Motivation is the Heart of HRM

Motivation is the inner drive that directs a person’s behavior toward goals. Motivation can be defined as a process which energizes, directs and sustains human behavior. In HRM the term refers to person’s desire to do the best possible job or to exert the maximum effort to perform assigned tasks. An important feature of motivation is that it is behavior directed towards goal.

Why is motivation important?
Motivation is important in getting and retaining people. Motivation tools act as the glue that links individuals to organizational goals, In addition, make individuals go beyond the job and be creative.
The Motivation Process
In its simplest form, the motivation process begins with a need; an individual’s perception of a deficiency .For instance, an employee might feel the need for more challenging work, for higher pay, for time off, or for the respect and admiration of colleagues. These needs lead to thought processes that guide an employee’s decision to satisfy them and to follow a particular course of action. If an employee’s chosen course of action results in the anticipated out come and reward, that person is likely to be motivated by the prospect of a similar reward to act the same way in the future. However, if the employee’s action does not result in the expected reward, he or she is unlikely to repeat the behavior. Thus, the reward acts as feedback mechanism to help the individual evaluate the consequences of the behavior when considering futures action.
Core Phases of the Motivational Process:
Need Identification: First phase of motivation process is need identification where the employee feels his/her some unsatisfied need. The motivation process begins with an unsatisfied need, which creates tension and drives an individual to search for goals that, if attained, will satisfy the need and reduce the tension.
Searching Ways to satisfy needs: Second phase is finding the different alternatives that can be used to satisfy the needs, which were felt in first stage. These needs lead to thought processes that guide an employee’s decision to satisfy them and to follow a particular course of action.
Selecting Goals: Once if the need is assessed and employee is able to find out the way to satisfy the need than next phase is selection of goals to be performed.
Employee Performance: These needs lead to thought processes that guide an employee’s decision to satisfy them and to follow a particular course of action in form of performance.
Consequences of performance Reward/punishments: If an employee’s chosen course of action results in the anticipated out come and reward, that person is likely to be motivated by the prospect of a similar reward to act the same way in the future. However, if the employee’s action does not result in
the expected reward, he or she is unlikely to repeat the behavior
Reassessment of Need deficiencies: Once felt need is satisfied through certain rewards in response to performance than employee reassesses any deficiencies and entire process is repeated again.
Motivational Theories
Motivation theories seek to explain why employees are motivated by and satisfied with one type of work than another. It is essential that mangers have a basic understanding of work motivation because highly motivated employees are more likely to produce a superior quality product or service than employee who lack motivation
Maslow’s Need Hierarchy
Abraham Maslow organized five major types of human needs into a hierarchy, as shown in Figure. The need hierarchy illustrates Maslow’s conception of people satisfying their needs in a specified order, from bottom to top. The needs, in ascending order, are:
1. Physiological (food, water,and shelter.)
2. Safety or security (protection against threat and deprivation)
3. Social (friendship, affection, belonging, and love)
4. Ego (independence, achievement, freedom, status, recognition, and self-
5. Self-actualization (realizing one’s full potential; becoming everything one is
     capable of being.)
According to Maslow, people are motivated to satisfy the lower needs before they try to satisfy the higher need. Also, once a need is satisfied it is no longer a powerful motivator. Maslow’s hierarchy, however, is a simplistic and not altogether accurate theory of human motivation. For example, not everyone progresses through the five needs in hierarchical order. But Maslow makes three important contributions. First, he identifies important need categories, which can help managers create effective positive rein forcers. Second, it is helpful to think of two general levels of needs, in which lower-level needs must be satisfied before
higher-level needs become important. Third, Maslow sensitized managers to the importance of personal growth and self-actualization. Self-actualization is the best-known concept arising from this theory. According to Maslow, the average person is only 10 percent self-actualized. In other words, most of us are living our lives and working at our lives and working at our jobs with a large untapped reservoir of potential. The implication is clear: Create a work environment that provides training, resources, gives people a chance to use their skills and abilities in creative ways and allows them to use their skills and abilities kin creative ways and allows them to achieve more of their full potential.
Existence Relatedness Growth (ERG) Theory
Alderfer focuses on three needs: existence, relatedness, and growth. Existence needs are similar to Maslow’s physiological needs, and to the physical components of Maslow’s security needs. Relatedness needs are those that require interpersonal interaction to satisfy the needs for things like prestige and esteem
from others. Growth needs are similar to Maslow’s needs for self-esteem and self-actualization.
McGregor’s Theory-X and Theory-Y
McGregor’s Theory-X represented the traditional management view that employees are lazy, was uninterested in work, and needed to be prodded to perform. In contrast his theory Y viewed employees as creative, complex, and mature individuals interested in meaningful work. McGregor believed that under the right circumstances, employees would willingly contribute their ingenuity and their talents for the benefits of the organization. He suggested that the mangers motivate em-0loyees by giving them the opportunity to develop their talents more fully and by giving them the freedom to choose the methods they would use to achieve organizational goals. In McGregor’s view the mangers role was not to manipulate employees but to align their needs with needs of the organization so that employees would regulate their own actions and performance. These insights lead researches to investigate the origins and processes of motivation more
Expectancy Theory
Expectancy theory states that a person’s motivation to exert a certain level of effort is a function of three things: expectancy (E), instrumentality (I), and valance (V). Motivation = E x I x V. “E” is the person’s expectancy that his or her effort will lead to performance, “I” represents the perceived relationship between
successful performance and obtaining the reward, and “V” refers to the perceived value the person attaches to the reward.
Reinforcement Theory
In 1911, psychologist Edward Thorndike formulated the law effect: Behavior that is followed by positive consequences probably will be repeated. This powerful law of behavior laid the foundation for country investigations into the effects of the positive consequences, called rein forcers that motivate behavior. Organizational behavior modification attempts to people’s actions. Four key consequences of behavior either encourage or discourage people’s behavior
Positive Reinforcement– applying a valued consequence that increases the likelihood that the person will repeat the behavior that led to it. Examples of positive reinforcers include compliments, letters of commendation, favorable performance evaluations, and pay raises. Equally important, jobs can be positively reinforcing. Performing well on interesting, challenging, or enriched jobs (discussed later in this chapter) is much more reinforcing, and therefore motivating, then performing well on jobs that are routine and monotonous.
Negative Reinforcement– removing or withholding an undesirable consequence. For example, a manager takes an employee (or a school takes a student) off probation because of improved performance. Frequent threatening memos admonished people to achieve every one of their many performance goals
3. Punishment– administering an aversive consequence. Examples include criticizing or shouting at an employee, assigning an unappealing task, and sending a worker home without pay. Negative reinforcement can involve the threat of punishment, but not delivering it when employees perform satisfactorily. Punishment is the actual delivery of the aversive consequence.
Extinction –withdrawing or failing or failing to provide a reinforcing consequence. When this occurs motivation is reduced and the behavior is extinguished, or eliminated. Examples include not giving a compliment for a job well done, forgetting to say thanks for a favor, or setting impossible performance goals so that the person never experiences success. The first two consequences, positive and negative reinforcement, are positive for the person receiving them:
The person either gains something or avoids something negative. Therefore, the person who experiences these consequences will be motivated to behave in the ways that led to the reinforcement. The last two consequences, punishment and extinction, are negative outcomes for the person receiving them: Motivation to repeat the behavior that led to the undesirable results will be reduced.
Thus, effective managers give positive reinforcement to their high-performing people and negative reinforcement to low performance. They also punish or extinguish poor performance and other unwanted behavior.
Herzberg’s Two-Factor Approach
Herzberg Two-Factor theory divides Maslow’s Hierarchy into a lower-level and a higher-level set of needs, and suggests that the best way to provide motivation for an employee is to offer to satisfy the person’s higher-order needs, ego and self-actualization. Herzberg said that lower-order needs, or hygiene factors, are different from higher-order needs, or motivators. He maintains that adding more hygiene factors to the job is a very bad way to motivate because lower-order needs are quickly satisfied.
McClelland (Needs for Affiliation, Power, and Achievement) Theory
McClelland agrees with Herzberg that higher-level needs are most important at work. He believes the needs for affiliation, power, and achievement are most important. He and his associates use the Thematic Apperception Test to identify a person’s needs for achievement, power, and affiliation. People with a high
need for achievement strive for success, are highly motivated to accomplish a challenging task or goal, prefer tasks that have a reasonable chance for success, and avoid tasks that are either too easy or too difficult. People with a high need for power enjoy roles requiring persuasion. People with a strong need for affiliations are highly motivated to maintain strong, warm relationships.
Adam’s Equity Theory
Adams’s equity theory assumes that people have a need for fairness at work, and therefore, value and seek it. People are motivated to maintain a balance between what they perceive as their inputs or contributions and their rewards as compared to others. This theory seems to work when people feel they are underpaid, but inequity due to overpayment does not seem to have the positive effects on either quantity or quality that Adams’s equity theory would predict.
Methods for Motivating Employees for Employee Satisfaction
Rewards: People behave in ways that they believe are in their best interest, they constantly look for payoffs for their efforts. They expect good job performance to lead to organizational goal attainment, which in turn leads to satisfying their individual goals or needs. Organization, then, use rewards to motivate people.
Challenging Jobs: Job design refers to the number and nature of activities in a
job. The key issue is whether jobs should be more specialized or more enriched and non-routine. Job design has been implemented in several ways. Job
enlargement assigns workers to additional same-level tasks to increase the number of tasks they have to perform. Job rotation systematically moves workers from job to job. Job enrichment means building motivators like opportunities for achievement into the job by making it more interesting and challenging. Forming natural work groups, combining tasks, establishing client relationships, vertically loading the job, and having open feedback channels may implement Job enrichment.
Using Merit Pay: A merit raise is a salary increase, usually permanent, that is based on the employee’s individual performance. It is a continuing increment rather than a single payment like a bonus. Relying heavily on merit rewards can be a problem because the reinforcement benefits of merit pay is usually only determined once per year.
Using Spot Awards: A spot award is one given to an employee as soon as the laudable performance is observed. These awards are consistent with principles of motivation because they are contingent on good performance and are awarded immediately.
Using Skill-Based Pay: With skill-based pay, employees are paid for the range, depth, and types of skills and knowledge they are capable of using rather than for the job they currently hold. Skillbased pay is consistent with motivation theory because people have a self-concept in which they seek to fulfill their potential. The system also appeals to the employee’s sense of self-efficacy because the reward is a formal and concrete recognition that the person can do the more
challenging job well.
Using Recognition: Some employees highly value day-to-day recognition from their supervisors, peers and team members because it is important for their work to be appreciated by others. Recognition helps satisfy the need people have to achieve and be recognized for their achievement.
Using Job Redesign: Job design refers to the number and nature of activities in a job. The key issue is whether jobs should be more specialized or more enriched and nonroutine. Job design has been implemented in several ways. Job enlargement assigns workers to additional same-level tasks to increase the number of tasks they have to perform. Job rotation systematically moves workers
from job to job. Job enrichment means building motivators like opportunities for achievement into the job by making it more interesting and challenging. Job enrichment may be implemented by forming natural work groups, combining tasks, establishing client relationships, vertically loading the job, and having open feedback channels.
Using Empowerment: Empowerment means giving employees the authority, tools, and information they need to do their jobs with greater autonomy, as well as the self-confidence to perform new jobs effectively. Empowerment boosts employees’ feelings of self-efficacy and enables them to use their potential more fully.
Using Goal-Setting Methods: People are strongly motivated to achieve goals they consciously set. Setting goals with employees can be a very effective way of motivating them. Goals should be clear and specific, measurable and verifiable, challenging but realistic, and set with participation.
Using Positive Reinforcement: Positive reinforcement programs rely on operant conditioning principles to supply positive reinforcement and change behavior. Experts claim it is better to focus on improving desirable behaviors rather than on decreasing undesirable ones. There are a variety of consequences including social consequences (e.g., peer approval or praise from the boss),
intrinsic consequences (e.g., the enjoyment the person gets from accomplishing challenging tasks), or tangible consequences (e.g., bonuses or merit raises).
Using Lifelong Learning: Lifelong learning can be used to deal with problems of downsizing and employee commitment, and to counterbalance their negative effects. It provides extensive continuing training and education, from basic remedial skills to advanced decision-making techniques, throughout the employees’ careers, which provide employees the opportunity to boost
their self-efficacy and self- actualization.
Challenges of motivating employees:
Motivation is not a simple subject; no two people respond to precisely the same set of motivators. Mangers face several pressing issues that complicate the challenges of motivating their employees.
Workforce Diversity: the composition of the workforce becoming less homogeneous. This diversity complicates the task of motivating employees because mangers must consider so many more motivational variables
Organizational Restructuring: The wave of mergers and acquisitions is followed by massive layoffs that represent another challenge. Employees who have been let go for reason unrelated to their performance may question whether initiative and creativity are now less important than political survival skills. Moreover, employees who have seen colleagues’ loss their jobs may concentrate on keeping their own jobs and may stop taking risks –risk that might lead to new products, new markets, or other advances.
Fewer Entry-level Employees: The labor force is growing at half the rate of the previous decade; the number of qualified candidates for most entry-level positions is decreasing. In such a tight labor market, mangers face new challenges in attracting; retaining and motivating qualified entry-level employees. Managers must also determine how to motivate under qualified candidates to upgrade their skills and education so that they can handle the entry-level tasks.
An oversupply of managers: In the middle and top ranks of management, quite different phenomenon is causing organizational headaches. The number of senior management positions is far fewer than the number of deserving candidates, and the trend toward flatter organizations only makes matters worse for people who want to climb the hierarchal ladder. As managers in organizations come to grips with these increasingly urgent challenges, they must understate the forces that derive employees’ actions, how employees channel their actions towards goals, and how high performance behavior can be sustained.

What is HRM – Human Resource Management?

HRM is the management of people working in an organization, it is a subject related to human. For simplicity, we can say that it is the management of humans or people. HRM is a managerial function that tries to match an organization’s needs to the skills and abilities of its employees. Human Resource Management is responsible for how people are managed in the organizations. It is responsible for bringing people in organization helping them perform their work, compensating them for their work and solving problems that arise.

Growing Importance of HRM
The success of organizations increasingly depends on people-embodied know-how- the knowledge, skill, and abilities imbedded in an organization’s members. This knowledge base is the foundation of an organization’ core competencies (integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers). HRM plays important role in creating organizations and helping them survive. Our world is an organizational world. We are surrounded by organizations and we participate in them as members, employees, customers, and clients. Most of our life is spent in organization, and they supply the goods and services on which we depend to live. Organizations on the other hand depend on people, and without people, they would disappear.
Factors Contributing to the Growing Importance of HRM
a. Accommodation to workers’ needs
Workers are demanding that organizations accommodate their personal needs by instituting such programs as flexible work schedules, parental leave, child-care and elder-care assistance, and job sharing. The human resource department plays a central role in establishing and implementing policies designed to reduce the friction between organizational demands and family responsibilities.
b. Increased complexity of the Manager’s job
Management has become an increasingly complex and demanding job for many reasons, including foreign competition, new technology, expanding scientific information, and rapid change. Therefore, organizations frequently ask human resource managers for assistance in making strategic business decisions and in matching the distinctive competencies of the firm’s human resources to the mission of the organization. Executives need assistance from the human resource department in matters of recruitment, performance evaluation, compensation, and discipline.
c. Legislation and litigation
The enactment of state laws has contributed enormously to the proliferation and importance of human resource functions. The record keeping and reporting requirements of the laws are so extensive that to comply with them, many human resource departments must work countless hours and often must hire additional staff. Four areas that have been influenced most by legislation include equal employment, Compensation, safety, and labor relations. An organization’s failure to comply with laws regulating these areas can result in extremely costly back-pay awards, class action suits, and penalties.
d. Consistency
Human resource policies help to maintain consistency and equity within an organization. Consistency is particularly important in compensation and promotion decisions. When managers make compensation decisions without consulting the human resource department the salary structure tends to become very uneven and unfair promotion decisions also may be handled unfairly when the HR department does not coordinate the decision of individual manger.
e. Expertise
Now a days there exist sophisticated personnel activities that require special expertise. For example, researchers have developed complex procedures for making employee-selection decisions; statistical formulas that combine interviews, test scores, and application-blank information have replaced the
subjective interviews traditionally used in making selection decisions. Similarly, many organizations have developed compensation systems with elaborate benefits packages to replace simple hourly pay or piece rate incentive systems
f. Cost of Human Resource
Human resource activities have become increasingly important because of the high cost of personal problem. The largest single expense in most organizations is labor cost, which is often considerably higher than the necessary because of such problems as absenteeism tardiness and discrimination.
Why are we concerned with HRM?
1. Helps you get results – through others.
Different managerial techniques help mangers to direct the performance of employees in desirable direction in order to achieve the organizational objectives. Through the efforts of others working in an organization, managers get things done that require effective human resource management.
2. Helps you avoid common personnel mistakes
Qualified HR mangers utilize organization resources in such a way that helps to avoid common personnel mistakes like the following…
a. Hiring the wrong person for the job
b. Experiencing high turnover
c. Finding employees not doing their best
d. Having your company taken to court because of your discriminatory actions
e. Having your company cited under federal occupational safety laws for
    unsafe practices
f. Allowing a lack of training to undermine your department’s effectiveness
g. Committing any unfair labor practices
3. Helps you to gain Competitive Advantage
Among all the resources possessed by the organizations it is only Manpower or the Human resources that
create the real difference. Because all organizations can have the same technology, they can possess same type of financial resources, same sort of raw material can be used to produce the goods and services but the organizational source that can really create the difference is work force of the organization. Therefore they are the main sources of innovation creativity in the organizations that can be used as a competitive advantage. In today’s competitive environment,
these are the people which can create competitive advantageous for the organizations.
The world around us is changing. No longer can we consider our share of the “good Life” given. If we are to maintain some semblance of that life, we as
individual, as organizations, as society will have to fight actively for it an increasingly competitive global environment. If organizations are able to
mange its work force efficiently/effectively this will be beneficial for all stakeholders (Organization, Employees and Society). Challenges/Issues of Managing Human Resources in present era Following are the main issues that are faced by the mangers to manage the workforce of today’s organization for achievement of objectives.
a. To Attract People
People will be interested to join any organization if it is providing them quality working environment, attractive benefit and opportunities to excel in future. Keeping in view the opportunities in the market, the first issues will be to attract good people for your organization.
b. To Develop People
Development is related to provide the opportunities for training and development to match the skills to job in particular areas. It requires careful need assessment for training and selecting effective training methods and tools. After attracting/selecting, Continuous development of workforce of the organization leads towards development of the organization. So that they will start playing their important role in the organization.
c. To Motivate
Motivation means to influence performance of others and to redirect the efforts in desirable direction by using different motivational tools that can help in fulfilling the mission of organization. Third important issues/concern will be to keep your workforce motivated so that they should keep on delivering effectively.
d. To Keep Talented People
This is related to retention of workforce in organization and to take steps that can prevent undesirable detachments of talented and motivated workers from the organization.
Functions of HRM department:
a. Staffing
An organization must have qualified individuals, in specific jobs at specific places and times, in order to accomplish its goals. Obtaining such people involves
job analysis, human resource planning, recruitment, and selection. Job analysis is the systematic process of determining the skills, duties, and knowledge required for performing specific jobs in an organization. Human resource planning (HRP) is the process of systematically reviewing human resource requirements to ensure that the required numbers of employees, with the required skills, are available when needed. Recruitment is the process of attracting such individuals in sufficient numbers and encouraging them to apply for jobs with the organization. Selection is the process through which
the organization chooses, from a group of applicants, those individuals best suited both for open positions and for the company.
b. Human Resource Development
A major HRM function that consists not only of training and development but also individual career planning and development activities and performance appraisal, an activity that emphasizes T&D needs. Training is designed to provide learners with the knowledge and skills needed for their present jobs.
Development involves learning that goes beyond today’s job; it has a more long-term focus. Human resource development (HRD) helps individuals, groups, and the entire organization become more effective. It is essential because people, technology, jobs, and organizations are always changing. Career planning is an ongoing process whereby an individual sets career goals and identifies the means to achieve them. Career development is a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed. Through performance appraisal, employees and teams are evaluated to determine how well they are performing their assigned tasks.
c. Compensation and Benefits
The term compensation includes all rewards that individuals receive as a result of their employment. The reward may be one or a combination of the following:
􀂄 Pay: The money that a person receives for performing a job.
􀂄 Benefits: Additional financial rewards other than base pay include paid
     vacations, sick leave, holidays, and medical insurance.
􀂄 Non financial rewards: Non monetary rewards, such as enjoyment of the work
     performed or a pleasant working environment.
d. Safety And Health
Safety involves protecting employees from injuries caused by work-related accidents. Health refers to the employees’ freedom from illness and their general physical and mental well-being. These aspects of the job are important because employees who work in a safe environment and enjoy good health are more likely to be productive and yield long-term benefits to the organization.
e. Employee And Labor Relations
Since 1983, union membership has fallen approximately 8 percent, to only 13.9 percent of the workforce, the lowest level since the Great Depression. Subtracting government employees, unions represent only 9.5 percent of the private industry workforce. Even so, a business firm is required by law to recognize a union
and bargain with it in good faith if the firm’s employees want the union to represent them. In the past, this relationship was an accepted way of life for many employers. But most firms today would like to have a union-free environment.
f. Human Resource Research
Although human resource research is not listed as a separate function, it pervades all HRM functional areas, and the researcher’s laboratory is the entire work environment.
g. Interrelationships of HRM Functions
All HRM functional areas are highly interrelated. Management must recognize that decisions in one area will affect other areas. The interrelationships among the five HRM functional areas will become more obvious as we address each topic throughout the book.

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Entrepreneurship is the practice of starting new organizations, particularly new businesses generally in response to identified opportunities. Entrepreneurship is often a difficult undertaking, as a vast majority of new businesses fail. Entrepreneurial activities are substantially different depending on the type of organization that is being started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities.

Many “high-profile” entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build the business. Angel investors generally seek returns of 20-30% and more extensive involvement in the business. Many kinds of organizations now exist to support would-be entrepreneurs, including specialized government agencies, business incubators, science parks, and some NGOs.

The Entrepreneur
Entrepreneurs have many of the same character traits as leaders. Similarly to the early great man theories of leadership; however trait-based theories of entrepreneurship are increasingly being called into question. Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. Although such person-centric models of entrepreneurship have shown to be of questionable validity, a vast but clearly dated literature studying the entrepreneurial personality found that certain traits seem to be associated with entrepreneurs:
Characteristics of entrepreneurship
  1. The entrepreneur has an enthusiastic vision, the driving force of an enterprise.
  2. The entrepreneur’s vision is usually supported by an interlocked collection of specific ideas not available to the marketplace.
  3. The overall blueprint to realize the vision is clear, however details may be incomplete, flexible, and evolving.
  4. The entrepreneur promotes the vision with enthusiastic passion.
  5. With persistence and determination, the entrepreneur develops strategies to change the vision into reality.
  6. The entrepreneur takes the initial responsibility to cause a vision to become a success.
  7. Risks; Entrepreneurs take prudent risks. They assess costs, market/customer needs and persuade others to join and help.
  8. An entrepreneur is usually a positive thinker and a decision maker.
Contributions of Entrepreneurs
Develop new markets. Under the modern concept of marketing, markets are people who are willing and able to satisfy their needs. In Economics, this is called effective demand.
Entrepreneurs are resourceful and creative. They can create customers or buyers. This makes entrepreneurs different from ordinary businessmen who only perform traditional functions of management like planning, organization, and coordination.
Discover new sources of materials. Entrepreneurs are never satisfied with traditional or existing sources of materials. Due to their innovative nature, they persist on discovering new sources of materials to improve their enterprises. In business, those who can develop new sources of materials enjoy a comparative advantage in terms of supply, cost and quality.
Mobilize capital resources. Entrepreneurs are the organizers and coordinators of the major factors of production, such as land labor and capital. They properly mix these factors of production to create goods and service. Capital resources, from a layman’s view, refer to money. However, in economics, capital resources represent machines, buildings, and other physical productive resources. Entrepreneurs have initiative and self-confidence in accumulating and mobilizing capital resources for new business or business expansion.
Introduce new technologies, new industries and new products. Aside from being innovators and reasonable risk-takers, entrepreneurs take advantage of business opportunities, and transform these into profits. So, they introduce something new or something different. Such entrepreneurial spirit has greatly contributed to the modernization of our economy. Every year, there are new technologies and new products. All of these are intended to satisfy human needs in more convenient and pleasant way.
Create employment. The biggest employer is the private business sector. Millions of jobs are provided by the factories, service industries, agricultural enterprises, and the numerous small-scale businesses. For instance, the super department stores like SM, Uniwide, Robinson and others employ thousands of workers. Likewise giant corporations like SMC, Ayala and Soriano group of companies are great job creators. Such massive employment has multiplier and accelerator effects in the whole economy. More jobs mean more incomes. This increases demand for goods and services. This stimulates production. Again, more production requires more employment.
Advantages of Entrepreneurship
1.       Every successful entrepreneur brings about benefits not only for himself/ herself but for the municipality, region or country as a whole.
2.      Self-employment, offering more job satisfaction and flexibility of the work force
3.      Employment for others, often in better jobs
4.      Development of more industries, especially in rural areas or regions disadvantaged by economic changes, for example due to globalisation effects
5.      Encouragement of the processing of local materials into finished goods for domestic consumption as well as for export
6.      Income generation and increased economic growth
7.      Healthy competition thus encourages higher quality products
8.      More goods and services available
9.      Development of new markets
10.  Promotion of the use of modern technology in small-scale manufacturing to enhance higher productivity
11.   Encouragement of more researches/ studies and development of modern machines and equipment for domestic consumption
12.   Development of entrepreneurial qualities and attitudes among potential entrepreneurs to bring about significant changes in the rural areas
13.   Freedom from the dependency on the jobs offered by others
14.  The ability to have great accomplishments
15.   Reduction of the informal economy
16.   Emigration of talent may be stopped by a better domestic entrepreneurship climate

Human Resource Development and the Role of Governance

Governance means the process of decision making and the process by which decisions are implemented or otherwise? The concept is not new and as old as human civilization. Since governance is the process of decision making and the process by which decisions are implemented, an analysis of governance focuses on the formal and informal actors involved in decision making and implementing the decisions made and the formal and informal structures that have been set in place to arrive at and implement the decisions.

Government plays a predominant role in governance both in rural and urban, beside other involved in governance depending upon the level, like in rural areas, influential landlord, associations of farmers, cooperatives, NGOs, religious leaders etc, while in urban areas, besides the actors as said for rural areas, media, international donors, multinational cooperation etc. may play a role in decision making or influencing the decision making process. Thus governance can be used in several contexts such as corporate governance, international governance, national governance and local governance.

Good Governance has eight major characteristics:
1) Participation: All men and women should have a voice in decision-making, either directly or through legitimate intermediate institutions that represent their interests. Such broad participation is built on freedom of association and speech, as well as capacities to participate constructively.
2) Rule of Law: Legal frameworks should be fair and enforced impartially, particularly the laws on human rights.
3) Transparency: Transparency is built on the free flow of information. Processes, institutions and information are directly accessible to those concerned with them and enough information is provided to understand and monitor them.
4) Responsiveness: Institutions and processes try to serve all stakeholders.
5) Consensus Orientation: Good governance mediates differing interests to reach a broad consensus on what is in the best interests of the group and, where possible, on policies and procedures.
6) Equity: All men and women have opportunities to improve or maintain their well-being.
7) Effectiveness and Efficiency: Processes and institutions produce results that meet needs while making the best use of resources.
8) Accountability: Decision-makers in government, the private sector and civil society organizations are accountable to the public, as well as to institutional stakeholders. This accountability differs depending on the organization and whether the decision is internal or external to an organization. It is clear that good governance is an ideal which is difficult to achieve in its totality. The countries, which have come close to achieve good
governance in its totality, are able to achieve sustainable human development. It is a known fact that economic growth is a means to sustainable Human development not an end itself. There are five aspects to sustainable human development all affecting
the living of the poor & vulnerable.
1) Empowerment: The expansion of men and women’s capabilities and choices increases their ability to exercise those choices free of hunger, want and deprivation. It also increases their opportunity to participate in, or endorse, decision-making affecting their lives.
2) Co-operation: With a sense of belonging important for personal fulfillment, wellbeing and a sense of purpose and meaning, human development is concerned with the ways in which people work together and interact.
3) Equity: The expansion of capabilities and opportunities means more than income – it also means equity, such as an educational system to which everybody should have access.
4) Sustainability: The needs of this generation must be met without compromising the right of future generations to free of poverty and deprivation and to exercise their basic capabilities.
5) Security: Particularly the security of livelihood. People need to be freed from threats, such as disease or repression and from sudden harmful disruptions in their lives. According to the Human Development Report 1999, South Asia remains region divided between the types of rich and despair of the poor. A region where the richest one-fifth areas almost 40 percent of the income and the poorest one-fifth makes do with less than 10 percent. A region where today begins with the struggle of survival for 515 million poverty ridden destines, and tomorrows threatens the future of 395 million illiterate adults, where women are often denied basic human rights and minorities continue their struggle against prejudice and discrimination, about one twelfth of the world’s population live in a state of severe deprivation, lacking & sufficient access to adequate nutrition, health, housing, safe water, sanitation, education and employment, so the big challenge is to put the region on the path of humane responsible development, as what has been the main problem in the regions governance and how they can be addressed. 

What is Human Resource Development (HRD)?

The world has progressed in many unique ways and directions in the last three decades. It has developed technologically, economically and industrially. It is also richer in terms of human capabilities, facilities and quality of living. Improvements in education, communication, technology and markets have made the world a global village.

People live longer today, are better informed, can communicate with one another across the world and therefore carry on economic, professional, educational, social and other activities with ease. These decades of development indicate the vast potential for creating a world of order, security and well-being. The developments of the last three decades also indicate that while remarkable progress has been made in a number of directions, the fruits of development have not benefited the world’s growing number of poor people. And where some benefits have reached the poor, new problems are appearing in the form of deteriorating social fabric and environmental degradation. The world faces two major development challenges. The first is to ensure that the fruits of development reach the neediest through equitable distribution of resources, opportunities and benefits. The second is to develop human capabilities and address the challenges of development – political, economic and social. The few countries that have been able to meet both these challenges have demonstrated the importance of investing in developing people and improving the quality of their life through the adoption of human resource development strategies.

The Concept and Benefits of HRD
People make things happen. If people have to make things happen, they need a set of ‘circumstances’ to make them happen. However, it is the people that create ‘circumstances’ that can help them and others to make things happen. HRD is the process of enabling people to make things happen. It deals both with the process of competency development in people and creation of conditions (through public policy, programmes and other interventions) to help people apply these competencies for their own benefit and for that of others. There are many things included and implied in such a definition of HRD. Through such an enabling process people can create more alternatives for themselves and for others and increase their choices. The above definition also emphasizes the purpose of HRD as benefiting people, the individual, group or the community of which the individual is a member. Such benefits may be in terms of basic needs and welfare including a decent living or high level comforts, leisure and self actualizing opportunities. The individual or the group should perceive these benefits as benefits. Thus increased income or purchasing power may be a benefit for some, while freedom to choose one’s representative in the political system and freedom of expression may be benefits for others. Thus what is the beneficial depends on the time, group and other circumstances, and may keep changing.
Implied in the above conceptualization of HRD are the main facets of development of people including their physical, intellectual, emotional, social, moral, political, spiritual and all other forms of development. People cannot function or make things happen unless they are physically well developed, healthy and free from disease. Thus food, nutrition and freedom from disease become important. People need to earn their food and living by working for it. They need to engage themselves in productive activities for which again a combination of both physical development and intellectual development are important.
Intellectual development comes through the process of education and socialization. Social development involves developing the ability to live as a member of the society or a group and contribute to it, at the same time deriving benefits from it. The need of coexistence of all human beings makes this development imperative. Political development ensures human dignity through freedom of expression, democratic participation and an opportunity to influence things that is turn influence the individual’s living. Moral and spiritual development is required to bring order, discipline and peace into life and ensure that one person’s comfort does not become his neighbor’s poison. Thus all forms of development of people can be included in the definition of HRD. What we actually do in HRD is to develop human beings in such a way that they can be productive and effective to a certain end.
The target groups for development can be many: doctors, politicians, businessmen, civil servants, fieldworkers, teachers, voluntary workers, rural leaders, farmers, unemployed youth, scientists, engineers, slum-dwellers, children, girls, illiterates, women, labor (skilled and unskilled), primary school goers, university students, etc. the target groups can be classified on the basis of their age, sex, current socio-economic status, past deprivation, profession, occupation, etc. some of these groups have well-developed HRD systems or mechanisms that are already in operation as a part of their respective sectors and/or government intervention. The teachers in most countries, for example, have a good system of preparing themselves for their roles and continuously updating their competencies. So are the other professionals like doctors and managers.
HRD encompasses two major undertakings; the inculcation of competencies and capabilities in individuals, groups and communities and, creation of conditions through various mechanisms to help them apply these acquired competencies and capabilities, the first part of this course therefore, deal with understanding of human beings as individuals and, the second part revolves around different interventions, policies and programs required to create optimal conditions so that the benefits of HRD become far-reaching and long-lasting for the whole community.

Basic Principles of Advertising

Sell people things but always buy their friendship – Sir Naeem

Advertising is the business of drawing public attention to goods and services. When you begin to create advertising for your product or service, keep these suggestions in mind:
1.      Don’t make promises you can’t live up to. Although your ad may draw more people to your product initially, you can’t retain these people as loyal customers in the long run if you make promises you can’t keep.
2.      Identify the best features of whatever it is you’re selling and develop your advertising around these features. Think about how your product stands out from the competition, what sets it apart, and then focus on those attributes.
3.      Try to create a memorable advertising message for your product. You want people to think of your store, your product, or your professional service whenever they’re in the market for such a thing.
The Message of Advertising
If your message is creative, clear, and concise, if your product or service is
something that can truly benefit people and live up to its hype, then you’re
on the road to producing effective advertising. If your advertising makes bold promises about your product, you may convince a lot of people to try it. But if those people buy your product and give it a try, and the product turns out to be less than you advertised it to be, you will most certainly never see those consumers again. Think about it: How many times have you responded to an advertising message for a new, improved, astounding product, only to be disappointed with the item after you tried it? You probably even felt like you’d been ripped off. If your advertising message leaves consumers with the same feeling, you simply won’t get anywhere. One good promise on which you can truly deliver is better than trying to be all things to all people. On the average, five times as many people read the headline as read the body copy. When you have written your headline, you have spent 80 cents out of your dollar. Never write an advertisement you wouldn’t want your own family to read. You wouldn’t tell lies to your own wife. Don’t tell lies to mine. In advertising, every word in the copy must count you sell or else. Advertise only what is unique.
Identifying and Targeting Your Audience
To begin the creative process of finding your one-of-a-kind message and understand your audience, ask yourself a few simple questions:
  1. What are you selling, and what makes it so unique? For example, if you need to sell kids toys, what makes your merchandise different from what people can buy from other big retail chains? Are the toys handmade, imported from other countries, or vintage?
  2. To whom do you want to sell it? In other words, who exactly are you targeting as your ideal consumer? Parents, of course, but what type of parent? Do you want to target wealthy, upscale parents, who are most interested in educational games that will help their kids learn, for example? You may also think about marketing to aunts, uncles, and grandparents, who often want to spend more on their nieces, nephews, and grandchildren than the parents do.
  3. Why should people buy the product or service from you? Are you open very late at night so that parents who work long hours can drop by your store? Do you offer free delivery of large items so that walk-in customers don’t have to lug your product home? Are you (and your staff) especially knowledgeable and approachable about suggesting great toys for different age groups?
Words that Sell
Certain words and phrases, when used in advertising, have a better-than-ever
chance of attracting consumers’ attention. You see these words over and
over again in ads, but their overuse is a direct result of their effectiveness.
Different words or phrases work for different types of businesses, though.
Here are some examples of words and phrases that sell in the retail industry:
  1. Clearance
  2. Discount
  3. Everything must go
  4. Final closeout
  5. Free
  6. Going out of business
  7. Grand opening
The challenge lies in walking a fine line between using simple, easy-to-grasp words and phrases and writing the way people think (in everyday conversational English). Bottom line: Make your ads simple in their language but creative in their content and presentation. If you offer a service instead of providing a product, many of the words from the previous list still work. “Free,” for example, always gets consumers’ attention, as does “new.” The following appealing words and phrases, however, are specific to the service industry:
  1. Great service
  2. Free pickup and delivery
  3. On time
  4. Trial offer
  5. Professional
  6. Family owned and operated
  7. Guaranteed service
  8. Money saving
  9. Dependable (or reliable)
  10. High quality
  11. References available from satisfied customers
Go through your newspaper and look at the ads. Certain words and phrases
used by most advertisers will quickly become apparent to you. Now you
know what I mean when I say that these words sell. They form a similar
thread that runs through most advertising. If you can use any of these words
and phrases in your advertising, by all means include them. If they’re good
enough for the other advertisers in your area, they’ll most certainly be good
enough for you.
Make an ad, not an encyclopedia
The primary mistake made in many print ads is verbosity. The philosophy seems to be: Why use 5 words when 500 words will do? Readers aren’t interested in how to make a fine Swiss watch. They’re only interested in how much money they can save if they buy the watch from you. A brief headline is particularly important. A headline reading, “50 PERCENT SAVINGS” is better than one reading,  Everything storewide has been marked down 50 percent.” Making your headline brief, intriguing, and easy to grasp, most certainly, enhances your ad’s effectiveness. Trying to fit too much information into the headline can be self-defeating. Use the subhead or the body copy for the nuts and bolts of your sales pitch. Keep your body copy brief and your graphic elements relevant and bold. That way, you make it easy for your readers to grasp what you’re trying to say and what you’re striving to sell. Just because you’ve spent a fair amount of money to buy the ad space doesn’t mean that you have to fill it wall-to-wall. An ad that’s easy for the reader to understand may be rewarded with the reader dropping into your store or contacting you, credit card poised and at the ready! Do what I do: Write your ad, and then go back and see how many superfluous words you can eliminate until your copy is as tight as it can possibly be. In print copy, less is more!
Your advertising is like radios or TVs. They  are there to get the attention of your listeners and viewers— people you want to become customers if they aren’t already. Before you sit down and start writing, consider: If you want your ad to be effective, keep it short and following these final guidelines.
  1. Grab the listeners’ attention
  2. Tell them something they want to hear
  3. Sell them something they may not need
  4. Mention the name of your business several times
  5. Get your phone number or Web address indelibly written into their brains
  6. Motivate them with a call to action (something that tells your reader what to do, such as “Call today for the best prices!” or “In stores now!”)
You can also use Collateral advertising. It has numerous purposes — and the different kinds of collateral advertising at your disposal are numerous as well. You should research carefully, always keeping your budget in mind, to determine which form of collateral advertising best suits your needs. Types of collateral ads include: Brochures, Post cards, Business Cards and and Newsletters.