Benefits and Strategies of Human Resource Development (HRD)

Benefits and Strategies of Human Resource Development (HRD) Introduction Human resource development coordinates the functions of training and development experiences in the organizations. In recent years the scope of human resource development (HRD) has expanded from simply providing training programmes to facilitating learning throughout the organization in a wide variety of ways. There is an increasing recognition that empoloyees can and should learn continuously, and they should learn from experience, from each other as well as from formally structured training programmes. Nevertheless, formal training is still essential for most organizations. 1.1 Training Defined. It is a systematic modification of behaviour through learning which occurs as a result education, instruction, development and planned experience. It is a learning experience in that it seeks a relatively permanent change in an individual that will improve the ability of performance on the job. Employee training is present-day oriented focuses on individuals, current jobs, enhancing specific skills and abilities to immediately perform their jobs. Learning is a relatively permanent change in behaviour as a result of practice or experience. Development focuses on future jobs in the organization. It seeks to improve a persons overall career prospect. It comprises series of planned training activities and experiences designed to improve managers performance. Activities include attending short courses, job rotation, understudying senior mangers, attachments, completion of long-term academic qualification in the management field. Education refers to activities that are aimed at developing the knowledge, skills, moral values and understanding required in all aspects of life. Its purpose is to provide the conditions essential to people to understand their environment and make a contribution to it. 1.2 SCOPE OF TRAINING Organizations provide training for many reasons: To orient new hires/employees To improve current performance for workers who are not performing well To prepare employees for future promotions, changes in design, processes, or technology in their present job To help organization achieve its purpose by adding value to its key resources (people). It means investing in people to enable them perform better and to empower them to make the best use of their natural abilities. To reduce the learning time for employees. Competitive pressures change the way organizations operate and skills that employees need. 1.3 Training as Related to Other HR Functions HRP identifies the skills and number of employees needed. Recruitment and selection function locates individuals with these skills in the labour market. Information on projected HR needs and probable qualifications helps determine amount and level of training to be provided. Performance evaluation specifies whether employees are performing to the desired standards and if not the employer discrepancies identified may signal the need for additional training. Performance evaluation may be used as criteria for evaluating training effectiveness. Training is pivotal in implementing organization-wide culture change efforts, e.g. developing a commitment to customer service, adopting total quality management etc. 1.4 Training benefits Minimizes learning costs Improves individual, team, and corporate performance in terms of output, quality, speed and overall productivity. Improves operational flexibility (multi-skilling) Attracts high quality of staff by developing their competences Increases commitment of staff. Help to manage change by increasing the understanding reasons to change Help to develop positive culture in the organization Help to provide high levels of service to customer. 2.0 Strategy and HRD Training can help an organization succeed in a number of ways. Ultimately it is employee knowledge and skills that produce the organizations products and services. Training facilitates the implementation of strategy in the following ways: Providing employees with the capability to perform their jobs in the manner dictated by strategy. Assisting in solving immediate business problems such as when managers in an action learning programme studies a real problem faced by their organization and recommend the solution. Helping the organization to keep ahead in a highly competitive and turbulent environment. The training function therefore, must foster a continuous learning culture and stimulate managers to reinvent their organization. Recent changes in the environment of business have made the HRD function even more important in helping organizations maintain competitiveness and prepare for the future. Technological innovations and the pressure of global competition have changed the ways organizations operate and the skills that their employees need. The tight labour market of the lat 2000s has increased the the importance of training in several ways: First, higher employee turnover means that more new employees need training. Second, it has been suggested tha frequent and relevant and relevant development experiences are an effective way to gain to gain employee royalty and enhance retention of top quality staff. Training must be tailored to fit an organizations strategy and structure. For instance, an organization whose strategy involves providing exceptional service through a committed, long -service cadre of a well qualified employees will need more complex training and career development systems than an organization that competes on the basis of simple, low-cost services provided by transcient, unskilled employees. The later will need a highly efficient orientation and basic training. Team- based high involvement organizations find that extensive training in team skills, as well as in individual job skills is necessary to make an innovative organization structure function as in tended. When strategy changes, training is needed to equip employees with the skills to meet new demands Training is seen as pivotal in implementing organization-wide culture -change efforts such developing a commitment to customer serviced, adopting a total quality management, or making a transition to self-directed work teams. PLANNED TRAINING A deliberate intervention aimed at achieving the learning necessary for improved job performance. Purposes: To identify and define training needs involves analyzing corporate, team, occupational, and individual needs to acquire skills knowledge or to improve competencies. Define the learning required Define the objectives of the learning learning objectives should be set which define not only what should be learnt but also what trainees must be able to do after their training programme. Plan training programmes these must be developed to meet the needs and objectives by using the right combination of training techniques and locations. Decide who provides the programme either from within or from outside the organization Implement the training ensure that the most appropriate methods are used o enable to acquire the skills, knowledge and attitudes they need. Identification of Training Needs (Training Needs Assessment) It is an investigation that is undertaken to determine the nature of performance problems in order to establish underlying causes and how these can be addressed trough training. It can be undertaken to identify and justify developmental needs trying to prepare people to take extra responsibilities in future. Purpose and Methods of TNA The choice of methods and sources of information depends partly on the purpose of the training. If it is to improve employees performance and identifying performance deficiencies in the present job, the trainer must begin by looking at present performance to identify the performance deficiencies. Sources of information for this include supervisors and clients complaints, performance appraisal data, objective measures of output or quality or even conducting special performance tests to determine current knowledge and skill levels of employees. Individual or group interviews with superiors, incumbents or even clients. Once performance deficiencies have been identified, next step is to determine whether these deficiencies can be addressed by training. In some cases motivation, constraints, or poor task design can be the cause. If training is planned for current employee destined for promotion or transfer, needs assessment is more complex. The training specialist must measure the demands of the future job and then attempt to assess the ability of employees to meet those demands. If training is destined for new hires, the method must be slightly different. Training is designed on the basis of careful analysis of job content and the assumed characteristics of the trainees. Three Levels of Needs Assessment. Company level: Involves organizational analysis looking at how the training fits within the context of company strategy. Concern should be at issues pertaining to changes that have occurred in the organization e.g. organizational structure, process technology, production problems, human resource plans reputation with competitors, personnel statistics, customer complaints, employee behaviour, retention and motivation strategies Job/Task Analysis: use of job description job specification kind of skills, and knowledge required to perform the job be clearly established Individual levels: identify who should be trained current level of individual skills, knowledge and abilities performance standard of individuals training programme attended. IDENTIFY TRAINING OBJECTIVES Translate the needs identified at those levels into measurable objectives that can guide the training effort. PLAN TRAINING PROGMME It should contain objectives of the training programme Objectives should be the criterion behaviour i.e. the standards or changes of behaviour on the job to be achieved after training. It should have clear contents of what to be covered Length of the programme Where it will take place Techniques to be used Who will provide the training TRAINING METHODS On -the-job training: conducted at the work site and in the context of actual job. Learning by trial and error Sitting next to experienced worker Coaching: Experienced managers guide the actions of of junior or less experienced mangers. Job rotation-involves moving employees to various positions in the organization in an effort to expand their skills, knowledge, and abilities. It can be either horizontal or vertical (promoting employee to new position). It is a good method for broadening individuals exposure to company operations and for turning a specialist into a generalist. Job rotation provides an opportunity for a comprehensive evaluation of the employee by his/her supervisors Assistant to positions: Employees with potential are sometimes given opportunity to work under seasoned and successful managers in different areas in the organization. It helps to get exposure to a wide variety of management activities and are groomed for assuming duties of the next higher level. Committee assignment: It provides an opportunity for the employee to share in decision making, to learn by watching others, and to investigate specific problems. Committees can either task forces (which are temporary in nature), or permanent one. Advantages: the transfer of training to the job is maximized. costs of separating training facility and full- time trainer is avoided trainee motivation remains high because what they learn is job related. OFF-THE JOB TRAINING It is a formal method considered as an incentive, mostly organized in exotic places or in colleges and universities. This approach may not provide as much transfer to actual job as do on -the job programs. Methods include: Lectures and seminars: The traditional form of instruction revolves around formal lecture courses and seminars. They help individuals to acquire knowledge and develop their conceptual and analytical abilities. Simulations: Training technique using exercises based on actual work experiences. Exercises include case study analysis, role playing, business games etc. Team Building: It is the process of enhancing the effectiveness of teams. It helps employees develop capacity of work groups to interact more effectively and develop skills. LEARNING THEORIES They attempt to explain how learning occurs. Stimulus- Response school Cognitive School The Stimulus -Response School (Behaviourial school) Learning is the development of links between stimulus and response. Theorists interested in demonstrating how links can be encouraged, and the way in which experience of other stimuli can change bonds. Specifically, people must be stimulated by learning by the learning process. This school is based on conditioning theories Classical conditioning by Pavlov(1941) Operant conditioning by Skinner, 1953) Classical conditioning Behaviour is learned by repetitive association between a stimuli and a response. Stimulus observable condition that can give rise to behaviour. Response objective manifestation of behaviour Conditioning a process whereby an association is formed between a stimulus and a response Pavlov did an experiment with a dog using an unconditioned stimulus (meat) and a conditioned stimulus (bell). Experiment Before conditioning: Meat( unconditioned stimulus) Dog salivates(un Res) During conditioning: Meat + Bell (cond. Stimulus) Dog salivates (cond. Res.) After conditioning: Bell ringing (cond. Resp Dog salivates Implications: the experiment shows that learning can be transferred to higher order conditioned stimulus other than those used in original conditioning. However, it is difficult to trace exactly the cause effect relationship of the such behaviour. Operant Conditioning ( Skinner- 1953) A type of learning that involves an increase in the probability of a response occurring as a function of reinforcement. Suggests that people emit response that are rewarded Human beings learn behaviours that are rewarded and they will engage in those behaviours. Implications: In organizations, behaviours are learned, controlled , and altered by consequences managers use. Operant conditioning is used to influence behaviours by designing suitable reward systems. Cognitive Learning Theory It involves gaining knowledge and understanding by absorbing information in the form of principles, concepts and facts, and then internalizing it. Learners are regarded as powerful information processing machines Social Learning Theory It states that effective learning requires interaction. People participate in groups of people with shared expertise, and these are the primary sources of learning. Principles of Learning Goal Setting Individual behaviour is influenced by their conscious goals Hard goals result in better performance Learning objectives must be clearly conveyed to trainees Goals must be difficult enough to challenge individuals but not to discourage them Finishing the programme must be supplemented with evaluations, tests, quizzes or any reward. Reinforcement It consists of giving reward following performance of activity that increases the likelihood to perform the activity again. Trainee should know what specific behaviours are expected of him/her Reinforcement be related to these behaviours Reinforcement be prompt and continuous when trainee begins to learn new behaviour. Reinforcements must be effective and should very from individual to individual. Feedback (Knowledge of Results): Feedback with a directional function provides information about behaviour necessary to improve performance Feedback with motivational function provides information about outcome of behaviour that needs to rewarded Behaviour Modeling: People tend to pattern their behaviour with that of their associates, parents, friends, and acquitances etc. Much of the human behaviour is learned by observing others. EVALUATION: It is an attempt to obtain information (feedback) on the effects of a training programme, and to assess the value of the training in light of that information. Evaluation helps to know whether the progamme was worthwhile in terms of cost-benefit terms. It is difficult because it is difficult to set measurable objectives and to collect results the information on the results. Evaluation levels: Reactions: the reactions of participants to the training experience Learning: At this level it requires the measurement of how trainees have learnt as a result of their training new knowledge and skills acquired. Job behaviour: measuring the extent to which participants have applied their learning on the job. Assessing the amount of transfer of learning that has taken place from off the job courses. Organization: attempting to measure the effect of changes in the job behaviour of trainees on the functioning of the organization. E.g. improvements in output, productivity, quality, turnover. . PERFORMANCE APPRAISAL Designing appraisal system Should reflect the needs of those concerned (organization) to collect information for personnel decision making and distribution of rewards. Should be related to longer- term needs of the organization e.g. kind of staff and how they will be developed. Should act as a consultation process: There should be a degree of compromise between the people involved in pursuit of the commitment to the system. Organizational structure and culture dynamically related and should be considered in designing of the system. E.g. a highly structured bureaucratic company will have a different system as compared to a company with a decentralized flat structure. WHO SHOULD BE APPRAISED? Self Appraisal: Reduces defensiveness Individual becomes motivated and committed Disadvantage: Leniency error. Peer Evaluation: May be accurate Appropriate for developmental purposes Useful when supervisor has no chance to observe the employee Can work well in teamwork. Disadvantage: Friendship bias. Immediate superior: Has knowledge of the tasks performed by individual Superiors Superior: He can countersign supervisors appraisal of the employee in approval indicating the process is fair He may directly carry out the appraisal 360- Degree appraisal: An appraisal device that seeks performance feedback from such sources as oneself, bosses, team members, customers and suppliers. It has more accurate feedback, empowering employees, and reduces the subjective factors in the evaluation process Assessment Centres: Assessment centers are most often used in appraising potential superiors and managers. Assessment centres use tests, group exercises and interviews to appraise potentials. MANAGEMENT BY OBJECTIVES (MBO) It is an approach to performance appraisal which emphasizes the need to assess performance with reference: agreed output, tasks to be accomplished or standards of performance. It involves three steps: The employee meets the supervisor and agrees on a set of goals and standards to be achieved during a specific period of time. Goals should be quantifiable and agreed targets. Monitoring progress : employee left free to determine how to achieve the goals At the end of the set period, supervisor and employee meet to evaluate whether goals were achieved and decide together for the new set of goals. Feedback of Results (PA Interview) Before employees are told to improve their performance after appraisal, they must know how they are currently doing. Feedback Interview is a discussion between the supervisor and the employee concerning the employees past performance and how it wiil be improved in the future. Approaches to Feedback Interview Tell and Sell: -The supervisor tells the employee how good or bad the employees performance has been. He attempts to persuade the employee to accept his judgement. The employee has no input in the evaluation The discussion is directive and one sided. Problems Can lead to defensiveness, resentment, and frustration. Subordinate may not accept results and not be committed to achieving goals. Tell and Listen: Supervisor tells the employee what has been right or wrong, and gives him/her a chance to react. Employee participates in the interview by reacting to supervisors statement. Problem Solving: The employee has much more control over the interview He evaluates his/ her performance and sets own goals for future performance Supervisor is helper rather than judge There is an open dialogue in which goals for improvement are established mutually Advantages: It can lead to employee commitment to established goals

Internal Accountant’s Report to Management Essay

Introduction Since our company is preparing for an upcoming government contract bid, management has decided that a full Financial Status Review (FSR) prior to the release of the bid is essential. This report is to provide supporting information prior to the bid in order to evaluate if any irregularities with regard to fraud and/or abuse of the company have taken place and if so, to what effect. The report is divided into four sections, which will cover information on the effect of potential occupational fraud and abuse on the company. It will also discuss U.S. government oversight of accounting fraud and abuse and its effect on the company. Section three will provide potential corruption schemes to be aware of in the company. Finally, some recommendations will be given of types of accounting evidence and methods of gathering evidence to support the FSR and to provide reasonable assurance that no irregularities have occurred. Occupational fraud and abuse According to 2009 Global Fraud Survey organizations lose about 5% of its gross revenues to all forms of fraud and abuse in the workplace. Moreover, having to report fraud is very unhealthy for the company and its stakeholders. It can result in some negative effects like remunerations and salaries, employee base, employee benefits, but also morale and profits. Also occupational frauds and abuses usually have an adverse effect on the reputation of the company. In case of a very significant fraud it may even lead to bankruptcy. U.S. governmental oversight of accounting fraud and abuse There have been many significant accounting scandals, like Enron, Computer Associates, Xerox, Adelphia, WorldCom and Royal Ahold, that have had extensive press coverage and, despite the fact that some of them are already some years in the past, they are still being discussed. Since then many new, different and strict accounting regulations and rules have been created in order to prevent or defer fraud, abuse or waste. Many of the frauds were with regard to revenue recognition, which has led to many improvements by now. Noticeable changes have been made in the way firms from particular industries book revenues as a result of the heightened SEC scrutiny of revenue accounting; companies have become more conservative when it comes to the timing of the revenue recognition. Particularly many Internet companies have reduced the total amount of the revenue being recognized compared to the situation before the heightened scrutiny. According to a survey in FORBES, less fraud cases have been reported recently. Enforcement cases and prosecutions over the last decade were very well publicized which had a positive effect on the attitude of many companies’ senior management. Also it is said that government’s enforcement efforts have had a deterring effect. Moreover, additional requirements imposed by Sarbanes-Oxley Act (SOX) made senior executives more concerned about the financial results reported and on which they have to sign off. It is clear that the US financial reporting environment has changed and based on the positive current events, constantly improving reporting requirements, rules and regulations, even greater changes are expected in the future. Corruption schemes Corruption has unfortunately been a very common phenomenon in the work environment throughout the years. It is defined as  ¨an intent to gain particular personal advantage at the cost of organization ¨ he/she represents. Corruption schemes are usually divided into 4 main categories: * Bribery and Kickbacks * Commercial bribery is the offering, giving, receiving or soliciting of anything of value to influence the outcome of a business transaction * It usually involves the submission of invoices that are overpriced or fictitious * Is usually undertaken by employees such as purchasing agents * Economic Extortion * Money extortion from a potential purchaser or supplier * Example: a corrupt purchasing officer demanding a payment in exchange to make a decision in the vendor’s favor * Conflicts of Interest * The situation occurs when an employee, manager or executive has an undisclosed personal or economic interest (with a negative effect on the company) * For example, the victim organization is not informed that its employees have divided royalties * This scheme includes the exertion of the insider’s influence to the detriment of the entity * Illegal Gratuities * This type of scheme is similar to bribery schemes. The only difference is that there is an intent to reward a business decision, rather than influence it * A common example is when purchasing agents are promised expensive vacations, etc. after a vendor’s contact is approved Accounting evidence and evidence gathering methods Gathering accounting evidence is a very common activity in auditing. Accounting evidence is being collected using investigative and auditing practices. For investigations, this is the evidence that lawyers and government officials can rely on for very important and high profile cases. For more routine reviews as the FSR prior to the bid, it is the type of evidence that we can rely on to give reasonable assurance that no irregularities have occurred. In both situations, the accounting evidence should be based on the following important qualities: * Relevance * Materiality * Competency The types of accounting evidence we are referring to include: * Physical evidence * Third-party representations * Documentary evidence * Computations * Data Interrelationships * Client representations * Accounting Records Since this is a FSR and not an investigative procedure, I recommend the following auditing methods to gather evidence that will provide reasonable assurance that no irregularities have occurred and that our financial statements are relevant and have been compiled in a competent manner and contain no material misstatements: * Compliance testing – to ensure that we have an adequate internal control system and that it is working effectively; an adequate level of transaction testing will have to be performed to provide this assurance * Substantive testing – a. Test of detail – for the purpose of the FSR I recommend these only when and where the internal control system does not provide the assurance we desire b. Analytical testing – I recommend these to provide further assurance that our financial statements adequately reflect the financial position of our company References: Wells, J. (2011). Principles of fraud examination (3rd ed). Hoboken, NJ: Wiley. Singleton, T. W., Singleton, A. J. (2010). Fraud auditing and forensic accounting. (4th ed.). Hoboken, NJ: Wiley. Online Source: http://safeside.ch/safeside.info/index.php/fraud-schemes/corruption/224-corruption-schemes-

Analysis Of Raghu Nandan s Understanding Of An Intrapreneur

Intrapreneurial Intrapreneurial Opportunities are key components for companies actively involved in new strategic planning as they seek success in the near future. Raghu Nandan’s understanding of an intrapreneur is an individual or a group of individuals that work for a large company that take internal ideas and visions within a company and configures them into a higher gross profit for a company (Nandan, 2009). An intrapreneur is similar to an entrepreneur with the concept of a business idea that is created with innovation and designed to generate a revenue stream but the only difference is that and entrepreneur doesn’t operate under a large company. Customer Reach By performing a PEST analysis on State Farm insurance, it is clear that the auto insurance industry in New York is operating under many laws and restrictions when viewed from a political perspective. Since State Farm is a financial service, there is no physical product that is being created and manufactured. Financial service can be difficult to market because there is no product and discussed in the social element of the PEST analysis, insurance companies don’t always have a good reputation. It is import for intrapreneurs to develop excellent marketing and advertisements that will attracted many customers with intentions of company expansion. With advertisement in this industry, there should be many targeted markets. A great example of State Farm taking advantage of its intrapreneurial opportunities is

Interpersonal Skills Interpersonal And Social Skills

Interpersonal/Social Skills Sociability is the third most important skill for CEOs. People’s skills entail those skills, which help a leader work effectively with peers, superiors, and subordinates to achieve the goals of an organization (Adair, 2009). A leader must have the ability to relate well with followers. Effective leaders have self-awareness, as well as the awareness of those around them. The leader needs to be socially perceptive. A leader requires interpersonal skills to show emotional intelligence. It assists a person in understanding emotions and applying this understanding to daily tasks. A leader must also learn ways of ensuring temperance with their emotions as self-regulating ensures good leaders appear professional to their subordinates. Another important aspect of interpersonal skills is managing interpersonal conflicts. Regardless of how effective a leader is conflicts are bound to occur. 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