stage and monitoring stage. There are five areas of human capital management:
recruitment, retention and retirement; rewards and performance management;
career development, succession planning and training; organizational structure; and
human capital enablers. A 5 × 5 matrix using these five stages and five areas could
be used to evaluate and manage the human capital well. For example, in the clarification
stage the managers examine their human capital programmes to fit into their
strategy and overall culture. They may also examine each of the areas to fit into the
strategy, etc.
HRD Audit-based Score Card Approach
Influenced by the Balanced Score Card approach brought out by Kaplan and
Norton (1992), Rao (1999) formulated an HRD Score Card approach to evaluate
HRD. This approach envisaged that HR interventions should be mature in terms
of the HRD systems, competencies, culture (including styles) and business linkages
in order to make the right business impact. The maturity level and the
appropriateness of each of the subsystems of HR, the appropriateness of the HR
structures and the level of competencies of HR staff, line managers, top management,
etc., the HRD culture (defined in terms of openness, collaboration,
trust, autonomy, proaction, authenticity, confrontation and experimentation) and
the congruence of the top management and HR staff styles with HRD culture,
and the extent to which all the systems and practices result in employee satisfaction
and customer satisfaction, etc., are assessed through a well formulated
HRD audit.
People Capability Maturity Model (PCMM) Approach
Curtis, William and Sally (1995) developed this approach for software organizations
with the aim of providing guidance on how to improve the ability of software
organizations to attract, develop, motivate, organize and retain the talent
needed to steadily improve their software development capability. A fundamental
premise of this framework is that a practice cannot be improved if it cannot be
repeated. In an organization’s least mature state, systematic and repeated performance
of practices is sporadic. The PCMM describes an evolutionary improvement
path from ad hoc inconsistently performed practices to a mature, disciplined
and continuously improving development of the knowledge, skills and motivation
of the workforce.
All the above approaches share a lot in common. All of them have the following
characteristics with relatively varying degree of emphasis on them:
1. Systems driven emphasis on HRD systems or subsystems or tools;
2. Link HR practices with business goals;
3. Recognize the importance of HR professionals;
4. Recognize the importance of HRD.