MS-108 (Human

Resource Management)
Unit- 9: Human Resource Development

Compiled By:
Dr. Sumit Prasad
Uttarakhand Open University
Human Resource Development (HRD)
According to Leonard Nadler, “HRD involves those learning
experience which are organized, for a specific time, and
designed to bring about the possibility of behavioural change”.

Human Resource Development can be achieved either by

adapting formal methods or informal methods. Where formal
methods include training in classrooms, courses in college etc.
and informal methods include coaching given by manager to
employees. A good organisation focuses on Human Resources
Development and covers all these aspects
HRD defined
 According to South Pacific Commission, “Human Resource
Development is equipping people with relevant skills to have a
healthy and satisfying life”.
 According to Watkins, “Human Resource Development is
fostering long-term work related learning capacity at individual,
group and organizational level”.
 According to the American Society for Training and Development
“Human Resource Development is the process of increasing the
capacity of the human resource through development. It is thus the
process of adding value to individuals, teams or an organization as a
human system”.
Evolution of HRD
The Commodity Concept
The Factor of Production Concept
The Goodwill Concept
The Paternalistic Concept
The Humanitarian Concept
Objectives of HRD
Fair Treatment
Employability
Adaptability
Benefits of HRD
 Human Resource Development creates more proficient workforce.
 HRD helps in developing new knowledge, skill and attitude of the employees.
 HRD improves employee commitment.
 HRD also helps in the execution of organisational goals by understanding the
employees better.
 HRD promotes employee commitment by communicating the values among
them.
 HRD aids job enhancement by proper training and acquiring of new skills.
 HRD helps the employees in attaining awareness towards changes and
adaptable to its consequences.
 HRD aids in enhancing the respect and trust in the organisational environment.
Benefits of HRD (continued)
 HRD improves the problem-solving skills of the employees.
 HRD helps in improving the team spirit of the employees.
 It also leads the organisation to attain effectiveness by using the available
resources effectively and achieve their goals.
 It increases the involvement of employees in the organisation. Thus, making the
employees feel proud of their work and achievement.
 It facilitates better human resource planning.
 By implementing HRD policies in a friendly and an organized environment can
be developed.
 HRD makes employees more confident in handling situations.
 HRD policies encourage sincerity in the approaches of the workers in the
organization, which results in the overall growth of the employees.
 It enhances the participation rate of employees and also develops a sense of
belongingness among the employees.
Philosophy of HRD
 The first function is ‘The management style’ i.e. the method
by which the management works is based on the type of
philosophy adopted.

 The second function is to make the goals of the organisation

more clear and specific.
Beliefs associated with HRD
 Human resources are considered to be the most important advantage of
the organization.
 The development of human resource can be done at any time to an
infinite extent.
 The employees must have a ‘sense of belongingness’ which makes them
more committed to work.
 When the organisation takes care of the need and welfare activities of the
employees, employees will be more dedicated to their organisation.
 Employees are found to work more effectively when they are given
autonomy in their work and when there is less interference by their
superiors.
Beliefs associated with HRD (Continued)
 The main duty of the manager is to uncover the hidden potential
from the employees and to use them in an effective way.
 A motivating, friendly and healthy environment must be created
to give comfort to the workers.
 The authorities must be very alert in evaluating the functions of
HRD in order to be effective.
 The organisation climate must be in a cohesive manner.
 The relationship between the management and the organisation
must be perfect in order to make the organisation functions smooth.
HRM vs. HRD
Human Resource Management (HRM) seems to a set of autonomous sub
functions while Human Resource Development (HRD) seems to be a larger
system in an organization.
HRM functions are service functions and rise when there is a necessity
whereas HRD is a proactive function and forecasts the future needs of the
management and be ready for any sort of competition.
HRM is narrow in nature where its goal is to develop and administer the
workforce. But HRD is wider in nature and not only aims at developing the
whole of the organisation.
The primary goal of HRM is to enhance the skills and increase the
efficiency of the employees in the organisation, but the concept of HRD is
to build the perfect organisational culture that would uncover, strengthen
and use the abilities of the employees in the best possible way.
HRM vs. HRD (continued)
Salary and incentives are the major motivators of HRM,
whereas independent work groups, creativity and organisational
climate are the primary motivators of HRM.
HRM is the exclusive duty of the Human Resource (HR)
Managers and their respective department. But HRD is the
responsibility of all the managers in an organization.
High morale and satisfaction is assumed to be the cause of
improved performance in HRM. But, improved performance is
seen as the cause of enhanced job satisfaction and morale of the
workers.
Principles of HRD
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
Features of HRD
Systematic Approach Organizational Culture
Continuous Approach Quality Work-life
Multi-disciplinary subject Future Oriented
All-pervasive
Techniques
Improves Relationships
Enhance Competencies
Scope of HRD
Training and Development Continuous in Nature
Organizational Development Integrate the use of sub-
Career Development systems
Performance Appraisal Placement
Multidisciplinary Promotion and Transfer
Key Element for solvingMotivation by Rewards
problems
Functions of HRD
1. Worker education and improvement,
2. Profession planning and development,
3. Succession making plans,
4. Performance appraisal,
5. Employee’s participation in control,
6. Nice circles,
7. Employer exchange and organisation development.
Importance of HRD
Equipped Employees
Role Clarity
Committed Work Force
More Belief and Respect
Synergy Impact
Brakes Resistance to Alternate
Enables HRP
Principles of Designing HRD System
1) Focus of the System
a) Focus on enabling capabilities
b) Balancing adaption and change in the organizational culture
c) Attention to contextual factor
d) Building linkages with other functions
e) Balancing specialisation
Principles of Designing HRD System
(contd.)
2) Structure of the System
a) Establishing the identity of HRD
b) Ensuring responsibilities for the functions
c) Balancing differentiations and integrations
d) Establishing linkage mechanism
Principles of Designing HRD System
(contd.)
3) Functioning of the system
a) Building feedback and reinforcing mechanisms
b) Balancing quantitative and qualitative decisions
c) Balancing internal and external expertise
d) Planning for the evolution of HRD
Outcomes of HRD
 Education will increase competency level of personnel by way of
updating their knowledge and upgrading their abilities.
 Comprehensive capabilities of the employees increases which enhances
their horizons of vision and performance.
 Personnel become extra devoted toward the company and a sense of
belongingness is evolved amongst them.
 Team-spirit among the personnel in the company goes up.
 With the proper implementation of HRD in a company, trust and
openness is created among the employees and that they recognize every
other employee which enables in developing a cohesive running
surroundings,
 Collaboration and group-performance produces synergy effects.
Outcomes of HRD (continued)
 Employees feel capable of dealing with competition and turns prepared to
accept changes. Useful and important data of the employees are generated
which is helpful in human resource planning.
 Participation among employees is promoted so that they may also make a
contribution of their share in decision making, leading to feel of delight and
success of challenge.
 HRD entails human resource factors like skills, information, creative
abilities and abilities which help in moulding components like values,
beliefs, aptitudes and mind-set consistent with the converting needs and
aspirations of individuals in conjunction with that of the organisation.
 Improves the knowledge and solving capability of employees.
 Feel of belongingness and dedication is advanced within the employees
towards the corporation.
Future Perspective of HRD
 Technological advancement
 Diversified and new customers.
 Changes in the financial resources and sources of raw
materials.
 Corporate Restructuring.
 Modification in the structure of Industries.
 Changes in the regulatory framework of Government
regarding corporate governance.
Future Perspective of HRD (continued)
 Downsizing of organizations/enterprises.
 Mergers and acquisitions.
 New and revised corporate strategies.
 Work simplification methods/ processes.
 Exploration of newer markets and alteration of existing
markets.
 Diversification of products and services
Reference
SILM developed by Uttarakhand Open University for MS-108
(Human Resource Management), Year 2020, ISBN: 978-93-
85740-14-5.
Thank You!