HUMAN RESOURCE

DEVELOPMENT IN INDIA
Ms. Anubha Rastogi
Astt. Prof, Vidya School Of Business
2015-16
 Meaning of HRD

Leonard Nadler introduced the term HRD in 1969. He defined HRD

as “those learning expenses which are organized for a specific
time and designed to bring about the possibility of behavioral
change”

 Human Resource Management (HRM) encompasses many

functions.
 Human Resource Development (HRD) is just one of the functions
within HRM.
 Emergence of HRD

In the early seventies 2 consultants Prof.Udai Pareek &

Prof.T.V.Rao from the IIM were approached by L&T for a review
exercise of their performance appraisal system. In 1974 the
consultants studied the system and made recommendations for
improving it. They felt that a development oriented
performance appraisal system may not achieve its objectives
unless accompanied by other sub-systems like employee
counseling, potential appraisal, career planning and
development, training, OD etc. So a new HRD system was
introduced at L&T in the year 1975.
According to T.V.Rao, HRD is a process by which employees
of a organization are continuously helped in a planned way

• To acquire capabilities (knowledge, perspectives,

attitudes, values & skills) for performing tasks.
1.

• To develop their enabling capabilities so that they

are able to discover & utilize their inner potential.
2.

• To develop an organizational culture where team

work contributes to the organizational health &
dynamism.
3.
ORIGIN OF HR
 Its origin is dated back to 1800 BC., when wage and incentive plans were
included in the Babylonian code of Hammurabi.
 The world’s first management book, titled “Artasastra” written by Kautilya, in
400 BC, codified many aspects of human resource practices in ancient India.

GROWTH OF HUMAN RESOURCE

HRM in India could be traced back to the period after 1920, when
emphasizes was on worker welfare.
In 1931, the royal commission on labor suggested the appointment of
labor officer to protect workers interests .
Appointment of labor officer
The second world war
Enactment of Industrial dispute Act
Enactment of Factories Act
1960 and after…..
FIRST PHASE
Immediately after independence the focus was on four
reasons :
Maintain discipline
Prevent their formation of and break-up the leadership of trade
unionism.
Prevent their formation of and break-up the leadership of trade
unionism
Handle recruitment and termination
Keep some form of attendance and personnel records.
SECOND PHASE

IN 1960S, Indian industrialization got a fillip with the

rise of the public sector. Hence 3 more functions
were added i.e.,
Labor welfare
Participative management
Industrial Harmony

In this period, the human relations movement of the

west also had its impact on Indian organization.
THIRD PHASE
 In 1970, the people management functions was neatly
divided into two :
Personnel officer
Establishment officers

Fourth Phase
In 1976, birth of worker training institute and attitudinal
development.

Fifth Phase
In 1985, organization shifted towards making HR Department
separately.
HRD and personnel function were clubbed together.
Sixth phase
In early 1990s :
HRM was seen as strategy
Motivation and stress were considered to bring change in HRM
Focus on organization objectives

Seventh Phase
In the mid of 1990s, sub specialization like :
Industrial Relations
Training & Development
Information system
Eight phase
HRM is not selective management any more
It became the part of Corporate Strategy formulation and
strategy implementation team

Late Arrival of HRM in India

Late arrival of factory system
Low status of industrial worker
Professionalization of Human resource
Management
Social responsibilities of Business
Change of government attitude
Factors Impending the
growth of HRM in India
Abundance of cheap labor
Weak labor movement
Highly Authoritarian culture
Technological Backwardness
Instability in Employment
Unhealthy growth of Trade unions
Migratory characteristic of Indian labor
Evolving Role of HRM in
India
Origin Of Human Resource Management in India
The police Man
The Welfare Man
The Law Man
The Liaison Man
The HR Man
 Emerging Issues in HRD
Changing Environment
Indian organizations have also undergone drastic transformation for vibrant new ideas.

Technological Impact
Focus may be on services which will be retained, re-skilled & deployed by the employees.

Low Commitment from management

Since HRD is seen as a non-productive expenditure for the org the line managers are not serious.

Globalization
This compels them to increase their ability to learn and collaborate and manage diversity & uncertainity.

Employee Orientation
This requires adequate premium to be placed on individual growth & development.

HR Outsourcing
This might pose a threat to the internal HR talent over a period of time.
 Objectives of HRD

To develop capabilities of all individuals working in an

organization in relation to their present role.
To develop capabilities of all such individuals in relation to their
future role.
To develop better inter-personal and employer-employee
relationships in an organization.
To develop team spirit.
To develop coordination among different units of an
organization.
To develop organizational health by continuous renewal of
individual capabilities keeping pace with technological
changes.
 Principles

 Principle of Development of Organizational Capability

 Principle of Potential Maximization

 Principle of Autonomy Maximization

 Principle of Maximum Delegation

 Principle of Participative Decision Making

 Principle of Change Management

 Principle of Periodic Review

 The 70-20-10 Development Model

70/20/10 learning concept was

70% from real life and on- developed by Morgan McCall,
the-job experiences, Robert W. Eichinger, and
tasks and problem Michael M. Lombardo at the
solving. This is the most Center for Creative Leadership
important aspect of any
learning and
development plan.
20% from feedback and
10%
from observing and
working with role On the job
models. 10% from 20%
formal training Relationship
70% building
Formal
programs
 HRM VS HRD

HRM HRD
Deals with all aspects of HR It is a sub section of HRM
functions
HRM is a routine function It is a continuous development
function
Independent One It is a sub system
Exclusive Responsibility Of Aims at developing capabilities of
Personnel Dept. all its mangers
Considers economic rewards, job Considers informal work groups,
simplifications as important job enrichment as main
motivators motivators.
HRM Functions are mostly Formal HRD functions can be informal like
Mentorships.
 HRD VS Personnel Function

Difference Personnel Function HRD

Orientation Maintenance Oriented Development Oriented

Structure An independent function with Consist of inter-dependent parts

independent sub-function

Philosophy Reactive function, responding to Proactive function, trying

the events as and when they to anticipate and get ready with
take place appropriate responses

Responsibility Exclusive responsibility of Responsibility of all managers in the

personnel department organisation
Motivators Emphasis is put on monetary Emphasis is on higher-order needs
rewards such as design jobs with stretch,
improve creativity and problem
solving skills
Outcomes Improved performance is the Better use of human resources leads
results of improved satisfaction to improved satisfaction and morale
and moral
Aims Tries to improve the efficiency of It tries to develop the organisation as
people and administration a whole and its culture
 Role of HR Manager
The primary responsibilities of Human Resource managers are:
To develop a thorough knowledge of corporate culture, plans and
policies.
To act as an internal change agent and consultant
To initiate change and act as an expert and facilitator
To actively involve in company’s strategy formulation
To keep communication line open between the HRD function and
individuals and groups both within and outside the organization
To identify and evolve HRD strategies in consonance with overall
business strategy.
To facilitate the development of various organizational teams and their
working relationship with other teams and individuals.
To try and relate people and work so that the organization objectives
are achieved efficiently and effectively.
To diagnose problems and determine appropriate solution particularly in
the human resource areas.
To provide co-ordination and support services for the delivery of HRD
programmes and services
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
and organizational performance.

Current Classification of HR Roles

So, HR play’s four key roles.
1. Strategic Partner Role- turning strategy into results by
building organizations that create value

2. Change Agent Role- making change happen, and in

particular, help it happen fast

3. Employees Champion Role- managing the talent or the

intellectual capital within a firm

4. Administrative Role- trying to get things to happen better,

faster and cheaper.