relationships can lead to increased diversity and
access to new resources.
 Linking Capital: This type of capital is built through strong, formal relationships
between individuals or groups. It often involves trade, the sharing of resources, and
financial exchanges.
 Cultural Capital: This type of capital is built through shared values, beliefs and
experiences that are commonly shared among all members of an organization, such
as language, religion and customs. It can lead to increased understanding and
cohesion among members.

4.4 ADVANTAGES OF SOCIAL CAPITAL THEORY

Social capital theory can be a great asset for managers and organizations. It can help to
understand the dynamics of relationships and networks and how to use them for the
benefit of the organization. It can provide valuable insights into how to build meaningful
relationships and how to leverage them for mutual benefit. The following are some of the
advantages of social capital theory:

 Improved Collaboration: Social capital theory can help create stronger relationships
between individuals or organizations and foster collaboration. By understanding how

39
 to build and maintain relationships, organizations can gain access to resources,
knowledge, and influence.
 Increased Efficiency: By understanding how to leverage relationships, organizations
can be more efficient in their operations. This can help reduce costs, increase
efficiency and improve overall performance.
 Increased Innovation: Social capital theory can help to create an environment where
ideas and innovation can flourish. By building strong relationships and networks,
organizations can gain access to new ideas and perspectives that can lead to
increased creativity and innovation.
 Enhanced Reputation: Social capital theory can help organizations create a positive
reputation. By building strong relationships and networks, organizations can create a
positive public image and establish trust with stakeholders.
 Strengthened Resilience: Social capital theory can help organizations become more
resilient in the face of challenges. By understanding how to build and maintain strong
relationships, organizations can access resources, knowledge and influence to help
them overcome any challenges they may face.

4.5 LIMITATIONS OF SOCIAL CAPITAL THEORY

One of the main limitations of social capital theory is its lack of precision in defining the
term "social capital" itself, making it difficult to measure and capture all of its dimensions.
Other limitations include:

 Its focus on the individual level of analysis, overlooking the broader structural,
institutional and cultural contexts in which social capital is embedded.
 Its emphasis on the positive aspects of social capital, overlooking the potential
negative consequences of certain relationships and networks.
 Its neglect of the importance of culture in mediating the impact of social capital on
individual and collective outcomes.
 Its limited ability to capture the dynamic and shifting nature of social capital, as well
as its potential to be manipulated and deployed for strategic ends.

40
 Its limited capacity to account for the potential for social capital to translate into
economic capital.

4.6 CRITISIM OF SOCIAL CAPITAL THEORY

Social capital theory is a concept that tries to explain how social relationships can produce
benefits or costs for individuals and groups. However, it has been widely criticized for
being vague, inconsistent, and contradictory. Some of the main criticisms are:

 It is not social: it ignores the power dynamics, conflicts, and inequalities that shape

social interactions and outcomes. It also assumes that social relations are always
positive and beneficial, while ignoring the negative and harmful effects of some
forms of social capital, such as exclusion, corruption, or violence.
 It is not capital: it does not fit the definition of capital as a stock of assets that can be

invested, accumulated, or exchanged. It also confuses the causes and effects of

social capital, and does not account for the opportunity costs and trade-offs
involved in building and maintaining social ties.
 It is not a theory: it lacks a clear and coherent framework that can explain and predict

social phenomena. It is more of a metaphor or a buzzword that can be used to

justify any argument or policy. It also suffers from circular reasoning, measurement
problems, and context dependency.

These criticisms suggest that social capital theory needs to be refined, clarified, and
tested empirically before it can be used as a valid and reliable tool for social analysis and
intervention.

4.7 SUMMARY

Social capital theory is an analytical tool used in management that examines the value of
relationships and networks among individuals or organizations. It argues that
the quality of connections and interactions between people, as well as the ability to build,
maintain and leverage those relationships, can be a source of competitive advantage.
Social capital theory suggests that the strength of these connections can be used to

41
create, share and accumulate resources, knowledge and influence. It emphasizes how
the nature, quality and structure of relationships can shape social and economic
outcomes.

4.8 GLOSSARY

 Social capital theory: It is an analytical tool used in management that examines

the value of relationships and networks among individuals or organizations. It
argues that the quality of connections and interactions between people, as well as
the ability to build, maintain and leverage those relationships, can be a source
of competitive advantage.

4.9 SELF-CHECK QUESTIONS

1. What do you mean by social capital theory?

2. Discuss the types of social capital theory.

4.10 ANSWER TO SELF CHECK QUESTIONS

1. For answer refer to section 4.1

2. For answer refer to section 4.3

4.11 TERMINAL QUESTIONS

1. What do you mean by social capital theory? When to use social capital theory explain
it in detail?

2. Discuss the types of social capital and criticism of social capital theory in detail.

3. Describe the advantages and limitations of social capital theory.

4.12 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 4.1, 4.2

2. For answer refer to section 4.3, 4.6

3. For answer refer to section 4.4, 4.5

42
 CHAPTER-5

LEARNING NETWORK THEORY

STRUCTURE

5.0 Learning Objectives

5.1 Introduction
5.2 Characteristics of learning network theory
5.3 Objectives of learning network theory
5.4 Advantages of learning network theory
5.5 Disadvantages of learning network theory
5.6 Summary
5.7 Glossary
5.8 Self-Check Questions
5.9 Answer To Self-Check Questions
5.10 Terminal questions
5.11 Answer to terminal questions

5.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of learning network theory
 Discuss the characteristics and objectives of learning network theory
 Discuss the advantages and disadvantages of learning network theory

5.1 INTRODUCTION

Learning network theory is a descriptive theory that explains how different actors in an
organization can organize and develop their learning in relation to their work. It is based
on the idea that learning is a process of creating and maintaining connections with people
and information, and that these connections form dynamic networks that support learning.

Some key concepts of learning network theory are:

43
  Learning actors: These are the individuals or groups who participate in learning

activities, such as employees, managers, trainers, consultants, etc. They have

different roles, interests, and strategies for learning.

 Learning resources: These are the sources of information and knowledge that

learning actors use, such as documents, databases, machines, experts, etc. They
can be internal or external to the organization.

 Learning relations: These are the interactions and communications that learning

actors have with each other and with learning resources. They can be formal or
informal, direct or indirect, and can vary in frequency, intensity, and quality.

 Learning networks: These are the patterns of learning relations that emerge from

the combination of learning actors and learning resources. They can be seen as
the structure and the process of learning in an organization. They can be analyzed
at different levels, such as individual, team, department, or organization.

Learning network theory can help us understand and improve the organization of learning
systems in work settings. It can help us identify the strengths and weaknesses of existing
learning networks, and suggest ways to enhance them by creating more connections,
diversity, and flexibility. It can also help us design and implement learning interventions
that are aligned with the needs and goals of the learning actors and the organization.

5.2 CHARACTERSTICS OF LEARNING NETWORK THEORY

Learning network theory is a descriptive theory that explains how employees can learn
from each other and from their work environment in a dynamic and flexible way. According
to this theory, learning networks are formed by the interactions and relationships between
different actors, such as employees, managers, customers, suppliers, etc. Learning
networks can take various shapes depending on the characteristics of the work, the goals
of the learning, and the preferences of the actors.

Some of the main characteristics of learning network theory are:

 Learning is seen as a social and relational process, not just an individual or cognitive

one.

44
  Learning is embedded in the work context and is influenced by the tasks, tools, and

technologies that are available.

 Learning is emergent and adaptive, meaning that it can change and evolve

according to the needs and challenges of the situation.

 Learning is self-organized and self-directed, meaning that the actors can choose

how, when, and with whom they want to learn.

 Learning is collaborative and cooperative, meaning that the actors can share their

knowledge, experiences, and perspectives with each other.

 Learning is reflective and evaluative, meaning that the actors can monitor and

assess their own learning and the learning of others.

Learning network theory can help employees, managers, and other learning actors to
understand and develop alternative ways of organizing employee learning in relation to
work. It can also help to identify the factors that facilitate or hinder the formation and
functioning of learning networks.

5.3 OBJECTIVES OF LEARNING NETWORK THEORY

Learning network theory is a branch of electrical engineering that deals with the analysis
and synthesis of linear circuits composed of resistors, capacitors, inductors, and sources.
Some of the objectives of learning network theory are:

 To understand the basic concepts and principles of circuit elements, laws, and

theorems.

 To apply various techniques to solve circuits in time and frequency domains, such

as mesh and nodal analysis, superposition, Thevenin and Norton equivalents,

Laplace transform, Fourier series, and Fourier transform.

 To study the properties and applications of network functions, such as poles, zeros,

stability, driving point and transfer functions, and frequency response.

 To learn the concepts of network topology, such as graph, tree, branch, node, loop,

cutset, and incidence matrices.

45
  To synthesize passive networks using different methods, such as Foster and Cauer

forms, Hurwitz polynomials, and positive real functions.

Learning network theory can help students to develop analytical and problem-solving
skills, as well as to design and implement various circuits for communication, signal
processing, and control systems.

5.4 ADVANTAGES OF LEARNING NETWORK THEORY

Network theory is a branch of mathematics and computer science that studies the
properties and behaviors of complex systems composed of interconnected elements,
such as social networks, biological networks, communication networks, and more.
Learning network theory can have many benefits, such as:

 It can help you understand how different types of networks are structured, organized,

and function, and how they can be modeled, analyzed, and optimized using
mathematical tools and algorithms.

 It can help you discover and explore the patterns, dynamics, and phenomena that

emerge from the interactions and interdependencies of network elements, such as

network robustness, resilience, centrality, clustering, diffusion, contagion, and
more.

 It can help you apply network theory to various domains and disciplines, such as

sociology, biology, physics, engineering, economics, and more, and solve real-
world problems that involve networked systems, such as social influence, disease
spread, information flow, network security, and more.

 It can help you develop and enhance your skills in critical thinking, logical reasoning,

problem-solving, data analysis, and computational thinking, as well as your

creativity and innovation.

5.5 DISADVANTAGES OF LEARNING NETWORK THEORY

Network theory is a branch of mathematics that studies the properties and behavior of
complex networks, such as social networks, biological networks, or computer networks.
Learning network theory can help us understand how these networks are formed, how

46
they evolve, and how they influence various phenomena. However, learning network
theory also has some disadvantages, such as:

 It can be difficult to apply network theory to real-world problems, as networks are

often noisy, incomplete, dynamic, and heterogeneous. Network theory often relies
on idealized models and assumptions that may not hold in reality. For example,
network theory may assume that all nodes and links are equally important, or that
the network structure is static and known, which may not be the case for many real
networks.

 It can be challenging to learn network theory, as it requires a solid background in

mathematics, statistics, and computer science. Network theory involves concepts

such as graph theory, matrix algebra, probability theory, optimization, algorithms,
and machine learning, which may not be easy to grasp for beginners or non-
experts.

 It can be hard to interpret and communicate the results of network analysis, as

networks are often high-dimensional, nonlinear, and complex. Network theory

often uses abstract and technical language, such as centrality, modularity,
clustering, community detection, etc., which may not be intuitive or meaningful for
non-specialists. Moreover, network theory may not provide clear causal
explanations or actionable insights for the problems it addresses, but rather
descriptive or exploratory analysis

These are some of the disadvantages of learning network theory. However, network
theory also has many advantages, such as its generality, flexibility, and applicability
to various domains and disciplines. Therefore, learning network theory can be a
rewarding and useful endeavor, as long as one is aware of its limitations and
challenges.

5.6 SUMMARY

Learning network theory is a descriptive theory that explains how different actors in an
organization can organize and develop their learning in relation to their work. It is based
on the idea that learning is a process of creating and maintaining connections with people

47
and information, and that these connections form dynamic networks that support learning.
Learning network theory can help us understand and improve the organization of learning
systems in work settings. It can help us identify the strengths and weaknesses of existing
learning networks, and suggest ways to enhance them by creating more connections,
diversity, and flexibility. It can also help us design and implement learning interventions
that are aligned with the needs and goals of the learning actors and the organization.
Network theory is a branch of mathematics that studies the properties and behavior of
complex networks, such as social networks, biological networks, or computer networks.
Learning network theory can help us understand how these networks are formed, how
they evolve, and how they influence various phenomena.

5.7 GLOSSARY

 Learning network theory: It is a descriptive theory that explains how different

actors in an organization can organize and develop their learning in relation to their
work. It is based on the idea that learning is a process of creating and maintaining
connections with people and information, and that these connections form dynamic
networks that support learning

5.8 SELF-CHECK QUESTIONS

1. What do mean by learning network theory?

2. Discuss the Characteristics of learning network theory.

3. Explain the objectives of learning network theory.

5.9 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 5.1

2. For answer refer to section 5.2

3. For answer refer to section 5.3

5.10 TERMINAL QUESTIONS

1. Explain in detail the concept of learning network theory.

48
2. Discuss the characteristics and objectives of learning network theory.

3. Discuss the advantages and disadvantages of learning network theory.

5.11 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 5.1

2. For answer refer to section 5.2, 5.3

3. For answer refer to section 5.4, 5.5

49
 CHAPTER-6

SYSTEM THEORY TO HRD

STRUCTURE

6.0 Learning Objectives

6.1 Introduction
6.2 Concept of system theory
6.3 Basic components of systems
6.4 Implications of system theory
6.5 Framework of system theory
6.6 Summary
6.7 Glossary
6.8 Self-Check Questions
6.9 Answer To Self-Check Questions
6.10 Terminal questions
6.11 Answer to terminal questions

6.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of system theory
 Discuss the components of system theory
 Describe the implications of system theory

6.1 INTRODUCTION

System theory is a foundational theory that supports the field of human resource
development (HRD). It helps to understand HRD as a complex and dynamic system that
interacts with its environment and adapts to changing conditions. System theory also
provides a framework for designing, implementing, and evaluating HRD interventions that
are aligned with the needs and goals of the organization and its stakeholders. Here is a
brief note on the relevance of system theory to HRD:

50
  System theory views HRD as a process that involves inputs, outputs, feedback, and

control mechanisms. Inputs are the resources and demands that HRD receives
from its environment, such as human capital, organizational strategy, and external
factors. Outputs are the results and outcomes that HRD produces for its
environment, such as improved performance, learning, and innovation. Feedback
is the information that HRD receives from its environment about the effectiveness
and efficiency of its outputs. Control mechanisms are the rules and standards that
HRD uses to regulate its inputs, outputs, and feedback. System theory helps HRD
to optimize its process by ensuring that its inputs match its outputs, its feedback is
accurate and timely, and its control mechanisms are appropriate and flexible.

 System theory views HRD as a system that consists of interrelated and

interdependent components that function as a whole. These components include

the HRD professionals, the learners, the managers, the sponsors, the facilitators,
the content, the methods, the technology, and the context. System theory helps
HRD to integrate its components by ensuring that they are aligned with each other,
they share a common vision and purpose, they communicate and collaborate
effectively, and they learn and improve continuously.

 System theory views HRD as a management function that requires strategic

planning, coordination, and evaluation. System theory helps HRD to manage its
function by ensuring that it aligns with the organizational mission, vision, and
values, it coordinates with other organizational functions and systems, and it
evaluates its impact and value on the organization and its stakeholders.

System theory is relevant to HRD because it provides a comprehensive and holistic

perspective that enables HRD to understand, design, implement, and evaluate its
interventions in a complex and dynamic environment. System theory also helps HRD to
enhance its effectiveness, efficiency, and responsiveness to the changing needs and
goals of the organization and its stakeholders.

51
6.2 CONCEPT OF SYSTEM THEORY

Discussions about system theory invariably begin with the usual disclaimer that system
theory is not actually a single, formal theory per se. Rather, that system theory can be
more accurately characterized as constituting a set of models, principles, and laws that
apply to all entitles, regardless of their kind (von Bertalanffy, 1968). Von Bertalanffy, the
generally acknowledged intellectual force on the topic, further likened the understanding
and acceptance of general system theory as a shift in scientific paradigm, from a
mechanistic focus on individual aspects to a focus on the parts and the whole at the same
time. The goal of system theory is to explain things, natural odr artificial, as that of systems
and the interplay of their respective constituent parts. As a result, system theory has
served to integrate various scientific fields, especially those with an applied orientation,
through a common set of understandings and language. System theory does not provide
the content for any given field of study, but instead system theory provides much of its
form and structure. It is for that reason, say, that quantum mechanics can be shown to
have certain correspondences with that of human resource development, two totally
unrelated fields.

How system theory explains commonalities across disciplines can often be confirmed in
a practical sense. For instance, a range of professionals—information technologists,
management consultants, salespersons, and engineers—may all refer to goals,
customers, needs, projects, constraints, and timelines as part of their work, without ever
realizing that the source of these terms and the meanings attached to them are derived
originally from core system theory principles. Isomorphism is the system theory term used
that refers to the parallel structures that exist among systems (von Bertalanffy, 1968).

At the core of understanding system theory is the singular meaning of system (Ackoff,
1999). There are real systems that represent observations of actual things or conceptual
systems that may correspond with reality, but the components are meant to be symbolic
or abstract, such as logical schemes. The conceptual framework of a research study that
shows the relationships among variables is an example of a conceptual system. It seems
reasonable to restrict the discussion in this chapter to artificial systems that have been
purposely designed. A system may be conceptualized in its current observable state and

52
it may be represented in a not yet realized ideal or future state. Articulating between
current and idealized system states constitutes much of the planning process across
disciplines.

A system at once has component parts or elements, each of the parts having unique
attributes; the parts have relationships and interactions among each other; and, finally,
the system has an environment or a context in which the parts function as a whole. From
this perspective, literally all objects, events, or combination of actions with things are
considered systems. Simply put, everything possible is, in fact, a system. As presented,
a system has sets of inputs, processes, outputs, and feedback or feed forward. In brief,
inputs are the various elements, some of which are not readily apparent, that a system
uses as resources from which to function. The goal, or the reason for the existence of the
system, is a critical type of input, as it focuses, energizes, and differentiates one system
from another. Resources used by the system, such as money, materials, facilities, people,
and information, also constitute important sets of inputs.

Processes are the various activities that a system undertakes to use the various inputs to
achieve the intended goals. This may include human actions, machine actions using
technology, or some combination of the two. Outputs are the results, both intended and
unintended, that occur from the processes. How those outputs are achieved may be
accomplished through varying approaches or experiences, representing the principle of
equifinality.

Finally, feedback and feed forward mechanisms allow systems to be managed and
regulated in some predictable way. The aspects of feedback and feed forward themselves
have evolved into a separate discipline known as cybernetics, which focuses on how
communication directs and controls system behavior (Wiener, 1988). When information
from the outputs returns back to the inputs unchanged, then it essentially becomes
feedback. But when the information from the outputs causes changes to the inputs in
some way, then it becomes feed forward. The common example of a room thermostat
helps illustrate this point. Feedback occurs when the temperature in the room reaches
the temperature set on the thermostat; the furnace will turn off, since its affects are no
longer required. This illustrates the process of homeostasis in which a system state

53
changes—furnace turns on and off—to stay the same. In this case, the room temperature
matches the thermostat setting. Feed forward is when the temperature setting on the
thermostat is purposely changed to either a higher or lower setting from the original
setting, which in turn causes the furnace to respond by changing its process cycle, either
by staying on for a longer or shorter period of time.

6.3 BASIC COMPONENTS OF SYSTEMS THEORY

Thus, changing the inputs, based on some judgment of the adequacy of the outputs, is
considered as feed forward. For instance, when management decides to change the
mission or goals of an organization based on the ongoing performance or some external
factors, the activities of the organization must, in turn, respond to this new information.
Feedback and feed forward represent how information influences the functioning of a
system. Explanations about how systems undergo change, based on changes in the
inputs, point to the complex issue of causality—why a system state moves from one point
to another. System theory recognizes the existence of multiple forms of causality: linear,
linear chains, multiple simultaneous causes, and mutual causation Chaos theory (Kellert,
1993) uses mathematics to study the behavior of systems that are highly sensitive to
initial input conditions such that small differences may yield widely diverging outcomes,
making predictions about system behavior increasingly difficult. Small differences in the
inputs may result in wholly unpredictable, and sometimes random, sets of outputs.
Contrary to some perspectives, chaos theory does not invalidate the pervasiveness of
systems. Rather, chaos theory highlights the folly in believing that one might be able to
know beforehand all the variables that might impinge on the behavior of complex systems.
Indeed, one might never really know the variables until some unexpected result occurs,
which makes individuals ponder what they have missed. In truth, it may not always be
possible to know some information related to a system.

Systems are themselves comprised of subordinate systems, or sub-systems, and the

interaction among these sub-systems often results in a constant state of change. The
notion of system state defines the features of a system at any given point in time, with the
likely intent that the current system state should be viewed as an approximation of the
desired future system state. The notion of system state—current or future—is a critical

54
principle to consider when organizations engage in planned change. Paradoxically, the
desired system state, once achieved, immediately becomes the current state. The current
system state and the future system state almost never last for any length of time, changing
either intentionally or unintentionally.

Boundaries help distinguish a system from other systems. Open systems have
boundaries that allow free passage of information and objects among systems. Closed
systems eventually suffer from entropy, or the decay of their components caused by a
lack of information. Designating a system boundary can often be problematic, particularly
in contemporary organizations. Today, boundaries represent more functional than
physical separations. The notion of a soft system has emerged to describe the
increasingly common situation when organizations have relatively ill-defined boundaries,
making problem identification and problem solving all the more complicated.

In the past, the organization itself often served as a proxy for its system boundaries.
However, the increasing prevalence of outsourcing, global supply chains, and sub-
assembly partners make designating an organization’s system boundary all the more
complicated. For instance, it is well known that Samsung and Apple compete against
each other in the smart-telephone marketplace. At the same time, Samsung is also a
supplier to Apple for its component parts. Thus, Samsung could be considered at once
within and outside the system boundaries of Apple, depending on how one defines the
system of interest. Such contradictions—intense competitors and partners at the same
time— illustrate the increasing difficulty of defining system boundaries and, by extension,
understanding and solving problems within them.

Careful readers of the HRD literature might notice that the word “system” may at times
appear with an s at the end and sometimes without an s at the end. The difference in
meaning goes beyond representing the singular or plural forms of the word. The term
system usually suggests that a broader, more inclusive perspective is being recognized
when considering the entity at hand. The accompanying adjective form—systemic—may
help readers better understand this point. Systemic perspectives, such as often used with
family counseling, disease treatment, or accident analysis, are understood to represent a

55
frame of reference that includes the system of immediate focus as well as any interacting
or adjoining systems as well.

On the other hand, the term systems usually refers to a more narrow focus that is limited
to the immediate entity of interest. Again, the accompanying adjective form—
systematic—suggests a more circumscribed set of actions. This point might be illustrated
when engaging in either training systems design or training system design, with the
understanding that each represents the inclusion or exclusion of differing sets of
variables. Training system design might result in designing a training program for the
audience as intended, say, frontline employees, but might also consider other training
interventions that might be necessary in the situation, say, also for managers and
supervisors.

In a related sense, the foundational text by Ludwig von Bertalanffy (1968), General
System Theory, is often mistakenly listed in citations as General Systems Theory, with
one letter added that editors often overlook. The preferred usage in this chapter is that of
the broader perspective, system, unless otherwise specified.

System theory is a transdisciplinary approach that studies systems as cohesive groups

of interrelated and interdependent components. Systems theory can be applied to various
fields, such as management, ecology, sociology, and economics. Some of the main
components of system theory are:

 Sub-system: A sub-system is a part of a larger system that has its own structure,
function, and role. For example, a department is a sub-system of an organization,
which is a sub-system of an industry, and so on.
 Synergy: Synergy is the phenomenon where the output of a system is greater
than the sum of the outputs of its sub-systems. This means that the system has
emergent properties that arise from the interactions and relationships among its
components. For example, a team can achieve more than the individual members
by working together.
 Open and closed systems: An open system is a system that interacts with its
environment and exchanges inputs and outputs with it. An open system adapts to

56
 the changes and feedback from the environment. A closed system is a system that
has no or very little interaction with its environment. A closed system is isolated
and does not respond to external influences. For example, a living organism is an
open system that needs nutrients and oxygen from the environment, while a clock
is a closed system that operates independently of its surroundings.
 System boundary: A system boundary is the line that separates a system from
its environment. The system boundary defines what is included and excluded in
the system. The system boundary can be flexible or rigid, depending on the degree
of openness of the system. For example, a company can have a flexible boundary
that allows it to collaborate with other organizations, or a rigid boundary that
protects its proprietary information.
 Flow: Flow is the movement of inputs and outputs within and between systems.
Flow represents the processes and operations that transform the inputs into the
desired outputs. Flow can be linear or circular, depending on the nature of the
system. For example, a production line has a linear flow of raw materials,
intermediate products, and finished goods, while a recycling system has a circular
flow of waste, reuse, and recovery.
 Feedback: Feedback is the information that a system receives from its
environment or from its own output. Feedback can be positive or negative,
depending on whether it reinforces or modifies the behavior of the system.
Feedback can be used for control, learning, or improvement of the system. For
example, a customer satisfaction survey can provide feedback to a company about
its products and services, and help it to make adjustments accordingly.

6.4 IMPLICATIONS OF SYSTEM THEORY

As an applied field of study, human resource development draws three interrelated

implications from system theory: (1) the HRD process, (2) HRD as a system, and (3) the
management of HRD systems. These implications represent a system design
perspective, which basically seeks to engage in the design and management of relatively
complex systems, such as organizations, that is, organizations that combine people,

57
machines, technology, buildings, money, and processes in particular ways to achieve
their missions.

All applied fields of study and practice have a dual nature to them. That is, applied fields
have both their contributing bodies of knowledge and sets of practices that apply the body
of knowledge in useful ways to solve societal problems. An analogy for the relationship
between the bodies of knowledge and the application of that information might be taken
from examining the two sides of a coin. Each side differs from the other, but the coin
cannot possibly exist without having the two sides together.

Some fields of study, such as philosophy, mathematics, or the liberal arts, do not have an
external referent to them. Applying a body of knowledge into its respective practice realm
requires design as both a process and an outcome. System design is fundamental for all
applied fields of study: architecture, engineering, law, management, and even medicine.
Practitioners of all sorts are bound by the common action of engaging in a design process
to achieve an outcome (Van Aken & Romme, 2009).

Buckminster Fuller (Fuller & McHale, 1963) and Herbert Simon (1996) characterized such
activities as constituting a design science, or a science of design. A science of design
represents both a generalized method and its outcome, which are independent from the
content of the method or the nature of the outcome.

System theory is a way of understanding and managing complex systems, such as

organizations, that are composed of interrelated parts that function as a whole. System
theory can help human resource development (HRD) professionals to analyze, design,
and evaluate HRD interventions that aim to improve the performance and learning of
individuals, teams, and organizations.

Some of the main implications of system theory for HRD are:

 HRD interventions should be aligned with the goals and needs of the system, and
consider the impact on other parts of the system. For example, a training program
for employees should not only improve their skills, but also support the strategic

58
 objectives of the organization and the expectations of the customers and
stakeholders.
 HRD interventions should be based on a systemic diagnosis of the performance
gaps and root causes, and not on isolated symptoms or assumptions. For
example, a performance problem may be caused by a lack of motivation, feedback,
resources, or support, and not necessarily by a lack of knowledge or skill.
 HRD interventions should be evaluated in terms of their effectiveness, efficiency,
and sustainability, and not only by their immediate outcomes or reactions. For
example, a successful HRD intervention should not only achieve the desired
learning or behavioral change, but also enhance the system’s capacity to adapt,
innovate, and grow.

System theory can provide a useful framework for HRD theory, research, and practice,
as it can help HRD professionals to understand the complexity and dynamics of human
systems, and to design and implement HRD interventions that are holistic, systemic, and
relevant

6.5 FRAMEWORK OF SYSTEM THEORY

System theory is a way of understanding the complex and dynamic interactions of various
elements within a system, such as an organization, a process, a group, or an individual.
System theory can be applied to HRD to provide a holistic and integrative perspective on
how to develop human resources in alignment with the organizational goals and
environment.

According to system theory, a system consists of three basic components: inputs,

processes, and outputs. Inputs are the resources or factors that enter the system, such
as human capital, technology, information, and culture. Processes are the activities or
functions that transform the inputs into outputs, such as learning, training, performance,
and change. Outputs are the results or outcomes that emerge from the system, such as
productivity, quality, innovation, and satisfaction.

59
A system also has two additional components: feedback and boundaries. Feedback is
the information or evaluation that the system receives from its outputs, which can be used
to monitor and improve the system’s performance. Boundaries are the limits or constraints
that define the system’s scope, identity, and interaction with other systems.

The framework of system theory can help HRD practitioners to design, implement, and
evaluate HRD interventions that are relevant, effective, and sustainable. By using system
theory, HRD practitioners can:

 Identify the inputs, processes, and outputs of the HRD system and how they are
interrelated and interdependent.
 Analyze the feedback and boundaries of the HRD system and how they affect the
system’s performance and adaptation.
 Align the HRD system with the organizational system and the external environment
and ensure their mutual support and compatibility.
 Optimize the HRD system’s efficiency, effectiveness, and equity by balancing the
needs and interests of various stakeholders and beneficiaries.
 Enhance the HRD system’s learning, innovation, and change capabilities by
fostering a culture of continuous improvement and development.

6.6 SUMMARY

System theory is a foundational theory that supports the field of human resource
development (HRD). It helps to understand HRD as a complex and dynamic system that
interacts with its environment and adapts to changing conditions. System theory also
provides a framework for designing, implementing, and evaluating HRD interventions that
are aligned with the needs and goals of the organization and its stakeholders. System
theory views HRD as a process that involves inputs, outputs, feedback, and control
mechanisms. Inputs are the resources and demands that HRD receives from its
environment, such as human capital, organizational strategy, and external factors.
Outputs are the results and outcomes that HRD produces for its environment, such as
improved performance, learning, and innovation. Feedback is the information that HRD
receives from its environment about the effectiveness and efficiency of its outputs. Control

60
mechanisms are the rules and standards that HRD uses to regulate its inputs, outputs,
and feedback. System theory helps HRD to optimize its process by ensuring that its inputs
match its outputs, its feedback is accurate and timely, and its control mechanisms are
appropriate and flexible.

6.7 GLOSSARY

 System theory: It is a foundational theory that supports the field of human resource
development (HRD). It helps to understand HRD as a complex and dynamic
system that interacts with its environment and adapts to changing conditions.
System theory also provides a framework for designing, implementing, and
evaluating HRD interventions that are aligned with the needs and goals of the
organization and its stakeholders.

6.8 SELF-CHECK QUESTIONS

1. Define System theory.

2. Discuss the components of system theory.

6.9 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 6.1

2. For answer refer to section 6.3

6.10 TERMINAL QUESTIONS

1. What do you mean by system theory to HRD? Explain its components.

2. Explain the implication of system theory in detail.

3. Discuss the framework of system theory.

6.11 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 6.1, 6.2 and 6.3

2. For answer refer to section 6.4

3. For answer refer to section 6.5

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 CHAPTER-7

HUMAN CAPITAL THEORY

STRUCTURE

7.0 Learning Objectives

7.1 Introduction
7.2 Who invented the human capital theory?
7.3 Types of human capital theory
7.4 Human capital theory in hrm
7.5 Advantages of human capital theory
7.6 Disadvantages of human capital theory
7.7 History of human capital
7.8 Criticism of human capital theory
7.9 How to determine if your human capital management is working?
7.10 Summary
7.11 Glossary
7.12 Self-Check Questions
7.13 Answer To Self-Check Questions
7.14 Terminal questions
7.15 Answer to terminal questions

7.0 Learning Objectives

After studying the lesson, you should be able to:-
 Describe the concept of human capital theory and who invented the human
capital theory?
 Discuss the types of human capital theory
 Discuss the advantages and disadvantages of human capital theory
 Describe the history of human capital
 Discuss the criticism of human capital theory

7.1 INTRODUCTION

62
Human capital theory is a concept that views human beings as a form of capital that can
be invested in through education, training, and other forms of learning to increase their
productivity and value in the labour market. Human resource development (HRD) is a
process of enhancing the knowledge, skills, and abilities of employees to improve their
performance and achieve organizational goals. HRD can be seen as an application of
human capital theory in the context of human resource management.

A note on the introduction of human capital theory to HRD could include the following
points:

 The origin and evolution of human capital theory, from the classical economists to

the modern scholars such as Becker and Schultz, who emphasized the role of
education and training as investments in human capital.

 The definition and dimensions of human capital, such as human capital stock (the

accumulated level of human capital), human capital flow (the rate of change of
human capital), and human capital quality (the efficiency and effectiveness of
human capital).

 The benefits and challenges of human capital theory, such as how it can explain the

differences in wages, productivity, and economic growth among individuals, firms,

and countries, as well as how it can face criticism for being too simplistic,
individualistic, and neglecting the social and institutional factors that affect human
capital formation and utilization.

 The link and relevance of human capital theory to HRD, such as how HRD can be

seen as a strategic function that aims to develop and manage the human capital
of an organization, and how HRD can use various techniques and practices to
enhance the human capital of employees, such as training, career development,
performance management, coaching, mentoring, talent management, and
organizational development.

 The implications and recommendations of human capital theory for HRD, such as

how HRD should align its objectives and activities with the organizational strategy
and goals, how HRD should measure and evaluate the return on investment and

63
 impact of its interventions on human capital, and how HRD should foster a culture
of learning and innovation that supports the continuous development and
improvement of human capital.

7.2 WHO INVENTED THE HUMAN CAPITAL THEORY?

The first writings on human capital comes from the 18th century Scottish economist,
Adam Smith. But, the American economist, Greg Becker, was arguably the biggest
pioneer for the human capital theory. Through his works in economic sciences, he coined
the idea of investing in people.

His works allow us to view the link between human labour and production. And how
human capital can enhance the workplace today. We shouldn’t view the theory as selling
humans as a commodity. But rather as investing in their talents and performance,
benefiting themselves and the business.

7.3 TYPES OF HUMAN CAPITAL THEORY

Human capital theory is a concept that views the skills, knowledge, and abilities of workers
as a form of capital that can be invested in and enhanced through education and training.
Human capital theory has been used to explain the relationship between human
resources development (HRD) and organizational performance, as well as to justify the
value and importance of people to organizational success.

There are different types of human capital theory that have been applied to HRD, such
as:

 Psychological theory: This theory focuses on the individual level of human capital,

and how psychological factors such as motivation, self-efficacy, and learning styles
influence the acquisition and transfer of skills and knowledge.

 Economic theory: This theory focuses on the organizational level of human capital,

and how economic factors such as wages, productivity, and competitiveness affect
the demand and supply of skills and knowledge.

64
  Systems theory: This theory focuses on the environmental level of human capital,

and how social, cultural, and institutional factors shape the context and outcomes
of skills and knowledge development.

 Scarce resource theory: This theory views human capital as a scarce and valuable

resource that needs to be managed and allocated efficiently and effectively to

achieve organizational goals.

 Sustainable resource theory: This theory views human capital as a renewable and

dynamic resource that needs to be nurtured and developed continuously to ensure

organizational sustainability and innovation.

A note on types of human capital theory to HRD could include the following points:

 Human capital theory is a useful framework for understanding and improving the

value and impact of people to organizational success.

 Human capital theory can help HRD practitioners design and implement
interventions that enhance the skills and knowledge of workers at different levels
of analysis (individual, organizational, environmental).

 Human capital theory can help HRD practitioners measure and evaluate the

outcomes and benefits of their interventions in terms of human capital indicators

(such as return on investment, human capital index, human capital report).

 Human capital theory can help HRD practitioners align their strategies and practices

with the needs and expectations of various stakeholders (such as employees,

managers, customers, shareholders, society).

 Human capital theory can help HRD practitioners address the challenges and

opportunities of the changing world of work (such as globalization, digitalization,

diversity, sustainability).

7.4 HUMAN CAPITAL THEORY IN HRM (HUMAN RESOURCES MANAGEMENT)

65
The managing department of any business will always benefit from a well-functioning
workforce. Their main work tasks are to oversee your staff’s performance rates. Human
capital management allows your mangers to:

 Set achievable goals – for both daily and in the long-run.

 Provide coaching and training for your staff.

 Deliver constructive feedback on improvement.

In some ways, human capital management may be complicated phrase for performance
management. But in the end, these managers can help create your foundations for
profitable human capital management.

7.5 ADVANTAGES OF HUMAN CAPITAL THEORY

Human capital theory (HCT) is an economic theory that views people as assets whose value can
be enhanced through education, training, and experience. HCT has many advantages for human
resource development (HRD) and organizational development (OD), such as:

 It provides a rationale for investing in people’s skills and knowledge, which can

improve their productivity and performance.

 It supports the identification and development of talent, ensuring that the

organization has a pool of qualified and capable employees.

 It facilitates succession planning, preparing future leaders and ensuring

organizational continuity and growth.

 It fosters career development, creating a mutually beneficial relationship between

the individual and the organization.

 It enhances organizational performance, as human capital investments can boost

output, innovation, and competitiveness.

 It enables change management, equipping employees to adapt to changing

environments and demands.

66
  It creates a positive culture and climate, where employees feel valued and

motivated.

HCT is a powerful and influential theory that can guide HRD and OD practices and
strategies. By applying HCT principles, organizations can leverage their human resources
to achieve their goals and objectives.

7.6 DISADVANTAGES OF HUMAN CAPITAL THEORY

Human capital theory is a framework that views human resources as a form of investment
that can enhance the productivity and economic output of individuals and organizations.
However, this theory has some limitations and disadvantages when applied to human
resource development (HRD), such as:

 It assumes a linear and causal relationship between education and work, ignoring
the complexity and diversity of human learning and labor markets.
 It cannot explain how education improves the quality and creativity of human work,
or why there are persistent inequalities and inefficiencies in the distribution of
human capital and income.
 It neglects the role of social, cultural, and institutional factors that shape human
capabilities and opportunities, such as power, status, identity, and values.
 It reduces human beings to economic agents who are motivated by self-interest
and utility maximization, overlooking the ethical and moral dimensions of human
development and well-being.

Therefore, human capital theory may not be a suitable or sufficient approach to

understand and promote HRD, which aims to enhance the potential and performance of
human resources in a holistic and sustainable manner. HRD may require alternative or
complementary perspectives that can account for the multidimensional and dynamic
nature of human development and its social and environmental implications .

7.7 HISTORY OF HUMAN CAPITAL

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The idea of human capital can be traced back to the 18th century. Adam Smith referred
to the concept in his book An Inquiry into the Nature and Causes of the Wealth of
Nations, in which he explored the wealth, knowledge, training, talents, and experiences
of a nation. Adams suggested that improving human capital through training and
education leads to a more profitable enterprise, which adds to the collective wealth of
society. According to Smith, that makes it a win for everyone.

In more recent times, the term was used to describe the labor required to produce
manufactured goods. But the most modern theory was used by several different
economists including Gary Becker and Theodore Schultz, who invented the term in the
1960s to reflect the value of human capacities.

Schultz believed human capital was like any other form of capital to improve the quality
and level of production. This would require an investment in the education, training, and
enhanced benefits of an organization's employees.

7.8 CRITICISM OF HUMAN CAPITAL THEORY

 Whilst the positive points for human capital may seem attractive, the theory isn’t
without its critiques.
 The concept of human capital theory is for humans to invest in themselves. But many
might critique employees are assets first and then humans. Some find it
discouraging to be referred to as “business tools” or possessions of the business.
 Other accounts argue the human capital development theory doesn’t allow concise
measures for talents and skills. To mark or even award employees against these is
intangible. And it can lead to claims of favouritism and prejudice in the workplace.
 Whilst developing employee skillsets and abilities is important, it’s not enough to fuel
your entire business.

7.9 HOW TO DETERMINE IF YOUR HUMAN CAPITAL MANAGEMENT IS WORKING?

The main aim for the success of human capital management is to prioritise your staff.
Your staff should stand as valuable members in your business. And they should be looked
after, from their first day. Through effective management, you can increase long-term
performance and business outcome. If your staff don’t feel encouraged or supported in

68
the workplace, it will reflect through the results. Managers should push motivation and
engagement through their own tasks, as well as through their managerial jobs. You need
to allow your staff to develop themselves whilst they perform their everyday tasks. Provide
useful resources for training, advisory groups, and any other means to build themselves
as employees.

7.10 SUMMARY

Human capital theory is about the idea of humans increasing their productivity and
efficiency through a greater focus on education and training. Human capital is the study
of human resources. It talks about the development of economic value from how we
function as a society. We invest in the physical means of our business, like machinery or
technology. This allows us to produce our stocks or products; and profit from it. So, we
should invest in human capital the same way – through education and training.

Investing in human capital allows you to see growth - measured through your staff’s
abilities, values, and skillset. This will increase business productivity, and in time,
revenue, and brand-name.

7.11 GLOSSARY

 Human capital theory: It is a concept that views human beings as a form of capital
that can be invested in through education, training, and other forms of learning to
increase their productivity and value in the labour market.

7.12 SELF-CHECK QUESTIONS

1. Define human capital theory.

2. Discuss the advantages of human capital theory.

3. Explain the types of human capital theory.

7.13 ANSWER TO SELF-CHECK QUESTIPONS

1. For answer refer to section 7.1

2. For answer refer to section 7.5

69
3. For answer refer to section 7.3

7.14 TERMINAL QUESTIONS

1. Discuss the concept of human capital theory and who invented the human capital
theory?

2. Discuss the types of human capital theory and the history of human capital.

3. Discuss the advantages and disadvantages of human capital theory.

4. Discuss the criticism of human capital theory in detail.

7.15 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 7.1, 7.2

2. For answer refer to section 7.3, 7.7

3. For answer refer to section 7.5, 7.6

4. For answer refer to section 7.8

70
 CHAPTER-8

SCREENING THEORY

STRUCTURE

8.0 Learning Objectives

8.1 Introduction
8.2 Component of screening theory
8.3 Screening theory as an alternative to HCT
8.4 On-the-job screening
8.5 Human capital vs. Screening theory
8.6 Criticisms of screening theory
8.7 Summary
8.8 Glossary
8.9 Self-Check Questions
8.10 Answer To Self-Check Questions
8.11 Terminal questions
8.12 Answer to terminal questions

8.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of screening theory
 Discuss the components of screening theory
 Describe screening theory as an alternative to human capital theory
 Describe the criticisms of screening theory

8.1 INTRODUCTION

The critics of Human Capital Theory and the proponents of Screening Theory believe that
education is necessary, but not a sufficient condition to contribute to individual
productivity. They argue that specific skills required in a profession are acquired on the
job rather than at school. Screening theory states that it is very hard to predict future
performance of an individual on the basis of her or his education. The educational

71
qualification and diplomas are used as a screening mechanism. Schooling is an institution
of trainability. But the real training starts on the job. The radicalists of Screening Theory
went to the extent of saying that education merely reproduced social inequality from
generation to generation. According to Bowles and Gintis , the main function of education
for the masses is to teach them discipline, respect for authority, particularly obedience,
the ability to cooperate and to concentrate. The radicalists believe that education
prepares labourers for inferior-level task in a productive organization. The proponents of
screening theory suggest that much of education in developing countries is irrelevant.

Three key element of screening theory are:

• Learning by doing;

• Screening; and

• Diploma inflation

8.2 COMPONENT OF SCREENING THEORY

Screening theory is a framework for understanding how employers select and hire the
best candidates for their jobs. Screening theory consists of four main components:

 Job analysis: This is the process of identifying the tasks, duties, responsibilities,
and requirements of a specific job. Job analysis helps to define the criteria for
evaluating candidates and designing effective recruitment and selection methods.
 Signaling and screening devices: These are the tools and techniques that
employers use to gather information about candidates’ abilities, skills, personality,
and fit for the job. Examples of signaling and screening devices include resumes,
cover letters, tests, interviews, references, and portfolios.
 Adverse selection and moral hazard: These are the problems that arise when
there is asymmetric information between employers and candidates, meaning that
one party has more or better information than the other. Adverse selection occurs
when employers cannot observe the true quality of candidates and may end up
hiring low-quality workers. Moral hazard occurs when hired workers have

72
 incentives to behave differently than expected or desired by employers, such as
shirking, cheating, or quitting.
 Human capital theory: This is the perspective that views employees as assets
that can be developed and enhanced through education, training, and experience.
Human capital theory suggests that employers should invest in their workers to
increase their productivity, performance, and retention.

Screening theory is relevant to human resource management because it helps HR

professionals to design and implement effective recruitment and selection strategies that
align with the organization’s goals and needs.

8.3 SCREENING THEORY AS AN ALTERNATIVE TO HCT

Individuals may increase their productivity through investment in education and training
activities, initially in schools and then continuing in the form of workplace learning.
However, the potential productivity of a new hire is difficult to ascertain by those involved
in the hiring process. Applicants may have augmented their potential productivity through
schooling, but those enhancements may be unrecognizable to employers when
individuals enter the labor market. Costs associated with defining and verifying
employees’ potential for performance can be a large expense for organizations (Bac
2000). If people are hired by an organization and they fail to meet expectations, human
and fiscal resources are wasted by an ineffective hiring process. Screening theory was
developed to ease the financial burden of making well-informed staffing decisions.

The formulation of screening theory Screening theory, as an alternative to HCT, argues

that a heuristically superior explanation must be able to accommodate the unique
institutional characteristics of the labor market. Thus screening theory contends that
schooling may have the same apparent effect on earnings, either because the productivity
linkage is a valid one, or because it is the instrument through which the effect of some
other background variables are transmitted, such as family background, or because it
masks an intervening variable other than productivity (Sobel 1982). This contention
provides the underlying basis for screening theory.

73
Building on the analysis of limitations of HCT’s theoretical base, Spence (1973a) and
Arrow (1973) independently and simultaneously formalized the hypothesis that education
served as a credentialing process which signaled high innate productivity to
organizations. From organizations’ perspectives, screening theory, similar to HCT,
considers hiring as an uncertain investment. Organizations are not sure of the productive
capabilities of a potential employee at the time of hiring, among other information
asymmetries. Nor will this information become available immediately after hiring. The job
may take time to learn, and often on-the-job specific training is required. To an extreme,
Spence (1973a) compares the organizational process of hiring an employee to buying a
lottery ticket. In formulating screening theory, Arrow (1973: 194) proposed the following
extreme assumptions:

 Higher education contributes in no way to superior economic performance; it

increases neither cognition nor socialization. Instead, higher education serves as
a screening device, in that it sorts out individuals of differing abilities, thereby
conveying information to the purchasers of labor

Accordingly, the theory considers the filtering role of education as a value-added one that
conveys much needed information by the economic agents in the markets. Productivity
and ability of a potential employee cannot be accurately determined, but diplomas are
easy to decipher, and such information can be obtained easily by organizations at minimal
cost. In the screening model, education is assumed to act as a filter, with successful
completion of education signaling higher levels of innate ability. The signaling model has
been applied to other economic phenomena from advertising (Nelson, 1974) to financial
structure (Ross 1977), social phenomena from courtship (Spence 1973b) to gift exchange
(Camerer 1988). Nevertheless, screening theory is often contrasted with HCT with
respect to education and training related investments.

Although the terms “screening, filtering, and signaling” that are associated with screening
theory are often used interchangeably, each has a distinctive connotation in the economic
literature. Potential employees use education to “signal” their productivity to employers.
Employers “screen” and “filter” out potential employees who possess a minimum level of
training and education credentials (Weiss 1995).

74
Empirical studies comparing educational credentialing to the “sheepskin effect” (e.g.
Belman and Heywood 1991, Wang and Holton 2005) have found that the diploma had
value apart from the accumulated years of education. Findings indicated that diplomas
serve as a proxy for productivity and may play a role in increasing productivity (Hugerford
and Solon 1987).

In testing screening theory, Miller and Volker (1984) hypothesized that if returns were
strictly related to productivity according to HCT, graduates who took jobs in their own
major should be paid more than those who took jobs in an unrelated field of study. Their
investigation found no difference in the starting salaries of economics graduates and
persons graduating with non-economics majors in jobs related to economics. The same
study also examined science majors versus non-science majors in science related jobs
and obtained similar results. Diploma-based sheepskin effects attenuate over time with
increased years of workforce experience because additional work experience allows
more direct observation of individual productivity (Belman and Heywood 1997).

8.4 ON-THE-JOB SCREENING

In addition to the education screening process, other economic studies have investigated
a second layer of the screening process, on-the-job screening (Bac 2000, Pinoli 2008).
On-the-job screening is based on the following rationale. After the initial screening based
on educational credentials, information about an employee’s productivity and
performance will be gradually revealed to the organization during an employee’s work life.
This information is not known to the employer at the time of hiring, but it eventually
emerges and the employer becomes better informed about the employee’s productivity
and performance. On-the-job screening involves using systemic processes to collect
multiple sources of data about employees, and employers are then able to make data-
based decisions about the organization’s human capital.

Employers use a variety of performance appraisal tools and techniques to make

judgments about past, present and future job performances of employees. And, these
judgments are directly related to decisions about current and future pay for these workers.
Some of these tools are used to screen out employees whose performances do not meet
organizationally defined performance indicators. Decisions are made as early as possible

75
so that investments in underperforming employees are kept to a minimum, and
investments are maximized in higher producing employees in order to develop desired
human capital for the organization. Some organizations adopted a forced-ranking strategy
to sort out high performers from other performers, although the effects of this strategy are
controversial (Gary 2001). Organizations may face a trade-off in pursuing these
strategies. The efficiency of on-the-job screening may be sacrificed because of the
employer’s need to invest in a specific human capital area (specific types of workers or
job classifications). Or, alternatively, when the organization has an effective training
system, organizations may have to sacrifice employee performance during the on-the-job
screening process (Bac, 2000).

8.5 HUMAN CAPITAL vs. SCREENING THEORY

Human Capital Theory Screening Theory

School of Neoclassical Theory Institutional Economics

Economic Thought

Theorist Schultz, Becker Spence, Arrow, Stiglitz,

Explanation Accumulation of surplus Addresses the selection needs

(education) is valuable to of organizations
the laborer

Capital Educational Investment in Education is a screen to signal

technical skills and potential employers of an
knowledge will increase individuals production
production and yield higher capabilities and market forces
wages determine wages

Market Structure Operates under the Operates under the assumption

assumption of perfect there are barriers/expenses
completion assuming low

76
 barrier/expenses to enter associated with market entry
and exit the market (information) and exit (turnover)

Level of Analysis Individual Individual/Organizational

Similarities Education and training add value to organizations and the

present cost are outweighed by future earnings and increased
production

8.6 CRITICISMS OF SCREENING THEORY

Some of the criticisms of screening theory are as follows:

• The screening theory proposition that higher education does not adequately contribute
to higher earning is not always correct. According to Wolpin, it is hard to explain why self
employed people with a higher education usually have higher earnings than self
employed people with less education.

• Screening, the real function of education, is somehow parochial and education really
vitalizes one’s ability to qualify for the test function of education is much more than
screening.

• Szirmai remarked that the correlation between education and income persists
throughout people’s workings life. The argument given by the proponents of Screening
theory is that education boosts initial earnings, which is not always true.

8.7 SUMMARY

Screening theory states that it is very hard to predict future performance of an individual
on the basis of her or his education. The educational qualification and diplomas are used
as a screening mechanism. Schooling is an institution of trainability. But the real training
starts on the job. The radicalists of Screening Theory went to the extent of saying that
education merely reproduced social inequality from generation to generation. According
to Bowles and Gintis , the main function of education for the masses is to teach them

77
discipline, respect for authority, particularly obedience, the ability to cooperate and to
concentrate. The radicalists believe that education prepares labourers for inferior-level
task in a productive organization.

8.8 GLOSSARY

 Screening Theory: Screening theory states that it is very hard to predict future
performance of an individual on the basis of her or his education. The educational
qualification and diplomas are used as a screening mechanism.
 Job analysis: This is the process of identifying the tasks, duties, responsibilities,
and requirements of a specific job. Job analysis helps to define the criteria for
evaluating candidates and designing effective recruitment and selection methods.
 Human capital theory: This is the perspective that views employees as assets
that can be developed and enhanced through education, training, and experience.
Human capital theory suggests that employers should invest in their workers to
increase their productivity, performance, and retention.

8.9 SELF-CHECK QUESTIONS

1. What do you mean by screening theory?

2. Discuss the components of screening theory.

3. Discuss the difference between screening theory and human capital theory.

8.10 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 8.1

2. For answer refer to section 8.2

3. For answer refer to section 8.5

8.11 TERMINAL QUESTIONS

1. Define screening theory. Explain the components of screening theory.

2. Explain the concept of screening theory as an alternative to human capital theory.

78
3. Explain the criticisms of screening theory.

8.12 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 8.1, 8.2

2. For answer refer to section 8.3

3. For answer refer to section 8.6

79
 CHAPTER-9

HUMAN RESOURCE DEVELOPMENT PROCESS

STRUCTURE

9.0 Learning Objectives

9.1 Introduction
9.2 The concept of human resource development
9.3 Human resource development process
9.4 Need of human resource development
9.5 Summary
9.6 Glossary
9.7 Self-Check Questions
9.8 Answer To Self-Check Questions
9.9 Terminal questions
9.10 Answer to terminal questions

9.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of human resource development
 Discuss the process of human resource development
 Describe the need of human resource development

9.1 INTRODUCTION

Human resource progression is continuous and dynamic in nature. All the generations of
the work force whether millennial, gen Z or Gen next the development index in human
competencies, attitudes, knowledge, skill and speed of learning to adopt disruptive
technology, are the parameters of organizational success. The year 2020 has started with
buzzing great resignation drive the reasons of which according to Deloitte 2022 workforce
and increment trends phase one report suggests that out of major reasons, 15% is
attributed to unhealthy work life balance and 10% is due to pay cuts and no or low
increments ; this is an alarming call to check that many employees have started seeking

80
passion in profession and unless organizations are willing to strengthen the HRD
Processes, the fall out shall be huge as there are ample opportunities for start-up and gig
economy options to multi-level engagements in expert areas. In the words of one of the
founding fathers of HRD movement in India Dr. T V Rao, HRD has to be perpetually
striving to improve and sharpen the human capabilities for present and future needs and
continuously encouraging optimizing potential progressively. He clearly indicates that the
organization policies, culture and processes must be a cultivating ground for immense
power of “human is a possibility” (2017). ‘Refining human as possibility has made a huge
paradigm shift from considering human as a mere resource’ are the words of renowned
spiritual and management guru Jaggi Vasudev speaking in leadership development
program on inner engineering. The organizations of today have immense challenge in
managing the human expectations along with stakeholders’ expectations and continuing
the growth to higher charts of profitability and returns on investment. The role of HR has
risen from mere a service or advisory function to a pivot of business partnership and
strategic leadership as a driving force for success. In the back drop of many
developments, the human resource development process has the onus of defining the
direction of not only the human potential optimization but also to give organization a
winning edge.

9.2 THE CONCEPT OF HUMAN RESOURCE DEVELOPMENT

In organizations, human resource development is a never-ending process. Depending

on the necessity, nature, and size of the business, the type of work done or efforts made
to develop human resources may differ. It is also looking into the kind of change the
organization is going through or the nature of skills the organization wishes to build inside
it on a regular basis in the same organization. In order to improve staff competences, the
business devises a variety of interventions. When these processes are implemented in
the workplace, it results in more competent, contented, and devoted employees who will
help the company expand by offering their best efforts. The efficiency of an organization
is influenced by a variety of factors such as the environment, technology, and rivals.
However, if all other factors are equal, an organization with competent, satisfied,
dedicated, and dynamic employees is more likely to succeed than one with poor scores

81
on these HRD outcome characteristics. In the same way, an organization with a superior
HRD climate and practices is more likely to be effective than one that does not. This is
due to the fact that a number of HRD processes working simultaneously in an organization
should generally result in HRD outcomes.

9.3 HUMAN RESOURCE DEVELOPMENT PROCESS

1. Role Clarity: The degree to which employees understand their targets, tasks
responsibilities, accountability, processes, expectations etc. at work is referred to as role
clarity. This clarity applies not only to their own function, but also to the roles of their co-
workers and its mutual interdependence. Clarity is a prerequisite for productivity, and a
lack of it can lead to stress and confusion. Role clarity is critical for reducing negative
sentiments and improving personal effectiveness as well as the organization's overall
performance. Employees with clear roles are 53 percent more efficient and 27 percent
more effective at work than those with ambiguous roles. According to our findings, total
work performance improves by 25%. (Pijnacker, 2019). However, having a clear grasp
of roles has an impact on more than just performance. It also builds trust among co-
workers and raises the likelihood of an employee staying with your company for a longer
period of time. To top it off, 75 percent of employees with strong role clarity are much
more enthusiastic about their work and have higher job satisfaction than others.

2. Awareness of Competencies Required for Job Performance: Competencies can

be a set of observable and measurable knowledge, skills, abilities, as well as personal
characteristics that leads to improved employee performance and, in turn, organisational
success. It is necessary to define the various components of skills in order to comprehend
them. It is critical to remember the following when applying competencies:

Competencies are utilised to raise the bar on employee performance rather than
establishing baseline performance levels. They give employees step-by-step instructions
on how to improve their abilities. They are concerned with the culture and values of a
company. Competencies are connected to short- and long-term aims and goals, reflecting
the organization's strategy. It concentrates on the process of achieving milestones rather
than the ultimate product itself. They fill the gap between performance management and

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employee development in this way, and they're an important part of personal development
plans as well as it fills in the gaps in an organization's skill set.

3. Proactive Orientation: Even in a new setting, proactive orientation entails anticipating,

taking action, and maintaining control. Organizations that are proactive plan for and
anticipate change. They like it and often instigate it because it allows them to outperform
their opponents. The majority of the disruptors in today's corporate landscape are bold,
proactive firms. The measures of the term Proactive are taking initiative, planning ahead
of time, and taking preventive action. In terms of planning, organisations must be
proactive. They need to be prepared for the future. Anticipating issues in advance to take
advantage of this undertaking conflict or responding to future requirements, in effect
creating the future, is what pro-action entails. RESULTS: Actions are taken and plans are
made in response to immediate issues.

4. Trust: At its most basic level, organisational trust is your employees' belief in your
company's conduct. This can include trust in management or individual team members,
but it also includes organisational aspects such as:

• The company's goal

• The vision, mission and nature of thought leadership

• The ideology and culture of the company

• Autonomy and tolerance

• Avenues for growth

• Legal compliances

• Diversity, inclusion, and equality in the workplace

• Processes, ethics and fairness, equity and justice

5. Collaboration and Team Work: Teamwork and collaboration, when combined, can
build a healthy work culture and atmosphere in which employees can work together to
achieve goals using powerful skills and successful work. Collaborative teamwork can
boost innovation, job happiness, problem-solving abilities, and the development of

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superior soft skills. In this post, we'll look at what teamwork and collaboration are, how
they differ from collaborative teamwork, how to increase teamwork and collaboration, and
the advantages of doing both. Working with one or more individuals with various skill sets
to accomplish anything, such as finishing a project, developing a common concept, or
completing a task, is referred to as collaboration. Collaboration in the workplace refers to
colleagues with different areas of expertise working together on a common aim to achieve
a goal or produce results. Collaboration in the workplace is a set of taught abilities that
can boost productivity, solve problems, promote good relationships, and foster
cooperation.

6. Authenticity: Authenticity has been identified as a significant asset for professional

and personal success. The growing body of research on authenticity has discovered a
slew of advantages, including improved well-being and life satisfaction. Authenticity, in
other words, "feels wonderful." As a result, many companies urge employees to bring
their whole selves to work in order to boost productivity, creativity, and effectiveness. A
recent study showed that 72% of people said they are authentic at work and a full 75%
that they wanted the coworkers to be authentic and display their true selves. However, a
small subset of employees (10%) was skeptical. They believed that showing who they
really are could be detrimental and make the workplace environment worse. (Guillén,
2021)

7. Openness: Openness is crucial because it speaks to what people want and expect
from an organisation if they are to experience a feeling of ownership and emotional
attachment. Openness entails providing information so that employees are aware of what
is going on and, more importantly, feel heard. But it also involves being open to diverse
ways of working different methods, different viewpoints, and, most importantly, feedback
and expecting it. It denotes a willingness to adapt to new situations. Leaders are
successful when people follow them when employees have the information, they need to
execute their jobs and a clear sense of where the organisation is headed and when people
have a feeling of pride in and ownership over an issue or team, whether in business,
politics, or entertainment(Openness at Work, 2018).

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8. Risk-taking: Throughout the day, managers are faced with making decisions. Some
decisions are simple and straightforward, while others are complex and hazardous. Some
people enjoy taking risks, while others prefer stability and avoid taking any risks at all. A
risk taker is someone who puts everything on the line in the hopes of succeeding, or who
accepts a higher chance of losing money in their decisions and tolerates uncertainty.
Taking chances entails putting your and your employees' best qualities to work for your
company's growth. You must design a cultural formula that everyone must follow,
according to your vision. Break down your company's sections and construct risk-taking
lines when it comes to difficult decisions and leaps of faith. Because this is a continuous
process, you may need to change it on a case-by-case and person-byperson basis. For
example, a firm has a risk-taking culture when its employees are aware of the risks
involved in each circumstance and take measured chances. They may reap the benefits
of taking risks in business if they regularly make right decisions and represent the risk-
taking culture you have fostered in them over time.(The Truth About Taking Risks: 7
Advantages Of Risk-Taking In A Business, 2017)

9. Value Generation: Putting people first is one of the main success criteria of high-
performing organisations. HR professionals nowadays are faced with the task of
developing efficient and effective, simple yet strong solutions for the human side of the
business. However, determining the specific contribution of the HR function in achieving
these goals remains difficult. The first step in developing an effective HR strategy is to
define value and comprehend how it is created in the business. This necessitates a
thorough awareness of the whole business environment as well as the organization's
overarching business plan. Once a strategic direction has been established, the
organization's HR policies, programmes, and practises must be reviewed to ensure that
they are in line with the HR strategy. Converting HR strategies and initiatives into
measurable business value necessitates the use of the right delivery method, a solid
foundation of HR capabilities and infrastructure, and the establishment of business-driven
performance measures to track whether the expected outcomes are being achieved
(Creating value through HR).

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10. Clarification of Norms and Standards: Norms are the established rules of conduct
determined by culture. Norms are standards, and beliefs that help to maintain social
order, guide individuals, and determine what is proper and wrong, as well as what is
positive and negative. For optimal team performance, it's necessary to define
responsibilities and objectives. If you're a team leader, don't expect people to follow you
unless you make it clear what you expect from them. The communication of plans,
policies, and role expectations is known as clarifying. Clarifying behaviour has the goal of
guiding and coordinating work activity and ensuring that everyone knows what to do and
how to perform it. Each subordinate must understand what duties, functions, and activities
are required in the position and what results are expected in order for the team to perform
well. Even a highly talented and motivated subordinate may struggle to reach high levels
of performance if they are unclear about their roles and priorities.

11. Better Communication: Any organization's administration requires effective

communication. Whether the goal is to inform employees about new policies, prepare for
a weather disaster, maintain organisational safety, or listen to employee attitudes, good
communication is a critical component of efficient management. Organizations must have
complete policies and methods for communicating with their constituents, employees, and
stakeholders, as well as the general public, in order to be successful. The majority of HR
experts and company leaders feel that aligning corporate communication with business
strategy is critical for efficient and consistent operations. Organizations may guarantee
that they: Communicate consistent messages using a structured and thorough
communication strategy.

12. Fair Rewards: The perceived fairness (or lack thereof) of employee awards is
frequently at the base of why people leave firms. The concept of fairness also impacts
whether or not an individual will go above and above to meet company goals or even his
or her own employment ambitions. As a result, it's critical for businesses to ensure that
their employee benefits are based on fairness principles. Employee perceptions of
fairness and equitable treatment, according to research, are a key driver of retention,
engagement, and performance. Unfair treatment is, in fact, destructive. Even the
perception of unfair treatment can have disastrous consequences for a company since it:

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• Creates an atmosphere of suspicion and hatred.

• Erodes' performance and personnel dedication to the company

• Increases the amount of time spent doing things that aren't productive.

• Reduces employee motivation to support one another; increases unionisation; and

increases voluntary turnover and absenteeism.

9.4 NEED OF HUMAN RESOURCE DEVELOPMENT

The part of human resource management that specifically deals with training and
development of the employees. Human resource development includes training an
individual after he/she is first hired, providing opportunities to learn new skills, distributing
resources that are beneficial for the employee’s tasks, and any other developmental
activities.’

Furthermore, HRD includes such opportunities as:

 employee training
 employee career development
 performance management and development
 coaching
 mentoring
 succession planning
 key employee identification
 tuition assistance
 organisation development

People need competencies (knowledge, attitudes, values and skills) to perform tasks.
Higher degree and quality of performance of tasks requires higher level of degree of skills.
Without continuous development of competencies in people, an organisation is not likely
to achieve its goals. Any organisation that is interested in improving its services and its
effectiveness needs to develop its employee competencies to perform the tasks required
to bring about such improvements

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The HRD is required for:

 Growth of organisation.
 Diversification in an organisation
 Renewing itself to become more effective
 Improving the systems and services of an organisation
 Change and becoming more dynamic
 Playing leadership roles

9.5 SUMMARY

Human resource development is a never-ending process. Depending on the necessity,

nature, and size of the business, the type of work done or efforts made to develop human
resources may differ. It is also looking into the kind of change the organization is going
through or the nature of skills the organization wishes to build inside it on a regular basis
in the same organization. In order to improve staff competences, the business devises a
variety of interventions. When these processes are implemented in the workplace, it
results in more competent, contented, and devoted employees who will help the company
expand by offering their best efforts. The efficiency of an organization is influenced by a
variety of factors such as the environment, technology, and rivals. However, if all other
factors are equal, an organization with competent, satisfied, dedicated, and dynamic
employees is more likely to succeed than one with poor scores on these HRD outcome
characteristics. In the same way, an organization with a superior HRD climate and
practices is more likely to be effective than one that does not. This is due to the fact that
a number of HRD processes working simultaneously in an organization should generally
result in HRD outcomes.

9.6 GLOSSARY

 Human resource development: Depending on the necessity, nature, and size of

the business, the type of work done or efforts made to develop human resources
may differ. It is also looking into the kind of change the organization is going
through or the nature of skills the organization wishes to build inside it on a regular
basis in the same organization.

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9.7SELF-CHECK QUESTIONS

1. What do you mean by Human resource development?

2. Discuss the need of human resource development.

9.8 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 9.1, 9.2

2. For answer refer to section 9.4

9.9 TERMINAL QUESTIONS

1. Define Human resource development. Explain the need of human resource

development.

2. Explain the process of human resource development.

9.10 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 9.1, 9.2, and 9.4

2. For answer refer to section 9.3

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 CHAPTER-10

HRD PROGRAMME

STRUCTURE

10.0 Learning Objectives

10.1 Introduction
10.2 The different phases or critical success factors of hrd program
10.3 Implementing of hrd program
10.4 Evolution of hrd program
10.5 Steps in the process of evaluation
10.6 Benefits of hrd program
10.7 Beliefs are essential for the success of any hrd programme
10.8 Responsible for hrd program
10.9 Summary
10.10 Glossary
10.11 Self-Check Questions
10.12 Answer To Self-Check Questions
10.13 Terminal questions
10.14 Answer to terminal questions

10.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of HRD program
 Discuss the different phases or critical success factors of hrd program
 Describe the implementing of hrd program
 Discuss the evolution of hrd program
 Describe the steps in the process of evaluation
 Discuss the benefits of hrd program
 Describe the essential for the success of any hrd programme

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10.1 INTRODUCTION

When HRD Programs have to be made, it has to be based on the curren t and future
HRD requirements. The work of the human resource development practitioner is
continuously evolving. Human resource development is now expected to make a
strategic level contribution and contribute to individual and organizational
effectiveness. Human resource development practitioners are increasingly required
to network and build relationships to obtain support, resources, information, and
knowledge. The benefits of HRD Program are many. The systematic and well-
designed HRD Program can contribute to the organizational performance.

10.2 THE DIFFERENT PHASES OR CRITICAL SUCCESS FACTORS OF HRD

PROGRAM

1. Phase I – Assessment Phase – In this phase the needs are prioritized according
to thy contribution to the overall Organizational Strategy.

2. Phase II – Design Phase – The specific objectives are defined in this phase. The
Lesson plan is made, trainer is selected and accordingly the methods, techniques
and materials. Finally the schedule of the Program is made.

3. Phase III – Implementation Phase – The most crucial phase of all deals with
delivering of the Program as a strategic intervention.

4. Phase IV – Evaluation Phase – The evaluation criteria are selected on the basis of
which the success of the program is assessed. The results are interpre ted and form
the basis of other HRD programs.

The issue of development has always been important. In recent years, however, the
process of development is more important than ever in order for organizations to cope
with accelerating change which affects existent HR needs.

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According to Kenney and Reid (1994), the most widespread methods of
diagnosis of organizational development needs are the following:

i. Evaluation of HR skills and performance by Audit team.

ii. Analysis of work to identify and get insights into the areas in which employees need
training must be identified.

iii. Analysis of skills set to identify the differences between new and experienced
employees, in relation to their effectiveness.

iv. Changes in the organization and work design like the creation of new job process
and the abolition of old processes or the integration of processes.

v. Analysis of available information from departmental records like personnel

statistics, accident records, training reports, and staff appraisal forms.

vi. What other organizations in the industry are doing.

The above checklist helps an organization ascertain the developmental needs and
accordingly design their HRD programs which can then be implemented.

10.3 IMPLEMENTING OF HRD PROGRAM

The work of the human resource development practitioner is continuously evolving.

Human resource development is now expected to make a strategic level contribution
and contribute to individual and organizational effectiveness. Human resource
development practitioners are increasingly required to network and build relationships
to obtain support, resources, information, and knowledge.

The accumulation of social capital is considered important in determining individual

career success and role performance. Given the importance attached to this
dimension of HRD practitioners’ roles, it is important to implement the HRD programs
cautiously. According to Pedler, Boydell and Burgoyne (1989), learning organization

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is “an organization which facilitates the learning of all its members and co ntinually
transforms itself”.

Therefore the implementation method has to be in line with the philosophy of good
training which is it Improves performance, Improves productivity, Improves chances
for promotion and improves the bottom line. For this right training methods need to
be used in the right way to ensure successful HRD implementation.

Since the real organizational needs are known, the process of training can begin.
Exclusive of the training techniques, the trainees and the trainers constitute other key
elements of a training program. However there are certain delusions which should be
done away with.

These misconceptions include the best way to learn any new skill is to learn it on the
job, Lectures are not a good method for training, it’s easy to come up with stimulating
discussion questions, and that the Case studies are used for time fillers. The method
of training should be keeping in mind the objective of the Program.

The selection of trainees is a very important activity in order for an organiza tion to
achieve desirable training results. According to Peel (1994), the elements of trainees
which have to be taken into consideration in order for the selection of appropriate
training methods are the following –

1. The number of trainees.

2. Demographics like age, the level of education, qualifications and experience.

3. Reasons why they are chosen for development and what are their needs.

It should be remembered that what needs to be learned cannot always be taught.

Human resource development programs must therefore help people to learn from
their experience. Development cannot be left to chance.

Effective implementation depends on three main elements:

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1. The degree to which the training adds to productive output meets the standards of
quantity, quality, and timeliness of the people who receive, review, and/or use the
HRD Programs.

2. The degree to which the HRD process of carried out the work enhances the
capability of members to work together interdependently in the future.

3. The degree to which the group experience contributes to the growth of the trainees
and eventually the Organizations.

This is the most crucial of all phases since it is directly related to the output of the
Program. It is the real show that takes place on an actual level, a point when the
developers/trainers and trainee are in direct contact. The success depends on the
extent to which trainees experience meaningfulness of the developmental exercise,
active responsibility for the exercise and its outcomes and knowledge of actual
benefits of the training.

10.4 EVOLUTION OF HRD PROGRAM

HRD evaluation is defined as – “The methodical collection of vivid and judgmental

information necessary to make effective training decisions related to the selection,
implementation, value, and modification of various developmental, activities.”

The important points highlighted in this definition are:

1. Evaluation involves the methodical collection of information according to a

predetermined plan to ensure that the information is appropriate and useful.

2. While conducting an HRD evaluation, both descriptive and judgmental information

should be collected.

3. Evaluation is conducted to help managers, employees and HRD professionals

make informed decisions about particular programs and methods.

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Evaluation of HRD Program can serve a number of purposes within the organization.

According to Phillips, evaluation can help to do the following:

1. Establish whether a program is accomplishing its objectives as proposed.

2. Identify the strengths and weaknesses of HRD programs.

3. Conclude the cost-benefit ratio of an HRD program.

4. Decide the number and nature of participants who benefited the most or least from
the program.

5. Emphasize major points to be made to the participants.

6. Gather data to assist in designing future programs.

7. Determine the appropriateness of the program.

8. Better and more informed decision making in future relating to design of HRD
programs.

There are other reasons for conducting HRD evaluation as well. Evaluation can build
credibility with top managers and others in the organization. If HRD staff cannot
substantiate its contribution to the organization, it’s funding and program may be
revised during the budgeting process. Thus, evaluation is a critical step in the HRD
process. It is the only way one can know whether an HRD program has fulfilled its
objectives. HRD evaluation outlines the criteria for and focuses on the evaluation
effort.

10.5 STEPS IN THE PROCESS OF EVALUATION ARE

1. Data Collection for HRD Evaluation:

The first step of an evaluation effort requires the collection of data to providing the
decision makers with facts and judgments upon which they can base their decisions

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is vital. Three important aspects of providing information for HRD Evaluation include
data collection methods, types of data, and the use of report.

2. Research Design:

Research design is significant to HRD evaluation as it specifies the expected results

of the evaluation, the methods of data collection, and the method of data analysis.

3. Ethical Issues Concerning Evaluation:

Many of the decisions supervisors and HRD professionals make when conducting
HRD evaluations have ethical dimensions. Actions such as – assigning participants
to training and Control groups, reporting results, and the actual conduct of the
evaluation study itself all raise ethical questions like that of confidentiality and
biasness. Some evaluation research project involves asking participants questions
about their or others’ job performance.

The results of these inquiries may be embarrassing or lead to adverse treatment by

others if they are made public. Also supervisors dislike being rated by their
subordinates on performance aspects and rater’s bias can creep in. Halo effect,
recency effect are other potential biases that can creep in.

Evaluation studies should be monitored by a review board to ensure that participants

are aware that they are participating in a study and know its purpose, what they will
be expected to do, and the potential risks and benefits of participating. In some cases,
an investigator may feel that the study will yield better results if employees don’t
realize they are in an evaluation study, or if they are given some false or misleading
information during the study.

HRD professionals and their managers may feel pressurized to make sure that the
results of their evaluation reveal that the program was effective. This may be one
reason why meticulous evaluation of HRD programs is not done more often. The HRD
people are the ones who design and develop, implement, and evaluate the program,

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if the evaluation shows the program was ineffective the HRD department may lose
financial support and have their activities curtailed.

Although the possibility exists for “deception” in the form of doctoring results,
reporting partial results, or setting up biased studies, it is unclear how often this
occurs in HRD evaluation. But it is imperative on the part of Management to be
cautious while evaluating the HRD Programs.

One of the most tenuous and unsatisfactory aspects of training programs is the
evaluation of their effectiveness. Evaluation is any attempt to obtain feedback on the
effects of a training program and to assess the value of the training in the light of
information thus collected. Evaluation leads to decision making and control which
means deciding whether or not the training was worth the effort and what
improvements are required to make it even more effective.

According to Hamblin, there are five levels at which evaluation can take place:

1. Reactions of trainees to the training experience itself.

2. Learning evaluation requires the measurement of what trainees have learned as a

result of their training.

3. Job behavior evaluation is concerned with measuring the extent to which trainees
have applied their learning on the job.

4. Organizational unit evaluation endeavors to measure the effect of changes in the

job behavior of trainees on the functioning of the pan of the organization in which they
are employed.

5. Ultimate value evaluation aims to measure how the organization as a whole has
benefited from the training in terms of greater profitability, survival or growth.

There are many models to measure training effectiveness. The most popular and
influential framework for training evaluation was articulated by Kirkpatrick.

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Kirkpatrick argues that training efforts can be evaluated according to four
criteria:

1. Reaction,

2. Learning,

3. Job behaviour, and

4. Results.

The four levels are:

1. Level 1 – Reaction to Training Program:

Did the trainees like the program and feel it was useful? At this level, the focus is on
the trainees’ perceptions about the program and its effectiveness. Positive reactions
to a training program may make it easier to encourage employees to attend future
programs. The main limitation of evaluating HRD programs at the reaction level is
that this information cannot indicate whether the program met its objective beyond
ensuring participant satisfaction.

2. Level 2 – Learning:

Did the trainees learn what the HRD objectives said they shoul d learn? This is an
important criterion; one many in the organization would expect an effective HRD
program to satisfy.

3. Level 3 – Job Behavior:

Does the trainee use what was learned in training back on the job? If learning does
not get transferred to the job, the training effort cannot have an impact on the
employee’s or organization’s effectiveness. Measuring whether training has

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transferred to the job requires observation of the trainees on-the-job behavior and
comparing it with past performance errors.

4. Level 4 – Results:

Has the training or HRD effort improved the organization’s effectiveness? Is the
organization more efficient, more profitable as a result of the training program?
Meeting this criterion is considered to be the most challenging level to evaluate, given
the limitations of employee performance, how training has had an effect on the bottom
line is important to know. Typically at this level, economic and operating data are
collected and analyzed.

Kirkpatrick’s framework provides a useful way of looking at the possible

consequences of training and recapitulates that HRD efforts often have multiple
objectives. Each succeeding level incorporates the one prior to it, finally terminating
in what is considered to be the ultimate contribution of any organizational activity that
is improving the organizations effectiveness. However Kirkpatrick’s approach has its
limitations too. The framework evaluates only what happens after training, as
opposed to the entire training process.

Several authors have suggested modifications to Kirkpatrick’s four-level approach to

offset its flaws. They have suggested expansion of the reaction level to include
assessing the participants’ reaction to the training methods and efficiency and
splitting the reaction level to include assessing participants’ perceptions of enjoyment,
utility, and the difficulty of the program. Further the researchers propose addition of
a fifth level to address the societal contribution and outcomes created by an HRD
program and to specifically address the organizations return on investment.

Another Model for evaluation of training is the Brinkerhoff’s Model which extends the
training evaluation model to six stages questioning the rationale, process and benefits
of having an HRD Program –

1. Goal Setting – What is the need for HRD Program?

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2. Program Design – What will work to meet the need?

3. Program Implementation – Is the HRD Program working, with the focus on the
implementation of the program?

4. Immediate Outcomes – What did the participants learn?

5. Intermediate Outcomes – Are the participants using what they learned?

6. Impacts and Worth – Did it make a worthwhile difference to the organizations

performance?

Bushnell suggests a model based on a systems view of the HRD function –

input -throughput-output containing four stages:

1. Input – What goes into the training effort? This consists of performance indications
such as – trainee qualification and trainer ability.

2. Process – The planning, design, development, and implementation of the HRD

program.

3. Output – Trainee reactions, knowledge or skills gained, and improved job behavior.

4. Outcome – Effects on the organization, including profits, productivity and customer

satisfaction.

The evaluation measurement should be done to ensure that the program is well
designed and meets its objectives. In its simplest form, evaluation should address the
question of whether the training program achieved its objectives. Basing training
objectives on needs assessment information, and then evaluating those objectives,
is the most economical way of summarizing what training evaluation efforts can focus
on.

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10.6 BENEFITS OF HRD PROGRAM

The benefits of HRD Program are many. The systematic and well-designed HRD
Program can contribute to the organizational performance.

There should be a checklist of benefits:

1. Training results must be measured against costs.

2. Training must contribute to the “bottom line”.

3. HRD must justify itself repeatedly as a revenue enhancer.

As for the future HRD implementation at enterprise level, comprehensive training

programs should be developed by individual companies in order to cope with both
external and internal challenges. This requires that not only training basic knowledge
and skills, but also other programs such as – improving special skills, response to the
technology changes, business and economic literacy, handling market competition
and globalization, and specific competencies among the workforce.

The training should be carefully made as per the requirements of the employees. Both
Formal and informal methods can be employed according to the requirements. Self -
directed learning should be also encouraged among employees. A learning
environment and culture should be created in which people choose other forms of
learning outside routine HRD Programs for purpose of developing confidence and
competence as capable human beings.

These developments require organizations to provide a long-term support. The fact

that the training that gets transferred gets rewarded should be made the catch line of
any HRD Program.

10.7 BELIEFS ARE ESSENTIAL FOR THE SUCCESS OF ANY HRD PROGRAMME

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Following beliefs are essential for the success of any HRD programme:

i. Human beings are the most important assets in the organisation.

ii. Human beings can be developed to an unlimited extent.

iii. Employees feel committed to their work and the organisation if the organisation
develops a feeling of ‘belonging’ in them.

iv. Employees are likely to have a feeling of ‘belonging’ in them if the organisation
adequately cares for the satisfaction of their basic and high-order needs.

v. Employees’ commitment to their work increases when they get opportunity to

discover and use their full potential.

vi. It is every manager’s responsibility to ensure the development and utilisation of

the capabilities of his subordinates, to create a healthy and motivating work cli mate,
and to set examples for subordinates to follow.

vii. The higher the level of a manager the more attention he should pay to the HRD
function in order to ensure its effectiveness.

viii. A healthy and motivating climate is one, which is characterised by openness,

enthusiasm, trust, mutuality and collaboration.

Guided in its HRD programme by the philosophy and ideas of its founder Jamshedji
Tata, the Tata Iron and Steel Co. is one example of an ideal HRD philosophy.

It believes that it can effectively discharge its obligations towards its employees
only:

i. By a realistic and generous understanding and acceptance of their needs and rights
and enlightened awareness of the social responsibility of industry;

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ii. By providing adequate wages, good working conditions, job security, an effective
machinery for speedy redressal of grievances, and suitable opportunities for
promotion and self-development;

iii. By promoting feelings of trust and loyalty through a humane and purposeful
awareness of their needs and aspirations; and

iv. By creating a sense of belonging and team-spirit through their close association
with management at various levels.

Another excellent example of a company’s HRD philosophy is provided by the well -

known Indian Tobacco Co. This company has, from its original business of cigarettes
and tobacco, diversified into several new areas such as cottage sector products,
edible oils and oilseeds. The group employs over 15,000 people. Following is the
company’s statement on its HRD philosophy.

10.8 RESPONSIBLE FOR HRD PROGRAM

 Strategic management involves decision making aimed at providing futuristic

direction to an enterprise and therefore has a range of social implications as
well apart from the economic results it is aimed at achieving. HRD responsibility
emphasizes the consideration of the social criteria along with the familiar
economic criteria in the development of corporate strategy.

 An enterprise survives in the business because of the employees and thus has
a responsibility towards the employees as well. All the decisions that an
organization takes has a social side to it and therefore must be given
appropriate consideration from this standpoint. The doctrine of employee
development is the central guiding factor for an enterprise when it takes
decisions with regards to the social aspect.

 The great expansion in the scope and domain of enterprises has amplified
manifold the importance of the concept of employee development. There is a

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 trend towards growing awareness because of increase in education and
communication between the organizations and the public at large. It is because
of this reason that companies now a day want to behave in a socially
responsible manner as any glitch is very evident and has serious ramifications
due to better populace awareness.

 In this competitive world being loyal to the society is a matter of survival as public
opinion is important and there are legislations and government policies which
protect the consumers and hold the ultimate power. The best way in which this
can be achieved is by having proper employee development programs.

 Employee responsibilities can be defined as the businessman’s decisions and

actions taken to reasons, at least partially, beyond the firm’s direct economic
or technical interest for the welfare of the workforce. And therefore HRD has
an important role to play; it can be a vehicle for achieving these objectives.

 If we consider the definition of employee development it is the continuing

commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their
families as well as of the local community and society at large.

 The definition throws light at the management’s compulsions to set policies,

make decisions and follow a course of action, that Ire advantageous for the
employees. Corporations, before making their decisions, need to analyse the
developmental consequences of such resolutions on human resources.

 Though there are some disagreements amongst businessmen who do not

subscribe to the concept of employee development beyond a point because
they feel that is entails costs. This notion can be rejected declaring that the
sole responsibility of a business cannot be to guarantee effective utilization of
resources that it has and engage in work designed to generate profits.

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  In a free enterprise a corporate executive is an employee of the Company who
has a direct responsibility towards his owners, his chief responsibility is to act
as per the desire of the owners of the company and generate maximum profit
for them while confirming to the basic rules of the society. Also the enterprises
are not separate from society and organizations are made by people, for people
and are of the people. Therefore it is important to develop the human resources
if the company wants to survive in the competitive era.

 In the early 20 th century, business firms were primarily worried with maximizing
their profits. In the 1970s, social activists began to question business
enterprises’ odd objective of profit maximization. They reasoned that since
businesses derive their existence from society, they have some compulsions
towards it.

 The concept of employee development has been supported by various modern

economists including various corporate executives.

Employee development is important for the following reasons:

1. To operate at a profit and ensure growth of the organization as a wealth creating

and wealth producing organ of the society the company has to be serious about
human resources development.

2. For ensuring future success and to avoid lack of skilled resources, employee
development should be incorporated as apart from being a vehicle for developing the
human resources, it can also help the company get the desired image of a socially
responsible, enriching and fancied organization.

3. It helps ensure compliance to the social beliefs and cohesion by providing

opportunity to the human resources to grow both within and outside the organization.

Any organization that aims at growing in the future must fulfill its social responsibilities
with complete ardor. Being an inseparable part of the society the organization must

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look to translate all the demands that the society makes into opportunities rather than
perceiving them as threats to the organizations economic profitability. It is the task of
the management to guarantee that all the demands of the society especially HRD is
given due consideration.

Employee development should be perceived as an opportunity to grow into a more

socially effective organization. The cases in point are some of the largest growing
companies like Microsoft and SAIL who have used employee development as an
opportunity to enhance their consumer base and social recognition as a socially
responsible company.

10.9 SUMMARY

HRD Programs have to be made, it has to be based on the current and future HRD
requirements. The work of the human resource development practitioner is
continuously evolving. Human resource development is now expected to make a
strategic level contribution and contribute to individual and organizational
effectiveness. Human resource development practitioners are increasingly required
to network and build relationships to obtain support, resources, information, and
knowledge. Strategic management involves decision making aimed at providing
futuristic direction to an enterprise and therefore has a range of social implications as
well apart from the economic results it is aimed at achieving. HRD responsibility
emphasizes the consideration of the social criteria along with the familiar economic
criteria in the development of corporate strategy.

10.10 GLOSSARY

 HRD Program: It has to be based on the current and future HRD

requirements. The work of the human resource development practitioner is
continuously evolving. Human resource development is now expected to make
a strategic level contribution and contribute to individual and organizational
effectiveness .

10.11 SELF-CHECK QUESTIONS

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1. Discuss the evolution and implementing of hrd program.

2. Describe the steps in the process of evaluation.

3. Discuss the benefits of hrd program

10.12 ANSWER TO SELF-CHEK QUESTIONS

1. For answer refer to section 10.3, 10.4

2. For answer refer to section 10.5

3. For answer refer to section 10.6

10.13 TERMINAL QUESTIONS

1. What do you mean by HRD program? Discuss the different phases or critical success
factors of hrd program.

2. Discuss the evolution and implementing of hrd program.

3. Describe the steps in the process of evaluation. In detail.

4. Discuss the benefits of hrd program.

10.14 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 10.1, 10.2

2. For answer refer to section 10.3, 10.4

3. For answer refer to section 10.5

4. For answer refer to section 10.6

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 CHAPTER-11

HRD INTERVENTION

STRUCTURE

11.0 Learning objectives

11.1 Introduction
11.2 Types of hrd interventions
11.3 Process of hrd interventions
11.4 Human resource development interventions component of the HPT model
11.5 Steps for designing hrd intervention
11.6 Summary
11.7 Glossary
11.8 Self-Check Questions
11.9 Answer To Self-Check Questions
11.10 Terminal questions
11.11 Answer to terminal questions

11.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of HRD intervention
 Discuss the types of HRD intervention
 Describe the process of HRD intervention
 Discuss the steps for designing HRD intervention
11.1 INTRODUCTION

HRD intervention is a term that refers to the planned and systematic activities or programs
that aim to improve the performance and learning of individuals, groups, and
organizations. HRD interventions can include training and development, organization
development, and career development. The purpose of HRD interventions is to enhance
the knowledge, skills, abilities, and attitudes of the employees and to align them with the
goals and strategies of the organization. Define HRD intervention as a purposeful action

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or initiative designed to enhance the skills, knowledge, and capabilities of individuals
within an organization. Explain the goals and benefits of HRD interventions, such as
improving individual and collective performance, fostering a learning culture, and
contributing to organizational success.

11.2 TYPES OF HRD INTERVENTIONS

Describe the four main categories of HRD interventions, according to Cummings and
Worley (2009)

o Human process interventions: These are related to interpersonal relations, group, and
organizational dynamics. They aim to improve communication, teamwork, conflict
resolution, and leadership skills. Examples of human process interventions are team
building, process consultation, and coaching.

o Techno-structural interventions: These are targeted toward structural and

technological issues, such as organizational design, work redesign, and employee
engagement. They aim to align the organization’s structure and technology with its
strategy, goals, and environment. Examples of techno-structural interventions are
reengineering, downsizing, and quality management.

o Human resource management interventions: These impact areas such as

performance management, talent development, DEIB, and wellbeing in the workplace.
They aim to attract, retain, motivate, and develop the human capital of the
organization. Examples of human resource management interventions are employee
selection, compensation and benefits, training and development, and performance
appraisal.

o Strategic interventions: These are concerned with the organization’s relationship with
its external environment, such as customers, competitors, and stakeholders. They aim
to ensure the organization’s long-term survival, growth, and competitiveness.
Examples of strategic interventions are visioning, strategic planning, and change
management.

11.3 PROCESS OF HRD INTERVENTIONS

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Explain the steps involved in planning and implementing HRD interventions, such as:

o Identifying the need or gap within the organization that requires intervention. This can
be done through various methods, such as surveys, interviews, observations, or data
analysis.

o Choosing the appropriate type and level of intervention that matches the need or gap.
This can be done by considering various factors, such as the nature and scope of the
problem, the availability of resources, the readiness and willingness of the
participants, and the expected outcomes and impacts.

o Designing and developing the intervention program, which includes defining the
objectives, content, methods, and evaluation criteria of the intervention. This can be
done by involving various stakeholders, such as managers, employees, consultants,
and experts.

o Implementing and facilitating the intervention program, which involves delivering the
intervention activities, providing feedback and support, and monitoring the progress
and results. This can be done by using various techniques, such as lectures,
workshops, simulations, games, or online platforms.

o Evaluating and sustaining the intervention program, which involves assessing the
effectiveness, efficiency, and relevance of the intervention, and identifying the areas
for improvement or follow-up. This can be done by using various tools, such as
questionnaires, tests, interviews, or observations.

11.4 HUMAN RESOURCE DEVELOPMENT INTERVENTIONS COMPONENT OF THE HPT

MODEL

Employee Selection: Employee selection is choosing the right person for the job. The
process begins with a precise description of the skills and/or knowledge, experiences,
and personal characteristics needed to accomplish the job tasks . Valuable sources for
identification are knowledgeable people and personal observations of competent
performers. The selection process differs in complexity among organizations. Some fill

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positions quickly and inexpensively by perusing resumes and application forms. Other
organizations select potential employees by elaborate, and sometimes costly, selection
[55]
systems involving job- related tests, a series of interviews, and background checks .
Decisions regarding selection are crucial for effective organizational performance.

Compensation and Benefits: Compensation programs are monetary and in-kind

payments used by organizations. Goals of compensation policies include rewarding
employees' past performances, remaining competitive in the labor market, maintaining
salary equity among employees, motivating employees' future performances ,
maintaining the budget, attracting new employees, and reducing unnecessary
turnover. Compensation typically includes pay for work and performance, disability
income, deferred income, health, accident , and liability protection, loss-of-job-income,
and continuation of spousal income when there is a loss due to a employee's relocation.

Benefits are the non-cash portion of the compensation program that are intended to
improve the quality of work life for an organization's employees. Benefits include the
employer's share of legally required payments (e.g., FICA, unemployment compensation,
retirement and savings plan payments, 401k, profit sharing, stock bonuses, medical
benefit payments, etc.) Benefits were once viewed as gifts from the employer; they are
now considered entitlements .

Motivation (Incentives and Rewards): Incentives link pay with a standard of

performance. They are future-oriented with the objective of inducing desired behavior.
They can be short or long term , and they can be tied to individual and/or group
performance. There are variations in incentives. Monetary incentives include salary,
differential pay, allowances, time off with pay, deferred income, loss-of-job coverage, and
other perquisites (product samples, an expense account, tax service, legal service, a
company apartment, club membership, free housing, parking privileges, stock bonus,
etc.). Nonmonetary incentives include desirable working conditions, training, and
adequate equipment and materials. Examples of management incentives are
participatory goal setting and decision making, and career opportunities.

Rewards can change and reinforce behavior. Skinner's research showed that rewarded
behaviors are more likely to be repeated. Rewards need to be timely , specific, and

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matched to the preferences of the person and the achievement of goals. Rewards can
be formal, such as public recognition, gift certificates, etc., or informal such as field trips.
Nelson has catalogued more than 1,000 ways to reward employees. Wilson suggests
that rewards should be SMART: specific, meaningful, achievable, reliable, and timely.

Performance Appraisals: Performance appraisals help individuals manage their

performance by providing them with feedback. Organizations also have performance
appraisal programs that provide criteria for salary decisions, promotion, and improving
job performance. Gohrman discusses the many potential benefits of regular performance
appraisal: increase in employee self-esteem and motivation to perform effectively, job
clarification , communication between employee and rater, clearer organizational goals,
and better human resource planning. Morissey suggests that some positive advantages
of performance appraisals are increased probability of promotion for good performance,
decreased likelihood of receiving undesirable assignments, clear understanding of
supervisor's expectations, and greater personal reward and recognition for meeting those
expectations. He also sees benefits for the organization in reduced turnover, reduced
liability for potential legal action, improved overall productivity, improved organizational
results, and greater attractiveness to potential new hires. Research suggests that the
performance review should be approximately 60 minutes long and conducted as a mutual
discussion.

Examples of performance appraisal methods used by organizations include checklists,

weighted checklists, graphic rating scales, mixed scales, forced-choice scales, and critical
incidents (written descriptions of a highly effective or highly ineffective performance), and
behaviorally anchored rating scales (BARS). The HRD literature is filled with positive
techniques for conducting effective performance reviews. It also reports stories of anxiety,
frustration, uncertainty, and ambiguity when performance appraisals are handled
improperly.

Assessment Centers and Competency Testing: An assessment center is "a place

where standardized selection procedures are applied, usually to separate management
from non-management candidates and executive candidates from middle
managers." Candidates are evaluated and selected by testing mechanisms to determine

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if they are capable of performing predetermined skills. Others see it as a process where
trained professional evaluators observe, record, and evaluate how a candidate performs
in simulated job situations. In- basket techniques, leaderless group discussions, role
playing, and speech making are common practices for testing job candidates.

It is important for an organization to study its jobs to identify and assign weights to the
knowledge and skills each one requires. Testing people for current job skills, or for
attributes or skills needed for future performance, helps the organization fulfill its strategic
goals for human resources. Interviews, psychological profiles, intelligence testing, etc.,
are sometimes used in competency testing.

Succession Planning and Career "Pathing": Succession planning is a systematic

identification of employees for senior management positions. It involves long-term
planning and is often developmentally oriented. Succession planning is likely to involve
input from several managers and recommendations for experiential assignments to
ensure the ability of the candidates to fill positions as they open.

A career path is a sequence of jobs, usually involving related tasks and experiences that
employees move through over time. For example, a career path in a school setting may
include the positions of teacher, counselor, department head, principal, central office
administrator, and superintendent. Career paths are generally vertical lines of
progression; however, they can include horizontal assignments as well. This is
increasingly the case as management positions disappear.

Leadership and Executive Development: Leadership development is necessary at all

levels of an organization. High-potential employees receive special training and
experience that translate into personal and professional growth. Leadership development
includes coping with changes that occur during the life cycle of an organization, from
growth to decline. It is about changes in the external environment, specifically about
rearranging priorities and overturning assumptions about how the business operates and
the role of leadership.

Executive development deals with the organization's vision, values, and business
strategies, and the goal is to develop leaders who can ensure the strategic development

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of the organization. Leadership and executive development are successful when the
process is embedded in the organization's HRD efforts.

Management and Supervisory Development: Management development is "the

education, training, knowledge transfer, and, ultimately, skills demonstration of those
individuals who are defined as managers by their respective organizations." It is about
coping with complexity. Effective management development supports the organization's
mission, strategy, goals, objectives, and market position. Supervisory development is
designed for front-line managers who work with and through non-management
[73]
employees to meet the objectives of the company and the needs of its employees. It
is broader than management and executive development. Bittel and Newstrom state the
unique roles the HRD and PT personnel play in supervisory development as follows :

 Recognition of the innate qualifications, limitations, and aspirations of supervisors

 Genuine knowledge of specific competencies required to complete work
assignments
 Sensitivity to the roles and relationships imposed on the supervisors by the
company
 Realization of the continuing evolution of the supervisor's role.

Literacy: Literacy is a person's knowledge, especially one's reading and writing abilities.
Which enables the person to function in society. Literacy programs are efforts by
businesses to improve workplace communication, job understanding, and job skill
development.

Literacy rates are often directly connected to quality of work and job performance. Raising
the literacy skills of workers is likely to increase productivity and lower production costs.

Retirement Planning: To have positive experiences in retirement, people must plan

ahead. No longer is retirement looked at as withdrawal, retreat, and solitude . Current
gerontological thinking suggests new words for retirement: reorientation, recommitment,
reinvention, reinvolvement, regeneration, renewal, renovation, redirection,
reinvestigation, replenishment, reexploration, and more. Retirement planning is usually

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part of a benefits package. People want to know about finding part-time employment
(should they want it), legal issues, housing arrangements, health and wellness, etc.

Health and Wellness: Health and wellness programs are commonly offered by
organizations and can serve to enhance employee morale and productivity and to reduce
absentee rates and health care costs. According to the National Centers for Disease
Control, more than 60 percent of all disease is caused by lifestyle risks. The most powerful
lifestyle risks are smoking, inattention to diet, lack of exercise, substance abuse, back
problems, mental distress, failure to use safety belts, and excessive stress. Employees
who participate in workplace wellness programs tend to have better attitudes and
behavior, exhibiting more loyalty, enthusiasm , motivation, and energy.

11.5 STEPS FOR DESIGNING HRD INTERVENTION

Identification of the Objectives: An HRD professional, after completing the needs

assessment, is required to define the objectives for the HRD program. The results of HRD
program can be achieved through several means like lectures, coaching and mentoring.
However this is not usually specified in the objective. Objectives are rather used as a
basis for deciding which method should be used for achieving a specified outcome.
Objectives are therefore essential to a successful HRD program. In addition objectives
also help the organization in evaluating a program’s success. Identifying the deficiencies
in a training program can be achieved through needs assessment data. The objectives of
any training program will be dictated by the specific deficiencies concerns and other
aspects identified in the needs assessment. The success of any HRD program depends
upon several parameters. Some of these include:

Selecting the Trainer: Once an organization has made a decision to design its own
training program regardless of whether the trainers are within or outside the organization,
it is important to select a trainer who can effectively deliver to meet the objectives of the
organization. For an organization with a good HRD function, this decision is easy because
they will be equipped with professionals, especially trained for this function. If selecting
an External trainer, care should be taken to ensure that he/she has the required skills to

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deliver effective instruction. Organizations look at both the qualifications and experience
of the trainer in selection. References from other organizations can also be useful
information for the organization in selecting the most appropriate trainer.In addition to the
expertise relating to the techniques and tools of conducting training, the potential trainer
needs to have adequate knowledge of the subject matter to be included in the future
training activities. Such knowledge will help the trainer to select those training methods
and materials which suit a particular training course. It will be worthwhile to point out that
not all training methods are applicable to all training courses.

Train-the Trainer Program: Train-the-trainer programs are designed to introduce new

and experienced trainers to fresh methods for creating and managing effective training
programs that truly engage their learners. Trainers that attend train-the-trainer programs
can learn how to reduce course preparation time, accelerate learning and discover new
ways to demonstrate return on investment for clients. The purpose of train the trainer
program is to provide subject matter experts with the necessary instructional knowledge
and skills to design and implement a training program. These programs focus on many
issues which are as follows:

 Developing trainee objectives and lesson plan

 Selecting and preparing training materials

 Selecting and using training aids (slides, videos, overheads)

 Selecting and using different training methods and technique.

Preparing a Lesson Plan: A lesson plan structures training sessions to facilitate the
instructional objectives that were developed.

Content in the lesson plan include:

 Title of the lesson

 Objectives

 Timing

 Number of Participants

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  Aids and Equipment

 Methods used

 Detailed plan of the content covered and activities planned for the session.

Selecting Training Methods and Media: The next step in the training method is to select
the appropriate training method. A survey conducted stated that originations use the
classroom format for all of their formal training. On the other hand the least active method
of training is the lecture method .The methods such as outdoor training, role playing
exercises, games, and simulations which are highly experiential demand the greatest
amount of activity.

Preparing Training Materials: After training methods have been selected the next step
is to purchase the training materials which would depend whether the program is
purchased or designed by the origination.

Conducting an HRD program involves the preparation of several materials such as

the following:

 Announcements of the training program – especially if selecting employees for long-

term-training.

 Training materials: including outlines, handouts, PowerPoint or other presentations.

 Manuals or texts: relevant if the training is about the process of doing a specific job.

Manuals will help in the retention and transfer of learning.

Program Announcements

The target audience is informed about the training program through program
announcements. The announcement made should indicate the purpose of the program,
when and where it will be held, and how the employee can qualify to participate in the
program.

Before the process of necessary request forms the employees should be given sufficient
lead time so that they can adjust their schedules. The announcements are basically

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mailed individually to employees or sent through supervisory channels, union stewards,
company newsletters, or an organization’s intranet.

Program Outlines

The program outlines are the documents that communicate the content, goals, and
expectations for a program. Typically provided are the beginning of the program, these
include such things as course objectives, topical areas are to be covered, materials, a
requirement of each trainee, and a tentative schedule of events. The program outline can
also be used to establish behavioral expectations, including punctuality, attendance, work
habits, class habits, and class participation.

Training Manuals

The trainers mostly rely on a training manual or textbook for the basic instructional
material, reading, exercises, and self-test. Some of the documents are organized into
modules as it makes easy to organize the training program into sessions. Trainers who
decide to use a textbook normally contact a publisher and determine whether individual
modules can be purchased separately.

Training manuals can be readily produced by an organization, particularly given the

availability of desktop publishing software. The production cost will include staff time of
curriculum design and writing, cost of equipment, and printing.

Scheduling an HRD Program

The importance of timing was earlier discussed in the context of deciding whether to
conduct training internally or externally. The organization needs to plan the types of HRD
initiatives(education, training, self-development) for the year, so that they do not conflict
with organizational goals. Organizations usually do not prefer to stop all their work
because there are too many programs happening at once.

Furthermore, the decision of whether to conduct the program during work hours or after
work hours is important. On the one hand, the organization may not be able to afford to
release employees during working hours. The employee may not be able to come in for

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a training program after work hours due to additional family or other responsibilities. The
timing of a program should be decided on the basis of balancing these two conflict needs.

Scheduling during work hours

Scheduling the training program during the normal working hours avoids the conflicts
such as commuting, family and other personal obligations which send the message to the
employees that learning is an important part of the job. The HRD professional while
scheduling the program during the normal work hours should consider factors such as
the day of the week, time of the day, peak work hours, staff meetings and travel
requirements.

The day of the weak is not considered as most the employees often favor some days off
such as Monday, Friday. Scheduling a training program on the peak work hours are the
times of the day, which can cause a potential conflict.

Scheduling after work hours

At times the organizations schedule the training program after the work hours or in the
weekend to avoid the constraints discussed earlier though this approach can also create
problems. Even though the employees are aware of the schedule of the training program
on a particular day in advance some familial problems arise causing a few to miss the
training sessions.

Employees are not physically and mentally fit after a long day at work so they avoid the
program and those who attend experience fatigue.

Registration and Enrollment Issues

The other problem which is faced during the training program is the enrollment and
registration process. All the participants and the managers should clear and aware about
the registration process and who is responsible for the logistics issues (e.g. travel
arrangements, lodging, meals etc. and what if the employees need to cancel or do the
rescheduling of the training. Reg. Online is such a program which provides online
registration for such types of events, including the training programs.

11.6 SUMMARY

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HRD intervention is a term that refers to the planned and systematic activities or programs
that aim to improve the performance and learning of individuals, groups, and
organizations. HRD interventions can include training and development, organization
development, and career development. The purpose of HRD interventions is to enhance
the knowledge, skills, abilities, and attitudes of the employees and to align them with the
goals and strategies of the organization. Define HRD intervention as a purposeful action
or initiative designed to enhance the skills, knowledge, and capabilities of individuals
within an organization.

11.7 GLOSSARY

 HRD intervention: It is a term that refers to the planned and systematic activities or
programs that aim to improve the performance and learning of individuals, groups,
and organizations. HRD interventions can include training and development,
organization development, and career development.

11.8 SELF-CHECK QUESTIONS

1. What do you mean by HRD intervention?

2. Discuss the types of HRD intervention.
3. Discuss the process of HRD intervention in detail.

11.9 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 11.1

2. For answer refer to section 11.2

3. For answer refer to section 11.3

11.10 TERMINAL QUESTIONS

1. What do you mean by HRD intervention? Discuss the types of HRD intervention.
2. Discuss the process of HRD intervention in detail.
3. Discuss the steps for designing HRD intervention.

11.11 ANSWER TO TERMINAL QUESTIONS

120
1. For answer refer to section 11.1, 11.2

2. For answer refer to section 11.3

3. For answer refer to section 11.5

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 CHAPTER-12

THEORY OF LEARNING

STRUCTURE

12.0 Learning objectives

12.1 Introduction
12.2 Theories of learning
12.3 Trends in workplace learning
12.4 Learning intervention
12.5 Summary
12.6 Glossary
12.7 Self-Check Questions
12.8 Answer To Self-Check Questions
12.9 Terminal questions
12.10 Answer to terminals questions

12.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of learning
 Discuss the theories of learning
 Describe the trends in workplace learning
 Describe the concept of learning intervention

12.1 INTRODUCTION

Knowing and getting a better understanding of different learning theories can be a tough
and tiring task, but for an effective and knowledgeable employee base, it is important to
assess the learning potential of your employees. It is needed to be done so that the
companies can predict the success rate of employee training campaigns, i.e. whether
they are investing their time and money at right spot or not and for how long they will have
to keep on investing.

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Learning theories are the basis of getting an idea of how different people learn different
things and how much time they will need to learn them. It is a fact that some people are
successful at learning new knowledge and skills which other people are unable to grasp.
That’s where these theories come in as a guiding light to help in the analysis of the
learning capabilities of their employees. Moreover, by providing the necessary
knowledge, these, actually provide alternative means for achieving a target like pre-
defining a broad spectrum of workshops, training courses and much more.

12.2 THEORIES OF LEARNING

As part of your organization’s Learning and Development team, you've (probably)

invested in a learning management system (LMS). While an LMS is an essential tool for
teaching employees digitally, it's not the only thing you'll need to design effective courses.
To build and deploy courses that your employees will actually learn from, you'll also want
to have a grasp of common learning theories, sometimes called learning styles. If you
understand the mechanisms that power the human learning process, you're much more
likely to design effective courses that align with them — and to increase your training
program’s ROI. The theories of learning that we’ll cover range from learning concepts
rooted in the study of psychology to broader learning philosophies.

1. Cognitive Learning Theory

Cognitive Learning Theory, also referred to as cognitivism, focuses on learners

objectively analyzing their thoughts and feelings (metacognition) to gain information more
effectively. In other words, it asks them to ‘think about how they think’. According to the
theory’s concepts and practices, you can build strategies to use your brain to learn or
teach more effectively when you understand how thinking patterns work. You can also
become more aware of the ways that your mind connects facts to foster those links. Many
strategies in Cognitive Learning Theory involve active learning that connects incoming
information with past experiences. Rather than promoting rote memorization, cognitive
learning-based lessons encourage learners to use and apply their new knowledge. You
can implement more active learning in your workplace training through meaningful human
interaction. In fact, active learning’s practices and benefits come mainly from learners
interacting with each other. As opposed to passive (lecture-based) learning’s lack of

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student engagement and interaction, active learning encourages students and teachers
to work together to build new social and cognitive connections.

2. Behavioral Learning Theory

Pioneered by researchers like John Watson and B.F. Skinner, Behavioral Learning
Theory (behaviorism) centers on the idea that people learn by interacting with their
environments through a system of stimuli and response. Plenty of concepts under the
theory, such as positive reinforcement, highlight how you can adjust the learning
environment to encourage new behaviors. By setting up an environment that rewards
learning, you’ll encourage your team to pursue and use new information. In academia,
Behavioral Learning Theory is often associated with passive learning, since learners are
seen as essentially responding to repetitive stimuli from the trainer. However, there are
opportunities to create more of an active learning environment based on behaviorist
principles. For instance, you can encourage learners to seek out training resources or go
through question and answer exercises — these forms of training fit nicely within the
behavioral learning framework. You can also encourage employees to learn in the flow of
work by proactively seeking out the resources they need. Especially if they are ‘rewarded’
for such self-directed learning, they’ll form positive associations with this type of behavior
— another tenet of Behavioral Learning Theory. Positive reinforcement like this can take
the form of gamification techniques, or simple praise from a manager.

3. Constructivist Learning Theory

Under the Constructivist Learning Theory (constructivism), learners build knowledge as

they experience the world and one another. As its name implies, the theory argues that
learners formulate their own set of knowledge, adding to that understanding as they gain
information and experience. For constructivists, the learning process is cumulative. This
building process involves taking part in learning experiences and reflecting on those
experiences. The theory also maintains that learning cannot be uncoupled from the
context in which it takes place. In the workplace, peer training applies the concepts of
constructivism by creating a social experience that allows learners to build knowledge
together. Traditional top-down teaching leads to passive learning that doesn’t provide
opportunities to create knowledge through experience. It doesn’t necessarily try to

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connect new material to learners’ past acquired knowledge, either. Meanwhile, peer-to-
peer learning promotes a meaningful and engaging learning experience involving two
learners exchanging relevant, actionable information.

4. Connectivism Learning Theory

One of the most recent learning theories mentioned here, connectivism considers the
impact of the digital age on learning. It argues that social connections and technology
shape learning and that we must adapt to constantly changing knowledge. According to
connectivism, a person’s capacity to learn is more important than understanding current
information, since that information is bound to change in the first place. Connectivism
applies especially to today’s workplace learning climate, where collaboration is becoming
increasingly remote and bottom-up. With an LMS that facilitates social learning through
collaborative activities, you can tap into the advantages of connectivism. Flexible and
democratized LMS platforms also allow for continuously updating facts that learners can
share quickly.

5. Adult Learning Theory

Adult Learning Theory establishes that adults have different learning needs than children
because they have more preconceived notions and biases due to living a longer life. They
have more internal motivation to learn than children and want to learn information that
they can use to achieve personal learning objectives. The term “Adult Learning Theory”
can refer to a group of learning theories that apply to adults or be interchangeable with
the term andragogy — the practice of teaching adults. One way to apply the principles of
Adult Learning Theory to your training program is to integrate more performance learning
strategies. These approaches involve more self-directed and pragmatic training that
appeals to adult learners. Rather than following a set curriculum, performance learning
has a project-based structure that urges participants to use high-level skills like critical
thinking to solve problems on their own. By prioritizing Adult Learning Theory in your L&D
program design through practices like performance learning, you can also improve your
team’s morale. Adult Learning Theory principles place learners alongside teachers as
equals instead of repeating the power structure from traditional schooling.

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6. Self-Directed Learning Theory

Self-Directed Learning Theory gives learners control over their own learning pathways.
This theory was previously considered a component of Adult Learning Theory, or
andragogy. Self-directed learning is now a theory in its own right, supporting workplace
learning where employees declare their own knowledge gaps and learning needs. This
theory doesn’t mean learners are completely on their own. In fact, most learners want
their L&D department to provide resources, like a series of curated training materials or
a budget, to guide them on their journey. L&D can apply this theory by embracing on-
demand learning opportunities for employees to use in the flow of their work. One useful
tactic is to build learning libraries that employees can access anytime. This type of
knowledge management has a positive effect on employees’ decision-making skills and
encourages in-house subject matter experts to share their hard-earned knowledge with
their team.

7. Transformative Learning

Transformative learning explores meaning structures — the beliefs and experiences that
influence how we interpret ideas — and how reflection-based learning can help us
transform them. Practices based on transformative learning often aim to create a
“disorienting dilemma” that challenges the learner’s worldview. Through this disorienting
dilemma, the learner can reevaluate what they believe about the world and develop a
new viewpoint. In the workplace, anti-bias and diversity training strives for transformative
learning that encourages learners to think about their preconceived notions of others.
Research shows that ongoing, active, and collaborative D&I education has the best
chance of challenging biases.

8. Learning Curve Theory

According to the Learning Curve Theory, an employee will become faster and more
effective at completing a task as they do the task over and over. Many organizations that
use Learning Curve Theory measure performance through a formula that involves an
output unit, a unit of cost, and a time frame or productivity target. If you use an LMS with

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in-depth training data, you can monitor that information using a learning curve formula to
see if your content helps learners adapt to the learning curve. By evaluating the impact
of your courses on your results through a learning curve, you can also strategize ways to
make them more effective and calculate ROI.

9. Lifelong Learning Theory

The Lifelong Learning Theory presents learning as a lifelong journey that goes beyond
childhood education. According to this concept, personalized learning can help adults fill
in the knowledge gaps left by traditional education and overcome boundaries like
economic status and age. Using age as a starting point, Lifelong Learning aims to give
everyone an equal chance to learn, regardless of differences in demographics. You can
apply Lifelong Learning strategies to your training program by fostering a
multigenerational learning experience. We found that generational attitudes toward work
have fewer differences than people commonly believe, but you can account for the
differences that do exist through a democratized learning model. Focusing on employee
career growth, sharing institutional knowledge, and promoting digital literacy will even the
playing field for learners of all ages.

10. Collaborative Learning

Many of these learning theories overlap when it comes time to craft a new approach to
learning—Collaborative Learning. Collaborative Learning employs a bottom-up approach,
where team members create and answer requests for knowledge. Because it is rooted in
the importance of peer interaction, Collaborative Learning Theory incorporates some of
the most effective aspects of popular learning theories:

 (Social) Cognitive Learning Theory applies meaningful human interaction to learning

 Constructivist Learning Theory focuses on shared experiences over passive
learning
 Adult Learning Theory encourages learners to self-identify their learning needs
 Self-Directed Learning Theory empowers learners to take control of their own
learning path

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  Transformative learning confronts preconceived notions through new challenges
 Lifelong learning’s democratized knowledge shared across job positions and
generations

12.3 TRENDS IN WORKPLACE LEARNING

1. Hyper-Personalization

Creating batches of 2D learning content and expecting everyone to absorb it the same
way won't work anymore. This year, we'll see more and more learning become as
personalized to the learner as possible. From individual learning assessments and plans
to courses offered in several different modes, 2022 is all about learning in a way that
works best for learners. This personalization is mutually beneficial for companies and
their teams, allowing learners to increase their knowledge and value and helping
companies increase retention, create a dynamic workforce, and stay on track.
Personalized solutions also make learning more accessible, inclusive, and motivating for
everyone in their learning journeys.

2. Adaptive Learning

In short, there's no going "back to normal." However, there is a way forward. Adaptive
learning will be paramount to meeting the challenge of upskilling, reskilling, and cross-
training your teams effectively. It's also one of the biggest trends we'll see in workplace
learning this year. Adaptive learning means offering learners a learning path that changes
based on skills they've already mastered and still need to learn, further personalizing
experiences. Adaptive learning allows learners to take individualized learning paths,
where courses, skills, and steps can be skipped or added. These changes can be
triggered by competency assessments or artificial intelligence.

3. Cross-Training

In the same way learners will need unique solutions to absorb and retain new information,
companies require unique solutions to today's problems. Amidst a talent shortage and
the Great Reshuffle, many organizations have had to go back to the drawing board to

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determine how to answer rising demand with limited people power. A major trend that
emerged to solve this issue is cross-training. Cross-training allows teams to learn skills
and competencies outside their current scope of work. Cross-training helps people
execute multi-team projects faster, better, and with deeper understanding.

4. Gamification

The rise of gamification in eLearning has been steady up until now. However, in 2022,
we'll see gamified learning reach a whole new level. In an era where it's a fight for every
precious second of attention, learners will require interactive and exciting techniques to
keep them engaged. And the most substantial gamification incentive? Real-life rewards.

5. Microlearning

What's the best way to keep learners engaged, outside of making learning fun? Keep it
short, sweet, and to the point. This year, we'll see microlearning come to the forefront of
engagement strategies. Micro or bite-size learning presents information in small bits to
help learners retain and remember better. For instance, Duolingo uses microlearning to
teach languages more effectively than university courses. Research shows most people
would use their company's learning platform if courses were shorter and more frequent.
Microlearning addresses learners' specific needs and learning styles. It also encourages
people to learn in their spare time instead of trying to fit an hour-long seminar into their
day.

6. Asynchronous Learning

Learning happens everywhere. Gone are the days where you show up to a lecture just to
zone out or play a training video in the background to pass a requirement. Asynchronous
learning allows learners to stop where they need to and pick up where they left off,
increasing understanding, engagement, and retention. Another aspect of asynchronous
learning enables instructors to provide feedback in almost real-time, letting them mold
students as they learn. Features like video coaching let learners practice skills like public
speaking and elevator pitches and receive feedback without needing an instructor present
at the time of recording.

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7. Mobile learning

Also in line with the ability to learn from anywhere is mobile learning. Almost 90% of the
population uses smartphones, and most spend 4-6 hours a day looking at them. While
some companies have chosen not to pursue a mobile option, many others will shortly
appear in your hand with apps and other mobile learning solutions. Whether exclusively
mobile learning platforms or reformats of desktop versions, expect to see this format
skyrocket in the upcoming year.

8. Design-Forward, No-Code Platforms

What would your life be like if you never saw or heard about a SCORM file again? This
year, we'll see more and more platforms that emphasize UX and intuitive design without
coding or strict data standards. Interfaces that look and work like modern software
wizards will permeate the market more this year than ever before to amplify learning and
let instructors spend less time constructing courses and more time creating them. No-
code platforms also allow learning professionals who aren't computer science experts to
build meaningful lessons. Likewise, learners will be able to focus on learning without
having to master a new system first.

9. Curated Content

With almost endless eLearning content available, we'll start to see a more significant
focus on content curation. Too many options can quickly devolve into a paradox of choice,
which is frustrating at best and deeply unmotivating. Selecting content for specific
competencies, roles, and teams allows instructors to get specific while decluttering the
learning process. Content curation also drives interest in new subjects and organically
expands learners' scopes.

10. Emphasis on Soft Skills

Workplace demands are changing, and employers are focusing on soft skills more than
ever. In response, workers worldwide are most often engaging in courses based on
teamwork, leadership, productivity, and collaboration. Although technical skills like data

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science and accounting are still popular among learners, many focus on more
transferrable skills, indicating a shift toward a more agile and dynamic workforce.

12.4 LEARNING INTERVENTION

A learning intervention is any planned and structured activity that aims to improve the
knowledge, skills, or attitudes of individuals or groups in an organization. Learning
interventions are important for HRD because they help to build the capability and
performance of employees, teams, and the organization as a whole. Learning
interventions can also support employee engagement, retention, and career
development.

Some examples of learning interventions are:

 On-the-job training, where employees learn by doing tasks under the guidance of
a supervisor or a mentor.
 In-house development programs, where employees participate in workshops,
seminars, or courses designed and delivered by the organization or external
providers.
 Formal qualifications, where employees enroll in accredited programs offered by
educational institutions or professional bodies.
 Online learning, where employees access digital content and interact with
instructors and peers through various platforms and tools.
 Blended learning, where employees combine different learning methods, such as
face-to-face and online, to achieve their learning objectives.

To design and deliver effective learning interventions, HRD practitioners need to align
them with the business strategy, collaborate with business leaders, assess employee
capabilities and identify skills gaps, choose appropriate learning methods, evaluate the
impact of learning, and continuously improve the learning process.

12.5 SUMMARY

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Learning theories are the basis of getting an idea of how different people learn different
things and how much time they will need to learn them. It is a fact that some people are
successful at learning new knowledge and skills which other people are unable to grasp.
That’s where these theories come in as a guiding light to help in the analysis of the
learning capabilities of their employees. Moreover, by providing the necessary
knowledge, these, actually provide alternative means for achieving a target like pre-
defining a broad spectrum of workshops, training courses and much more.

12.6 GLOSSARY

 Cognitive Learning Theory: It is also referred to as cognitivism, focuses on

learners objectively analyzing their thoughts and feelings (metacognition) to gain
information more effectively. In other words, it asks them to ‘think about how they
think’.
 Behavioral Learning Theory (behaviorism): It is centers on the idea that people
learn by interacting with their environments through a system of stimuli and
response. Plenty of concepts under the theory, such as positive reinforcement,
highlight how you can adjust the learning environment to encourage new
behaviors.
 Constructivist Learning Theory (constructivism): It is learners build knowledge
as they experience the world and one another. As its name implies, the theory
argues that learners formulate their own set of knowledge, adding to that
understanding as they gain information and experience.

12.7 SELF-CHECK QUESTIONS

1. What do you mean by learning?

2. Discuss the theories of learning.

3. Discuss the trends in workplace learning.

12.8 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 12.1

2. For answer refer to section 12.2

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3. For answer refer to section 12.3

12.9 TERMINAL QUESTIONS

1. What do you mean by learning? Discuss the theories of learning.

2. Discuss the trends in workplace learning.

3. Describe the concept of learning intervention.

12.10 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 12.1, 12.2

2. For answer refer to section 12.3

3. For answer refer to section 12.4

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 CHAPTER-13

TRANSFER OF LEARNING

STRUCTURE

13.0 Learning objectives

13.1 Introduction
13.2 Concept of transfer of learning
13.3 Different types of transfer of learning
13.4 Benefits of learning transfer in the workplace
13.5 Learning transfer challenges
13.6 Summary
13.7 Glossary
13.8 Self-Check Questions
13.9 Answer To Self-Check Questions
13.10 Terminal questions
13.11 Answer to terminal questions

13.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of transfer of learning
 Discuss the different types of transfer of learning
 Discuss the benefits of learning transfer in the workplace
 Describe the learning transfer challenges

13.1 INTRODUCTION

The objective of learning is not learning, it’s performance improvement. Rather than
learning for the sake of it, learning should have an end product to reach that is more than
than just increased knowledge. The learning that you provide for your people, both formal
and informal, should be closely linked to business outcomes and objectives. We see so

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many learning and development (L&D) departments put on a suite of courses or offer the
latest and greatest LMS packed full of content that all lead down the same rabbit hole and
contributes to no significant changes in performance. Without viewing learning as a
means to improve performance, your workplace may your training doesn’t work and you
run the risk of your training budget being cut. Without performance improvements to back
up your training, L&D will be seen as a cost rather than an investment.

13.2 CONCEPT OF TRANSFER OF LEARNING

Learning transfer is what you do with your newfound knowledge or skills to improve your
performance. It’s all about how to encourage, promote and evaluate the transfer of
knowledge, skills, and behaviours from training to the workplace. We’ve all been guilty of
reading a self-development book and then doing absolutely nothing with all this new
“wisdom” and learning we now have. We’re not transferring this learning into our work to
improve the performance of what we’re doing. We’ve been on that course (this is an
example of formal learning) that required us to take multiple days out of our work schedule
but then done nothing off the back of it. We’ve all been guilty of seeing a colleague
perform well at work (this is an example of informal learning) and saying to ourselves that
we’re going to use a similar strategy in the future, but again it’s forgotten by lunchtime.
This frequent occurrence is a major concern for learning and development departments
around the world. The transfer of learning sparks varying debates on how much learning
should be applied in the workplace for it to be classed as effective and how learning
transfer should be measured.

13.3 DIFFERENT TYPES OF TRANSFER OF LEARNING

Learning is a dynamic and lifelong process that extends far beyond the confines of a
classroom. One of the most intriguing phenomena in the realm of learning is the concept
of “transfer of learning.” This concept refers to the ability to apply knowledge or skills
learned in one context to a different but related context. Understanding the various types
of transfer of learning is essential for educators, trainers, and learners alike. In this article,
we will explore different types of transfer of learning.

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1. Positive Transfer: Positive transfer occurs when previously acquired knowledge or
skills enhance a person’s ability to learn or perform in a new context. It is often seen as a
desirable outcome as it promotes efficiency and effectiveness in learning. Let’s delve into
some practical examples to better understand positive transfer. Example 1: Language
Learning: Imagine you are learning Spanish as a second language, and you have already
mastered French. In this case, your knowledge of French, particularly in areas where the
two languages share similarities in grammar or vocabulary due to their common Latin
roots, can positively transfer to your Spanish learning. For instance, understanding the
concept of gendered nouns in French (masculine and feminine) can help you grasp a
similar concept in Spanish, making it easier to learn and remember. Example 2: Musical
Instruments: Suppose you have learned to play the piano proficiently and now wish to
learn the guitar. Your understanding of musical notation, rhythm, and even finger dexterity
from playing the piano can positively transfer to your guitar learning journey. This transfer
can expedite your progress in acquiring guitar-playing skills. Example 3: Problem-Solving
Skills: In the workplace, employees often encounter various problem-solving scenarios. If
an employee has experience dealing with complex customer service issues, the problem-
solving skills acquired in that context can positively transfer to other job roles, such as
managing inventory or coordinating projects. The ability to analyze situations, make
informed decisions, and communicate effectively is transferable across diverse work
contexts.

2. Negative Transfer: Negative transfer, on the other hand, occurs when prior knowledge
or skills hinder a person’s ability to learn or perform in a new context. While it is not as
desirable as positive transfer, understanding negative transfer can help educators and
learners identify potential pitfalls and mitigate their effects. Example 1: Driving a Different
Vehicle: If you are an experienced driver of an automatic transmission car and then
attempt to drive a manual transmission vehicle, your prior knowledge of driving an
automatic may negatively transfer. In this case, you may inadvertently apply the wrong
skills, such as trying to use a clutch that doesn’t exist in an automatic car, leading to a
challenging and potentially frustrating experience. Example 2: Language Pronunciation:
When learning a new language with distinct phonetic features, negative transfer from your
native language’s pronunciation can lead to mispronunciations. For instance, if you are a

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native English speaker trying to learn Mandarin Chinese, your English pronunciation
habits may negatively transfer, causing difficulties in producing accurate Mandarin tones.
Example 3: Programming Languages: In the realm of computer programming, negative
transfer can occur when a programmer proficient in one programming language attempts
to work with a radically different language. For instance, if a programmer is skilled in
Python and then transitions to a language like Lisp, the programmer may struggle initially
due to negative transfer, as the syntax and programming paradigms of the two languages
are markedly different.

3. Proactive Transfer: Proactive transfer refers to the influence of previously acquired

knowledge or skills on learning new information or skills in the future. It occurs when
earlier learning facilitates the acquisition of related knowledge or skills. Let’s explore some
practical examples of proactive transfer. Example 1: Mathematics: Suppose you have a
strong foundation in basic arithmetic and algebra. When you start learning calculus, your
prior knowledge of algebraic concepts and equations can proactively transfer to help you
understand and solve calculus problems more effectively. The algebraic rules you’ve
learned are foundational to higher-level math, making the transition smoother. Example
2: Learning New Software: In the rapidly evolving world of technology, employees
frequently need to adapt to new software applications. If an individual has previous
experience using similar software programs, the proactive transfer of skills such as
navigating user interfaces or understanding common terminology can significantly
expedite the learning process for the new software. Example 3: Learning a New Sport:
Consider a scenario where someone who has experience playing tennis decides to learn
squash. The knowledge of hand-eye coordination, footwork, and strategy from tennis can
proactively transfer to the new sport of squash, making the adaptation process quicker
and more efficient.

4. Retroactive Transfer: Retroactive transfer is the opposite of proactive transfer; it occurs

when newly acquired knowledge or skills influence or hinder the recall or application of
previously learned information or skills. While it might seem counterintuitive, retroactive
transfer can have a significant impact on the way we learn and remember things. Here
are some practical examples. Example 1: Learning New Software Updates: Continuing

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with the theme of software, imagine you have been using a specific software application
for years, and the company releases a major update with significant changes to the user
interface and functionality. After adapting to the new version, you may find it challenging
to recall how to perform tasks in the older version because the retroactive transfer of
knowledge from the new version has interfered with your memory of the old one. Example
2: Language Learning: When learning multiple languages simultaneously, retroactive
transfer can occur when knowledge of a new language interferes with your recall of
previously learned languages. For instance, if you start learning Italian after becoming
proficient in Spanish, you might occasionally use Italian vocabulary or grammar when
trying to communicate in Spanish, unintentionally retroactively transferring elements from
the newer language. Example 3: Changing Study Habits: Consider a student who has
developed effective study habits over the years, which involve structured routines and
dedicated study times. If this student decides to experiment with a new, less structured
approach to studying, the retroactive transfer of the old study habits may make it
challenging to adapt to the new method. The well-established routine could hinder the
ability to fully embrace the new approach.

5. Bilateral Transfer: Bilateral transfer, also known as cross-transfer, is a unique

phenomenon where the transfer of learning occurs in both directions, between two related
skills or domains. This means that the knowledge or skills acquired in one context
positively impact another, and vice versa. Bilateral transfer has significant implications in
sports, music, and cognitive skills development. Let’s explore some practical examples.
Example 1: Sports Training: In the world of sports, bilateral transfer often occurs when
athletes engage in cross-training activities. For instance, a soccer player who practices
yoga for flexibility and balance may find that the skills and physical awareness gained
from yoga positively transfer to their soccer performance. Simultaneously, soccer-specific
agility and coordination may also enhance their yoga practice. Example 2: Music
Education: Musicians often experience bilateral transfer when learning to play multiple
instruments. For example, a pianist who learns to play the guitar may find that their
understanding of musical theory, rhythm, and ear training from piano playing positively
transfers to their guitar skills. Likewise, the finger dexterity and coordination developed
on the guitar can enhance their piano playing. Example 3: Cognitive Skills: In cognitive

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skills development, bilateral transfer can be observed when individuals engage in
activities that stimulate both sides of the brain. For instance, practicing a musical
instrument involves both creative and analytical thinking. As a result, a musician may find
that their problem-solving abilities, creativity, and cognitive flexibility positively transfer to
other aspects of their life, such as academic pursuits or professional challenges.

13.4 BENEFITS OF LEARNING TRANSFER IN THE WORKPLACE

There are numerous benefits of learning transfer, but the most crucial comprehending the
learning material. In the workplace, learning transfer determines skilled and efficient
workers, which impacts the organisation positively. Other common advantages of efficient
transfer of learning include:

 Improved Performance: By measuring how well an individual grasped the learning

material, we can identify the areas of improvement, determine the effectiveness of
learning modules, and find solutions to any transfer gaps. Learning transfer also helps
evaluators assess the knowledge and expertise of workers based on training material
and can provide feedback for cycled learning and improvement.
 Enhanced Problem-Solving: Transfer of learning develops complex skills such as
problem-solving and decision-making, which are strong components for analogical
transfer. Learners can transfer knowledge despite changes in the critical attributes of
a situation. This encourages them to apply what they learned in a completely distinct
transfer context.
 Versatility and Adaptability: With both improved performance and complex problem-
solving skills, learning transfer enables individuals to be versatile and adaptable as
they hone their critical thinking skills to be able to apply their knowledge and skills to
different transfer tasks.
 Identifying Transferable Skills and Knowledge: Knowledge transfer can evaluate
the effectiveness of workplace training programmes. The efficacy of learning transfer
can measure whether the knowledge and skills learned during training will be repeated
at work. Organisations can enhance knowledge transfer in the workplace by
identifying the necessary skills for the job. This can be achieved through processes

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 like skill mapping, exercises to recognise transferable skills, and ongoing learning
modules that emphasise the abilities needed within the organisation.
 Skill Mapping: Skill mapping can help in matching training content with the specific
skills required in the workplace. It involves analysing the different roles in an
organisation to identify the skill gaps and developing the necessary skills through
targeted learning modules. A skills matrix is often used during this process.
 Transferable Skill Identification Exercises: Transferable skill identification
exercises help employees gain insight into the overall value of their training.
Employees evaluate their skills and determine which skills can be used in different
transfer contexts.
 Continuous Learning: Continuous learning goes beyond the initial learning stage.
By fostering a learning environment that promotes ongoing learning, you can reinforce
the value of retaining transferable skills in the workplace for professional development.
Individuals can seamlessly integrate learned skills at work and even use the same
skills in different contexts.

13.5 LEARNING TRANSFER CHALLENGES

 Transfer Gap: Even after concluding training, employees may face challenges in
applying the learned material in the workplace. This is called the transfer gap and it
often stems from issues with the training content, which is due to inadequate training
design. To prevent the transfer gap, organisations must design and customise training
programmes that facilitate effective knowledge transfer. This can be done by adapting
the programme to include situational practices, case studies, and hands-on training.
 Contextual Relevance: Learning conflicting concepts can hinder employees’
knowledge retention and transfer, which is why organisations need to stick to
contextually relevant training content that directly relates to the skills needed for the
role.
 Knowledge Retention: Challenges with learning transfer can originate from
difficulties in processing information as individuals struggle to grasp the content
presented to them, leading to poor knowledge retention. Efficient knowledge transfer
means that employees understood the training content well, and can apply them in

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 real-life scenarios. To enhance knowledge retention, organisations can optimise their
training courses to adapt to their workers’ learning styles and conduct routine
assessments to ensure that workers retain the material.
 Inadequate Training Design: Inadequate training design fails to engage employees
to learn, leading to inefficiency. Training initiatives that lack simulations, practical
application, and other hands-on learning experiences can hinder learning transfer. To
prevent this, organisations must carefully consider the optimisation of their training
modules. Organisations can create effective training designs aligned with their skill
requirements and the learning styles of their employees. This can involve enlisting the
expertise of industry professionals, leveraging software tools, or conducting surveys
to determine the ideal employee training method.

13.6 SUMMARY

Learning transfer is what you do with your newfound knowledge or skills to improve your
performance. It’s all about how to encourage, promote and evaluate the transfer of
knowledge, skills, and behaviours from training to the workplace. We’ve all been guilty of
reading a self-development book and then doing absolutely nothing with all this new
“wisdom” and learning we now have. We’re not transferring this learning into our work to
improve the performance of what we’re doing. We’ve been on that course (this is an
example of formal learning) that required us to take multiple days out of our work schedule
but then done nothing off the back of it.

13.7 GLOSSARY

 Learning transfer: It is what you do with your newfound knowledge or skills to

improve your performance. It’s all about how to encourage, promote and evaluate
the transfer of knowledge, skills, and behaviours from training to the workplace.

13.8 SELF-CHECK QUESTIONS

1. What do you me by transfer of learning?

2. Discuss the different types of transfer of learning.

3. Discuss the benefits of learning transfer in the workplace.

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13.9 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 13.1, 13.2

2. For answer refer to section 13.3

3. For answer refer to section 13.4

13.10 TERMINAL QUESTIONS

1. What do you me by transfer of learning? Discuss the different types of transfer of

learning.

2. Discuss the benefits of learning transfer in the workplace.

3. Explain the challenges of learning transfer.

13.11 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 13.1, 13.2, and 13.3

2. For answer refer to section 13.4

3. For answer refer to section 13.5

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 CHAPTER-14

STRATEGIC LEARNING AND LEADERSHIP

STRUCTURE

14.0 Learning Objectives

14.1 Introduction
14.2 Process of strategic learning
14.3 Strategic leadership
14.4 Strategic leadership process
14.5 Strategic leadership skills and characteristics
14.6 Strategic leadership vs. Other classifications of leadership
14.7 Skills for strategic leadership
14.8 How to be a strategic leader
14.9 Summary
14.10 Glossary
14.11 Self-Check Questions
14.12 Answer To Self-Check Questions
14.13 Terminal questions
14.14 Answer to terminal questions

14.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of strategic learning
 Discuss the process of strategic learning
 Describe the concept of strategic leadership
 Discuss the strategic leadership process
 Describe the strategic leadership skills and characteristics
 Discuss the strategic leadership vs. other classifications of leadership
 Discuss the skills for strategic leadership

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14.1 INTRODUCTION

Strategic Learning is a learning-based process for creating and executing breakthrough

strategies. Unlike traditional strategy, which aims at producing one-time change, Strategic
Learning drives continuous adaptation. The process has four linked action steps-learn,
focus, align, and execute—which build on one another and are repeated (as the fifth step)
in a continuous cycle. Together they embody the five competencies mentioned earlier.
The first two steps form the basis of a firm’s strategy creation. The third and fourth steps
are the foundations of strategy implementation. Thus, strategy creation and
implementation are integrated in a mutually reinforcing process. The key is to think
cycle—not straight line. Simply following the Strategic Learning process once is not
enough. The leadership challenge is to repeat it over and over, so that an organization
continuously learns from its own actions and from scanning the environment, and then
modifies its strategies accordingly. The more often an organization repeats this cycle, the
better it will become at doing it, thus enhancing its adaptive capacity. The result is a
process of ongoing renewal that characterizes the truly adaptive organization.

The rules of success have changed. Sustainable competitive advantage no longer lies
simply in a new product or service. It is an organizational capability to be adaptive. The
new role of strategy is to provide the practical process and tools to help us build and lead
adaptive organizations. Strategic Learning is a process that I developed for creating and
implementing breakthrough strategies on an ongoing basis to create an adaptive
organization.

14.2 PROCESS OF STRATEGIC LEARNING

The process has been used successfully at notable companies such as Ericsson, SAP,
De Puy, ExxonMobil, Deloitte, Federal Home Loan Bank of Atlanta, UGI, Chubb
Corporation, Aviva, and The Girl Scouts of America. It is also the core methodology for
executive education programs at the Columbia Business School. As illustrated, the
process has four linked steps-learn, focus, align and execute-which build on one another
and are repeated in a continuous cycle.

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The first two steps form the basis of a firm’s strategy creation. The third and fourth steps
are the foundations of strategy implementation. Thus, strategy creation and
implementation are integrated into a mutually reinforcing process. Strategic Learning is a
leadership process that generates a cycle of ongoing discovery and adaptation. It strives
to balance focus with flexibility, and thoughtful analysis with creative thinking which is
continually sharpened through learning and experience. It is designed to engage the
creative and intellectual energies of the organization as broadly as possible.

Step One: The Situation Analysis (Learn)

All breakthrough strategies are based on superior insight. Therefore, the essential starting
point in the Strategic Learning process is what I call the Situation Analysis-a systematic
exercise in diagnostic learning. Its aim is very specific: to develop superior insights as the
basis for the firm’s strategic choices. The search for superior insight is where the
competitive battle begins. Lose this battle, and you are likely to lose the war.

The goal of this step is to create asymmetry between a company and its competitors-to
understand the competition, the marketplace, and the customers better than the
competition does. These superior insights will enable a firm to make the most intelligent
choices and to define its winning proposition-its statement of how it will win the
competition for value creation.

The Situation Analysis is a process of divergent learning with an outside-in focus,

conducted by cross-functional teams who are charged with generating superior insights
in the following key areas:

Customers

 What are the trends in customer expectations?

How is today different from yesterday?
How will tomorrow be different from today?
 What are useful ways to segment customers?
Which segments will we target? Which not?
 What is the hierarchy of needs of our targeted customers?
(i.e., What do they value most?)

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 How well do we and competitors serve those needs today?
(S=Strong, M=Moderate, P=Poor)

Key Stakeholders

 Who are our key stakeholders for whom value creation is a condition for
success?
 What are the trends in stakeholder expectations?
How is today different from yesterday?
How will tomorrow be different from today?
 What is the hierarchy of stakeholder needs?
What do they value most?
 How well do we currently serve those needs?
(S=Strong, M=Moderate, P=Poor)

Industry Dynamics

 Which trends are most important in shaping the structure of our industry?
What are their root causes and ultimate consequences?
 How are these trends changing the rules of success?
 What threats do these trends present to our profitability and business model?
What opportunities do they open up?

The Broader Environment

What happening around us that will impact our business in regard to?:

 Economic trends
 Social habits and attitudes
 Globalization
 Technology
 Demographics
 Government intervention

Own Realities

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  What are the five-year trends on our critical performance measures, and what
conclusions can we draw from them?
 Where are we making money and where not? (This question requires separation
of profit and cash flow by customer, product group, geography – Averages tell
you nothing.)
 Are we addressing our losing propositions?
 What are our key strengths that we can leverage for competitive advantage?
 What are our weaknesses that represent barriers to better performance?

The technique is to ask and answer the right questions-penetrating questions that will
provoke insights. The aim is to scan and interpret the firm’s external environment and its
internal realities in a combination of analysis and creative brainstorming. The emphasis
is on challenging existing assumptions and producing fresh, innovative thinking. It is
important to probe and explore, always searching for trends, root causes, and ultimate
consequences-not just stacks of data.

The insights derived from the Situation Analysis enable the organization to define the key
business issues it faces and the alternative options for tackling those issues. This sets up
the decision-making stage that constitutes step two of the Strategic Learning process.

Step Two: Strategic Choices (Focus)

The Strategic Choices are the key deliverables of strategy creation. They are based on
the insights generated in the Situation Analysis and represent the strategic focus of the
firm.

The heart of the Strategic Choices is the firm’s Winning Proposition. It answers the
question, “What will we do differently or better than our competitors to achieve greater
value for our customers and superior profits for our firm?”

Here is one of the places where strategy and leadership most directly intersect. One of
the crucial skills of the leader is the ability to distill a company’s strategic focus into a
simple, compelling Winning Proposition which anyone can understand and follow.

Step Three: Align the Organization (Align)

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Once the Strategic Choices have been clearly defined, it is necessary to tackle strategy
implementation. In large, complex organizations, this can be a daunting leadership
challenge. For many executives, this is the hardest part of all.

Successful implementation requires that all the key supporting elements of the business
system, including Measures and Rewards, Structure and Process, Culture, and People,
be aligned behind the chosen strategy. At any given moment, the existing alignment has
been put in place over time to support yesterday’s strategy. It is now essential to realign
the business system behind tomorrow’s strategy. Otherwise, that strategy will fail.

Step Four: Implement & Experiment (Execute)

Step four is the actual implementation phase of Strategic Learning. It should include a
deliberate set of experiments to fuel organizational learning. You can never know for sure
what is going to work. Just as the Darwinian process of evolution is based on constant
experimentation through variation, selection, and retention, so adaptive organizations
must maximize their chances of finding favorable strategic variations through continuous
experimentation.

Step four then feeds back into the Situation Analysis. The firm updates its insights,
learning by examining its own actions and by re-scanning the environment, and then
modifies its strategies accordingly. The process never stops.

14.3 STRATEGIC LEADERSHIP

Strategic leadership is a practice in which executives, using different styles

of management, develop a vision for their organization that enables it to adapt to or
remain competitive in a changing economic and technological climate. Strategic leaders
can use this vision to motivate employees and departments, fostering among them a
sense of unity and direction to implement change within their organization.

The main objectives of strategic leadership are to streamline processes, boost strategic
productivity, promote innovation and cultivate an environment that encourages
employees to be productive, independent and to push forward their own ideas. Strategic

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leaders sometimes make use of reward or incentive programs to encourage employees
and help them reach their goals.

Strategic leadership is a type of leadership in which leaders influence those around them
to embrace a collective vision for the success of their organization. These leaders can
work confidently in ambiguous situations, approaching them with creativity, vision and
focus on long-term success and providing their team with a clear sense of direction and
collaboration to work together toward a common goal.

Strategic leaders possess the unique ability to figure out the best strategies and
methodologies to help their organization remain sustainably competitive in the market.
Sustainability requires adaptation, whether it's the available technology, the changing
climate, fluctuating economy or other affecting factors, and organizations without strategic
leaders are at risk of failure in the face of these factors.

For an organization to remain relevant in the changing world, its leaders need to have the
ability to efficiently use available resources to provide services and create strategies that
will enable the organization to move forward successfully.

14.4 STRATEGIC LEADERSHIP PROCESS

Leaders must first understand their organization's mission to be strategic. This means
fully grasping why the company exists, who its customers are and how exactly it can
provide value for them.

Then strategic leaders need to create a vision of what that mission will look like at a
specified time in the future.

Finally, leaders must craft a strategy to put that vision into action. The strategy should
map out the steps a company needs to take or the changes it needs to make to get from
its current state to its desired state.

14.5 STRATEGIC LEADERSHIP SKILLS AND CHARACTERISTICS

Strategic leaders ideally have the ability to challenge prevailing viewpoints without
provoking significant pushback, to see the big and small picture at the same time, to adapt
to marketplace changes and take advantage of new opportunities, to make difficult

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decisions, to balance an analytical perspective with the human dimension of strategy
building, and to advocate for and engage with employees.

Key traits of an effective strategic leader include loyalty to the organization's vision,
judicious use of power, transparency, effective communication, problem-solving,
readiness to delegate, passion for their job, compassion, empathy for others and self-
awareness.

According to Harvard Business Review, strategic leadership competencies include the

following six essential skills:

 Anticipate. Collect information from a wide range of sources both inside and outside

your company's industry or function to predict competitors' moves and reactions to

new initiatives or products.

 Challenge. View and reframe a problem from multiple angles to understand its

underlying causes.

 Interpret. Exhibit curiosity and openness when testing several working hypotheses

and involve others before coming to any conclusions.

 Decide. Weigh long-term investments for growth with short-term pressure for results

as well as the risks and tradeoffs for customers and other stakeholders, when
making decisions.

 Align. Examine stakeholders' incentives and tolerance for change and identify

conflicting interests.

 Learn. Convey stories of success and failure to advocate learning. Course-correct

decisions after they have been made if there is refuting evidence.

14.6 STRATEGIC LEADERSHIP VS. OTHER CLASSIFICATIONS OF LEADERSHIP

Most large-scale organizations have three defined leadership classifications: strategic,

organizational and production or action oriented. Strategic leadership consists of the top-

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level executives responsible for the broad, long-term strategic direction of an
organization.

Organizational leadership is made up of the midlevel leaders responsible for

implementing near- and midterm goals and for developing the plans and processes used
by the lower levels.

Production or action-oriented leadership is completed by the low-level leaders who have

little discretion about the decisions they make and the procedures they use. Production
leaders can still improvise in their positions, but they rarely invent because consistency
is an important part of meeting their individual goals.

Operational leadership is another distinct classification. Whereas strategic leadership

involves creating an organization's overall vision and the means to achieve it, operational
leadership ensures that organizational processes are executed properly on a day-to-day
basis. Operational leaders monitor performance, deal with constraints, ensure that
employees understand what needs to be done and that the employees have the authority,
knowledge and skills to complete these tasks.

14.7 SKILLS FOR STRATEGIC LEADERSHIP

Strategic leaders possess a lengthy repertoire of skills and abilities. Some include:

 Active listening: A large part of effective communication includes actively listening

to others' contributions to the conversation. Actively listening allows you to receive

your team's input and allows them to feel more confident about collaboration. While
many people think they're good at listening, most find that they're frequently just
waiting to respond. Active listening, however, requires giving the speaker your full
attention so that you can thoughtfully digest their words before responding. Experts
suggest jotting down a quick note if you think of something important during the
conversation so that you can remain focused.

 Collaboration: Approaching leadership collaboratively provides the transparency

that your team values in a leader. Trusting your team to support this approach lets

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 them know that communication is open and welcome and that their ideas are
valued and a large part of the organization's success.

 Communication skills: Having a vision is not sufficient to drive change if you're not

able to effectively communicate it to your team. The ability to clearly articulate

specifically what needs to be done will help to bring your team to a single
understanding of the strategy and thereby unite the team's individual efforts to
successfully carry out the plan. Successful leaders also make themselves
accessible to their team at all times to respond to questions or hear concerns and
ideas.

 Dedication: Expressing genuine enthusiasm for what you do encourages members

of your team to be as committed as you are. As a standout contributor to a strategic

leader's traits, dedication helps give you the drive to follow through and set the
example of what you want to see in your team members. This is expressed in your
willingness to be part of the team, working alongside those you lead and working
just as hard toward the same shared goal.

 Diplomacy: Balancing honesty and tact is an acquired skill that leaders use to keep

the environment respectful and collaborative between all members of the team as
well as other departments and the public. While diverse perspectives and creative
minds lead to the best innovations, there will be disagreements along the way.
Diplomacy pairs your negotiation skills and empathy to approach any type of
conflict with restraint and lack of bias to reach a solution that everyone can live
with.

 Empathy: Taking the perspective of others is important to reach realistic solutions

as well as build trust within your team. From a practical perspective, empathy can
be the catalyst to the successful execution of creative, effective strategies that can
lead to higher sales, mutual respect and greater overall productivity.

 Humility: Though it may seem counterintuitive, a humble leader who owns their

missteps, gives credit where credit is due and issues apologies as necessary,
gaining the respect of their team and colleagues. These leaders recognize their

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 humanity with all the imperfections that come with it and acknowledge that they
may not be the smartest person in the room, but even if they are, their ego remains
checked in order to facilitate a collaborative environment and groundbreaking
innovations.

 Innovation: Viewing your work through a fresh lens each day helps to drive

creativity, which is necessary for innovation. While it's necessary to remain realistic
in your expectations, your ability to motivate your team to adapt to changing
circumstances and think creatively will allow them to combine their different
perspectives to form the best ideas.

 Integrity: Keeping your integrity intact drives the most success and influences those

you lead to remain honest and embrace every success and failure as part of the
process of creating great things. Your integrity also fosters the trust of your team
as well as others outside of your team, which facilitates collaboration, transparency
and unification within your organization.

 Optimism: Remaining optimistic is crucial to making sure that you can keep a

positive attitude, whether things are going as planned or plans go awry for
whatever reason. Leading by example helps you provide encouragement to your
team to keep pushing until the desired outcome is achieved.

14.8 HOW TO BE A STRATEGIC LEADER

Strategic leadership isn't necessarily the same for every person, every team or every
situation. The situational differences between companies, industries and even different
departments of the same organization can create fluctuations in the way your leadership
skills are utilized. The important thing is that you are willing and able to adapt your
strategic leadership methodologies to suit your role, your team and the current
circumstances. Here are some steps you can follow to be the strategic leader you've
always wanted to be:

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1. Delegate

Strategic leaders are not afraid to grant autonomy to their team members in order for said
team members to grow their own leadership skills. In fact, the best leaders distribute
responsibility in a way that empowers employees to learn to take calculated risks when
making decisions. This helps to increase the self-confidence and sharpen the skills of
employees as well as facilitates the overall success of the organization in the long run by
teaching others to adapt to changing circumstances and make decisions according to
what the unique situation calls for.

2. Embrace transparency

Strategic leaders know that sharing information is crucial for creating new opportunities
for growth. Allowing access to relevant information can help future leaders feel more
confident in challenging potentially inefficient processes or introducing better ideas to
improve the practices of the company.

3. Encourage different avenues of communication and innovation

One of the key skills for effective strategic leadership is to find ways to present ideas so
that everyone fully understands and has the opportunity to provide feedback and
additional contributions. Removing limits teaches future strategic leaders to embrace their
creativity for innovation while connecting their curated solutions to the end goal.

4. Teach failure as a learning mechanism

Many companies tout their tolerance for employees' endeavors to learn from their
mistakes. It's important to embrace the fact that failure is a part of life, and acceptance of
the occasional failure should be built into the company's expectations in order to
encourage practical learning through trying out risky but potentially lucrative ideas.
Strategic leaders also recognize that failures can often help develop skills to turn them
into later successes.

5. Encourage interdepartmental collaboration

Allowing opportunities for employees to meet and work with others across the
organization can enhance their understanding of how the different parts of the company

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function to create a collaborative result. Rather than remaining isolated from the others in
the company they can become more adept in recognizing the value of what they each
contribute.

As a strategic leader, it's up to you to find and recognize these opportunities, which may
be easier said than done, as the best opportunities for collaboration may be subtly or
fleetingly presented. However, when you recognize the unique talents and traits of your
individual team members as well as those across the company, you can learn to pick up
on these subtle opportunities for collaborative action.

With that said, you mustn't focus on just one or two people whose talents stand out to you
more, lest you create the impression of giving some people special treatment over others.
Instead, make it a point to cultivate the skills and qualities of each individual on your team
so that each person has an equal opportunity to develop and grow.

6. Provide opportunities for experiential learning

While many aspects of leadership development are informative rather than experiential,
budding strategic leaders need the chance to put their theoretical strategies into real
action to get real-life feedback and results. Instructional training is still important to
develop managerial knowledge and skills, but considering long-term results requires
learning through hands-on experience.

7. Hire potential

When managers do the hiring, it's easy for them to gravitate toward hiring people who
remind them of themselves, which is one of the reasons many companies put hiring into
the hands of objective HR professionals. However, an active manager can hire objectively
if they're looking for potential for growth rather than similarities between the candidate
and themselves.

These decisions should carefully consider the soft skills of the candidate as well as their
demonstrable drive and previous experiences that document their ability to transfer their
skills to different tasks. Some organizations choose to do this by administering sample
tests to candidates and evaluating not only their solutions but how they came to them,

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revealing the path their mind took in figuring out the problem and solution and thus, their
potential to be a strategic leader.

8. Draw on experience

To be an effective strategic leader, you must be able to evaluate problems and formulate
solutions by pulling from your previous experiences and adapting what you've learned
from those experiences in a way that makes sense in the current situation. Just as
important is encouraging others to do the same. This allows your team to feel comfortable
using what they know and learning what they didn't know.

9. Take time to self-reflect

Strategic leaders can identify the difficulties inherent in problem-solving. Some of these
impediments can include your own bias, your previous assumptions and overall how you
view the situation. Deep reflection on your own tendencies to approach certain situations
subjectively helps recognize them when contemplating subsequent situations.

Reflection allows you to take a step back and focus on the larger picture and how the
minutiae contribute to the overall outcome. It also allows you to learn from your past
mistakes as well as recognize what you've done right. That all being said, try to focus on
self-reflection by asking yourself specific questions rather than dwelling on your mistakes
or ruminating unproductively.

10. Encourage continuous development

Strategic leaders are aware that there are always opportunities for further learning,
whether it's for themselves or others. They're experienced, but also humble. They're
intelligent, but also vulnerable. Showing your team these characteristics in yourself can
encourage them to recognize the same in themselves and learn from it. Continuous
learning is what gives strategists the ability to develop their skills and to carry them over
to new roles, new environments and even new industries.

14.9 SUMMARY

Strategic Learning is a learning-based process for creating and executing breakthrough

strategies. Unlike traditional strategy, which aims at producing one-time change, Strategic

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Learning drives continuous adaptation. As shown in Figure 1, the process has four linked
action steps—-learn, focus, align, and execute—which build on one another and are
repeated (as the fifth step) in a continuous cycle. Together they embody the five
competencies mentioned earlier. The first two steps form the basis of a firm’s strategy
creation. The third and fourth steps are the foundations of strategy implementation. Thus,
strategy creation and implementation are integrated in a mutually reinforcing process.

Strategic leadership is a type of leadership in which leaders influence those around them
to embrace a collective vision for the success of their organization. These leaders can
work confidently in ambiguous situations, approaching them with creativity, vision and
focus on long-term success and providing their team with a clear sense of direction and
collaboration to work together toward a common goal.

Strategic leaders possess the unique ability to figure out the best strategies and
methodologies to help their organization remain sustainably competitive in the market.
Sustainability requires adaptation, whether it's the available technology, the changing
climate, fluctuating economy or other affecting factors, and organizations without strategic
leaders are at risk of failure in the face of these factors.

14.10 GLOSSARY

 Strategic Learning: It is a learning-based process for creating and executing

breakthrough strategies. Unlike traditional strategy, which aims at producing one-
time change, Strategic Learning drives continuous adaptation.

14.11 SELF-CHECK QUESTIONS

1. Define strategic learning.

2. Discuss the process of strategic learning.

3. What do mean by strategic leadership?

4. Discuss the strategic leadership process.

14.12 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 14.1

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2. For answer refer to section 14.2

3. For answer refer to section 14.3

4. For answer refer to section 14.4

14.13 TERMINAL QUESTIONS

1. Define strategic learning. Discuss the process of strategic learning.

2. What do mean by strategic leadership? Discuss the strategic leadership process.

3. Discuss the strategic leadership skills and characteristics.

4. Discuss the strategic leadership vs. other classifications of leadership.

5. Explain how to be a strategic leader.

14.14 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 14.1, 14.2

2. For answer refer to section 14.3, 14.4

3. For answer refer to section 14.5

4. For answer refer to section 14.6

5. For answer refer to section 14.8

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 CHAPTER- 15

LEARNING ORGANIZATION

STRUCTURE

15.0 Learning objectives

15.1 Introduction
15.2 What is a learning organization?
15.3 Characteristics of a learning organization
15.4 Benefits of a learning organization
15.5 Concept of organizational learning
15.6 Pros of organizational learning
15.7 Cons of organizational learning
15.8 How managers can improve organizational learning
15.9 Summary
15.10 Glossary
15.11 Self-Check Questions
15.12 Answer To Self-Check Questions
15.13 Terminal questions
15.14 Answer to terminal questions

15.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of learning organization
 Discuss the characteristics of a learning organization
 Discuss the benefits of a learning organization
 Describe the concept of organizational learning
 Discuss the pros and cons of organizational learning

15.1 INTRODUCTION

In today’s dynamic and ever-evolving business landscape, organizations must

continuously adapt, innovate, and stay ahead of the next curve – from new digital

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technologies to innovations in the market. This reality calls for a fundamental shift in how
companies operate their learning and development strategy — a shift toward becoming
a more agile learning organization.

In 1990, author and systems scientist Peter Senge popularized the concept of learning
organizations in his book, The Fifth Discipline: The Art & Practice of the Learning
Organization. He described these companies as “where people continually expand their
capacity to create the results they truly desire, where new and expansive patterns of
thinking are nurtured, where collective aspiration is set free, and where people are
continually learning how to learn together.”

In this article, we’ll delve into the path toward building a learning organization to foster a
culture that is continuously evolving in the age of digital transformation.

15.2 WHAT IS A LEARNING ORGANIZATION?

A learning organization is an entity that fosters a culture of continuous learning and

knowledge creation at all levels. It is an organizational paradigm that recognizes the
importance of adapting to change, acquiring new knowledge, and leveraging insights to
improve performance and achieve strategic objectives.

In a learning organization, learning is not limited to formal training programs or individual

activities; it becomes an embedded aspect of the organizational culture and processes.
The entire organization is engaged in acquiring, sharing, and applying knowledge, with a
focus on innovation, collaboration, and the ability to respond quickly to challenges and
opportunities. Learning organizations promote open communication, experimentation,
and reflection, valuing the collective intelligence and learning capacity of their employees.

15.3 CHARACTERISTICS OF A LEARNING ORGANIZATION

Here are the key characteristics of learning-based organizations.

1. Building a shared vision

A shared vision is a vital characteristic of a learning organization that establishes a

common goal and has the power to encourage innovation and creative thinking.

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When a vision is created as a team, people feel that their ideas are valued and that they
are working towards a common goal.

2. Personal mastery

Personal mastery refers to the individual’s commitment and continuous journey toward
personal growth, learning, and self-improvement. It is about cultivating a mindset of
lifelong learning and striving for excellence in one’s chosen field or area of expertise. It
involves developing self-awareness, honing skills, and fostering a deep sense of purpose
and passion for continuous learning. Personal mastery is encouraged in a learning
organization as it contributes to the overall collective learning and growth of the
organization.

3. Mental models

Mental models are deeply ingrained assumptions, generalizations, or even images that
influence how we understand the world and how we take action.

These models can either facilitate or hinder learning and organizational growth. In a
learning organization, there is a focus on surfacing and challenging mental models,
encouraging individuals to examine their underlying assumptions and biases. By
promoting reflection and open dialogue, organizations can foster a culture where mental
models are continuously examined, refined, and expanded. This process allows for new
perspectives, innovation, and more effective problem-solving, ultimately contributing to
the organization’s ability to adapt and learn in a rapidly changing environment.

4. Team learning

Team learning is a collaborative process where individuals within a team come together
to actively share knowledge, experiences, and insights to enhance the collective learning
and performance of the entire team.

Team learning fosters a culture of collaboration where team members learn from each
other, challenge assumptions, and collectively solve problems. By engaging in team
learning, organizations can harness the collective intelligence and capabilities of their
teams, leading to enhanced problem-solving, innovation, and overall team performance.

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5. Systems thinking

Systems thinking in a learning organization entails viewing the organization as a complex

and interconnected system where various components, processes, and individuals
interact and influence each other.

The idea is to encourage businesses to look at the broader landscape and to distinguish
patterns instead of conceptualizing change as isolated events.

By applying systems thinking, a learning organization can identify systemic factors that
impact learning effectiveness, address root causes of challenges, leverage
interconnected elements for improvement, and foster a holistic approach to continuous
learning and organizational development.

15.4 BENEFITS OF A LEARNING ORGANIZATION

Here are some of the most significant benefits of a learning organization.

1. More prepared, productive employees

When employees are highly engaged and driven to accumulate knowledge about their
work, their field, and their company, they not only feel well-equipped to excel in their roles,
but they become more productive. Increased efficiency means more resolutions and less
reliance on external consultants – reducing costs and boosting profits in the long run.

According to the 70-20-10 model, employees gain 70% of their knowledge through work
experiences, so it’s critical they remain engaged at their jobs.

2. Increased employee engagement and motivation

Learning organizations prioritize the personal and professional development of their

employees. This commitment to continuous learning and growth fosters a sense of
purpose, engagement, and motivation among employees, leading to higher levels of
productivity and retention.

3. Reduced employee turnover

Learning organizations encourage employees to become more engaged, build a stronger

community and empower team members to take pride in their work and place within the
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company. All of these components build off one another, so more employees stay with a
company longer, reducing the costs associated with employee turnover.

4. Shared knowledge

Learning organizations increase efficiency and build connections through knowledge

sharing. This eliminates the need for employees to waste precious energy reinventing
wheels, promotes understanding, and ensures that everybody has a clear view of what is
needed for success.

5. Enhanced innovation and creativity

A learning organization encourages experimentation, risk-taking, and the exploration of

new ideas. This promotes innovation and creativity throughout the organization, leading
to the development of new products, services, and processes that drive competitive
advantage.

6. Improved problem-solving and decision-making capabilities

Learning organizations encourage critical thinking, creativity, and collaboration, which

lead to improved problem-solving and decision-making capabilities. Employees are
empowered to think innovatively, explore multiple perspectives, and apply their
knowledge and skills to address complex challenges.

Successful businesses can often adjust to meet a changing marketplace, and

organizational learning is one method that enables this adaptation. Organizational
learning provides staff at a company with the resources to assess and improve their
performance. Organizational learning occurs both structurally within a company and in
person-to-person interactions.

15.5 CONCEPT OF ORGANIZATIONAL LEARNING

Organizational learning is the process through which a company gathers new information
and shares that information with employees. Organizational learning structures include
both formal and informal systems of learning, such as an employee training manual and
two coworkers sharing work advice in casual conversation, respectively. Effective

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organizational learning can be an integral part of maintaining a successful company, as
it allows a company to develop and improve its methods as it learns new information.

15.6 PROS OF ORGANIZATIONAL LEARNING

Organizational learning provides many benefits to a company. Some of the top reasons
to implement organizational learning include:

 Sharing experience
At large organizations, it's common to have a mix of highly experienced employees and
new hires. Organizing mentor relationships or allowing experienced employees to help
train new hires allows the less experienced employees to develop more quickly.

 Developing and spreading techniques

When a company has staff members that routinely outperform their peers or their
targets, it provides an excellent opportunity to implement organized learning. Asking
those employees to share their techniques can improve performance across the entire
staff by allowing more employees to use those same techniques.
 Providing resources
Organized learning systems can also include structures to assist staff interested in
doing their own research and education, such as optional training or certification
programs. By encouraging individual education, an organization improves the
effectiveness of their staff's personal growth efforts, which then benefits the company
as a whole.
 Encouraging cohesive development
When making changes within a company, it's important to implement them uniformly
so that you can integrate work done in different departments. With an individualized
approach to organizational learning, such as an onboarding checklist or skills tracking
method for each employee, it's easier to know how each staff member is developing
and how their new skills will serve the company's broader goals.
 Adapting to changing conditions

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 Updating methods to adapt to changes in the market is an essential part of remaining
relevant and successful. Organizational learning structures, such as training seminars,
are crucial tools for sharing these updates with all employees.

15.7 CONS OF ORGANIZATIONAL LEARNING

Although organization learning is a positive tool for your business, it's important to
understand some of the common drawbacks so you can work to avoid them:

 Spreading the wrong information

When using organizational learning systems, it's important to spread effective
information. Spreading less effective knowledge, such as outdated processes, can lead
to others using less effective approaches. Establishing protocols to check the accuracy
of the information that employees share as part of organizational learning can minimize
this risk.
 Overly relying on institutional systems
If a company has systems within the company to provide staff with education and
learning opportunities, it may reduce staff members' interest in learning independently
outside of work. By providing staff with resources to continue their independent growth
and rewarding those who demonstrate continued learning, you can encourage staff to
remain motivated to excel beyond your company's formal education opportunities.
 Criticizing failure too much
When a company has a strong system for sharing successful techniques, it may
discourage some staff from trying new methods due to a fear of failure. Although this
can prevent staff from pursuing unsuccessful methods, it may also reduce the
opportunity to discover new and effective techniques. You can counter this effect by
calling extra attention to individuals who develop innovative ideas.
 Misallocation of resources
A system for organized learning provides many benefits, but it requires spending
money and staff hours to achieve results. If a company assigns too many resources to
its organizational learning efforts, it may reach a point of diminishing returns where
some of the resources could be better spent on other tasks. You might avoid this by
performing regular audits assessing the data related to organizational learning.

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15.8 HOW MANAGERS CAN IMPROVE ORGANIZATIONAL LEARNING

If you believe your employees could benefit from implementing more structured
organizational learning, you might want to consider the following tips:

1. Always work on learning and developing

Change is constant in the professional world, and the most successful companies stay
attentive to potential improvements to their procedures. This means that even an
established company with experienced staff can still benefit from learning new
approaches to daily operations.

Creating an environment that encourages continuous professional growth, both by

offering organizational support and rewarding creative staff members, can help set your
company up for success. Common resources for continued organizational learning
include professional associations, seminars and speeches, industry journals and online
research.

2. Create reference documents for employees

One responsibility when fostering a learning environment is to make learning easier for
employees. This includes both organized instruction and providing resources for
independent use. Providing employees with reference documents on organizational
learning topics is an effective way to facilitate both of these goals.

When creating a new initiative or set of protocols based on organized learning, writing an
announcement that explains the new policies and the rationale for the change gives staff
an easy resource to check as they get used to the new situation. Additionally, providing
access to the information the company gathers, such as performance metrics or expert
advice, also helps employees complete their own learning and growth.

3. Develop formal and informal mentor systems

One of the best ways for less experienced employees to learn and develop their skills is
under the guidance of senior staff. On-the-job experience is one of the most effective

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methods of learning, and working with a more experienced mentor allows new hires to
accelerate their professional development.

Mentorship can occur in two forms: formal and informal. In formal mentoring systems,
management assigns less experienced staff to mentors they feel have the skills and
knowledge to help the new staff members grow. This can be ideal when a manager
notices a particular area for improvement in a new employee that matches an area of
expertise in an experienced staff member.

An informal mentorship is one that develops without the organization's encouragement,

with two staff members naturally forming a beneficial partnership. These types of pairing
are still an important part of organized learning and can help a company immensely, as
many employees learn best when they have strong personal bonds with their mentors.

4. Use meetings and videos as tools

Not everyone learns at their best through reading, so it's helpful to diversify the way your
organization shares knowledge with employees. Staff meetings are an excellent way to
share knowledge, as they allow for visual presentations. Supplementing the presentation
with physical notes can further improve comprehension.

Creating videos that explain changes is another excellent way to provide staff with further
resources and share company learning efforts. As with a meeting, a video provides a
more dynamic presentation than a written document, with the added benefit that staff can
view it at a time that works best for them or re-watch sections that need more attention.
Videos are also a resource you can quickly provide to new staff so long as the topics
covered remain in effect.

5. Be open to feedback

It's important to provide your employees with the opportunity to offer suggestions and
feedback and to practice active listening when receiving such feedback. By developing a
formal system for submitting suggestions, you’ll create a work environment that
encourages sharing ideas at all levels. When people feel that their opinions matter, they’ll
feel more fulfilled in their roles.

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15.9 SUMMARY

Today’s dynamic and ever-evolving business landscape, organizations must continuously

adapt, innovate, and stay ahead of the next curve – from new digital technologies to
innovations in the market. This reality calls for a fundamental shift in how companies
operate their learning and development strategy — a shift toward becoming a more agile
learning organization.

A learning organization is an entity that fosters a culture of continuous learning and

knowledge creation at all levels. It is an organizational paradigm that recognizes the
importance of adapting to change, acquiring new knowledge, and leveraging insights to
improve performance and achieve strategic objectives.

15.10 GLOSSARY

 Learning organisation: A learning organization is an entity that fosters a culture

of continuous learning and knowledge creation at all levels. It is an organizational
paradigm that recognizes the importance of adapting to change, acquiring new
knowledge, and leveraging insights to improve performance and achieve strategic
objectives.

15.11 SELF-CHECK QUESTIONS

1. What do you mean by learning organization?

2. Discuss the characteristics of a learning organization.

4. Discuss the benefits of a learning organization.

15.12 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 15.1, 15.2

2. For answer refer to section 15.3

3. For answer refer to section 15.4

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15.13 TERMINAL QUESTIONS

1. What do you mean by learning organization? Discuss the characteristics of a learning

organization.

2. Define learning organization. Discuss the benefits of a learning organization.

3. Define organizational learning. Discuss the pros and cons of organizational learning.

4. Explain how managers can improve organizational learning.

15.14 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 15.1, 15.2 and 15.3

2. For answer refer to section 15.1, 15.2 and 15.4

3. For answer refer to section 15.5, 15.6 and 15.7

4. For answer refer to section 15.8

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 CHAPTER-16

PERFORMANCE MANAGEMENT

STRUCTURE

16.0 Learning objectives

16.1 Introduction
16.2 Concept of performance coaching
16.3 What performance coaching practice:
16.4 How can coaching improve performance?
16.5 Benefits of performance coaching
16.6 Performance coaching models
16.7 Summary
16.8 Glossary
16.9 Self-Check Questions
16.10 Answer To Self-Check Questions
16.11 Terminal questions
16.12 Answer to terminal questions

16.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of performance coaching
 Discuss the performance coaching models
 Describe the performance coaching practices
 Discuss how can coaching improve performance

16.1 INTRODUCTION

Coaching in performance management is a collaborative process that occurs through

everyday interactions between a manager and an employee, as well as among
employees. It aims to continuously stimulate employees to improve their skills, acquire
new ones, and reach their full potential. Performance coaching in the workplace
involves using various techniques to guide employees toward growth and development.

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It goes beyond merely addressing performance issues; instead, it focuses on unlocking
potential, engaging employees, and fostering a culture of continuous improvement.
Managers play a dual role: they are both supervisors and coaches. Through day-to-day
interactions and regular one-on-one sessions, they offer personalized guidance to help
employees strategize for performance improvement and take control of their professional
growth. Performance coaching is a great tool that helps individuals and teams achieve
their professional aspirations. It doesn’t just focus on fixing performance issues; it unlocks
potential, engages employees, and promotes a culture of continuous improvement. Let’s
look at the definition and benefits of performance coaching, some coaching examples
and models, and lay out steps for effective employee performance coaching.

16.2 CONCEPT OF PERFORMANCE COACHING

Performance coaching in the workplace refers to the use of various techniques to

continuously stimulate employees to improve their skills, gain new ones, and reach their
full potential. It’s a collaborative process that takes place through everyday interactions
between a manager and an employee, but also between employees. The manager isn’t
only the supervisor, they’re also a coach who continuously motivates employees to grow
and learn. Employee performance coaching is a form of on-the-job learning that
addresses weaknesses and cultivates strengths. Managers use day-to-day workplace
situations and regular one-on-ones to understand employees and offer personalized
guidance. The goal is to help employees develop strategies for performance improvement
and take control of their professional growth. Coaching employees to improve
performance should be an integral part of every organization’s talent management
strategy, making it the HR’s responsibility to promote it among managers and employees.
It can greatly impact employee engagement and productivity, leading to better overall
business performance. The purpose of performance coaching is to help employees leave
their comfort zone and reach their potential.

16.3 WHAT PERFORMANCE COACHING PRACTICE:

 Executive performance coaching: This type of coaching is tailored to senior

leaders to support their leadership skills development, usually facilitated by a dedicated

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 coach. A coach meets one-on-one with an executive and forms an environment of
confidentiality and trust. They help the executive understand their competencies and
strengths, as well as others’ perceptions of them. Then the two work together to identify
improvement areas and set goals and action steps for achieving growth. This entails
challenging the leader’s thought processes to show them new communication and
problem-solving approaches.
 Sales performance coaching: Performance coaching for sales reps aims to boost sales
effectiveness and achieve ambitious targets. Coaching sessions involve the sales
employee and their manager reviewing what’s working and what hasn’t been
successful, as well as understanding the reasons behind both. With that insight, the
manager/coach and employee can come up with a specific plan for behavioral changes
that will help them increase their sales numbers.
 Team coaching: Employee performance coaching can also be group-based and focus
on teaching teams to collaborate effectively. Sessions will emphasize strengthening
communication skills, reducing conflict, and improving working relationships. This may
involve scenarios where team members must work through challenges together to
achieve their objectives.

16.4 HOW CAN COACHING IMPROVE PERFORMANCE?

From an interview with one of these performance coaches, we see that their job consists
of ‘making sure their driver is in optimal shape to perform during the race weekend’ and
‘to always help if there are little aches and pains.’ Bringing this into the business context,
coaching for performance dedicates time to intentionally developing employees. Investing
in employee growth improves their performance through different channels, such as the
following:

Immediate constructive feedback: A coaching environment allows continual opportunities

to provide constructive feedback in situations that are fresh in employees’ minds. Instead
of waiting for an annual performance appraisal, managers can commend employees for
successes and address issues in real time for more impact.

Skill development: Performance coaching involves identifying improvement opportunities.

Addressing these areas with training or hands-on experience helps employees develop
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new skills and fresh perspectives they can use in their current roles and prepare for future
ones.

Boosting employee confidence: The accountability that takes place during coaching
builds self-awareness and keeps employees focused on their goals. During this process,
they acquire new capabilities and discover what makes them tick. As employees
understand themselves better and achieve their objectives, self-confidence builds.

Greater manager support: Because coaching consists of regular interactions between

employees and their supervisors, there is more two-way communication. Supervisors get
a better understanding of employees’ strengths and preferences and recognize what
they’re doing well. When there are areas that need improvement, they can offer feedback,
support, and solutions. This builds trust in the relationship. The employee knows their
manager isn’t just critiquing their performance but also wants them to succeed and is
willing to help them get there.

16.5 BENEFITS OF PERFORMANCE COACHING

Enabling employees to develop their skills and confidence has several notable benefits
for organizations.

Performance improvement: The main goal of performance coaching is obviously to

improve the work performance of employees. Just as every person is different, the way
to maximize someone’s potential is, too. Performance coaching enables organizations to
personalize their talent management approach and get the best out of every individual.
This has a positive influence on the performance levels of the organization to help it reach
its business goals.

Stronger relationships: In addition to the bonds that form between managers and
employees through coaching, over 70% of coached employees say they build better
relationships with their coworkers. Robust relationships in the workplace fuel collaboration
within teams and across the organization to enhance its competitiveness.

Higher engagement levels: When employees receive personalized performance

coaching, it shows their employer cares about them and invests in their professional

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development. Then they have higher morale and feel more engaged. As a result, they are
motivated to improve their performance and contribute to the organization’s goals.

Better retention rates: The benefit of improved performance, stronger relationships, and
higher engagement levels is that employees will find more satisfaction in their work and
be less likely to leave the organization.

16.6 PERFORMANCE COACHING MODELS

Successful performance coaching relies on how effectively the coaching is executed. It is

necessary to have a framework for managers to follow so they have the right tools to
coach well and to ensure consistency across the organization.

1. GROW model

The GROW model was developed in the UK by Sir John Whitmore and colleagues. It has
been used in corporate settings since the late 1980s. The acronym GROW stands for
Goal, Reality, Options, and Will. Coaches/supervisors walk employees through each
stage as follows:

Goal: Establish a goal that inspires the employee to get somewhere. This can be a target
they want to reach or a behavior they want to change.

Reality: Define where the employee is currently. Identify the obstacles they’re facing that
may factor into their struggles.

Options: Consider the potential options and resources that will help them move forward.

Will: Translate the options into action steps and set a timeline. The employee must commit
to the process, including accountability check-ins.

2. FUEL model:

The FUEL model comes from the book, The Extraordinary Coach: How the Best Leaders
Help Others Grow, by John Zenger and Kathleen Stinnet. It’s designed for coaching
behavioral change within organizations. The acronym FUEL stands for Frame the
conversation, Understand the current state, Explore the desired state, and Lay out
a success plan.

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Here is a quick explanation of these four steps:

Frame the conversation: The manager and employee discuss what the coaching will
entail without stating any predetermined issues or goals.

Understand the current state: The manager asks open-ended questions to get the
employee’s perspective, challenge both parties’ assumptions, and help the employee
gain awareness of where they are currently.

Explore the desired state: Both parties work together to craft a vision of success and
mutually agree on how to achieve the goal.

Lay out a success plan: The final step is to formulate a detailed action plan for getting to
the desired state.

3. CIGAR model

The CIGAR coaching model has been attributed to Suzy Green and Anthony Grant. It has
been used in a variety of settings, including business. The acronym CIGAR stands for
Current reality, Ideal, Gaps, Action, and Review. The following five steps of this model
involve recognizing and remedying the gaps between present and desired circumstances:

Current reality: The manager gets to know the employee to discover what’s going on
beneath the surface. Questions at this stage may include, “What are your passions?”
“What motivates you?” “What are your strengths?”

Ideal: The manager encourages the employee to visualize their desired outcome and
asks questions such as, “What would you be doing differently?” “What would change in
your life if you achieved your goals?”

Gaps: The employee identifies the gaps and obstacles that stand between their current
reality and their desired outcome.

Action: The two parties work together to create an action plan for the steps, resources,
and timeline it will take to bridge the gaps.

Review: The manager and employee meet regularly to assess progress and discuss any
potential adjustments to the plan.

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16.7 SUMMARY

Performance coaching in the workplace involves using various techniques to guide

employees toward growth and development. It goes beyond merely addressing
performance issues; instead, it focuses on unlocking potential, engaging employees, and
fostering a culture of continuous improvement. Managers play a dual role: they are both
supervisors and coaches. Through day-to-day interactions and regular one-on-one
sessions, they offer personalized guidance to help employees strategize for performance
improvement and take control of their professional growth. Performance coaching is a
great tool that helps individuals and teams achieve their professional aspirations. It
doesn’t just focus on fixing performance issues; it unlocks potential, engages employees,
and promotes a culture of continuous improvement. Let’s look at the definition and
benefits of performance coaching, some coaching examples and models, and lay out
steps for effective employee performance coaching

16.8 GLOSSARY

 Performance coaching: Performance coaching in the workplace refers to the use

of various techniques to continuously stimulate employees to improve their skills,
gain new ones, and reach their full potential. It’s a collaborative process that takes
place through everyday interactions between a manager and an employee, but
also between employees.

16.9 SELF-CHECK QUESTIONS

1. Define performance coaching.

2. Explain the performance coaching practices.

3. Discuss the performance coaching models.

16.10 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 16.1,

2. For answer refer to section 16.3

3. For answer refer to section 16.6

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16.11 TERMINAL QUESTIONS

1. Define performance coaching. Discuss the performance coaching models.

2. What do you mean by performance coaching? Explain the performance coaching

practices.

3. Explain how coaching can improve performance. And benefits of performance

coaching.

16.12 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 16.1, 16.6

2. For answer refer to section 16.1, 16.3

3. For answer refer to section 16.4, 16.5

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 CHAPTER-17

MENTORING

STRUCTURE

17.0 Learning objectives

17.1 Introduction
17.2 Implementing mentoring in performance management
17.3 Why is mentoring important?
17.4 Mentoring techniques or models
17.5 Benefits of mentoring
17.6 Challenges for mentoring
17.7 Summary
17.8 Glossary
17.9 Self-Check Questions
17.10 Answer To Self-Check Questions
17.11 Terminal questions
17.12 Answer to terminal questions

17.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of mentoring
 Discuss the mentoring techniques or models
 Discuss the benefits and challenges of mentoring

17.1 INTRODUCTION

Mentoring is a reciprocal and collaborative at-will relationship that most often occurs
between a senior and junior employee for the purpose of the mentee’s growth, learning,
and career development. Often the mentor and mentee are internal to an organization,
and there is an emphasis on organizational goals, culture, career goals, advice on
professional development, and work-life balance. Effective mentors often act as role
models and sounding boards for their mentee and provide guidance to help them reach
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 their goals. Mentoring can be formal or informal. In an informal environment, mentees set
goals, but they are usually not measurable and the relationships are unstructured. For a
formal mentoring relationship, there are actionable and measurable goals defined and set
with determined requirements.

Mentoring is not coaching and not counseling. Mentoring relationships are based upon
advice giving and direction while coaching is not. Counseling is a paid-relationship in
which underlying mental or psychological issues are addressed with solutions given by a
medical professional. Mentoring in performance management is a process that involves
providing individualized guidance and feedback to employees to help them improve their
skills, competencies, and performance. Mentoring can also support employees’ career
development and leadership potential.

17.2 IMPLEMENTING MENTORING IN PERFORMANCE MANAGEMENT ARE:

 Define the purpose, objectives, and outcomes of the mentoring program and
communicate them clearly to the mentors and mentees.
 Select and match the mentors and mentees based on their skills, interests, and
compatibility.
 Provide training and support to the mentors and mentees on how to establish and
maintain an effective mentoring relationship.
 Monitor and evaluate the mentoring program regularly and make adjustments as needed
to ensure its quality and effectiveness.

17.3 WHY IS MENTORING IMPORTANT?

A good mentor can help the mentee become more effective at work, learn new skills,
develop greater confidence, and make better decisions for their overall career growth.
Mentors report many benefits as well, including satisfaction from seeing others develop;
expanded generational and cultural perspectives; strengthening of technical, leadership,
and interpersonal skills; and continuing to experience new ideas and insights.

17.4 MENTORING TECHNIQUES OR MODELS

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 One-on-One Mentoring: This type of mentoring is the most traditional of all the types of
mentoring. Only the mentor and mentee are involved in this type of mentoring, and it is
usually a more-experienced individual paired with a less-experienced or much younger
mentee.
 Group Mentoring: In this model, one or several mentors work with a group of mentees.
Schools and youth programs often apply this model because there may not be enough
time or resources to have one mentor for each participant.
 Peer Mentoring: Participants in this model are from the same role or department or have
shared or similar experiences, whether in their professional or personal lives. These peers
pair up to offer support for each other. This can be a group or a one-on-one mentoring
relationship.
 Distance or E-Mentoring: With such advanced technology, the mentorship relationship
no longer has to be face-to-face. Using online software or even email, participants in this
type of mentoring can connect virtually without losing the personal touch.
 Reverse Mentoring: This mentoring relationship is flipped from the traditional model.
Instead of a senior professional mentoring a more junior employee, the junior employee
mentors a more senior professional. This relationship is usually for the younger or more
junior professional to teach the skills or a new application or technology to the more senior
one.
 Speed Mentoring: This type of mentoring is a play on speed dating and usually occurs
as part of a corporate event or conference. The mentee has a series of one-on-one
conversations with a set of different mentors and usually moves from one mentor to the
next after a brief meeting. The mentee should come prepared with questions for advice
from the senior level professionals.

17.5 BENEFITS OF MENTORING

The role of a mentor is to encourage the personal and professional development of a

mentee through the sharing of knowledge, expertise and experience. The mentoring
relationship is built on mutual trust, respect and communication, and involves both parties
meeting regularly to exchange ideas, discuss progress and set goals for further

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development. Here are some of the primary benefits of offering business mentoring within
your company:

Benefits for mentees: Being mentored is one of the most valuable and effective
development opportunities you can offer employees. Having the guidance,
encouragement and support of a trusted and experienced mentor can provide a mentee
with a broad range of personal and professional benefits, which ultimately lead to
improved performance in the workplace.

For mentees, some key benefits of business mentoring include:

 Exposure to new ideas and ways of thinking

 Advice on developing strengths and overcoming weaknesses

 Guidance on professional development and advancement

 Increased visibility and recognition within the company

 The opportunity to develop new skills and knowledge

Benefits for mentors: Mentoring is more than the transfer of advice, knowledge and
insights. The relationship offers reciprocal benefits for mentors willing to invest their time
in developing another professional. As well as the personal satisfaction of sharing their
skills and experience with a willing learner, being involved in mentoring also provides
some tangible benefits that can reward mentors professionally.

Some key benefits for mentors include:

 Recognition as a subject matter expert and leader

 Exposure to fresh perspectives, ideas and approaches

 Extension of their professional development record

 Opportunity to reflect on their own goals and practices

 Development of their personal leadership and coaching styles

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Benefits for the company: For employers, investing in business mentoring is a useful
and cost-effective way to develop your top emerging talent and keep your most
knowledgeable and experienced performers engaged and energised. As well as the
transferral of critical business knowledge and skills, mentoring helps to develop a pipeline
of future leaders who understand the skills and attitudes required to succeed within the
company.

For employers, investing in mentoring helps to:

 Develop a culture of personal and professional growth

 Share desired company behaviours and attitudes

 Enhance leadership and coaching skills in managers

 Improve staff morale, performance and motivation

 Engage, retain and develop performers

17.6 CHALLENEGES FOR MENTORING

 Getting a relevant match: Finding a mentor or mentee who shares similar goals,

interests, and expectations can be difficult. A mismatch can lead to frustration and
dissatisfaction for both parties.

 Knowing what to discuss: Sometimes, mentors and mentees may struggle to find

topics to talk about, especially in the beginning. This can affect the rapport and
trust between them.

 Understanding where to start and end: Mentoring is a dynamic and evolving

process that requires clear objectives and milestones. Without a proper structure
and guidance, mentoring can become aimless and ineffective.

 Managing time and commitment: Both mentors and mentees need to dedicate

time and effort to make the mentoring relationship work. However, they may face
competing priorities, busy schedules, and unforeseen circumstances that can
disrupt their plans.
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  Communicating effectively: Communication is the key to any successful

mentoring relationship. However, communication styles, preferences, and barriers

may vary among mentors and mentees. This can lead to misunderstandings,
conflicts, or missed opportunities.

17.7 SUMMARY

Mentoring is not coaching and not counseling. Mentoring relationships are based upon
advice giving and direction while coaching is not. Counseling is a paid-relationship in
which underlying mental or psychological issues are addressed with solutions given by a
medical professional. Mentoring in performance management is a process that involves
providing individualized guidance and feedback to employees to help them improve their
skills, competencies, and performance. Mentoring can also support employees’ career
development and leadership potential

17.8 GLOSSARY

 Mentoring: It is a reciprocal and collaborative at-will relationship that most often

occurs between a senior and junior employee for the purpose of the mentee’s
growth, learning, and career development.

17.9 SELF-CHECK QUESTIONS

1. Define mentoring.

2. Explain how implementing mentoring in performance management.

3. Discuss the techniques or models of mentoring.

17.10 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 17.1

2. For answer refer to section 17.2

3. For answer refer to section 17.4

17.11 TERMINAL QUESTIONS

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1. Define mentoring. Explain how implementing mentoring in performance management.

2. Discuss the techniques or models of mentoring.

3. Discuss the benefits and challenges of mentoring.

17.12 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 17.1, 17.2

2. For answer refer to section 17.4

3. For answer refer to section 17.5, 17.6

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 CHAPTER-18

PERFORMANCE MANAGEMENT

STRUCTURE

18.0 Learning objectives

18.1 Introduction
18.2 What is performance
18.3 Concept of performance management
18.4 Characteristics of performance management
18.5 Objectives of performance management
18.6 Principles of performance management
18.7 Challenges to performance management
18.8 Summary
18.9 Glossary
18.10 Self-Check Questions
18.11 Answer To Self-Check Questions
18.12 Terminal questions
18.13 Answer to Terminal Questions

18.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of performance management
 Discuss the objectives of performance management
 Discuss the principles of performance management
 Describe the characteristics of performance management

18.1 INTRODUCTION

Performance management is a system designed to identify the ways to achieve

organizational goals through constant assessment and feedback leading to improvement
of employee performance. Unlike the performance appraisal process, performance
management is an ongoing assessment of employees in a manner geared to match their

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goals to the organizational goals and it also makes strong use of goal-setting and metrics
to identify progress and areas of individual strengths.

The basic goal of performance management is to promote and improve employee

effectiveness in every perspective. The power of any organization is increasingly linked
to its intellectual capital rather than its physical assets because the people in
organizations are now the drivers of corporate performance and competitiveness.
Therefore, it deals with improving organizational performance by improving employee
performance and essentially, the cost of competitiveness involves efficiency and
productivity.

18.2 WHAT IS PERFORMANCE?

“Performance is behavior and should be distinguished from the outcomes because they
can be contaminated by systems factors”.

18.3 CONCEPT OF PERFORMANCE MANAGEMENT

Performance management is a continuous process where managers and employees

work together to plan, monitor and review an employee’s work objectives or goals and his
or her overall contribution to the organization. Unlike the performance appraisal process,
performance management is an ongoing assessment of employees in a manner geared
to match their goals to the organizational goals and it also makes strong use of goal-
setting and metrics to identify progress and areas of individual strengths.

The concept of performance management may be categorized into two types:

 The first one deals with the performance of an organization as a whole and evaluates
the effectiveness of its managers whereas;
 The second one deals with the system of evaluating employees in order to enable
them to achieve reasonable goals and thus ensure that the organization performs
better.

It is pertinent here to understand what performance is as Brumbrach (1988) defines

‘performance’ both as behaviour and results. The behaviour emanates from the performer
and transforms performance from abstraction to action. The behaviours are also

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outcomes in their own right- the products of mental and physical effort applied to the task
and can be judged apart from the results. In the organizational context, performance
means successful formulation and implementation of a value-creating strategy that either
generates or sustains its competitiveness.

The performance management helps organizations in managing consistent performance

in a manner which holds employees and managers accountable for supporting its
objectives and strategy, successfully fulfilling assigned job responsibilities, and
accomplishing individual performance goals, this would require the following pre-
requisites:

 The business processes are as simple as possible

 The lines of leadership and management are clear
 The employees are empowered, which is an important driver of innovation
 A distinct organizational culture
 The workplace interactions are based on honesty, integrity, and trust
 An openness to change

18.4 CHARACTERISTICS OF PERFORMANCE MANAGEMENT

The key characteristics of performance management can be understood by following

points which are given below:

 Important organizational tool in order to clarify performance objectives, standards,

critical dimensions, and competencies required to enhance individual
performance.
 Works best in the situation when an employee’s work is planned properly and goals
for achievement are communicated to them very clearly.
 Emphasizes the development of capability and capacity of employees to perform
consistently.
 It is a ‘systematic’ and ‘holistic’ approach to identify critical dimensions of
performance so that organizational objectives can be achieved.

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  Performance management helps in integrating the whole process with other critical
organizational systems including leadership development, succession planning,
and talent management efforts.
 Performance management is a multidimensional concept and includes inputs,
processes, outputs and outcomes.
 It transforms organizational objectives and strategy into a measurable action plan
by getting the right information, people, time, format for the accomplishment of
organizational objectives.

18.5 OBJECTIVES OF PERFORMANCE MANAGEMENT

The major objectives of performance management are mentioned below:

 The main objective is to enable the employees towards the achievement of superior
standards of work performance.
 To help the employees in identifying the knowledge and skills required for performing
the job efficiently.
 Because after identifying KSA required, this would drive their focus towards
performing the right task in the right way.
 To boost the performance of the employees by encouraging employee
empowerment, motivation and implementation of an effective reward mechanism
in an organization.
 To promote a two-way system of communication between the supervisors and the
employees in the organization for clarifying expectations about the roles,
accountabilities, communicating, feedback for improving employee performance
and continuous coaching.
 To identify the barriers to effective performance in an organization and resolving
those barriers through constant monitoring, coaching and development of
interventions.
 To create a basis for several administrative decisions viz., strategic planning,
succession planning, promotions and performance-based payment.
 To promote personal growth and advancement in the career of the employees by
helping them in acquiring the desired knowledge and skills.
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18.6 PRINCIPLES OF PERFORMANCE MANAGEMENT

Some of the major principles of performance management are as follows:

 Performance management is considered as a process, not as an event because it

follows good management practice in which continual coaching, feedback and
communication are integral to success.
 It is primarily used as a communication tool to ensure mutual understanding of work
responsibilities, priorities and performance expectations among both the partners
in the organization.
 The elements for discussion and evaluation should be job specific – not generalized
personality traits and the major duties and responsibilities of the specific job should
be defined and communicated as the first step in the process.
 The performance standards for each major duty/responsibility should be defined
very clearly and communicated for fulfilling the expectation.
 Employee involvement is encouraged at every level in identifying major duties and
defining performance standards.
 The purpose is to establish a history such that evaluations are fair and meaningful.
 The documentation of the performance management process is necessary as often
as needed to record the continuum of dialogue between supervisor and employee.
 If an organization includes formal rating, they should reflect the incumbent’s actual
performance in relation to the performance standard for accomplishing the
objectives.
 The evaluation of supervisor is a must on the successful administration of the plan
and ongoing performance management responsibilities.

18.7 CHALLENGES TO PERFORMANCE MANAGEMENT

Some of the key challenges to performance management are as follows:

 It is concerned with the output (the results achieved), outcomes, processes required
for reaching the results and also the inputs (knowledge, skills and attitudes).
 It is also concerned with measurement of results and review of progress in the
achievement of set targets.

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  It dealt with defining business plans in advance for shaping a successful future.
 It is striving for continuous improvement and continuous development by creating a
learning culture and an open system.
 It deals with establishing a culture of trust and mutual understanding that fosters free
flow of communication at all levels in matters such as clarification of expectations
and sharing of information on the core values of an organization which binds the
team together.
 It involves procedural fairness and transparency in the process of decision making.

18.8 Summary

Performance management is a system designed to identify the ways to achieve

organizational goals through constant assessment and feedback leading to improvement
of employee performance. Performance management is a continuous process where
managers and employees work together to plan, monitor and review an employee’s work
objectives or goals and his or her overall contribution to the organization. Unlike the
performance appraisal process, performance management is an ongoing assessment of
employees in a manner geared to match their goals to the organizational goals and it also
makes strong use of goal-setting and metrics to identify progress and areas of individual
strengths.

18.9 GLOSSARY

 Performance management: It is a system designed to identify the ways to achieve

organizational goals through constant assessment and feedback leading to
improvement of employee performance. Unlike the performance appraisal
process, performance management is an ongoing assessment of employees in a
manner geared to match their goals to the organizational goals and it also makes
strong use of goal-setting and metrics to identify progress and areas of individual
strengths.
 Performance: It is behavior and should be distinguished from the outcomes
because they can be contaminated by systems factors

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18.10 SELF-CHECK QUESTIONS

1. Define performance management.

2. Discuss the objectives of performance management.

3. Explain the principles of performance management.

18.11 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 18.1

2. For answer refer to section 18.5

3. For answer refer to section 18.6

18.12 TERMINAL QUESTIONS

1. Define performance management. Discuss the objectives of performance

management.

2. Explain the principles of performance management.

3. What do you mean by performance management? Explain the characteristics of

performance management.

18.13 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 18.1, 18.5

2. For answer refer to section 18.6

3. For answer refer to section 18.1, 18.4

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 CHAPTER-19

VIRTUAL HRD

STRUCTURE

19.0 Learning Objectives

19.1 Introduction
19.2 Characteristic of virtual human resource development
19.3 Objectives of virtual human resource development
19.4 Benefits of virtual human resource development
19.5 Challenges of human resource development
19.6 Summary
19.7 Glossary
19.8 Self-Check Questions
19.9 Answer To Self-Check Questions
19.10 Terminal questions
19.11 Answer to terminal questions

19.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Describe the concept of virtual human resource development
 Discuss the characteristics and objectives of virtual human resource
development
 Discuss the benefits and challenges of virtual human resource development

19.1 INTRODUCTION

Virtual human resource development (VHRD) is a field of study and practice that explores
how technology can be used to enhance the learning and performance of individuals,
groups, and organizations. VHRD encompasses various aspects of human resource
development (HRD), such as training, education, career development, organizational
development, and change management, but with a focus on the use of technologically
integrative environments, such as virtual reality, online platforms, social media, and

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mobile devices. Virtual HRD is a term that refers to the use of digital technologies and
tools to enhance the human resource development (HRD) function in organizations. HRD
is the process of improving the knowledge, skills, and abilities of employees and aligning
them with the organizational goals and strategies. Digital HRD can help HRD practitioners
and leaders to design, deliver, and evaluate learning and development interventions more
effectively and efficiently, as well as to leverage data and analytics to measure and
improve the impact of HRD on individual and organizational performance. Digital HRD is
not a one-time project or a one-size-fits-all solution. It is a continuous and dynamic
process that requires constant learning, innovation, and adaptation. By embracing digital
HRD, organizations can enhance their human capital and competitive advantage in the
digital age.

19.2 CHARACTERSTIC OF VIRTUAL HUMAN RESOURCE DEVELOPMENT

Virtual human resource development (VHRD) is an approach that leverages digital

technologies to enhance the expertise, performance, innovation, and community building
of human resources in organizations. Here are 10 characteristics of VHRD:
 VHRD is media-rich and culturally relevant, using various forms of digital media such

as text, audio, video, graphics, and animations to deliver learning content and
facilitate communication.
 VHRD is learner-centered and self-directed, allowing learners to access learning

resources anytime, anywhere, and at their own pace.

 VHRD is collaborative and social, enabling learners to interact with peers, mentors,

experts, and instructors through online platforms such as forums, chats, blogs,
wikis, and social networks.
 VHRD is adaptive and personalized, providing learners with customized learning

paths, feedback, and support based on their preferences, needs, goals, and
performance.
 VHRD is integrative and holistic, linking learning to work and life contexts, and

fostering the development of cognitive, affective, and behavioral competencies.

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  VHRD is innovative and creative, encouraging learners to generate new ideas,

solutions, and products through problem-based, project-based, and design-based

learning approaches.
 VHRD is strategic and aligned, ensuring that learning objectives, outcomes, and

assessments are consistent with the organizational vision, mission, values, and
goals.
 VHRD is evaluative and reflective, measuring the effectiveness and impact of

learning interventions, and promoting continuous improvement and learning

transfer.
 VHRD is ethical and responsible, adhering to the principles of academic integrity,

intellectual property, data privacy, and social justice in the design and delivery of
learning.
 VHRD is dynamic and evolving, responding to the changing needs and expectations

of learners, organizations, and society in the digital era.

19.3 OBJECTIVES OF VIRTUAL HUMAN RESOURCE DEVELOPMENT

Virtual human resource development (VHRD) is an approach that aims to enhance the
competencies and performance of employees and organizations through the use of
various technologies, such as virtual reality (VR) and augmented reality (AR). Some of
the objectives of VHRD are:

 To provide a comprehensive framework for the development of human resources

in the organization.
 To create a climate for employees to discover, develop and use their capabilities
for the organization.
 To increase the capabilities of an organization to attract, retain and motivate
talented employees.
 To facilitate systematic information on human resources for manpower planning,
career planning, succession planning, etc.
 To offer training that is relevant, engaging and effective for the present and future
needs of the employees.

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  To conduct performance and potential appraisal of the employees for determining
their developmental requirements and providing feedback and counselling.
 To reinforce a reward system that fosters a culture of excellence and collaboration.
 To implement organizational development interventions that improve the climate
and productivity of the organization.
 To develop knowledge resources that support the learning and innovation of the
employees and the organization.
 To apply VR and AR in various HRD functions, such as recruitment, orientation,
socialization, learning, performance management, etc.

19.4 BENEFITS OF VIRTUAL HUMAN RESOURCE DEVELOPMENT

Virtual human resource development (VHRD) is an approach that leverages technology

to enhance the learning and performance of employees in organizations. VHRD can offer
various benefits, such as:

 Cost efficiency: VHRD can reduce the expenses associated with traditional HR
models, such as travel, accommodation, venue, and materials.
 Increased flexibility: VHRD can provide more options for employees to access
training and development programs at their own pace, time, and location.
 Improved employee engagement: VHRD can foster a sense of belonging,
support, and recognition among employees by offering interactive and
personalized services that cater to their needs and preferences.
 Enhanced data management: VHRD can enable better collection, analysis, and
reporting of data related to employee learning and performance, which can help
HR professionals make informed decisions and improve outcomes.
 Higher quality of learning: VHRD can deliver more effective and engaging
learning experiences by using immersive technologies, such as virtual reality (VR)
and augmented reality (AR) that simulate real-world scenarios and provide
feedback and guidance.

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  Greater scalability: VHRD can reach a larger and more diverse audience of
employees across different locations, cultures, and backgrounds, without
compromising the quality and consistency of the learning content.
 Improved compliance: VHRD can ensure that employees are aware of and
adhere to the relevant laws, regulations, and policies that govern their work, by
providing regular and updated training and assessment.
 Increased innovation: VHRD can foster a culture of creativity and
experimentation among employees, by exposing them to new ideas, perspectives,
and technologies, and encouraging them to collaborate and share their knowledge.
 Enhanced competitiveness: VHRD can help organizations gain an edge over
their rivals, by equipping their employees with the latest skills, knowledge, and
competencies that are required in the dynamic and complex business
environment.
 Better alignment: VHRD can align the learning and development goals of the
employees with the strategic objectives of the organization, by providing clear and
relevant content that supports the vision, mission, and values of the organization.

19.5 CHALLENGES OF HUMAN RESOURCE DEVELOPMENT

Virtual human resource development (VHRD) is an approach that leverages technology

to facilitate learning, socialization, and performance improvement in organizations. VHRD
can offer many benefits, such as increased access, flexibility, collaboration, and cost-
effectiveness. However, VHRD also faces some challenges that need to be addressed
by researchers and practitioners. Here are the challenges of VHRD:

 Communication: Effective communication is essential for any team, but especially

for virtual teams that rely on technology-mediated interactions. Communication
challenges in VHRD include overcoming barriers of time, distance, and culture;
ensuring clarity, feedback, and trust; and choosing the appropriate communication
tools and channels.
 Engagement: Engagement refers to the degree of involvement, interest, and
commitment that learners and employees have in their work and learning activities.

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 Engagement challenges in VHRD include maintaining motivation, attention, and
satisfaction; creating a sense of presence and community; and designing engaging
and interactive learning experiences.
 Evaluation: Evaluation is the process of assessing the effectiveness and impact
of VHRD interventions on individual, team, and organizational outcomes.
Evaluation challenges in VHRD include defining and measuring relevant
indicators; collecting and analyzing data from multiple sources and levels; and
demonstrating the return on investment and value of VHRD.
 Ethics: Ethics is the branch of philosophy that deals with the principles of right and
wrong conduct. Ethics challenges in VHRD include ensuring the privacy, security,
and confidentiality of data and information; respecting the rights and
responsibilities of learners and employees; and adhering to the ethical standards
and codes of conduct of the profession.
 Technology: Technology is the application of scientific knowledge and tools to
solve practical problems. Technology challenges in VHRD include selecting,
integrating, and updating the appropriate technology platforms and tools; ensuring
the reliability, accessibility, and usability of technology; and managing the technical
issues and glitches that may arise.
 Innovation: Innovation is the process of creating and implementing new or
improved products, services, processes, or methods. Innovation challenges in
VHRD include fostering a culture of creativity and experimentation; encouraging
risk-taking and learning from failures; and keeping up with the emerging trends
and developments in the field.
 Diversity: Diversity is the recognition and appreciation of the differences and
similarities among people in terms of various dimensions, such as culture, gender,
age, ability, and personality. Diversity challenges in VHRD include promoting
inclusion and equity; managing conflicts and misunderstandings; and leveraging
the diverse perspectives and experiences of learners and employees.
 Leadership: Leadership is the process of influencing and guiding others to
achieve a common goal. Leadership challenges in VHRD include establishing a

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 clear vision and direction; building trust and rapport; and empowering and
supporting learners and employees.
 Collaboration: Collaboration is the process of working together with others to
achieve a common goal. Collaboration challenges in VHRD include coordinating
and synchronizing tasks and activities; sharing and managing information and
resources; and developing and maintaining positive and productive relationships.
 Change: Change is the process of transitioning from the current state to a desired
future state. Change challenges in VHRD include anticipating and responding to
the changing needs and expectations of learners, employees, and stakeholders;
overcoming the resistance and barriers to change; and facilitating the adoption and
diffusion of VHRD innovations.

19.6 DIFFERENCE BETWEEN VHRD AND TRADITIONAL HRD

Virtual human resource development (VHRD) is an approach to human resource

development (HRD) that leverages technology to facilitate learning, performance, and
change in organizations and individuals. Traditional HRD, on the other hand, relies more
on face-to-face interactions, formal training programs, and standardized methods.

Some of the main differences between VHRD and traditional HRD are:

 VHRD is more flexible, adaptive, and responsive to the changing needs and
preferences of learners and organizations, while traditional HRD is more rigid,
prescriptive, and standardized.
 VHRD enables more collaboration, communication, and knowledge sharing across
geographical, temporal, and cultural boundaries, while traditional HRD is more
limited by physical and social constraints.
 VHRD supports more personalized, self-directed, and experiential learning, while
traditional HRD emphasizes more structured, instructor-led, and content-based
learning.
 VHRD leverages various technologies, such as virtual reality, artificial intelligence,
and social media, to create immersive, interactive, and engaging learning

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 environments, while traditional HRD relies more on conventional tools, such as
textbooks, lectures, and workshops.

19.7 SUMMARY

Virtual human resource development (VHRD) is a field of study and practice that explores
how technology can be used to enhance the learning and performance of individuals,
groups, and organizations. VHRD encompasses various aspects of human resource
development (HRD), such as training, education, career development, organizational
development, and change management, but with a focus on the use of technologically
integrative environments, such as virtual reality, online platforms, social media, and
mobile devices. Increasing the accessibility, flexibility, and diversity of learning
opportunities. Reducing the costs, time, and environmental impact of travel and physical
facilities. Enabling collaboration and communication across geographical and cultural
boundaries. Supporting innovation, creativity, and problem-solving skills. Enhancing the
visibility and value of human capital to worldwide stakeholders. However, VHRD also
poses some challenges and limitations, such as: Requiring technical skills, infrastructure,
and support. Creating potential issues of privacy, security, and ethics. Demanding high
levels of self-regulation, motivation, and engagement from learners. Increasing the
complexity and uncertainty of the learning environment. Necessitating the alignment of
VHRD strategies with organizational goals and culture. Therefore, VHRD requires a
holistic and systemic approach that considers the needs, preferences, and characteristics
of the learners, the design and delivery of the learning interventions, the evaluation and
improvement of the learning outcomes, and the integration and alignment of the learning
processes with the organizational context. VHRD is an emerging and evolving field that
responds to the changing demands and opportunities of the digital age. As technology
advances and disrupts the world of work and learning, VHRD can play a vital role in
helping organizations and individuals adapt, transform, and thrive in the new era. VHRD
can also contribute to the social and environmental sustainability of the global community
by promoting green computing, social justice, and global citizenship.

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19.8 GLOSSARY

 Virtual HRD: It is a term that refers to the use of digital technologies and tools to
enhance the human resource development (HRD) function in organizations. HRD
is the process of improving the knowledge, skills, and abilities of employees and
aligning them with the organizational goals and strategies.

19.9 SELF-CHECK QUESTIONS

1. Define virtual human resource development.

2. Explain its characteristics and objectives.

19.10 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 19.1

2. For answer refer to section 19.2, 19.3

19.11 TERMINAL QUESTIONS

1. Define virtual human resource development. Explain its characteristics and objectives.

2. Explain the benefits and challenges of virtual human resource development.

19.12 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 19.1, 19.2 and 19.3

2. For answer refer to section 19.4, 19.5

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 CHAPTER -20

WORKFORCE DIVERSITY

STRUCTURE

20.0 Learning objectives

20.1 Introduction
20.2 Managing workforce diversity
20.3 Why is workplace diversity important?
20.4 Some examples of diversity in the workplace
20.5 Types of workforce diversity
20.6 Advantages of a diverse workforce
20.7 How does workforce diversity impact a business?
20.8 How do you create diversity in the workplace?
20.9 Summary
20.10 Glossary
20.11 Self-Check Questions
20.12 Answer To Self-Check Questions
20.13 Terminal questions
20.14 Answer to Terminal Questions

20.0 LEARNING OBJECTIVES

After studying the lesson, you should be able to:-
 Discuss the managing workforce diversity.
 Describe the why workplace diversity is important.
 Discuss the advantages of workforce diversity.
 Describe the types of workforce diversity.
 Describe how you create diversity in the workplace.

20.1 INTRODUCTION

A diverse workforce simply means a company has built a diversified workforce that
includes many different types of people. Diversity in the workplace can mean people of

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different ethnicities, sexual orientations, socioeconomic statuses, ages, genders,
religions and other ways in which humans innately differ. It can also simply mean people
who have different personalities and will approach situations differently. For example,
include both introverts and extroverts. It is important for people to understand
the workforce diversity meaning so that, ideally, an organization will build a workforce
consisting of all of the above. It is also important to match its strategy for having diverse
employees by implementing diversity and inclusion with its overall organizational goals
and values.

Workplace Diversity refers to the inclusion of personnel from diverse backgrounds such
as different races, cultures, religions, sexes, ages, and sexual orientations. It also
includes personnel with physical and mental disabilities as they should not be
discriminated against under any circumstances. Workplace diversity aims to eradicate
any biased treatment of individuals based on any external factor apart from their work. It
helps create a workplace culture of motivated and engaged staff, who would love to
continue working in their safe workplace for longer, thereby improving employee
retention rate.

20.2 MANAGING WORKFORCE DIVERSITY

Diversity management is a procedure made to generate and maintain a healthy and

positive work atmosphere in offices where sameness and differences are valued in the
organization. The meaning of diversity management has greatly been emphasized on its
impact on diversity variations, requirements, expectations, and several other critical
issues. The word diversity itself entails several meanings which are along the lines of
different religion, race, beliefs, status, gender, age, political beliefs, ethnicity, and other
ideologies. Workforce diversity is a term that means exploring these dissimilarities in an
open, safe, and nurturing environment.

Diversity management in the workplace is created to make sure that every employee is
treated equally so that they can all be their best self and happily contribute their part to
the organization’s growth and strength. Managing workplace diversity can present a lot
of challenges and hardships for HR managers. Having said that, these challenges can be
resolved if a company makes a serious effort to encourage a more heterogeneous work-

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atmosphere by encouraging a culture of tolerance, creating strategies to resolve conflicts,
and promoting open communication. There are certain tips that can be followed to
maintain a proper workforce diversity, such as;

 Encourage Open Communication

To manage a diverse workforce, companies need to ensure that their employees
don’t hesitate to tell what’s on their mind. Safety rules, procedures, policies, and
other crucial information should be drafted in a way to overcome cultural and
language barriers by using pictures and symbols and translating materials
wherever applicable.
 Treat Every Employee Equally
It is very essential to treat every employee as an individual. Never assume
anything about an employee just because he/she is from a different background.
Look at every employee and judge them solely on the basis of their merits and
demerits rather than judging them from their background.
 Encourage Diversity Amongst Employees
Create a team or group where employees are from different cultural diversities,
this way they can get to know about each other and start to see each other’s sides.
If you put employees with similar backgrounds in one team, they will never learn
how to adjust.
 Open-Mindedness
Companies should encourage the employees to realize and understand that any
employee should not be judged on the basis of their background, age, etc. but
rather on the value that they add to the organization.
 Hiring
To improve workforce diversity, it is essential to peruse and recruit talents from
various backgrounds. Since the HR managers are responsible for short-listing the
candidates, it is very important that they should not be bias and short-list
candidates based on their talents and skills. If an organization is successful in
breaking the bias in the recruiting process, it will have a healthy workforce diversity.

20.3 WHY IS WORKPLACE DIVERSITY IMPORTANT?

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Workforce diversity is something that has become very essential nowadays and hence
most companies are trying to achieve it. While an organization’s reputation and workforce
inclusion are definitely paramount goals worth pursuing, workforce diversity has many
other tangible and immediate benefits connected directly to the organization’s bottom-
line. Hence, diversity and inclusion in the workplace are not just a necessity, but also a
major competitive advantage. Organizations with a diverse workplace outperform their
competitors and achieve great success. Workforce diversity is important for many
reasons, some of them are;

1. Different Perspectives

Diversity and inclusion in the workplace give room for different perspectives. As diversity
in the workforce means that employees will mostly have different backgrounds and
characteristics, they are likely to have different experiences and skills. Ergo, employees
in an organization with more workforce diversity will have insights into various
perspectives, which is highly profitable when it comes to strategizing and implementing
various business strategies.

2. Faster Problem Solving

When it comes to benefits of workforce diversity, faster problem-solving is one of the most
important ones. Employees with different diversity, have different views and experiences,
thus they can contribute diverse solutions to any problem. Having a variety of solutions
to a problem helps in resolving it faster.

3. Increased Profits

Organizations with a diverse workforce achieve tremendous profits. It helps in making the
best decisions quickly, which gives them an enormous advantage over their competitors.
Consequently, companies with diverse workplace reap better profits.

4. Reduced Retention

Workforce diversity is very paramount when it comes to retaining employees.

Organizations with diversity in the workplace are more open to different perspectives and
thoughts. This makes the employees feel valued and heard, which in turn makes them

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loyal towards the organization and their work. If an employee is happy with the way he/she
is being treated in the company, they will surely stick with the company for the long haul,
thus lowering the turnover.

20.4 SOME EXAMPLES OF DIVERSITY IN THE WORKPLACE

The number of factors that define diversity in the workplace is numerous. Throughout an
employee’s life, their different background, colour, genetic predispositions, and gender
truly change their experience as a person. Thus, when it comes to diversity in the
workplace, the examples are many, some of them are;

Physical abilities and disabilities

Hiring an employee with any kind of physical disability or experience will not only help
your company to create a more diverse environment but also bring unique perspectives
and ideas to the table that will help your company in reaching a wider market of clients
and customers.

Mental health

Employee health is a priority in the HR department, but usually, mental health is left out
in these structures. Without the resources and support to understand and help the
employee’s needs, there is a high chance that organizations may see an increase in
employee absenteeism. To resolve this stigma, nowadays more and more companies are
including mental health in their employee benefits program.

Cultural background

There are various factors that entail different cultures, including native language,
traditional food, customs, and religion. While many people take interest in knowing more
about other cultures but are an entirely different scenario to work with colleagues who hail
from different cultures on a daily basis. Cultural differences can bring both, learning about
other cultures as well as barriers and challenges amongst employees who are
uncomfortable with their co-workers’ culture. Thus, it’s very important for employers to
bring diversity in the workplace to educate the employees about cultural differences and
make them appreciate and celebrate them.

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20.5 TYPES OF WORKFORCE DIVERSITY

There are many things that come into play in a diverse environment, some of these
differences can be seen from outside, while some are invisible and just the way a person
was born. These prime differences are the grounds on which the four different types of
workforce diversity was created, which are as follows;

1. Internal Diversity

Internal diversity traits are something that can’t be changed as a person is born into it.
These are the characteristics that an individual did not choose for themselves and can’t
be changed by anyone. Some examples of internal diversity are sexual orientation,
religion, mental and physical ability, nationality, ethnicity, age, etc.

2. External Diversity

In the terms of workforce diversity, the word external is used to relate to characteristics
that an individual wasn’t born with. It is usually an influential kind that people pick up from
their surroundings. Since a person is not born with it, this diversity can certainly be
changed if a person wants to. Examples of this type of workforce diversity are education,
personal interests, appearance, relationship or familial status, religious or political beliefs,
citizenship, etc.

3. Organizational Diversity

Also known as functional diversity, it refers to the dissimilarities between individuals that
are assigned to them by their companies- substantially these are the attributes within an
office that distinguishes every employee. Regardless of what your job role is or what you
get paid, any kind of work that you do connects you to your company. The different
subsets of this include seniority, pay time, management status, place of work, etc.

4. Worldview Diversity

The last type is called worldview diversity and includes internal, external, and
organizational diversity altogether. Some examples are- outlook on life, moral compass,
political beliefs, etc.

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20.6 ADVANTAGES OF A DIVERSE WORKFORCE

 Increased Creativity
One of the benefits of diversity in workplace is that it boosts the creativity of the
employees. It is said that sameness breeds sameness. If you keep hiring
heterogeneously, that is, every employee hails from similar background, culture,
socio-economic situation, same perspective, etc. Then you are limiting the room
for innovation and creativity. On the other hand, if you hire employees from diverse
backgrounds, they will have diverse and different approaches to achieve the
company’s goal.
 Increased Productivity
There’s a well-known jargon- workplace diversity not only enhances creativity but
also productivity. And this is because creativity ultimately leads to productivity. The
more diverse cultured employees, the more diverse brainstorming takes place.
 Enhanced Performance
When a company has a diverse workplace, it helps to make every employee feel
included no matter who they are or where they come from. This feeling of being
valued and included breaks down all the barriers between an employee and the
organization and helps them to raise their voice and share their thoughts and
ideas.
 Diverse Learning Scope
A diverse workforce is contained with employees from different backgrounds, with
different skill set, talents, knack, technicality, proficiency and expertise which
ultimately crates a platform of exchanged learning among the employees. A
healthy knowledgeable workplace ecosystem not only enhances productivity of the
company but also increases the knowledge and exposure of employees to grasp
cognizance along with vivid networking. Thus, creating a diverse workforce with
employees from different backgrounds enhances the knowledge of your
employees and provide them a healthy working environ to perform productively.

20.7 HOW DOES WORKFORCE DIVERSITY IMPACT A BUSINESS?

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 Improves Company Performance: Improving diversity in the workplace is crucial

to improving performance. People who feel respected and at ease will outperform
people who are stressed and disrespected.

 Improves Employee Engagement and Retention: Employees who feel

appreciated and empowered remain more loyal than those who are treated
shabbily. A diverse and inclusive workplace delivers that.

 Improves Public Perception of Your Brand: If a company is public with its

diversity strategy, then it will build its image among aware people. This will help it
grow.

 Promotes Creativity, New Ideas, and Perspectives: Because of their different

perspectives, different backgrounds, and cultural experiences, a diverse workforce

helps keep a workplace from becoming stagnant. A stagnant workplace brings
poor results. Stagnation brings about discontent. A vibrant, creative workplace with
different perspectives builds camaraderie and esprit de corps.

 Creates a Better Understanding of Target Demographics and What Drives

Them: Members of a diverse workplace understand people of similar backgrounds

as they have want in both the products and services they buy and the companies
from which they buy them.

 Aligns an Organization’s Culture With the Demographic Makeup of

America: When people in a diverse workplace feel as if they identify closely with
their clientele, then they can use their own experiences and understanding to
assess the American people’s preferences accurately. The culturally diverse
workplace is a cross-section of the U.S. as a whole.

 Improves Customer Satisfaction by Improving how Employees Interact With a

More Diverse Clientele: By improving how employees interact with a more

diverse clientele, customer satisfaction will improve. People of the global majority,
in other words nonwhite, will appreciate a company that tailors its presentations
and brand to them and respects not only themselves but also their culture and

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 history. A diverse workforce will know how to work with these folks to make their
experience as good as possible.

20.8 HOW DO YOU CREATE DIVERSITY IN THE WORKPLACE?

The first step to building a more diverse workforce is simply hiring employees from
different backgrounds. Companies should not mistake tokenism for diversity. Tokenism
is where they hire a single person from one group while all of their other employees are
from another group. This is not only unhelpful but it comes across as shallow and likely
will lead to disgruntled employees. Integrate a hiring strategy with overall business
objectives. For example, hiring employees from a specific group may help the company
be successful in particular business ventures, such as expanding into a new area or
offering a new product. As Forbes notes, a diverse workforce can be difficult to achieve.
It is important for companies to learn from their mistakes and keep trying.

Creating diversity in the workplace involves tearing down centuries of bigotry and
stereotyping. Qualified people for each job could have any combination of characteristics
other than a white, straight, cisgender male. Companies that are either stuck in the Dark
Ages or that embrace the values and characteristics of those times must completely
change their mindset as well as their culture.

They must hire only based on ability to do the job. They must cast aside nepotism, “favors
for friends,” and every other thing that creates bad feelings among workers and
management alike. Most of all, they have to start to put their employees first. An
increasingly diverse and savvy public is not standing for Dark Ages mentality any longer.
In order to embrace workplace diversity, companies should make sure that:

 The HR team is aware of diversity hiring goals. If these folks don’t know whom

the company wants to hire, then they can’t hire the right people.

 Diversity policies are outlined in the employee handbook. There should be no

cases of, “I didn’t know,” when it comes to workplace diversity. Each employee
should know the company’s stance on diversity while reading the handbook.

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 There is a code of conduct. Employees and management personnel alike should

follow a strict code of conduct while embracing and enforcing workplace diversity.

 There is a nondiscrimination policy. This policy should align with federal law

regarding protected groups and the prohibition against discriminating against

these groups. This includes not only hiring people but also evaluating them,
managing them, and promoting them within the company.

 There is a compensation and benefits policy. No one should receive different pay

simply for being different than others. The pay and benefits outlined in the
employee handbook should be equal for all people performing the same duties.

 Employment conditions and termination are clear. All people should be safe

while at work and while performing the jobs they are assigned. They should not be
fired for any reason relating to who they are. This goes back to the nepotism
concept, too. No one should be let go to make room for “the boss’s nephew.”

 Your company is an equal opportunity employer. This ties in with the

nondiscrimination policy. Every person who applies should have the same
opportunities as every other person in the company, without exception.

 There is a clearly defined zero tolerance policy. This means also that violations

of the policy are dealt with swiftly and fairly. Having a policy and not enforcing it is
worse than have no policy at all.

 Employees are aware of diversity policies and that they have an open door of

communication to report any diversity issues. Confidentiality goes along with

the open door. There must be no reprisals against anyone making a good-faith
report of diversity failures.

 Employees engage in sensitivity training. Not everyone is as aware as others

regarding diversity. Education is key.

 The company stays current with diversity laws. Laws change. A company that

keeps its eyes and ears open won’t be caught unawares.

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  There are opportunities to create team building activities based on the

interests and abilities of employees. This ties in with the concepts of

camaraderie and esprit de corps. Happy employees are productive employees.

 The company has benefits that attract more diverse employees:

o Floating holidays, such as Rosh Hashanah, Yom Kippur, Ramadan, the

various solstices, and other holidays that are important to other religions

o Working remotely, which can accommodate people who might have trouble
getting to the office because of a disability

o Flexible work schedules for people who study, have children in school, and
other things that would interfere with the now obsolete 9-5 workday

20.9 SUMMARY

Diversity management in the workplace is created to make sure that every employee is
treated equally so that they can all be their best self and happily contribute their part to
the organization’s growth and strength. Managing workplace diversity can present a lot
of challenges and hardships for HR managers. Having said that, these challenges can be
resolved if a company makes a serious effort to encourage a more heterogeneous work-
atmosphere by encouraging a culture of tolerance, creating strategies to resolve conflicts,
and promoting open communication. Workplace Diversity refers to the inclusion of
personnel from diverse backgrounds such as different races, cultures, religions, sexes,
ages, and sexual orientations. It also includes personnel with physical and mental
disabilities as they should not be discriminated against under any circumstances.
Workplace diversity aims to eradicate any biased treatment of individuals based on any
external factor apart from their work. It helps create a workplace culture of motivated and
engaged staff, who would love to continue working in their safe workplace for longer,
thereby improving employee retention rate.

20.10 GLOSSARY

 Diverse workforce: Diverse workforce simply means a company has built

a diversified workforce that includes many different types of people. Diversity in

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 the workplace can mean people of different ethnicities, sexual orientations,
socioeconomic statuses, ages, genders, religions and other ways in which humans
innately differ.

20.11 SELF-CHECK QUESTIONS

1. What do you mean by workforce diversity?

2. Discuss the managing workforce diversity.

3. Explain why workplace diversity is important.

20.12 ANSWER TO SELF-CHECK QUESTIONS

1. For answer refer to section 20.1

2. For answer refer to section 20.2

3. For answer refer to section 20.3

20.13 TERMINAL QUESTIONS

1. What do you mean by workforce diversity? Discuss the managing workforce diversity.

2. Explain why workplace diversity is important.

3. Discuss the advantages and types of workforce diversity.

4. Explain how you create diversity in the workplace.

20.14 ANSWER TO TERMINAL QUESTIONS

1. For answer refer to section 20.1, 20.2

2. For answer refer to section 20.3

3. For answer refer to section 20.6, 20.5

4. For answer refer to section 20.7

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