Human Resource Development

&
Planning
Tedwin Thomas
MBA HR

Topics
HRD Challenge's.
HR outsourcing.
HR Audit.
HR Response Development.
HR Accounting.

HRD Challenges
Globalization:
The H.R department will need to create models and processes
for achieving global activeness, effectiveness and
competitiveness.
Managing the Value Chain for Business
Competitiveness
Innovation
Faster Decision Making
Price or Value Advantage
Effective linking with Suppliers

HRD Challenges
Growth of the organization By increasing customer,
acquisition and mergers.

Building organizational capabilities

Reviewing existing capabilities
New capabilities
Aligning new capabilities with business strategies.

HRD Challenges
Managing Change

Adopting some new H.R. Practices

Learning some New Skills and Attitudes

Unlearning some existing skills and Attitudes.

Attracting and Retaining Intellectual Capital

Attracting Talented People.

Retaining them.

Utilizing them suitably.

HRD Challenges
Making Technology viable
Finding out ways and means to make technology successful.
Transforming the Organization
Creating fundamental and lasting changes.

HR Outsourcing
Human resource outsourcing (HRO) occurs when a business
instructs an external supplier to take responsibility (and risk) for
HR functions and perform these tasks for the business. Payroll
outsourcing is commonly outsourced for two reasons: its a
time-consuming administrative task for employers, and there
are many specialist companies with the technology and
knowledge to run it efficiently and compliantly.
Some businesses will outsource their entire HR department
while others will just outsource time-consuming administrative
tasks, which allow their internal resource to focus on the
strategic level.

Some of the services provided by HR outsourcing firms are:

Recruiting, training, and development
Overseeing organizational structure and staffing requirements
Tracking department objectives, goals, and strategies
Employee orientation programs

Some of the well-known HR outsourcing companies are Viteb, PeopleStrong, Trinet etc.

HR outsourcing has become a popular solution for organizations to remain competitive

and cut costs. It also provides skilled professionals who are focused specifically on HR.

Advantages:A properly conducted audit helps in the following

To recognize strengths
To reveal problem areas
Confirms compliance with latest regulations
Ensures effective HR policies
Builds confidence in HR function

Human Response Development

Human Resource Development is basically a process not
merely a set of mechanism and techniques. This process
seeks to/refer to the acquisition of capabilities that are
needed to the job present and future.

Whether we call it human response or resource development,

the underlying purpose is to tune the people so that they
shape the organization environment, methods and outcome
optimally.

 The factors underlying Human Response Development

Schemes
are
recruitment,
selection,
training
and
development, compensation package, satisfaction of needs,
fair deal, health and safety measures, growth and security of
employees etc..

Need of Human Response

Development
HRD is needed by every dynamic and growth oriented
organisation in the fast changing environment.
It is the efforts and the competence of the humans which
make the organisation dynamic or otherwise. No amount of
human competence, morale and motivation, however high
can take the organization to any height unless there is
Enabling Cultures in the Organization.
All exercises aimed at Human Response Development must
revolve around activating and sharpening the will, skill and
competence to work.

HR Accounting
Human resource accountingis
and reportinginvestmentsmade in
organization that are presently
conventionalaccountingpractices.
standard accounting principles.

the process of identifying

thehuman resourcesof an
unaccounted for in the
It is an extension of

Human Resource Accounting means accounting for

people as the organisational resources. It is the measurement
of the cost and value of people to organisations. It involves
measuring costs incurred by private firms and public sectors
to recruit, select, hire, train and develop employees and judge
their economic value to the organisation.

 Definition :
Human resource accounting is the measurement of the
cost and value of the people for the organisation.
- Eric Flamholtz of university of California, Los
Angeles

HR Accounting - India
As far as the statutory requirements go, the Companies Act, 1956 does
not demand furnishing of HRA related information in the financial
statements of the companies. The Institute of Chartered Accountants of
India too, has not been able to bring any definitive standard or
measurement in the reporting of human resources costs.
In India, some of these companies are : Infosys, Bharat Heavy Electricals
Ltd (BHEL); the Steel Authority of India Ltd. (SAIL), the Minerals and
Metals Trading Corporation of India Ltd. (MMTC), the Southern
Petrochemicals Industries Corporation of India (SPIC), the Associated
Cement Companies Ltd, Madras Refineries Ltd. , the Hindustan Zinc
Ltd. , Engineers India Ltd, the Oil and Natural Gas Commission, Oil India
Ltd.,
the
Cement
Corporation
of
India
Ltd.
etc.

Objectives of HRA
Provide cost value information about acquiring, developing ,
allocating and maintaining HR.
Enable management to effectively monitor the use of HR.
Find whether human asset is appreciating or depreciating over
a period of time.
Assist in the development of effective management practices.
To motivate individual persons in the organization to increase
their worth by training .

Uses of HRA
As a political tool, used to demonstrate mismanagement of
human resource.
As a pedagogical instrument for analysing and structuring .
As a decision making aid to ensure that decision on HR are
more rational from the management point of view.

Methods of HR Valuation
1. Historical Cost Method:
Under this method, all actual costs incurred on recruitment,
training, familiarisation, etc., are capitalized.
(It suggests capitalizing the expenditure of the firm incurred on
recruitment and selection, training and development of the
employees and treats them as the assets of the organization for
the purpose of HR accounting.)

2. Replacement cost method :

replacement cost refers to the cost of replacing an existing
employee. In other words, replacing cost is the cost that would cost
to replace the existing human resources with human resources
capable of rendering equivalent services.
3. Opportunity Cost Method:
This method is used to value employees possessing certain skills and,
thus, is rare in availability. Managers willing to acquire such scarce
employees offer bid prices. One who finally acquires the scarce
employees puts the bid price as his investment in such employees.

4. Economic value method:

Under this method, human asset is valued on the basis of the
contribution they are likely to make to the organisation till their
retirement from the jobs. The payments made to them in the
form of pay, allowances, benefits, etc., are estimated and then
discounted appropriately to arrive at the present economic
value of the individuals.

Few Facts about HRD

2 decades this term became popular in india.
Mr. Pareek and Mr. Rao in 1975 outlined the new HRD
system.
HRD was initiated in India at Larsen & Toubro Limited
After L&T implemented it SBI implemented it and got the
results.

Thank
You