Everything you need to know about the Human Resource Development (HRD). Human Resource Development (HRD) is that part of Human Resource Management which specifically deals with the training and development of employees.

HRD helps the employees in developing their knowledge, skills and abilities to achieve self-fulfillment and aid in the accomplishment of organizational goals.

HRD can be defined as organized learning activities arranged within an organization in order to improve performance and/or personal growth for the purpose of improving the job, the individual, and/or the organization.

In this article we will discuss about the human resource development (HRD). Learn about:- 1. Introduction to Human Resource Development (HRD) 2. Meaning of Human Resource Development (HRD) 3. Definition 4. Evolution 5. Concept 6. Aims and Objectives 7. Nature 8. Need 9. Prerequisites 10. Scope 11. Features 12 Philosophy 13 Factors 14. Process 15. Framework 16. Environmental Factors 17. Functions and Other Details.



  1. Introduction to Human Resource Development (HRD)
  2. Meaning of Human Resource Development (HRD)
  3. Definition of Human Resources Development (HRD)
  4. Evolution of Human Resource Development (HRD)
  5. Concept of Human Resource Development (HRD)
  6. Aims and Objectives of Human Resources Development (HRD)
  7. Nature of Human Resource Development (HRD)
  8. Need of Human Resource Development (HRD)
  9. Prerequisites to Human Resources Development (HRD)
  10. Scope of Human Resources Development (HRD)
  11. Features of Human Resources Development (HRD)
  12. Philosophy of Human Resource Development (HRD)
  13. Factors Affecting Human Resource Development (HRD)
  14. Process of Human Resource Development (HRD)
  15. Human Resources Development (HRD) Framework
  16. Changing Environmental Factors of Human Resources Development (HRD)
  17. Functions of Human Resource Development (HRD)
  18. Role of Human Resources Development (HRD) Professional
  19. Role of Training in Human Resources Development (HRD)
  20. System of Human Resources Development (HRD)
  21. Techniques of Human Resources Development (HRD)
  22. Competency Mapping in Human Resources Development (HRD)
  23. Benefits of Human Resource Development (HRD)
  24. Outcomes of Human Resource Development (HRD)
  25. Human Resource Development (HRD) Practices in Indian Organisations

This article will also help you to get the answers of:

  1. Concept of Human Resource Development
  2. Process of Human Resource Development
  3. Objectives of Human Resources Development
  4. Role of Human Resources Development
  5. Need of Human Resource Development
  6. Functions of Human Resource Development

HRD includes the areas of employee training, career development, performance management, coaching, mentoring, key employee identification, talent development and organization development. Developing a highly productive and superior workforce is the aim of HRD activities.

Human Resource Development (HRD): Meaning, Concept, Objectives, Functions, Need, Role and Process

Human Resource Development (HRD) – Introduction

The effective performance of an organisation depends not just on the available resources, but its quality and competence as required by the organisation from time to time. The difference between two nations largely depends on the level of quality of human resources.


Similarly, the difference in the level of performance of two organisations also depends on the utilisation value of human resources. Moreover, the efficiency of production process and various areas of management depend to a greater extent on the level of human resources development.

HRD assumes significance in view of the fast changing organisational environments and need of the organisation to adopt new techniques in order to respond to the environmental changes.

Human Resource Development (HRD) is that part of Human Resource Management which specifically deals with the training and development of employees. It helps the employees in developing their knowledge, skills and abilities to achieve self-fulfillment and aid in the accomplishment of organizational goals.

HRD can be defined as organized learning activities arranged within an organization in order to improve performance and/or personal growth for the purpose of improving the job, the individual, and/or the organization.


HRD includes the areas of employee training, career development, performance management, coaching, mentoring, key employee identification, talent development and organization development. Developing a highly productive and superior workforce is the aim of HRD activities.

The role of human beings in an organization’s success is deeply recognized. Many formal and informal methods are used for developing the employees. HRD strives for the improvement of not just the individual workers, but for the growth of the group and organization as a whole.

Human Resource Development (HRD)Meaning

HRD is the process of helping people to acquire competencies. In an organizational context HRD “is a process which helps employees of an organization in a continuous and planned way to-

i. Acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles.


ii. Develop their general capabilities as individuals and discover and exploit their inner potential for their own and/or expected future roles.

iii. Develop an organizational culture in which supervisor-subordinate relationships, team work, and collaboration among sub-units are strong and contribute to the professional well-being, motivation, and pride of employees.

iv. HRD process is facilitated by mechanisms like performance appraisal, training, organizational development (OD), feedback and counseling, career development, potential development, job rotation and rewards.

v. Employees are continuously helped to acquire new competencies through a process of performance planning, feedback, training, periodic review of performance, assessment of the development needs, and creation of development.

Human Resources Development (HRD) – Definition

HRD is defined as activities and process undertaken by an organisation to formulate the intellectual, moral, psychological, cultural, social and economic development of the individuals in an organisation, in order to help them to achieve the highest human potential as a resource for the community. It means to bring about a total all-round development of the working human, so that they can contribute their best to the organisation, community, society and the nation.


HRD does not cover only a set of mechanisms or techniques but it is a process by which employees acquire or sharpen capabilities to perform the various functions, develop their general capabilities as individuals and exploit their own inner potentials, develop team work and collaboration. HRD concept is much wider and embraces almost all areas of an organisation.

In the context of banking, HRD means not only the acquisition of knowledge and skills but also acquiring capabilities to anticipate and manage both internal and external environment and obtaining, self- confidence and motivation for public service. Further, HRD is not a piecemeal or a one-time exercise, it is a continuous process requiring to keep pace with the changes and developments, taking place.

Human Resource Development (HRD) – Evolution

The process of development had been different from time to time. Earlier it used to be the responsibility of the individual to develop himself on his own or under the guidance of a GURU. Training by ACHARYA had been the instrument in past which made successful kings, warriors, courtiers, engineers and architects.


Industrial revolution gave a new dimension to the concept of Human Resource Development. The skilled artisans were developed through “learning while doing” or “on the job training” methodology. The process started increasing skill and knowledge of the worker and supervisors.

In west, the concept was first evolved by Robert Owen who emphasized human needs of workers in 1803. He taught the work place cleanliness and improvement methods. Andrew Ore emphasized the need of welfare activities to improve the worker efficiency.

FW Taylor, a pioneer of scientific management, stressed the incorporation of scientific standards in management. Elton Mayo emphasized the human values. Likert also stated that better utilization of human resources is also possible by treating them as human. HRD began to focus intensive supervisory training in human relations.

Malcom Knowles and Leonar Nadler have also contributed in developing this concept. Knowles emphasized human approach oriented learning instead of content centered and experimental instead of exclusively didactic learning. Nadler’s writing made distinction between Human resources management and Human Resource Development.


Pareek and Rao stressed up the integrated approach to this process of HRD by giving due weightage to performance appraisal, training of individual and organizational development, feedback, counseling, career planning, potential development, reward etc.

Human Resource Development (HRD) – Concept

HRD is mainly concerned with developing the skills, knowledge and competencies of people and it is people-oriented concept. When we call it a people-oriented concept, the question arises, whether people will be developed in the larger or national context or in the smaller organisational context? Is it different at the macro and micro level? HRD can be applied both for the national level and organisational level.

The concept of HRD is not yet well conceived by various authors though they have defined the term from their approach as it is of recent origin and still is in the conceptualising stage. It is an understanding of the term i.e., new or rather was new. HRD is not Training and Development.

The concept of HRD was formally introduced by Leonard Nadler in 1969 in a conference organised by the American Society for Training and Development. Leonard Nadler defines HRD as “those learning experiences which are organised for a specific time and designed to bring about the possibility of behavioural change.”

Among the Indian authors, T. Ventateswara Rao worked extensively on HRD. He defines HRD in the organisational context as a process by which the employees of an organisation are helped in a continuous, planned way to-

(i) Acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles;


(ii) Develop their general capabilities as individuals and discover and exploit their own inner potentials for their own and/or organisational development purposes;

(iii) Develop an organisational culture in which superior-subordinate relationship, team work and collaboration among sub-units are strong and contribute to the professional well- being, motivation and pride of employees.

According to Pulapa Subba Rao, HRD from the organisational point of view is a process in which the employees of an organisation are helped/motivated to acquire and develop technical, managerial and behavioural knowledge, skills and abilities and mould the values, beliefs and attitudes necessary to perform present and future roles by realising the highest human potential with a view to contribute positively to the organisational, group, individual and social goals.

Technical skills and knowledge are provided through training, managerial skills and knowledge are provided through management development and behavioural skills and knowledge are provided through organisation development.

A comparative analysis of these definitions shows that the third definition seems to be comprehensive and elaborate as it deals with the developmental aspects of all the components of human resources. Further, it deals with all types of skills, the present and future organisational needs and aspects of contribution not only to organisational but also other goals.

The analysis of the third definition further shows that there are three aspects, viz.- (i) employees of an organisation are helped/motivated; (ii) acquire, develop and mould various aspects of human resources and (iii) contribute to the organisational, group, individual and social goals. The first aspect deals with helping and motivating factors for HRD.


These factors may be called ‘Enabling Factors’ which include: organisation structure, organisational climate, HRD climate, HRD knowledge and skills of managers, human resources planning, recruitment and selection. The second aspect deals with the techniques or methods which are the means to acquire develop and mould the various human resources.

These techniques include- Performance appraisal, Potential appraisal, Career planning and Development, Training, Management development, Organisational development, Social and Cultural programmes, and workers’ participation in management and quality circles. The third category includes the outcomes’ contribution of the HRD process to the goals of the organisation, group, individuals and the society.

Human Resources Development (HRD) – Aims and Objectives

The major aims of HRD may be stated as:

i. Improve performance of individual on present job

ii. Improve competence of individual to perform future jobs

iii. Improve group dynamism and effectiveness


iv. Improve individual’s attitude

v. Integrate goal of individual with the goal of the organization

vi. Optimize the available human resource in an organization

vii. Encourage creativity

viii. Provide opportunities and facilities to individual for full expression of their talent potential

ix. Improve interpersonal relationship and work culture


x. Bring industrial harmony

xi. Increase productivity.

The objectives of HRD are:

i. To prepare the employee to meet the present and changing future job requirements.

ii. To prevent employee obsolescence.

iii. To develop creative abilities and talents.


iv. To prepare employees for higher level jobs.

v. To impart new entrants with basic HRD skills and knowledge.

vi. To develop the potentialities of people for the next level job.

vii. To aid total quality management.

viii. To promote individual and collective morale, a sense of responsibility, co-operative attitudes and good relationships.

ix. To broaden the minds of senior managers by providing them with opportunities for an interchange of experiences within and outside.

x. To ensure smooth and efficient working of the organisation.

xi. To provide comprehensive framework for HRD.

xii. To enhance organisational capabilities.

xiii. To create a climate that enables every employee to discover, develop and use his/her capabilities to a fuller extent in order to further both individual and organisational goals.

Human Resource Development (HRD) – Nature

1. Learning:

The essence of HRD is learning. The very purpose of HRD is to make the employees acquire knowledge, learn newer concepts and develop their skills. The core of HRD is to enhance the quality of workforce by creating an environment which fosters constant learning.

2. Career Development:

HRD helps in the career development of individuals by matching employee characteristics with job requirements. Growth of the organization is achieved through growth and development of individual employee.

3. Specific Duration:

Any particular HRD programme would have a specific duration. It could be for a short, medium or long duration.

4. Improves Performance:

The performance of employees is improved as a result of HRD. The training programmes enhance the capabilities of employees and improve their productivity.

5. Organizational Development:

HRD aims at not just the development of the human resources, but at the progress of the organization as a whole. Positive changes in work culture, processes and organizational structure are made.

6. Long-Term Benefits:

HRD is a very future oriented concept. The results of HRD can be experienced only after some time following its implementation. But it benefits the employee and the organization for a long time in the future.

7. Continuous Process:

HRD is a continuous process. Different HRD programmes are to be implemented in the organization according to changes in the work environment. Human behaviour needs to be monitored regularly to enable them to adjust themselves according to environment dynamics.

8. Employee Welfare:

The organization attempts to provide all the facilities which are vital for the physical and mental well-being of the employees to facilitate HRD. Measures like canteen facilities, crèche, medical insurance, etc. are provided as part of employee welfare.

9. Development of Team Spirit:

HRD creates a healthy work environment which helps to build team spirit and coordination among various groups and the department. Team spirit is necessary for fostering loyalty and belongingness among employees.

Human Resource Development (HRD) – Need

Human resource development is needed in an organization for the following purposes:

1. To Achieve Goals:

People need competencies to perform tasks. Higher degree and quality of performance of tasks requires higher level of skills. Continuous development of competencies in people is essential for an organization to achieve its goals. Competent and motivated employees are essential for organizational survival, growth and excellence.

2. To Maintain a Level of Growth:

Over a period of time, an organization may achieve a saturation point in terms of its growth. Even to maintain such a saturation level of growth employee competencies need to be sharpened or developed as organizations operate in environments that keep changing requiring the employees to acquire new competencies.

3. Improve Effectiveness:

Any organization interested in improving its services and its effectiveness in cost reduction, reduction in delays, increased customer satisfaction, improved quality and promptness of services, market image needs to develop the competencies of its employees to perform the tasks needed to bring about such improvements.

Human Resources Development (HRD) – Prerequisites

Before introduction of HRD in any bank, a climate is created by stressing the importance of developing people / creating effective teams / solving problems by bringing these in the open and working together to find solutions to the problems. Once the climate is created, it becomes advisable to create HRD spirit by laying emphasis on the development of individuals through the help of their supervisors.

Reorganising the training systems, introducing appraisal system in phases on the next stages is the process of HRD introduction.

HRD is an integral part of every manager’s responsibility and need not be looked upon merely as the responsibility of the personnel department. The top management, personnel department and the branch manager have their respective roles in promoting HRD in banks.

The role of top management is in HRD is in the following areas:

(i) Developing corporate policy

(ii) Developing management leadership style

(iii) Action planning

(iv) Appointment of competent persons for HRD functions

(v) Examine appraisal systems

(vi) Starting organisational development exercises

(vii) Developing training policy

(viii) Developing HRD climate

(ix) Developing HRD personnel

(x) Exercising patience with HRD

Human Resources Development (HRD) – Scope

Human resources management deals with procurement, development, compensation, maintenance and utilisation of human resources. HRD deals with development of human resources for efficient utilisation of these resources in order to achieve the individual, group and organisational goals. Thus the scope of HRM is wider and HRD is part and parcel of HRM. In fact, HRD helps for the efficient management of human resources. The scope of HRD invades into all the functions of HRM.

The scope of HRD includes:

(i) Recruiting the employees within the dimensions and possibilities for developing human resources.

(ii) Selecting those employees having potentialities for development to meet the present and future organisational needs.

(iii) Analysing, appraising and developing performance of employees as individuals, members of a group and organisations with a view to develop them by identifying the gaps in skills and knowledge.

(iv) Help the employees to learn from their superiors through performance consultations, performance counselling and performance interviews.

(v) Train all the employees in acquiring new technical skills and knowledge.

(vi) Develop the employees in managerial and behavioural skills and knowledge.

(vii) Planning for employees’ career and introducing developmental programmes.

(viii) Planning for succession and develop the employees.

(ix) Changing the employees’ behaviour through organisation development.

(x) Employee learning through group dynamics, intra and inter team interaction.

(xi) Learning through social and religious interactions and programmes.

(xii) Learning through job rotation, job enrichment and empowerment.

(xiii) Learning through quality circles and the schemes of workers’ participation in the management.

Human Resources Development (HRD) – Features

(i) HRD is a systematic and planned approach for the development of individuals in order to achieve organisational, group and individual goals.

(ii) HRD is a continuous process for the development of technical, managerial, behavioural and conceptual skills and knowledge.

(iii) HRD develops the skills and knowledge not only at the individual level, but also at dyadic level, group level and organisational level.

(iv) HRD is multi-disciplinary. It draws inputs from Engineering, Technology, Psychology, Anthropology, Management Commerce, Economics, Medicine, etc.

(v) HRD is embodied with techniques and processes. HRD techniques include performance appraisal, training, management development, career planning and development, organisation development, counselling, social and religious programmes, employee involvement /workers’ participation, quality circles, etc.

(vi) HRD is essential not only for manufacturing and service industry but also for information technology industry.

HRD has been developed as a discipline and it studies in different universities in postgraduate levels. In 1965, HRD has been studies at Washington University. Therefore many universities have introduced courses in specific HRD methodology such, as communications or human services. It mainly applied to the behavioural science.

The writing of Gordon Lippit, Warren Schmidt and Robert Blake are greatly contributed particularly in the development of the paradigm. There is increased emphasis on a systems approach to HRD. Leonard Silver and Hughes and Robert mager are contributed particularly in pushing for adoption of specific behavioural objectives in framing objective HRD modules.

HRD is specialised and technical field with is increasing use of modem science and technology. Its working is essentially centralized. There is stress on individualized instruction.

HRD is a profession, a specialised activity. It vendors are employed by organisations to plan and administer training programmes through more significance areas of organisational practice viz. organisational design, change, planning and development Its scope has progressed and moved from micro to macro concern.

Characteristics of HRD could be recounted as follows. It is:

i. Idealistic

ii. Utilitarian in purpose, and

iii. Evolutionary

In the present times, Human Resource Development mainly studies about the human relations or organisational behaviour. It also developed from micro to macro levels. Human resource developed due to the increase in the use of science and technology in the modern age.

In HRD there is shared responsibility between management and individual employees for organisational effectiveness. Gerratt defines learning organizations as “a group of people continually enhancing their capacity to create what they want to create.”

Human Resource Development (HRD) – Philosophy

One of the important processes of human resource development is to bind together the organizational values and beliefs contributed to the organizational stability over the years.

Every organization is guided by a set of beliefs or philosophy whether formally stated or otherwise. These generally represent the value systems and guiding spirit of the top management, tempered by experience and time. Where not consciously evolved as in the large majority of organizations, the guidelines tend to get blurred over a period of time.

Other than in very small organizations, interpretation of the unstated guidelines becomes a matter of individual opinion, with considerable leeway for personal bias. Decision-making processes almost invariably develop a lack of consistency. The larger the organization grows, the more it begins to act like a conglomerate of several autonomous parts, rather than a unified whole.

Out of the several issues covered in the corporate philosophy significant people-related issues are:

i. Managerial effectiveness should be maximized by having an involved, committed and highly motivated team. The team should be developed and sustained by acquiring the skills necessary to meet existing and long term organizational needs and providing a favourable work environment and consciously fostering an open largely participative management style based on trust and cooperation.

ii. Good employer-employee relations should be achieved and maintained through regard for basic human values. There are four major tenets which form the core of the philosophy of HRD.

They are:

a. Human assets are the most important of assets:

It consists of a human approach towards employees and creating a family culture in which the employees not only work but live to the ideals of the organization.

b. Quality:

The ultimate gratification of the customer is the only way towards growth and prosperity. The quality of service is a major corner-stone of HRD philosophy.

c. Integrity:

Another major philosophy which serves as beacon to any organization is the emphasis on honesty and integrity for all its employees and associates such as dealers, vendors etc.

d. Technology:

Another organization must keep current in the latest technology, not merely for the sake of technology but as a means to better productivity and relief to employees.

Human Resource Development (HRD) – Factors Affecting

The following are the factors that affect or influence HRD:

1. New Organisational Culture:

Development of a new organisational culture is one of the important factors that influences human resources development. The globalisation of business has triggered a revolutionary change which has necessitated a strong demand for strong operational managers requiring greater reinforcement in the human resource system. The development of human resource has become a great necessity to cope with the vast technical and technological and cultural changes in the organisational structure.

2. New Organisational Forms:

New organisational forms have necessitated the development of human resources. H.R.D. and H.R.P. (Human resources development and human resources planning) strategy must be rightly and properly adapted together to business strategies in such way that the whole organisation can take the shape of a viable global organisation.

According to V. P. Michael, “New concepts regarding what is work and how to redistribute tasks, redefine roles, authority relationships and sources of power must be based on the new models emerging globally. Recruiting, selecting, developing, rotating and managing human resources must aid such a global organisation with a new form and perspective”. HRD considers the factor of organisational form as one of the vital aspects in developing human resources.

3. Congenial Environment:

Another factor that affects HRD is the congenial environment. HRD should create congenial and healthy work environment so as to motivate the employees to work for the growth of the organisation as well as for their own benefit. HRD should create good and favourable working conditions so that the employees can put in best of their efforts, co-operate with the management whole­heartedly, and work with keen interest in the organisation.

4. Development of Personality:

Development of personality of individual employees is quite essential if HRD is to succeed. Therefore the HRD has to locate potentiality of the employees and take necessary steps for the full development of their personality and potentiality so that the employees identify their interest with that of their organisation. This can be done by integrating HRD with appropriate job design and succession plan.

5. Employee Counseling:

Every employee in the organisation should be given proper counseling services about his activities in the organisation. Counseling services should be related to how he should grow and what right practices he should adopt to improve himself and his organisation. The counseling need not be confined to work-related issues.

Marital problems, problems with the children, financial difficulties or general psychiatric problems or health problems may not be directly related to the job. But the management should recognize that individuals cannot completely separate their personal life away from their life on their job.

Therefore personal problems do affect an employee’s work performance. An increasingly popular form of counseling involves not only employees who are about to retire but also new employees who have just entered the organisation and also employees who have still a long period of service and who are likely to be promoted. HRD should therefore take care of all types of employees in general.

6. Manpower Development:

New technical and technological changes are taking place today in the business world, which is therefore, becoming more and more dynamic and more and more complex, and which is demanding, on an increasing scale, highly competent human force to handle the situation.

The responsibility of developing such competent human force to handle efficiently and successfully such changing and challenging situation lies on HRD. Therefore, HRD has to design manpower training and development programmes to provide adequate exposure to executives, technocrats and ordinary work-force of the organisation.

7. Recruitment and Selection:

HRD is responsible to undertake the work of recruitment and selection of employees in the organisation. It should therefore make careful and wise selection of employees, train them according to the needs of their jobs, and see that right man is placed in the right job.

8. Performance Appraisal:

It is also the responsibility of the HRD to take up the periodical appraisal of the work performance of the employees. For the purpose of maintaining the quality of work and achieving the pre-determined targets, the employees are required to be monitored continuously.

Periodical appraisal of the work- performance will enable the firm to locate the weak spots and correct the same immediately. Without the periodical appraisal of the work performance, the quality of work and the efficiency of the workers cannot be improved and the quality of performance cannot be maintained.

There are other factors such as human resource information system (HRIS), management development, supervisory development, organisation development, technical and technological development, employee welfare measures and developing feed-back systems which are also closely associated with human resource development.

Human Resource Development (HRD) – Components

HRD includes the development of employees at the individual and organizational level. It also comprises career development. The crux of HRD is that organizational growth can be achieved only through the personal and collective development of the individual employees.

The main components of HRD are:

1. Individual Development:

It refers to the development of new skills, knowledge and improved behaviour that contribute to his productivity. As a result of this training, his job performance is improved. Individual development mainly takes place through informal activities like coaching or mentoring by an experienced senior. Some companies, may, however provide formal programmes for such training.

2. Career Development:

It is an approach to match employee goals with the requirements of the organization. The interests, values, abilities and competencies of the individuals are identified to analyse how their skills can be developed for future jobs. At an individual level, career development includes career planning and career awareness. Mentoring, providing career counselling, career development workshops, human resource planning are the steps the organization takes for career development.

3. Organizational Development:

Organizational develop­ment means an organization wide effort to enhance organizational effectiveness. It includes making improvements to the organizational structure, culture, processes, etc. through activities like performance evaluation, change management, succession planning, process analysis and team building.

The first step in organizational development is to discover its internal problems and weaknesses, and then work towards solving them. The organization should try to become a more functional unit by fostering a close relationship among its various units.

Human Resource Development (HRD) – Process

Every method or mechanism has two dimensions- substantive and procedural. Substantive dimension is what is being done process is how it is accomplished, including how people are relating to each other and what processes and dynamics are occurring. In most of the organisations there is overemphasis on the substantive aspect of method and the procedural aspect is neglected.

Whenever there is a problem in the organisation its solution is sought in the rules and structures rather than in the underlying group dynamics and human behaviour. Thus, rules may be changed, structure may be modified but group dynamics and human behaviour remain unfortunately untouched.

It is thought that there is no need to pay any attention to them. This is wrong. In every organisation human process must receive as much importance (if not more) as the substantive dimension.

One can find six such processes in operation in an organisation at six different levels HRD methods help in improving these processes as described below:

1. At the personal level there is the existential process. This process tells us how an in­dividual perceives his environment, how he interacts with others, how he achieves his goals in life and so on. If this process is neglected it may adversely affect the integration of the individual with organisation and his quality of work.

Career Planning, Performance Appraisal and Review, Feedback, Counseling, Job Enrichment, Objective Rewards, etc., improve this process.

2. At the interpersonal level we have the empathic process. This process tells us how much empathy one individual has for the other person and how does he reach out to the other person and establishes a relationship with him. Communication, conflict, cooperation and competition are some important areas of study in this process.

If this process is neglected it may adversely affect the interpersonal effectiveness of individuals in an organisation. Training, Rotation, Communication, etc., improve this process.

3. At the role level we have the coping process. Every individual is required to cope with various pressures and stresses in relation to his role in the organisation. However, if the individual’s role is clear and the individual is aware of the competencies required for role performance he can cope with these pressures effectively. Role analysis goes a long way to improve this process.

4. At the group level we have the building process. This process tells us how various groups form themselves as distinct entities in an organisation; how do they become cohesive while the substantive (or structural) dimension has its grounding in classic organisation theory the procedure dimension reflects the human relations movement and strong and how can they effectively contribute to the goals of the organisation.

Human Resources Development (HRD) – Framework

Recent economic liberalisations announced by the Government of India tend towards market and economy and started creating more dynamic environment in India than ever before. HRD plays a significant and crucial role in market economies under dynamic environments. Human Resources Development should be effective and efficient.

HRD cannot be effective for the candidates who do not possess potentials to perform present and future roles in organisations with dynamic environment. HRD to be effective should essentially have a strong base of human resources planning, recruitment and selection based on effective HRD requirements. These base factors enable the organisation to develop its human resources efficiently.

Human resources planning for HRD should plan for human resources not only for the present and future jobs but also roles. Further, human resource planning, recruitment, selection should emphasise on potentialities for development.

Human resources to be acquired and developed are determined in terms of skills, knowledge, abilities, values, aptitude, beliefs, commitment, etc. Suitable technique(s) of human resources development is/are to be selected depending upon the resources to be acquired and developed. These techniques include- Performance appraisal, Potential appraisal, Training, Management development and Organisational development, Career planning and development, Worker participation in Management, Quality circles and Social and Spiritual programmes.

The outcomes of HRD are four-fold, viz., to the organisation, to the individuals, to the groups and to the society. HRD benefits the organisation by developing the employees and make them ready to accept responsibilities, welcome change, adapt to change, enables the implementation of the programmes of total quality management, maintenance of sound human relations, and increase in productivity and profitability. HRD also benefits individuals in achieving of potentials, increase in performance, fulfilling their needs and enhancing social and psychological status.

The HRD helps the groups in the form of increase in co-operation, increase in collaboration and team effectiveness. Further, it helps the society in the form of developing human resources and increased contribution of human resources to the society.

Human Resources Development (HRD) – Changing Environmental Factors

The changing environmental factors include:

i. Unprecedented increase in competition within and outside the country consequent upon the announcement and implementation of economic liberalisations. The economic liberalization demands continuous improvement of human resources.

ii. Trends towards market economy are more prevalent in most of the countries including the erstwhile communist countries. These trends towards market economy are resulting in severe competition not only among the industries around the globe but also industries within the nation. This competition allows only the industries strong in all respects to continue in the market and the other industries are forced to withdraw from the market.

The vitality of human resources to a nation and to the industry depends upon the level of its development. Organisations to be dynamic, growth-oriented and fast-changing should develop their human resources. It is needless to say that the organisation possessing competent human resources grow faster and can be dynamic. Though the positive personnel policies and programmes motivate the employees by their commitment and loyalty, these efforts cannot keep the organisation dynamic and fast-changing.

Organisations to be dynamic should possess dynamic human resources. Human resources to be dynamic should acquire capabilities continuously; adopt the values and beliefs and aptitude in accordance with changing requirements of the organisation. Similarly, when employees use their initiative,-take risks, experiment, innovate and make things happen, the organisation may be said to have an enabling culture.

The competent human resources can be dynamic in an enabling culture. Thus, the organisation can develop, change and excel, only if it possesses developed human resources. Thus HRD plays a significant role in making the human resources vital, useful and purposeful.

Human Resource Development (HRD) – Functions

The important functions of human resource development (HRD) are as follows:

1. Performance Appraisal

2. Employee Training

3. Executive Development

4. Career Planning and Development

5. Organisational Change and Development

6. Involvement in Social and Religious Organisations

7. Involvement in Quality Circles

8. Involvement in Worker’s Participation in Management.

The following is the brief explanation of the above cited functions:

1. Performance Appraisal:

Employees’ performance appraisal or merit-rating is an important function of the HRD. This is necessary for the HRD to assess the relative efficiency of various workers as reflected in their performance of their jobs. While job evaluation is concerned with the rating of the job to be performed, performance appraisal or merit-rating is concerned with the rating of the workers on their jobs. HRD has to perform this function to analyse and classify the differences amongst the workers vis-a-vis job standards.

2. Employee Training:

The next function of the HRD is to provide proper training to its employees or workers. Training is the act of increasing the knowledge and skills of an employee for doing a particular job. Training is considered to be the corner-stone of sound personnel administration. The employees could be systematically and scientifically trained, if they are to do their jobs effectively and efficiently.

3. Executive Development:

Another important functions of the HRD is to provide for executive development in the organization. Executive development is the programme by which executive capacities to achieve desired objectives are increased. Programme must be related to development of various inter-related matters, factors and needs.

Executive capacities involve different individual abilities of present and prospective managers at different levels of management. The desired objectives include objectives of the concern, its executives and the persons to be managed.

4. Career Planning and Development:

The next function of HRD is career planning and development. Career planning is a systematic process by which an individual selects his career goals and the path to these goals. From the organisation’s point of view, career planning means helping the employees to plan their career in terms of their capacities within the context of the organisation’s requirements.

Career planning and development involve formulation of an organizational system of career improvement and growth opportunities for employees from the time of their appointment in the organization to their retirement time.

5. Successful Planning and Development:

The HRD is also required to perform the function of planning and development of the business of the organization in successful manner. For this purpose, it has to plan every aspect of its organization and develop the same successfully.

6. Organisational Change and Development:

Another main function of the HRD is the organizational change and development. It involves organizational diagnosis, team building, task force and other structural and process interventions such as role development, job enrichment, job re-designing etc.

7. Involvement is Social and Religious Organisation:

The HRD manager should arrange for social and religious programmes and enable the employees to learn from each other. Such programmes enable the employees to interact closely with each other, open up their cognitions, share the strengths etc.

8. Involvement in Quality Circles:

Quality Circle is a self-governing group of workers with or without the supervisors who voluntarily meet regularly in order to identify, analyse and solve problems of their work field. This process of solving problems voluntarily enables the workers to learn decision-making and problem-solving skills from each other.

9. Involvement in Workers’ Participation in Management:

The participation of workers in management enables the representatives of both the management and the workers to share and exchange their ideas and view-points in the process of joint decision-making in the organization. The joint decision-making process creates a plat-form for mutual learning and development. Therefore the HRD managers should encourage the workers to participate in the management of the organisation.

Human Resources Development (HRD) – Role of HRD Professional

HRD process documentation, organisations focus both on the quantitative and qualitative measures considering aspects like:

1. Description of entire process

2. Identification of HRD elements and resource

3. Analytic decomposition

The basic essence of functioning of HRD systems are:

1. Developing a strong feedback and re-enforcing mechanism

2. Balance qualitative and quantitative (objective) decisions

3. Balance requirement of internal and external expertise

4. System be introduced in a phased manner

The primary goal of HRD is to increase workers’ productivity and organisational profitability as investment HRD improve workers skill and enhance motivation and to prevent obsolescence at all levels.

To achieve these goals, HRD manager or professional play following two important roles:

(a) To assist employees in obtaining the knowledge and skills they need for present and future jobs, and to assist them in attaining their personal goals

(b) To play the enabling role providing the right context in which human performance occurs and the organisation reaches its stated objectives

The various roles are (As Per American Society for Training and Development 1998):

1. Administrator Role providing co-ordination and support services for the delivery of HRD programmes.

2. Evaluator’s Role – Identifying the input of an intervention on individual or organisational effectiveness.

3. Individual Career Development Advisor Role – Helping individuals to assess personnel competencies, values and goals and to identify, plan and implement development and career actions.

4. Leader’s Role – Supporting and leading a group’s work and linking that work with total organisation

5. Facilitator’s Role – presenting information, directing structure learning experiences and managing group discussions and group process.

6. Marketer’s Role – marketing and contracting programmes and services

7. Material Developer’s Role – The role of producing written end / or electronically mediated instructional materials Needs analyst Role-Identifying ideal and actual performance and determining causes of discrepancies.

8. Organisational changes Role – Influencing and supporting changes and organisational behaviour

9. Programme Designer’s Role – Preparing objectives, defining context and selecting and sequencing activities for a specific intervention

10. Researcher’s Role – Identifying, developing or testing new theories- concept-technologies models, hard wares etc. and translating these implications for improved individual or organisational performance.

HRD consultant or expertise appointed by organisations where they do not have the requisite internal skill and knowledge.

This is particularly relevant, in cases like:

1. Training and management development programme

2. TQM (Total Quality Management)

3. ISO:9000

4. Quality Circles

5. Value Engineering,

6. Business Process Re-engineering

7. Bench-marking

8. Just in-time

9. Total productive maintenance

10. Career planning

11. Objectivity or corporate strategy leverage Cases

12. Six Sigma

Responsibility of Human Resources Development (HRD) Manager:

The primary responsibilities of a HRD manager are:

1. To act as an internal change agent and consultant.

2. To initiate change and act as an expert and facilitator.

3. To actively involve himself in the company’s strategy formulation.

4. To keep communication lines open between the HRD function and individuals and groups both within and outside the organisation.

5. To identify and evolve HRD strategies in consonance with overall business strategy.

6. To facilitate the development of various organisational teams and their working relationship with other teams of individuals.

7. To try and relate people and work so that the organisational objectives are achieved effectively and efficiently.

8. To diagnose problems and to determine appropriate solutions particularly in the human resources areas.

9. To provide co-ordination and support services for the delivery of HRD programmes and services.

10. To evaluate the impact of an HRD intervention or to conduct research so as to identify, develop or test how HRD in general has improved individual or organisational performance.

Human resource development programmes help to ensure that the organisation has the people with the skills and knowledge it needs to achieve its strategic objectives. The thrust of human resource development is on training and development. It is a dynamic process which aims at improving the skills and talents of the personnel.

Training fills the gap between what someone can do and what he should be able to do. Development aims at modification of behaviour through experience. It builds on strengths and helps to overcome weakness, and ensures that the organisation has the expertise it needs. Development operates at all level, middle management level, and top management level, covering executives and non-executives.

Human Resources Development (HRD) – Role of Training

Training is most important mechanisms or sub systems of an HRD system. Training plays an important role in the development of human resources. To put the right man at the right place with the trained personnel has now become essential today’s globalised market. No organization has a choice on whether or not to develop employees. Therefore training has now-a-days become an important and required factor for maintaining and improving interpersonal and intergroup collaboration.

Human resources are the life blood of any organization. Only through well-trained personnel, can an organization achieve its goals.

So, a well-planned training program can inmate the development of human resources in organization as per requirement.

The human resources may derive the following benefits from training:

1. Increased Skills and knowledge – The employer acquire new skills and knowledge which will help them improve their career.

2. Higher Productivity – The productivity of the workers is increased as a result of training. Because of this, they earn higher salaries and bonus.

3. Way to Promotion – A potent worker can sharpen his skills during training. This helps him to get a promotion for higher position.

4. Less accidents – Trained workers are less prove to accidents as they know how to use risky machines and materials. They also know the use of various safety devices.

5. Increased mobility – Trained employees can shift from one job to another or ever from one organization to another in order to advance in their career.

At a glance, we find that training gives the following results:

1. Growth, expansion and modernization cannot take place without trained manpower.

2. It increases productivity and profitability, reduces cost and finally enhances skills and knowledge of the employee.

3. Prevents obsolescence.

4. Helps in developing a problem solving attitude.

5. Gives people awareness of rules & procedure.

Human Resources Development (HRD) – System

Lippit (1978) points out that HRD as a system depends on:

(a) Work itself which generates a higher degree of responsibility for the employees;

(b) The individual’s personal and professional growth;

(c) The improved quality output as a result of increased responsibility; and

(d) Organisation as an open system. Focus on all these aspects is what HRD is all about.

Rao (1985) defined HRD as “a process by which the employees of an organisation are helped, in a continuous planned way to- (a) acquire or sharpen capabilities required to perform various tasks and functions associated with their present or expected future roles; (b) develop their enabling capabilities as individuals so that they are able to discover and exploit their own inner potentials for their own and/ or organisational development purposes; and (c) develop an organisational culture where superior-subordinate relationship, teamwork, and collaboration among different sub-units are strong and contribute to the organisational health, dynamism and pride of employees.”

HRD as a function consists of various activities related to training and development and performance appraisal. All aspects of training and appraisal play a significant role in achieving the individual’s growth and development. In this respect, HRD is more a proactive and supportive function because the organisation has to take a lead in helping the people to grow and realise their potential.

Systematic HR Practices Ensure the Success of SMEs:

A competent workforce is perhaps the most important asset for any organisation. Thus, it is in the interest of any company irrespective of its size to positively focus on human resource (HR) development and management. However, it is rather sad that the HR activities are often neglected by many Indian SMEs.

As per a survey conducted by the Confederation of Indian Industries (CII), around 80% from the small enterprises and about 20% of the medium enterprises indicated having no formal HR department.

The problem arises because “most of the SMEs are not aware of the strategic dimensions and associated benefits of HRD”. Indian SMEs can turn the tables around by learning from the big players as well as from their global counterparts and address the challenges that they face on their HR front.

SMEs are driven by manpower hence recruiting the right people is singularly important. “People acquisition is the greater focus than people retention,” and “a professional” attitude is vital for growth. Thus, it is essential to recognise the talent first.

Keeping this in mind, Hermes Softlab, a Slovenia-based SME came up with its programme of sponsorship with schools and universities to create tomorrow’s workforce. As a result, the company managed attracts a large number of youngsters who could be groomed as per the job requirements.

Retaining the best talent is as important as hiring it because happy employees make happy clients. The talented people “can be retained only by putting in place best HR practices”. Opportunities to grow, freedom in decision making, etc.” are the chief considerations that determine an employee’s job satisfaction.

To combat attrition, Canada-based Celestica International Inc. has put in place the best HR practices. Its introduction of innovative programmes such as stress management and weight watchers along with the team approach to adapt to night shift workings are commendable.

Employee participation assumes a new meaning at TNT U.K. where employees constantly suggest changes for improvement. This form of participation should be encouraged in India as well. On a different track is the ‘Advantage! for SMEs’ scheme implemented in Singapore. It proposes to facilitate the re-employment and retention of older workers.

Ideally, an organisation should let the employee to grow and prepare for future challenges. “Strategies should be carefully planned and directed in order to yield effective organizational development, performance and success.”

Fedex Corporation, a big name in logistics, gave its employees a unique opportunity to identify and assess their respective roles. The programme – Leadership Evaluation and Awareness Process (LEAP) – met with instant success thereby benefiting both the company and the employees.

At Grupo Texto Editores, a Portuguese SME, a young employee working in the packing department rose to become the MD of the Angolan Division. Following this, the company has been constantly motivating its employees by placing challenging yet rewarding projects before them.

Similarly in China, ‘The T&D (training and development) programme’ has been aimed at training the competent skilled workers to add value to the organisation. This gives clarity to the employees about the role they are expected to play.

Indeed, the company benefits when an employee is made to feel like its owner. The SMEs should therefore do away with the hierarchical orders that create gaps between the employees and the employer. Atul Jalan, MD & CEO, Manthan systems feels that “strong frameworks, ethics and business practices” determine the success of an SME. He further points out that at his company any form of hierarchy is discouraged.

A sense of informal yet disciplined approach to work indeed helps in building a strong rapport between the employee and the employer.

In fact, the focus has to be on fostering entrepreneurship. The employees should inculcate entrepreneurial skills to grow in the industry. “Training is no longer skill upgradation. Today’s employees need to learn more.” ‘The Countryside Entrepreneurship Development Program’ implemented in Philippines has been successful in upgrading the management capabilities of existing entrepreneurs.

Through workshops, job training sessions and conferences, the programme has tried to identify and address the challenges faced by the SMEs.

Technology is yet another aspect that can no longer be ignored. However, merely implementing a software solution is not enough. Technology delivers only when it is aligned with the right processes driven by the right people. “Setting up proper systems and management processes in place are some of the areas of concern.”

The use of new and advanced technology can take the Indian SMEs one step further but it has to be user friendly, efficient and uncomplicated. However, the SMEs has to be user friendly, efficient and uncomplicated. However, the SMEs “need to have their process designed in such a way that it will support the development of the team growth.”

Caring for the safety of the employees is another aspect that needs to be highlighted. An organisation that ensures that its employees are working in a safe environment is bound to see good results. For example, Bridgestone gives top priority to the safety of the employee. It believes in the ‘Today is also one day of safety’ policy. And this works in the favour of the employees as well as of the company.

Sound and systematic HR practices ensure the success of SMEs. “Being big does not mean Being Great Small is Strategic.” The SMEs should exercise flexibility in adopting the global best HR practices that would help them in the long run.

What must not be forgotten is that the world is keeping a close watch on the Indian SMEs and any form of mediocrity is unpardonable. The emphasis then has to be on becoming better by following the best practices.

Human Resources Development (HRD) – Techniques and Methods

Techniques of human resources development are also called HRD methods, HRD instruments, HRD mechanisms or HRD sub-systems.

They include:

(i) Performance Appraisal

(ii) Potential Appraisal

(iii) Career Planning

(iv) Career Development

(v) Employee Training

(vi) Executive Development

(vii) Organisational Change

(viii) Organisational Development

(ix) Social and Cultural Programmes

(x) Workers’ Participation in Management

(xi) Quality Circles

(xii) Employee Counseling

(xiii) Team Work

(xiv) Role Analysis

(xv) Communication Policies and Practices

(xvi) Monetary Rewards

(xvii) Non-monetary Rewards

(xviii) Employee Benefits and

(xix) Grievance Mechanism.

HRD Outcomes Include:

HRD outcomes provide the ground rules to build an organization excelling in people, processes, products and profits.

(i) Training makes people more competent. They develop new skills, knowledge and attitudes.

(ii) There is greater clarity of norms and standards. People become better aware of the skills required for job performance and the expectations which other members have set for them.

(iii) People become more committed to their jobs because now there is greater objectivity in the administration of rewards. The data-based appraisal system reduces subjectivity to the minimum. People are assessed on the basis of their performance against agreed objectives and their team spirit, risk taking and creative qualities. They become more proactive in their orientation.

(iv) People develop great trust and respect for each other. They become more open in their behaviour. Thus, new values come to be generated.

(v) There is great collaboration and team work which produces synergy effect.

(vi) There is greater readiness on the part of employees to accept change. They find themselves better equipped with problem-solving capabilities.

(vii) Lot of useful and objective data on employees are generated which facilitates human resources planning.

(viii) Participation develops in workers a sense of achievement and pride in work.

(ix) HRD helps inducing multi-skills to the employees.

Human Resources Development (HRD) – Competency Mapping

For HRD competency mapping is always done in the defined job context following a set of approaches viz.:

a. Workforce Skills Analysis:

Workforce skill Analysis helps to describe skills required to carry out a function. However, this is a dynamic approach, as it also considers nature of work changes in an organisation.

b. Job Analysis:

Job Analysis focuses tasks, responsibilities knowledge and skill re­quirement, which are required for successful job performance.

c. Supply and Demand Analysis:

Supply Analysis is done considering workforce demographic (inter­view of occupation, grades, structure, race, origin, gender, age and service experience) workforce competencies.

Demand Analysis – On the other hand to identify workforce of the future in line with the vision, mission, objectives, goals and strategies of an organisation. Critical inputs from Demand Analysis contribute to de­velopment of competency model for workforce of the future. With the above inputs reinforcers, organisation undertakes Gap analysis to understand the difference between the workforce of today and the workforce of the future.

d. Gap Analysis:

After such identification of differences, organisation needs to plan to address those addressing such gaps is done through solution analysis, taking into account both on going and planned changes in the workforce.

e. Solution Analysis:

Solution analysis also weighs different options to get the work done, either considering institutional or contractual employment. New recruitment, restructuring training and retraining deployment and rightsizing, all are done, in the light of new competency model in this phase.

After suitable competency mapping, next course of action, for an organisation, however, is to decide whether to downsize / right size or to go for training, retraining and development.

Human Resource Development (HRD) Benefits

HRD not only develops the competence of the individuals but also develops his latent potential for the total effectiveness of the organization.

The benefits from HRD are therefore many, some of them are:

i. HRD assists employee to diagnose his own strengths and weaknesses.

ii. It develops creativity in employees.

iii. It helps employees to develop himself in a given organizational climate to improve not only his performance but that of the organizations.

iv. It develops trust and openness amongst employees thus enriches interpersonal relationships.

v. It creates environment for realistic feedback and guidance from superiors.

vi. It provides long term and short term development opportunities.

vii. It smoothen the career development plans.

viii. It helps organizations to use available human resources for future challenging responsibilities after developing them.

ix. It enables an overall development of personality of employees and the organizations.

Human Resource Development (HRD) Outcomes

Following are the various outcomes, which result from HRD methods via improvement in the human processes:

i. People in the organisation become more competent because on the one hand they become better aware of the skills required for job performance and on the other hand there is greater clarity of norms and standards.

ii. People understand their roles better because through increased communication they be­come aware of the expectations, which other members of their role set have from them.

iii. People become more committed to their jobs because now there is greater objectivity in the administration of rewards. They come forward with better and more creative ideas.

iv. People develop greater trust and respect for each other. They become more open and authentic in their behaviour. Thus new values come to be generated.

v. There is greater collaboration and teamwork, which produces synergy effect.

vi. People find themselves better equipped with problem solving capabilities.

They become more prone to risk-taking and proactive in their orientation. There is greater readiness on their part to accept change.

7. Lot of useful and objective data on employees are generated which facilitate better hu­man resource planning.

8. The top management becomes more sensitive to employees’ problems and human pro­cesses due to increased openness in communication.

The net result of the above outcomes is that the organisation becomes more effective. It achieves new heights in terms of productivity, cost, growth, diversification, profits and public image. However, one should not expect these results in a short period.

But if these results do not appear even after a reasonably long period one should question the qualitative and quantitative adequacy of the HRD processes and the related instruments which are being used in that organisation.

It should also be remembered that excellent HRD outcomes at any given point of time do not indicate continued effectiveness of the organisation for all times to come. HRD results need to be continuously watched, strengthened and renewed.

Human Resource Development (HRD) Evaluation of HRD Programme

HRD Programme evaluation is the final phase in the training and HRD process. This is where the effectiveness of the HRD intervention is measured. This is an important but often ignored activity. Careful evaluation provides information on participants’ reaction to the programme, how much they learned, whether they use what they learned back on the job, and whether the programme improved the organization’s effectiveness.

HRD professionals are increasingly being asked to provide evidence of the success of their efforts using a variety of “hard” and “soft” measures, that is, both bottom line impact, as well as employee reaction.

This information allows managers to make better decisions about various aspects of the HRD effort, such as:

i. Continuing to use a particular technique of vendor in future programmes.

ii. Offering a particular programme in the future.

iii. Budgeting and resource allocation.

iv. Using some other HR or managerial approach (like employee selection).

v. Changing work rules to solve the problem.

It is important that HRD professionals provide evidence that HRD programmes improve individual and organizational effectiveness. Armed with this information, HRD managers can better compete with managers from other areas of the organization when discussing the effectiveness of their actions and competing for resources.