1. HUMAN REROURCE DEVELOPMENT
The American Society for Training and Development defines HRD as follows: ‘human resource development is the process of increasing the capacity of the human resource through develop­ment. It is thus the process of adding value to individuals, teams or an organization as a human system’.
Competency in people
Commitment in people
Culture in the organization

2. HRD ………process by which employees of an organization are helped in continuous & planned way to
Acquire or sharpen capabilities required for present & future
Develop general capabilities as individuals & discover & exploit their own inner potential for their own & organizational development purpose
Develop organizational culture in which superior- subordinate relationships, team work & collaboration among sub units are strong & contribute to professional well being , motivation & pride of employees.

3. Objectives of HRD Objectives of HRD:
The prime objective of human resource development is to facilitate an organizational environment in which the people come first. The other objectives of HRD are as follows:
1. Equity:
Recognizing every employee at par irrespective of caste, creed, religion and language, can create a very good environment in an organization. HRD must ensure that the organization creates a culture and provides equal opportunities to all employees in matters of career planning, promotion, quality of work life, training and development.
2. Employability:
Employability means the ability, skills, and competencies of an individual to seek gainful employment anywhere. So, HRD should aim at improving the skills of employees in order to motivate them to work with effectiveness.
3. Adaptability:
Continuous training that develops the professional skills of employees plays an important role in HRD. This can help the employees to adapt themselves to organizational change that takes place on a continuous basis.

4. Objectives of HRD Develop human resource Provide opportunity
Prepare to perform
contribute towards the excellence of technical and management education.
Assist the existing and potential customers
Promote a culture of creativity, innovation, human development, respect and dignity.
Achieve excellence
Create conducive environment

5. FEATURES OF HRD 1. Systematic approach:
HRD is a systematic and planned approach through which the efficiency of employees is improved. The future goals and objectives are set by the entire organization, which are well planned at individual and organizational levels.
2. Continuous process:
HRD is a continuous process for the development of all types of skills of employees such as technical, managerial, behavioural, and conceptual. Till the retirement of an employee sharpening of all these skills is required.
3. Multi-disciplinary subject:
HRD is a Multi-disciplinary subject which draws inputs from behavioural science, engineering, commerce, management, economics, medicine, etc.

6. FEATURES OF HRD ( CONTD..)
. All-pervasive:
HRD is an essential subject everywhere, be it a manufacturing organization or service sector industry.
5. Techniques:
HRD embodies with techniques and processes such as performance appraisal, training, management development, career planning, counselling, workers’ participation and quality circles.
Scope of HRD:
Human resource management (HRM) deals with procurement, development, compensation, mainte­nance and utilization of human resources. HRD deals with efficient utilization of human resources and it is a part of HRM.

7. Features of HRD HRD is a system:
involves the development of competencies at the individual level, interpersonal level, group level and organizational level:
Planned & systematic approach
Continuous process
Inter disciplinary approach
Both micro & macro aspects
a way of improving the quality of working life

8. HRD Subsystem Career system Work system Development system
Manpower planning
Recruitment
Career planning
Succession planning
Retention
Career system
Role analysis
Role efficacy (potential effectivess)
Performance plan
Performance feedback and guidance
Performance appraisal
Promotion
Job rotation
Reward
Work system
Induction
Training
Job enrichment
Self-learning mechanisms
Potential appraisal
Succession Development
Counseling
Mentor system
Development system

9. HRD Subsystem Self-renewal system Culture system Survey
Action research
Organizational Development interventions
Organizational Retreats
Self-renewal system
Vision, Mission and Goal
Values
Communication
Get-togethers and celebrations
Task forces
Small Groups
Culture system

10. HR ACCOUNTING Introduced in mid 60s
The American Accounting Association's (AAA) (1973) has defined Human Resource Accounting as "the process of identifying and measuring data about human resources and communicating this information to interested parties".

11. Flamhoitz defines HRA as ‘accounting for people as an organizational resource. It involves measuring the costs incurred by organizations to recruit, select, hire, train, and develop human assets. It also involves measuring the economic value of people to the organization’.

12. Necessity of Human Resource Accounting
Measuring the expertise
True value of the assets and liabilities hold by the organization
Applying a strong monitoring process
Basis for controlling the human resource
Provide the investors of the organization, shareholders and debt holders, accurate information for better decision making.
True picture of the future prospects
How much value addition is done by the organization to country's human resource

13. Monetary value based approaches:
i) The Lev and Schwartz Model
ii) The Eric Flamholtz Model
Iii)Hermanson’s Model

14. LEV AND SCHWARTZ MODEL
Human resource of a company is the summation of value of all the Net present value (NPV) of future earnings of employees

15. steps are adopted to determine HR Value.
Classification
Construction of average earning stream for each group
Discounting the average earnings at a predetermined rate in order to get present value of human resource's of each group.
Aggregation of the present value of different groups

16. the capitalized future earnings of the concern as a whole,

17. Critical appraisal of the Lev & Schwartz model:
It ignores the output i.e. productivity of employees
Service state of each individual employee is not considered.
The training expenses incurred by the company on its employees are not considered.
The attrition rate in organization is also ignored.
Factors responsible for higher earning potentiality of each individual employees like seniority, bargaining capacity, skill, experience etc causing differential salary structure are also ignore.

18. Flamholtz Model (Reward Valuation method)
This is an improvement on ‘present value of future earnings model’
It takes into consideration the possibility of an employee’s movement from one role to another and
His leaving the firm earlier, that his death or retirement.

19. Flamholtz Model (Reward Valuation method)
Five steps approach for assessing the value of an individual
Forecasting the period of his expected service life;
Identifying the services states,
Estimation of the probability of occupying each possible mutually exclusive state at specified future times; and
Estimating the value derived by the organisation when he occupies the positions for specified time periods;
Discounting the value at a predetermined rate to get the present value of human resources.

20. Hermanson's unpurchased goodwill model
According to Hermanson, the unpurchased goodwill notion is based on the premise that ‘the best available evidence of the present existence of un-owned resources is the fact that a given firm earned a higher than normal rate of return for the most recent year.
Firms income / normal rate of income in industry

21. Hermanson’s Adjusted Discounted Future Earnings Model
He suggests the adjustment of future wage stream by an efficiency factor.
To calculate Efficiency Ratio, he makes use of weighted average of firm’s net income during the past five years.

22. Hermanson’s Adjusted Discounted Future Earnings Model
Estimation is done about annual salaries for next 5 years
Present value of wages is calculated by multiplying wages with discount factor
Calculate efficiency ratio with formula
Present value of wages and salaries are multiplied with efficiency ratio

24. Hermanson’s Adjusted Discounted Future Earnings Model
RF – Companies earning
RE – Economies earning
Value of HR = Present value of future payments X Efficiency ratio