Human Resource Development-Macro Perspective

Human resource development is the process of developing the human resource working in an
organization by modernizing their knowledge and upgrading their skills, attitudes and
perceptions in order to meet out the changing trends of the globalised economy and also to utilize
those developments for the attainment of the organizational goals In the present scenario of
globalization and liberalization, it is extremely important to understand the real worth of the
people in any organization. It is not sufficient to address people as the strategic asset of the
organization but to believe that they are the real and the most important asset in any organization
or firm. People are not just the packet of acquaintance and skills but they are the free agents who
are proficient of handling the competition and dynamism of this era with their potential and are
capable of bringing colossal values to an organization. HRD as an activity is extremely
significant in achieving organizational excellence i.e. to excel with people, process and
performance. To be a survivor in the present scenario of cut-throat competition, the organizations
have to develop some appropriate HRD strategies to manage their work force in an organized
manner and align their potential with that of their corporate missions and objectives.

Definitions of HRD
To appreciate the significance of the term ‘HRD’ many economists, thinkers, social scientists,
and industrialists come forward to define the term from different aspects. Certain eminent
definitions of HRD are:

“Human Resources Development (HRD) as a theory is a framework for the expansion of human
capital within an organization through the development of both the organization and the
individual to achieve performance improvement” (Kelly: 2001).

In the words of M.N. Khan “HRD is the process of increasing knowledge, skills, capabilities and
positive work attitude and values of all people working at all levels in a business undertakings”
( Khan:1987).

Prof C.S. Sanker observes, “HRD is a development oriented planning efforts in the personnel
area which is basically concerned with the development of human resources in the organization
for improving the existing capabilities and acquiring new capabilities for achievement of the
corporate and individual goals” (Sanker :1984).

Dr. Len Nadler says, “HRD means an organized learning experience, with an objective of
producing the possibility of performance change” (quoted by Gupta and Gupta: 2008).

HRD in Organizational context has been rightly defined by T.V.Rao and his definition, which
has also been termed as the national definition of HRD in India.

According to Prof. T.V.Rao, HRD is a continuous process to:

 Acquire or sharpen capabilities required to perform various functions associated with
present and future needs of the job.
 Develop their general capabilities as an individual and enable them to exploit their inner
potential.
 Develop a congenial organizational climate in which dyadic relationship and team
collaborations among sub-units are strong and contribute to the professional wellbeing of
employees (Pareek and Rao: 1981).

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Concept of Human Resource Development (HRD)

Human Resource Development (HRD) is a positive concept as an area of managing human

resources. It is based on the belief that it is imperative and constructive for an organization to
invest in human beings to bring substantial benefits in the long run. It aims at the overall
development of the human resource in order to contribute for the well-being of the employees,
organization and the society at large. Out of the fundamental areas of Management, Human
Resource Management is adjudged as the most important area of study and concern. In the
Management of four Ms i.e. money, machines, materials and men, the management of men is the
most significant and challenging. The efficiency of the whole lot of activities carried out in an
organization starting from the production process to the management of various areas of
administration depends to a large extent on the level of Human Resource Development.

The paradigm of managing employees has undergone rapid transformation in the last decade,
from comparative advantage to a state of continuous innovation, intelligent framework and
strategic intent for competitive advantage. Today’s personnel are more demanding and have high
aspirations. They demand early up-gradation of their skills and competencies. This implies that
the organizations should develop appropriate HRD policies and take care in formulating and
implementing such policies by keeping in mind the objective of the firm and integrating those
objectives with that of the organization.

HRD is rooted in the belief that human beings have the potential to do well. It therefore, secures
a premium place for the dignity and tremendous latent energy and potential of people. Where the
balance sheet shows people on the debit side, HRD seeks to show them as ‘assets’ on the credit
side. In the present era of liberalization and globalization HRD is emerging as an
interdisciplinary and integrated approach for the development of human resource.

Accordingly, HRD has proved and has been accepted widely as one of the most effective tools
that ensure the overall development of the organization. It is a process which aims at developing
the know-how and skills of the human resource in an organization and to upgrade their potential
in order to make them competent enough to beat the competitive edge. Development means
improving the existing capabilities to the work force and helping them to acquire required
capabilities for the achievement of corporate goals integrating those with the individual goals.
HRD is a process, not merely a set of mechanisms. HRD is an area of study which is getting
broader and broader with time. Many eminent writers have contributed in this regard and the
concept is been getting wider. From National to Western concept of HRD and now with the
advent of globalization Global and New concept of the subject has knocked the doors of
Researchers.

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Evaluation of HRD

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Need of HRD

The subject ‘HRD’ is a new and emerging concept and is of topical interest with increasing
importance. The government of India has recognized the relevance of HRD and has created a
separate ministry under the control of a fully fledged Cabinet of Ministers. The real strength of
the country lies in the development of human mind and body.

It was also rightly expressed by an eminent philosopher from China, Kuang Chung Trum during
the period of 7th Century B.C. He said,
“If you wish to plan for a year, sow seeds;
If you wish to plan for ten years, plant trees;
If you wish to plan a life time, development”

Since human resources is the life line of an organization and the process of developing this
resource is highly significant for the managers to achieve the goals and targets of the
organization. Therefore, HRD is needed by any organization that wants to be dynamic and a
survivor in the present scenario of cut-throat competition. In the rapidly changing environment,
organizations can scale new heights only through the effective and efficient use of human
resources . To keep the pace with the ever changing environment, organizations must develop its
people and allow them to grow.

HRD system must be viewed as a total system interacting with other systems of an
organization. Therefore need of HRD arises to improve working life, to develop potential
of employees and utilizing the human resource in an optimum manner to exploit their
potential by availing opportunities for further development and growth. In a nutshell,
HRD is needed because:

 It is helpful in creating a congenial environment and improves the working life of human
resource,
 It helps in facilitating effective communication to surface creative ability of employees in
full swing,
 It enables the members to attain self-actualization through systematic process of
development,
 It facilitates tapping the present and future creative abilities of the people to utilize them
for organizational development.
 It is helpful in accelerating the growth of employees and making them aware about their
strengths and weaknesses,
 It is helpful in developing the skills of work force in a way to make them competent
enough to exploit the available opportunities in an optimum manner

Objectives of HRD

Human Resource Development is basically the process of developing the work force working in
any organization by enhancing their knowledge and skills through proper training and guidance.
It ultimately aims at achieving the organizational goals by combating them with the goals of the
individuals working in an organization. There are certain objectives for implementing HRD in
any organization which aims at developing

 the capabilities of each employees as individuals;

 the capabilities of each individual employee in relation to his/her present job;
 the capabilities of each individual employee in relation to his/her expected future role;
 the superior-subordinate (dyadic) relationship;
 a cohesive and congenial atmosphere of working;
 collaboration among different units of an organization;

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  to develop the constructive mind and overall personality of employees;
 the organization’s overall health and self-renewing capabilities which in turn increase the
organizational capabilities in a comprehensive manner;
 to humanize the work in an organization; and
 to ensure better quality work, higher productivity and higher profits.

Benefits of HRD

Henry Ford the pioneer in the field of management states, “Take out my building, take out my
machines and all capital but leave my men with me I will become Henry Ford again” This
statement of Henry Ford highlights that human resource plays a crucial role in an organization.
Development of this resource is of absolute significance in achieving the organizational goals
and also to become capable of capturing the survivor position in this era of cut throat
competition. Human Resource Development is the kingpin around which all the activities of an
organization revolve. It is a process which plays a significant role in learning and modification of
behavior of employees in an organization. HRD is considered as the key to higher productivity,
better relations and greater profitability for any organization.

Here are some important benefits being discussed in brief which are the outcome of
implementing HRD in any organization:

 HRD helps in identifying organizational goals through better understanding of

employees,
 HRD fosters commitment through the communication of values,
 HRD facilitates dyadic relationship,
 It facilitates job enrichment through proper training and acquisition of new skills,
 HRD increases the awareness of the importance of change management and consequent
adaptability of employees,
 HRD provides higher quality of work life through opportunities of a meaningful; career,
job satisfaction and professional development,
 It focuses on need contentment through recognition and achievement. With appropriate
HRD programme, people become more committed towards their job, people are assessed
on the basis of their performance
 HRD makes people more competent. It develops new skills, knowledge and attitudes of
the people in the organization concerned,
 A congenial and a cohesive environment could be developed with the implementation of
HRD programmes,
 Employees found themselves more capable of handling competition ,
 Proper HRD policies promote openness in the attitudes of the employees working in the
organization, it contributes to the overall growth of the employees,
 Resources are utilized in an optimum manner,
 It helps in developing a sense of belongingness among the employees and increases the
participation rate among them

Difference between HRM and HRD

The discipline of HRD was developed because the human resource management function failed
to meet the new challenges of the 20th century. Some of organizations have merely redesigned
their personnel departments as HRD departments. But there are certain differences in both the
areas:

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  Human Resource Management (HRM) is viewed as a set of independent subfunctions
while Human Resource Development (HRD) is seen as a system of a larger system in an
organization.

 HRM is considered as mainly a service function enduring with the demands of the
organization as and when they arise, but HRD is considered as a proactive function which
forecasts the needs of the organization and keep itself prepared to face the unseen
competition in an organized manner.

 HRM is a narrower concept which aims at developing and administering people only.
HRD is a wider concept aims at developing not only its people but its whole organization.

 The main focus of HRM is on enhancing skills and increasing efficiency of people in the
organization whereas HRD is based on the concept of building up the right organizational
climate that could discover, nurture and utilize human capabilities in an optimum manner.

 In HRM, main motivators are salary, wage incentives and job simplifications. On the
other hand, HRD relies on job enrichment, job challenge, informal organizational
climate, autonomous work groups and creativity for motivating the work force in the
organization.

 HRM is supposed to be the exclusive responsibility of the Human Resource (HR)

Managers and their concerned department. But HRD is considered as the responsibility of
all the managers in an organization. In fact, HRD aims at developing the capabilities of
all the line managers to carry out various human resource management functions
themselves.

Principles of HRD

The major principles which should be kept in mind while framing the aspects of development of
the human resource are as follows:

 Principle of Development of Organizational Capability

An ideal HRD system should be based on the principle of overall development of
employees and the organization as a whole. The capabilities include overall development
of the work force in all aspects, may it be technical, physical, psychological or moral
development in an organized manner.

 Principle of Potential Maximization

HRD system must enable their employees to identify their hidden potential and make
them competent enough to exploit their talent in an optimum manner so that they could
contribute their efforts in attaining organizational goals.

 Principle of Autonomy Maximization

Autonomy is the degree of independence given to employees at work so that they could
be able to tackle responsibility to some extent of what they are capable of handling. A
proper HRD system must provide certain level of autonomy to its employees enabling
them of handling duties on their own.

 Principle of Maximum delegation

Delegation of responsibilities means sharing responsibilities of authorities with
subordinates so that a cohesive and a congenial environment could be developed in an
organization.

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  Principle of Participative Decision-making
Participation of subordinates must be encouraged by top level managers in an ideal HRD
system to create a comfortable working atmosphere where workers are free to discuss
their ideas and always welcomed for suggestions.

 Principle of Change Management

Change is the only permanent thing in this universe but usually people resists change. To
beat the competition an organization and its human resource should be as much flexible
in getting itself adapt to the changing scenario of 21st century. A good HRD system must
attempt to strike a balance between the organizational culture and the changing culture.

 Principle of Periodic Review

Review and renewal of HRD functions like training and development, career planning
and development, performance and potential appraisal, counseling etc of employees
should take place regularly in an organization at certain periodic intervals.

Thus, the principles that have been stated above must be kept in mind while framing a Human
Resource Development system so as to have a proper and regular development of the human
resource in an organization.

HRD at Macro and Micro level

HRD, as defined earlier from the view point of many eminent thinkers and philosophers as the
process of developing the competencies and knowledge of people. When we talk about the
development perspective of human resource, the several questions that strike to our minds are
like should the people be developed in the national context or in the small organizational
context? Is it different at the macro level and micro level? In the recent scenario, the concept of
HRD is applicable to both Micro–level (organizational) as well as Macro-level (national) issues.
From the Macro perspective, HRD is concerned with the development and growth of people for
the well-being at a national level. It takes health, skills, capabilities, attitudes and beliefs of the
people, which are more significant for the development issues at a global level. While the
national income is being computed or the economic growth is assessed, the prospective concept
of HRD examines the potentialities, attitudes, skills and knowledge of the individuals and
institutes a concrete base for economic planning. However, HRD’s contribution at the macro
level has not gained much popularity as yet. From the standpoint of micro aspects, the purpose of
HRD is to develop the competencies of the work force in an organization. Hence, it has concerns
for the development issues at grass-root level in the organizations. Recognition and acceptance
of HRD at an organizational level is remarkable, as the managers have started recognizing the
vitality of implementing HRD policies into practice. Generally, HRD at a micro level, talks
about the manpower planning, selection, training, performance and potential appraisal,
organizational development, employee’s welfare, etc. Involvement of HRD with these areas is
mainly for the reason of infusing new and latest technology in people concerned, to make them
capable of dealing with the dynamic challenges of the present scenario and also to tackle the
future responsibilities in a cohesive and organized manner.

At the Organizational level (Micro Level)

 Training increases competency level of employees by updating their knowledge and

upgrading their skills,

 Comprehensive abilities of the employees increases which enhances their horizons of

vision and performance,

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  Employees become more committed towards the organization and a sense of
belongingness is developed among them, team-spirit among the employees in an
organization goes up, with the proper implementation of HRD in an organization trust
and openness is created among the employees and they begun to respect each other which
helps in developing a cohesive working environment,

 Collaboration and team-work produces synergy effects,

 Employees feel capable enough of handling competition and becomes ready to accept
change,

 Important and useful data in respect of employees are generated which is helpful in
human resource planning,

 Participation among employees is promoted so that they could also contribute their share
in decision making leading to sense of pride and achievement of task,

 HRD involves human resource aspects like skills, knowledge, creative abilities and
talents which helps in molding aspects like values, beliefs, aptitudes and attitude
according to the changing needs and aspirations of individuals along with that of the
organization,

 Improves the problem understanding and solving capability of employees.

 Sense of belongingness and dedication is developed in the employees towards the

organization.

At the National Level (Macro Level)

 HRD manifest development of basic human aspects such as aptitude, attitude, values,
beliefs on one hand and knowledge, skills, on the other hand. This process improves the
utilization value of the society.

 HRD facilitates fulfillment of the requirements of dynamism in today’s ever changing

environment like increase in the competition among the organizations and firms inside a
country and also from other countries globally.

 Vitality of the work force of any organization which implements HRD is increased to a
desirable extent.

 HRD makes the human resource dynamic and growth oriented of any nation.

 HRD makes the work force vital, purposeful and diligent in performing their duties well
and in an organized manner.

 HRD promotes a culture, where people utilize their knowledge, skills and ideas to take
initiative for innovations to make things happen.

 It accelerates economic development as HRD creates a congenial and cohesive working

environment in organizations which ultimately exists in a country and contributes directly
to national development.