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Human resources is the comprehensive term representing all individuals who comprise
workforce in the organization. Development of these Human resources is the main
concern and objective for organizations as well as government for achieving respective
goals by overall development of human resources.
The term Human Resources can be explained as the total knowledge! skills! creative
abilities! talents and aptitudes of an organization"s workforce! as well as the value!
attitudes and beliefs of the individuals involved.#

Human resources is the scarcest and most crucial productive resource that creates the
largest and longest lasting advantage for an organization. %t resides in the knowledge!
skills! and motivation of people! is the least mobile of the four factors of production
& money! materials! machinery! and management' and &under right conditions' learns and
grows better with age and experience which no other resource can
%n simple words human resource development is ensuring all the organization members
have the skills or competencies to meet current and future job demands to achieve
organization goals.
(any people think that human resource development is nothing but improving human
resources through training. )ut in reality HRD functions include * +erformance appraisal!
potential appraisals! training and development! career development and organizational
development! workers participation in management and finally employee empowerment.
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# &,adler!$-./' 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.
+areek and Rao elucidate the objectives of HRD as
To provide a comprehensive framework and methods for the development of
human resources in an organization.
To generate systematic information about human resources for purposes of
manpower planning! placement! succession planning and the like.
To increase the capabilities of an organization to recruit! retain and motivate
talented employees.
To create a climate that enables every employee to discover! develop and use his
or her capabilities to the fullest extent in order to further both individual and
organizational goals
HRD objectives explained by +. 0ubbarao are
$. To prepare the employees to meet the present and changing future job
2. To prevent employee obsolescence
3. To develop creative abilities and talents
/. To prepare employees for higher level jobs
4. To impart new entrants with basic HRD skills and knowledge.
5. To aid total 1uality management
6. To promote individual and collective morale! a sense of responsibility! co*
operative attitudes and good relationships
.. To ensure smooth and efficient working of the organization.
-. To provide comprehensive framework for HRD
$7. To enhance organizational capabilities
$$. To create a climate that enables every employee to discover! develop and use
his8her capabilities to fuller extent in order to further both individual and
organizational goals.

%n common thinking HRD is e1uivalent to training and development. %n reality HRD is
building competencies. Though training and development is an essential part of HRD!
there are other functions complete HRD which mentioned below to the objectives
discussed above
The main function of HRD include
+erformance appraisal
9mployee training
9xecutive Development
:areer +lanning and Development
0uccession +lanning and Development
;rganization Development
%nvolvement in workers" +articipation in (anagement
Here in coming chapters we are going to discuss elaborately about all these HRD
Human Resource Develomen! "rame#or$
%n this dynamic market environment! to meet the demands! HRD in the organization
should be effective and efficient. %t will be possible when the employees should possess
all the potentials to perform present and future roles in organizations with dynamic
environment. <n effective and efficient HRD should essentially have a strong base of
human resources planning! recruitment and selection based on HRD re1uirements.
$. Human resources planning should focus not only present and future jobs but also
needs and roles.
2. Recruitment and selection should fit for further development
3. Human resources ac1uired should develop in terms of skills! knowledge! abilities
values! beliefs! and commitment to job and organization
/. Development should depend upon performance appraisal! potential appraisal!
training! management development! career planning and development!
organizational development and worker"s participation in management
Human Resources Development is the framework that focuses on the organisations
competencies at the first stage! training! and then developing the employee! through
education! to satisfy the organisations long*term needs and the individuals" career goals
and employee value to their present and future employers. Human Resources
Development can be defined simply as developing the most important section of any
business its human resource by! attaining or upgrading the skills and attitudes of
employees at all levels in order to maximise the effectiveness of the enterprise# &=elly
277$'. 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. %ndividual education and development is a tool and a
means to an end! not the end goal itself#. &9lwood ?. Holton %%! @ames A. Trott @r'.
Scoe o" HRD
The scope of HRD is wider and deals with development of human resources for efficient
utilisation of these resources in order to achieve the individual! and organisational goals.
?or individual employees! HRD is important as they can develop and build their
capabilities! which contributes to their professional and personal growth. ?or organizatin!
HR encompasses all development functions of HR! like performance management!
potential appraisals! mentoring! counseling! job rotation! career development and overall
organization develoment. HRD also enables orgnaization to develop the appropriate
culture of team work! collaboration! inter*personal relationships! which helps employees
to work with increased level of motivation and self pride.
Nee% "or HRD
,owadays businesses are existing under dynamic environment. )usinesses are changing
continuously in terms of technology! products8services! customer needs etc. (eeting
these everchanging conditions demand human resources development.
C&an'es (n econom(c ol(c(esB liberalisation! privitasion and globalisation posed threat
to the weak firms and created opportunites to the large firms in post $--$ era. To exploit
these opportunities organizations should ready with potential human resources.
C&an'(n' )o* re+u(remen!B orgainzation dynamism brings changes in organization
design and job design. The changes in job design bring changes in job description and job
specicifications. These changes demand HRD
Nee% "or mul!(,s$(lle% &uman resource. The changing job design re1uires employees
with multi*skills so that they can do the better in all conditions.
Or'an(-a!(onal v(a*(l(!. an% !rans"orma!(on rocessB if organization does not adapt
itself to changing environmental factors! it will lose its market share. To adapt changes!
organization has to develop human resources.
Tec&nolo'(cal a%vancesB To catch the ongoing technological advances and survive in
business! human resources will be e1uipped with development programmes.
Or'an(-a!(onal comle/(!.B Aith the emergence of increased mechanisation and
automation! manufacturing of multiple products and rendering of services! organisations
become complex. (anagement of organizational complexity is possible through HRD
Human rela!(onsB most of the organisations today tend to adopt the human relations
apporoach. This in turn needs HRD.
The major steps in designing the HRD programmed are
$. Nee%s assessmen!B stake holders" needs will be studied to find out the gap exist
between current condition and stakeholders needs and expectations. The sub*steps
in this needs assessment are
a. ;verall goals of organization and HRD
b. 0pecification of current situation in terms organization"s needs and gap
that exists responding those needs.
c. ?ormulating HRD objectives
d. Devise the steps to be taken to achieve those objectives
2. Feas(*(l(!.B assessing the validity of HRD strategy in terms of the best solution to
the issues identified through the needs assessment! the relevance of HRD
programmes in terms of long term benefits&including economic and social' and
3. Des('nB designing the HRD strategy that will meet the needs of individual
organizational goals.
a. 0trategic intentB derived from analysis of long term and strategic context
and linked to current and prospective HR needs! capacities and capabilities
b. 0tructureB that ensures an integrated approach to the formulation and
development of strategic HR policies and strategies guarantees a coherent
approach to their implementation.
c. 0ystemsB <ssures a consistant and integrated approach to planning!
managing and monitoring the HR resource.
/. Imlemen!a!(onB successfully implementing the HRD design to get best results.
Prere+u(s(!es "or a success"ul HRD ro'ramme
?or an HRD programme triumphant! all the levels of organization should support it and
committed to its success.
To Level Comm(!men!
Top executives need to devote considerable time for HRD. The subordinates always
observe their superiors and follow the top management"s commitment.
T&e rocess o" HRD ro'ramme
Nee%s Assessmen!
%dentifying goals
Cap analysis
0teps to be taken to
achieve the goals
0trategic intent
Proer u!(l(-a!(on o" mano#er s$(lls
Through HRD programmes employees ac1uire new skills and knowledge! and when
these employees get chances to utilize these skills for organizations" growth! they will
really encouraged.
Con%(!(ons "or 0ro#!& an% Develomen!
The management must ensure creating and maintain proper conditions for the growth and
development of the employees
HRD ol(c.
To ensure that HRD programmes can be implemented effectively and efficiently! many
organizations develop their HRD policies! which they review periodically! keeping pace
with their business goals and objectives.
< system# is defined as an organized! unitary whole composed of two or more
interdependent parts &subsystems' where the whole contains identifiable boundaries from
its environment &suprasystem'.# 0ystems must be viewed as a wholeD changes in one part
of the system affect the other parts. < system can be said to consist of four things. The
first is objects E the parts! elements! or variables within the system.
These may be physical or abstract or both! depending on the nature of the system.
0econd! a system consists of attributes E the 1ualities or properties of the system and its
objects. Third! a system has internal relationships among its objects. ?ourth! systems exist
in an environment. < system! then! is a set of things that affect one another within an
environment and form a larger pattern that is different from any of the parts. The
fundamental systems*interactive paradigm of organizational analysis features the
continual stages of input! throughput &processing' and output! which demonstrate the
openness8closed*ness of a system. < closed system does not interact with its environment.
%t does not take in information and therefore is like to atrophy! that is degenerate. <n open
system receives information! which it uses to interact dynamically with its environment.
;penness increases its likelihood to survive and prosper.
(uch of systems theory resembles the scientific methodB hypothesize! design a controlled
experiment! collect data and analyze data. The purpose is to maintain the use of science in
management to obtain real time# results that can be used instantaneously to affect
control in the organization &some have even accused systems theory of being science in
management# rather than a science of management#'. The goal is to maintain your
attention on the whole at all costs. ?or managers! this meansB
F Define the company as a system
F 9stablish system objectives
F %dentify wider systems
F :reate formal subsystems
F %ntegrate the subsystems within the whole system
T&e s.s!ems aroac&
The leading pioneers in the development of the systems approach were Richard @ohnson!
?remont =ast and @ames Rosenzweig. They define a system as an Gorganised or complex
wholeB an assemblage or combination of things! or parts forming a complete or unitary
wholeG. +roject management lends itself to analysis using the systems approach. %t is
concerned with managing a complex system with many inputs! outputs and a host of
management and other processes! re1uired to move its participants through the full
project life cycle.
The main functions of HRD are Training! +ersonal development! ;rganisational
development! :areer planning and development! :hange (anagement. HRD systems are
not the same for all organizations. <lthough the basic principles may remain the same!
the specific components! their relationships! the processes involved in each! the phasing!
and so on! so! they are different for different organizations.
Designing an integrated HRD system re1uires 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.
HRD functions are conceded through five major systems working through many
23 Career s.s!emB <s an HRD system! career system ensures attraction and retention of
human resources through the following sub*systems.
(anpower planning
:areer planning
0uccession planning
43 5or$ s.s!em6 Aork*planning system ensures that the attracted and retained human
resources are utilized in the best possible way to obtain organizational objectives.
?ollowing are the sub systems of the work planning system.
Role analysis
Role efficacy
+erformance plan
+erformance feedback and guidance
+erformance appraisal
@ob rotation

73 Develomen! s.s!em6 The environmental situation and the business scenario are fast
changing. To meet the emerging demands and needs! and here are some developmental
sub E systems *
@ob enrichment
0elf*learning mechanisms
+otential appraisal
0uccession Development
(entor system
83 Sel",rene#al s.s!em6 organization should renew and rejuvenate itself time to time by
following some sub*systems mentioned below such as
<ction research
;rganizational Development interventions
;rganizational Retreats
93 Cul!ure s.s!em6 %t is the culture that will give a sense of direction! purpose!
togetherness! and teamwork. )uilding a desired culture is of paramount importance in
today"s changed business scenario. (any successful organizations like %nfosys! Aipro!
Tata have their own culture and inspiring follow many others. 0ome of the culture
building subsystems are given belowB
Hision! (ission and Coal
Cet*togethers and celebrations
Task forces
0mall Croups
The first three systems viz.! :areer system! Aork system and Development system are
individual and team oriented while the fourth and the fifth systems viz. 0elf renewal
system and :ulture 0ystems are organization based.
Different authors have different opinions on the location of HRD within the organization.
0ome says that as HRD is integral part of HR( department! HRD should report to HR(.
0ome argue that HRD should have direct contact with the top management to ensure their
support and commitment towards HRD! rather than communicating trough HRD.
HRD structure vary organization to organization depends upon size and many other
factors like organizational environment! business goals and strategy! organizational
structure and culture and the employment system and technology. (any large
organizations opt to have independent HRD departments who directly reports to :9; or
other higher authority. %n contrast! in smaller organizations! HRD function carried out by
HR department.
HR Director
?ig. HRD Reporting 0tructures
%n the consulting report that created the first HRD department in %ndia at Iarsen J
Toubro in the year $-64 the %%(< :onsultants have outlined the following roles to the
HRD function and to the HRD (anagersB
Developing enabling capabilities in individuals and the system
%ntegrating the development of the people with ;rganizational development
(aximizing the learning opportunities of %ndividuals in organizations through
various mechanisms! autonomy and responsibility
Decentralization! delegation and shared responsibility
)alancing change and adaptation
)uilding feedback and reinforcement mechanisms etc.
T V Rao: !&e reno#ne% HRD e/er!: e/la(ns !&e HRD mana'ers; con!r(*u!(on as
:reating a knowledge sharing culture! problem solving culture! learning culture
and turning organizations into learning places.
:reating in*house learning networks.
Reinterpreting various HR practices and re*focusing on their potential as
knowledge management tools. ?or example the author has been promoting
+erformance Review Discussion s a tool for seniors to learn from juniors! and as
learning facilitation tool to learn about customers and their expectations from
their juniors.
Ksing modern HRD tools like 357 degree feedback as an leadership building tool
and <ssessment centers as competency building tools etc.
0pecial ?unctions
Iine (anagers
Director of HR
:onducting motivational climate surveys that help managers understand and
develop their learning capabilities like achievement motivation training!
understanding and using power dynamics for facilitating learning
Ksing Lpost*training" assignments to bring people together after the training to
share their successes or otherwise of putting the learning inputs into practice.
Ksing Lvirtual discussion groups" or using organizational intranets setting up for a
special purpose task forces or action learning groups
Tas$ o" HRD mana'er
$. Human resource lann(n'B the first major function of HRD manager is planning
human resources to meet organizational re1uirement.
2. Recru(!men! an% selec!(onB recruitment is the process of searching prospective
candidates and stimulates them to apply for the job in the organization. 0election
is the process helps to select suitable candidates from the pool of applications
received in recruitment process.
3. Placemen! an% (n%uc!(onB <fter selecting the suitable candidate he can be put on
suitable job and giving him induction or orientation training.
/. Per"ormance ara(salB it is the systematic evaluation of individual with respect
to their job performance and potential for development
4. Tra(n(n' an% mana'emen! %evelomen!B training is the systematic process by
which employees learn skills! knowledge! abilities or attitudes to further
organizational and personal goals and management development process is useful
to develop managerial 1ualities and human relation skills.
5. Career lann(n' an% %evelomen!B it is the planning of one"s career and
implementing career plans by means of education! training! job search and
ac1uisition of work experience includes internal and external mobility. %t is
individual as well as organizational responsibility
6. Or'an(-a!(on %evelomen!B ;D is a planned change responding to the
environment! benchmarking and action research. %t is a learning process throrgh
which organization develops successfully upholding its identity and bringing
desired changes.
.. counsel(n'B counseling about employee"s job and organizational
related activities helps him to ac1uire additional skills! knowledge and abilities
really helps the employee to achieve self and organizational goals as well
-. 0r(evance mec&an(smB prompt settlement of employee grievances leads to job
satisfaction and satisfied employees are encouraged to enrich their resources with
a view to enhance their contributions to the organization.
$. Define the term HRD and clarify the terms HRD and HR(
2. 9lucidate the HRD frame*work and need to implement HRD programmes in
3. Describe the process of HRD programmes
/. Depict the role of HRD managers in present scenario
4. Discuss the sub*systems of HRD system