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Resource requirements for making HRD work

There are different kinds of HRD structures for different organisations. T V Rao elaborates on the various categories, focusing on why these structures should be need-based

HRD departments should be high competency-based, business driven rather than merely HRD system driven

In organisations, HRD structures may take many forms. Some of these include:

A dedicated and fully-manned HRD department

(i) A corporate HRD department with HRD cells in the units or locations.

(ii) A high profile HRD chief with very limited staff

(iii) A HRD Task Force largely drawn from line managers with an HRD-trained chairman.

(iv) The CEO himself handling HRD.

(v) The training manager handling HRD.

(vi) The personnel chief handling HRD.

(vii) HRD being handled at the corporate level by HRD staff and at the unit level integrated into the personnel department.

The reasoning also is valid for structuring HRD at national levels for development. It could be structured as a separate department or ministry. Most countries in the developing world have done this. There is, in fact, a regular convention of ministers and others associated with Human Resources Development in the Asia-Pacific region, ESCAP region, sub-Saharan Africa, etc. In some countries, the prime minister himself may be handling HRD portfolios. In other countries specialised task forces look after Human Development, education and the like. The above structural issue and the discussion below are equally applicable at the national level for development purposes.

Dedicated full-department

HRD departments may become developed depending upon the size of the organisation and its needs. It is not uncommon to have large-size HR departments in large-size organisations. For example, in some organisations, the size of HR departments runs into hundreds. In IT companies in developing countries, there is an HR person for every 50 to 100 knowledge workers. In large-size organisations, HR tasks may be subdivided. Different HR staff may deal with different HR tasks. There can also be a dedicated full-scope HRD Ministry in a country.

Corporate HRD with HRD cells in locations

In this structure, there is normally a corporate HRD function at the headquarters and there are separate independent HR departments at plant/geographic/ regions/zones. The plant or location cells normally have dual reporting relationships—one to the location head and the second to the corporate HR chief. Policy responsibilities are normally with corporate HR and implementation responsibilities are with the location HR cell. This structure introduces its own dynamics. For example, the corporate HR may be insensitive to local needs and the location HR may be too engrossed with routine matters and immediate needs. The locational HR may tend to downplay and neglect long-term strategies and HR policies.

In countries with a federal government and regional frame-work (states or other territorial divisions) these structures are common. The issues are similar. The federal minister of HRD or the education and the state minister for HRD constitute the HRD team.

Sleek department

Another structural variation practiced by some organisations is to have one or more high-profile HR chiefs with fewer staff. This structure is more common in software, financial services and such other companies with a high proportion of professional staff. In such cases, the competencies of the HR chief become more critical than the structure itself. Outsourcing HR implementation is more common in such structures. The audit should focus on the adequacy of this model as well as the cost-effectiveness of outsourcing practices.

HRD taskforce

In smaller organisations that do not require a full-fledged HRD department, a group of competent line managers could form a task force with one of them as chairperson. The group meets periodically and plans HR interventions, and implements and monitors them. In some instances, they could be assisted by a full-time HRD manager. In this structure, the ownership is with the task force. This kind of structure is possible in smaller organisations. National-level working groups, committees and task forces are a common practice.

CEO as HRD manager

In yet another variation, the CEO himself may handle HR functions. In such a case, he takes the help of the corporate planning cell or TQM cell or the other related role holders. Principally he takes all strategic HR decisions. This kind of structure is possible in relatively smaller organisations. The personnel function is separated out in such cases and does only establishment work of routine nature.

Other structures

In addition to these, there are other models. These incl-ude the training manager or the personnel manager handling the HR function. Each of these has their advantages and disadvantages.

The HRD department plays a significant role in making the HRD systems and processes work.

The structure includes the following:

1. Task structure including the activities, their grouping and their linkages;

2. Manpower including the levels and their competencies, experience, etc.;

3. Roles, role relationships, role clarity, role effectiveness and inter-role linkages;

4. Competency structure;

5. Infrastructure and infrastructure facilities for effective functioning of the HRD departments;

6. Organisational structure including hierarchies and hierarchical relations and organisational process, including the systems processes, norms values and culture that governs the department.

The following are typical points that need to be kept in mind while structuring the HRD department:

Ensure that the structure is need-based

HRD departments in the past have proliferated. In the mid-70s when HRD departments were started, they were started with a view to promote competence-building and work motivation. The personnel departments did not focus their attention on developmental aspects and it was felt necessary to have a specialised group in order to promote learning among individuals, dyads and teams. The CEOs were urged to pay attention to the human aspect of the organisation. The HRD department became, in a way, an instrument for this. The need was fulfilled to a large extent by the late 80s. By the early 90s, the focus of HRD changed from HR for its own sake to HR for business. Today in a globally competitive environment, the assumption that human resources in an organisation deserve attention so that they can be harnessed and developed in order to help the organisation achieve its goals, is well-understood and need not be stressed.

The following principles may have to be kept in mind while evaluating the structure and their adequacy:

  • HRD departments have the capability like any other department to self-multiply. Such self-multiplication is not always in the interests of the company. Every activity has to have value addition.
  • HRD department should be high competency-based, business driven rather than merely HRD system driven.
  • It is possible to implement HRD systems and to strengthen HR processes in a corporation without a formal HRD department.

Ensure value addition

The HRD activities undertaken by the HRD department should contribute to one or more of the following:

  • Competencies required to execute or conduct the current (this year and the next year) business effectively and efficiently and meet business goals (profits, cost reduction, increased market share, quality of products, market image, new markets, customer satisfaction and delight, appropriate use of current resources including technology, people, organisational capabilities, etc.)
  • Competencies needed to contribute to the future (next three years and above), and business goals of the company. This may flow from the business strategies and the long-term plans (diversification, new product development, new technologies, new markets, new processes, new culture, etc.).

Excerpt taken from ‘Future of HRD’ by TV Rao, Macmillan India Ltd

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