Human Resources Development (HRD) is a framework for the expansion of human capital

within an organisation. Human Resources Development is a combination of Training and

Education that ensures the continual improvement and growth of both the individual and the
organisation. Adam Smith states, “The capacities of individuals depended on their access to
education”.

Human Resources Development is the medium that drives the process between training and
learning. Human Resources Development is not a defined object, but a series of organized
processes, “with a specific learning objective” .Human Resources Development is the structure
that allows for individual development, potentially satisfying the organisation’s goals. The
development of the individual will benefit both the individual and the organisation. The Human
Resources Development framework views employees, as an asset to the enterprise whose value
will be enhanced by development, “Its primary focus is on growth and employee development…
it emphasises developing individual potential and skills”. Human Resources Development can be
in-room group training, tertiary or vocational courses or mentoring and coaching by senior
employees with the aim for a desired outcome that will develop the individual’s performance. An
apprentice will step through the development process to become a tradesman in their field as will
a white-collar trainee to become a professional in their field. Training will allow the individual to
complete a task within their field today Gutteridge and Hutcheson maintain that, “Training
provides, maintains and enhances skills to perform the job” (Nadler 1984) Education and training
will develop the individual to become a tradesman or a professional in the future. A successful
Human Resources Development program will prepare the individual to undertake a higher level
of work, “organised learning over a given period of time, to provide the possibility of
performance change” (Nadler 1984). Human Resources Development is the framework that
focuses on the organisations competencies at the first stage, training, and then developing the
employee, through education, to satisfy the organisations long-term needs and the individuals’
career goals and employee value to their present and future employers. Human Resources
Development can be defined simply as developing the most important section of any business its
human resource by, “attaining or upgrading the skills and attitudes of employees at all levels in
order to maximise the effectiveness of the enterprise” (Kelly 2001). The people within an
organization are its human resource. Human Resources Development from a business
perspective is not entirely focused on the individual’s growth and development, “development
occurs to enhance the organization's value, not solely for individual improvement. Individual
education and development is a tool and a means to an end, not the end goal itself”.
THE CONCEPT OF HRD

Human resource development in the organization context is a process by which the employees of
an organization are helped, in a continuous and planned way, to:

1. Acquire or sharpen capabilities required to perform various functions associated with

their present or expected future roles.
2. Develop their general capabilities as individuals and discover and exploit their own inner
potentials for their own and/or organizational development purpose.
3. Develop an organizational culture in which supervisor-subordinate relationships,
teamwork, and collaborations among sub-units are strong and contribute to the
professional well being, motivation, and pride of employees.

This definition of HRD is limited to the organizational context. In the context of a state or nation
it would differ.

 HRD is a process, not merely a set of mechanisms and techniques. The mechanisms and
techniques such as performance appraisal, counseling, training, and organization development
interventions are used initiate, facilitate, and promote this process in a continues way. Because
the process has no limit, the mechanisms may need to be examined periodically to see whether
they are promoting or hindering the process. Organizations can facilitate this process of
development by planning for it, by allocating organizational resources for the purpose, and by
exemplifying an HRD philosophy that values human beings and promotes their development.

HRD — SOME CONCEPTS

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

But many personnel managers and organizations view HRD as synonymous to training and
development. Many organizations in the country renamed their training departments as HRD
departments. Surprisingly some organizations renamed their personnel department as HRD
departments. Some educational, institutions started awarding degrees and diplomas in HRD even
though the concept is not yet crystal clear.

HRD from organizational point of view is a process in which the employees of an organization
are helped/motivated to acquire and develop technical, managerial and behavioral knowledge,
skills and abilities, and mould the values, beliefs, attitude necessary to perform present and
future roles by realizing highest human potential with a view to contribute positively to the
organizational, group, individual and social goals.

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 organizational
needs and aspect of contribution to not only organizational also other goals.

The analysis of the third definition further shows that there are three aspects, viz.,

1. Employees of an organization are helped/motivated;

2. Acquire, develop and mould various aspects of human resources; and
3. Contribute to the organizational, 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: Organization structure,
organizational climate, HRD climate, HRD knowledge and skills to managers, human resource
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, Organizational development, Social and
Cultural programs, and Workers’ participation in management and quality circles. The third
category includes the outcomes contribution of the HRD process to the goals of the organization,
group, individuals and the society.

Functions of Human Resources Development

HRD at Macro and Micro Level:

HRD as stated earlier is mainly concerned with developing the competencies of people. When
we all it as a people oriented concept then several questions come to mind like should the people
be developed in the larger and national context or in the smaller institutional context? Are they
different at the macro level and micro level? As things stand now, HRD applies to both
institutional (micro) as well as national (macro issues). The main objective however is to develop
the newer capabilities in people so as to enable them to tackle both present and future challenges
while realizing organizational goals. However, it is useful both at macro and micro levels.

Macro level:

At the macros level HRD is concerned with the development of people for the nation’s well
being. It takes health capabilities skills, attitudes of people which are more useful to the
development of the nation as a whole. While calculating the national income and economic
growth the prospective HRD concept examines the individuals potentialities their attitudes
aspirations skills knowledge etc and establishes a concrete base for economic planning.
However, HRD a contribution at macro level has not gained popularity as yet.

Micro Levels:
HRD has concern from grass root development in the organizations. Small wonder then, that
HRD was well received by companies managements as they realized its importance and foresaw
its future contribution for the Individual and organizational development. Generally HRD at
micro level talks of the organizations’ manpower planning selection training performance
appraisal, development potential appraisal compensation organizational development etc. HRD’s
involvement in all these areas is mainly with an objective to develop certain new capabilities in
people concerned to equip tem to meet the present job challenges and to accept future job
requirements.

HRD versus Personnel Function:

The traditional personnel function is a service oriented activity, responding to the needs of the
organization as and when they arise. On the other hand, HRD is productive functions which does
not merely respond to organizational requirements but anticipates them and prepares the people
and the organizations to face future challenges with confidence. HRD is wider in scope as it tries
to develop the whole organizations instead of focusing attention on people alone. Instead of
concentrating on maintenance factors (wages, incentives day to day plans, operating procedures
etc) it tries to focus on motivating factors (job enrichment , developing potentialities of people
creating autonomous work groups fostering innovation and creativity developing trust etc).
Personnel function,, traditionally is viewed as the primary job of personnel department HRD,
however, is the responsibility of all managers in the organization. The personnel function views
higher morale and improved job satisfaction as the causes of improved performance. HRD on the
other hand regards jobs challenges creativity and opportunities for development as the main
motivating forces.

Points of difference HRD and Personnel:

Personnel Function:

1) Maintenance oriented
2) An independent function with independent sub functions
3) Reactive functions responding to events as and when they take place.
4) Exclusive responsibility of personnel department
5) Emphasis is put on monetary rewards
6) Improved performance is the results of improved satisfaction and morale
7) Tries to improve to improve the efficiency of people and administration.

Points of distinction: (1) orientation (2) Structure (3) Philosophy (4) Responsibility (5)
motivators (6) Outcomes (7) AIMS

HRD (Human Resource development):

1) Development oriented
2) Consists of inter dependent parts.
3) Proactive function, trying to anticipate and get ready with appropriate responses.
4) Responsibility of all managers in the organizations.
5) Emphasis is on higher order needs such as – how to design jobs with stretch pull ad challenge
how to improve creativity ad problem solving skills how to empower people in all respects etc.
6) Better use of human resources leads to improved satisfaction and morale.
7) It tires to develop the organization as a whole and its culture.

Significance of human resources development

The effective performance of an organization depends not just on the available resources, but its
quality and competence as required by the organization 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 organizations also depends on utilization 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.

The term human resources refers to the knowledge, skills, creative abilities, talents, aptitude,
values and beliefs of an organization’s work force. The more important aspects of human
resources are aptitude, values, attitudes and beliefs.

The vitality of HR to a nation and to an industry depends upon the level of its development. For
the organization to be dynamic, growth-oriented and fast-changing it should develop their HR.
Though the positive personnel policies and programs motivate the employees, buy their
commitment and loyalty but these efforts cannot keep the organization dynamic.

Organization to be dynamic should possess dynamic human resources. Human resources to be

dynamic acquire capabilities continuously adopt the values and beliefs and aptitude in
accordance with changing requirements of the organization. Similarly, when employees use their
initiative, take risks, experiment, innovate and make things, happen, the organization may be said
to have an enabling culture. The competent human resources can be dynamic in an enabling
culture. Thus, the organization can develop, change and excel, only if it possess developed
human resources. Thus, HRD plays significant role in making the human resources vital, useful
and purposeful.

CHANGING BOUNDARIES OF HRD

Changes have been a very constant part of HRD. Over time there have been many changes in the
HR function especially the last decade has seen various new things in HR with special emphasis
on HRD .The status of the HR function got very much uplifted across the world, and particularly
in India. Lifting up the HR function to the Director level in the corporations, and representation
of HR Directors on the Board are two significant indicators of the recognition of people as are
source and partners in business. This is what was envisaged in some ways when the first HRD
department was designed in Larsen & Toubro in mid-seventies. The HR function also got
expanded to include some new initiatives in a few organisations. Some of the new roles the HR
functionaries started performing in the last decade include the following. Most of these relate to
human resource development.

1) Reorganization and restructuring, including downsizing, rightsizing, flattening the structure,

outsourcing etc.;

2) Managing mergers and acquisitions by changing HR policies, realigning and redrafting HR

policies and practices;

3) Initiating and managing quality initiatives, including quality circles, small group activities,
ISO certification etc.;

4) Conducting a variety of surveys, including climate surveys, employee satisfaction surveys,

internal customer satisfaction surveys, and bench marking with competitors and others globally;

5) Restructuring salary and reward systems through compensation surveys, introduction of stock

options, performance-linked pay or pay-for-performance,compensation planning etc.;

6) Enhanced emphasis on recruitment or placement. With the recognition of the need for
competent people, the new economy industries like the IT, Telecom,Financial services,
Insurance, BPO organisations (call centres) have further increased their focus on recruitment and
outsourcing of recruitment;

7) Introducing new technologies of training, including e-learning, on-line education, distance

learning, off campus learning, web based learning and use of other technologies for learning;

8) Starting of Corporate Universities and in-house training institutions and academies to

encourage continuous education programmes and competency building;

9) Introduction of 360 Degree Feedback, including using it for leadership development, evolving
leadership models that fit into the company culture and take care of the unique needs of the
company, and exploring it as an individual as well as performance development tools,
experimenting with 360 degree feedback by linking with reward systems;

10) Use of Assessment Centres or Development centres for identifying, developing and
promoting talented individuals, starting of fast track systems, identification of high potential
employees and designing retention strategies;

11) Increased emphasis on mentoring and coaching. In the early years of this decade the
emphasis was more on training. Mentoring and coaching has been introduced specifically in
India during this time only since then the organizations have been making   shift to effective
mentoring and coaching;
12) Emphasis on leadership and leadership development at all levels. Leadership function has
seen transformation and now the leaders walk the talk, lead by example and surely are more
humanly than the earlier counterparts. Ironically this change has been so far the best thing that
has changed in the HRD;

13) Participation in strategic thinking, business planning, mergers, acquisitions etc.

14) Improving quality of work life. This has been has been brought into focus by the IT industry
where the environment becomes a critical factor in effective functioning of knowledge workers.

All these new developments of the last decade are in the direction of making HR, specifically
HRD, and a strategic business partner.

PRINCIPLES IN DESIGNING HRD SYSTEM

There have been many queries regarding the principles of Human Resource development. Many
a times we get confused between principles and functions of HRD however there is a clear cut
distinction between the two. The main functions of HRD are Training, Personal development,
Organisational development, Career planning and development, Change Management. The
principles therefore are not the functions.

HRD systems must be designed differently for different organizations. Although the basic
principles may remain the same, the specific components, their relationships, the processes
involved in each, the phasing, and so on, may differ from one organisation to another
organisation.

Designing an integrated HRD system requires a thorough understanding of the principles and

models of human resource development and a diagnosis of the organisation culture, existing
HRD practices in the organisation, employee perceptions of these practices, and the
developmental climate within the organisation.

The following principles related to focus, structure, and functioning should be considered when
designing integrated HRD systems.

 Focus on enabling capabilities: The primary purpose of HRD is to help the organisation
to increase its “enabling” capabilities. These include development of human resources,
development of organisational health, improvement of problem solving capabilities,
development of diagnostic ability (so that problems can be located quickly and
effectively), and increased employee productivity and commitment.

 Balancing adaptation and change in the organisational culture: Although HRD

systems are designed to suit the organisational culture, the role of HRD may be to modify
that culture to increase the effectiveness of the organisation. There always has been a
 controversy between those who believe that HRD should be designed to suit the culture
and those who believe that HRD should be able to change the culture. Both positions
seem to be extreme. HRD should take the organisation forward, and this can be done only
if its design anticipates change and evolution in the future.

 Attention to contextual factors: What is to be included in the HRD systems, how is it to

be sub-divided, what designations and titles will be used, and similar issues should be
settled after consideration of the various contextual factors of the organisation—its
culture and tradition, size, technology, levels of existing skills, available support for the
function, availability of outside help and so on.

 Building linkages with other functions: Human resource development systems should
be designed to strengthen other functions in the company such as long-range corporate
planning, budgeting and finance, marketing, production, and other similar functions.
These linkages are extremely important.

 Balancing specialisation and diffusion of the function: Although HRD involves

specialised functions, line people should be involved in various aspects of HRD.Action is
the sole responsibility of the line people, and HRD should strengthen their roles.

 Ensuring respectability for the function: In many companies, the personnel function

does not have much credibility because it is not perceived as a major function within the
organisation. It is necessary that HRD be instituted at a very high level in the organisation
and that the head of the HRD department is classified as a senior manager. Both the
credibility and usefulness of HRD depend on this.

 Balancing differentiation and integration: The human resource development function

often includes personnel administration, human resource development and training, and
industrial relations. These three functions have distinct identities and requirements and
should be differentiated within the HRD department. One person may be responsible for
OD, another for training, another for potential appraisal and assessment, etc. At the same
time, these roles should be integrated through a variety of mechanisms. For example,
inputs from manpower planning should be available to line managers for career planning
and HRD units for potential appraisal and development. Data from recruitment should be
fed into the human resources information system. If salary administration and placement
are handled separately, they should be linked to performance appraisals. Differentiation
as well as integration mechanisms are essential if the HRD system is to function well.

 Establishing linkage mechanisms: HRD has linkages with outside systems as well as
with internal sub-systems. It is wise to establish specific linkages to be used to manage
the system. Standing committees for various purposes (with membership from various
parts and levels of the organisation), task groups, and ad hoc committees’ for specific
tasks are useful mechanisms.

 Developing monitoring mechanisms: The HRD function is always evolving.

It therefore requires systematic monitoring to review the progress and level of effectiveness of
the system and to plan for its next step. A thorough annual review reappraisal every three years
will be invaluable in reviewing and planning the system. It may be helpful to include persons
from other functions in the organisation in the HRD assessment effort.