UNIT – 6

HUMAN RESOURCE DEVELOPMENT

Meaning of HRD
HRD is the process of improving, moulding and changing the skills, knowledge,
creative ability, aptitude, values, commitment etc. based on present and future
job and organizational requirements.
Definition of HRD
According to the American Society of Training and Development (ASTD),
“HRD is the integrated use of training and development, organizational
development and career development to improve individual group and
organizational effectiveness”.
Objectives of HRD
i) To prepare the employee to meet the present and changing future job
requirements.
ii) To prevent employee obsolescence
iii) To prepare employee for high level jobs.
iv) To impact new entrants with basic HRD skills and knowledge
v) To aid total quality management.
vi) To promote individual and collective morale, a sense of responsibility, co-
operative attitudes and good relationship.
vii) To ensure smooth and efficient working of the organisation.
viii) To enhance organizational capabilities.
ix) To create a climate that enables every employee to discover, develop and use
his/her capabilities to a full extent in order to achieve both individual and
organisational goals.
x) To motivate the employees for their contribution by suitable rewards.
xi) To develop a healthy organizational culture.

Scope of HRD
The scope of HRD invades into all the functions of HRM. It includes.
i) Recruiting the employees within the dimensions and possibilities for
developing human resources.
ii) Selecting those employees having potentiality for development to meet the
present & future organizational needs.
iii) Train all the employees in acquiring new technical skills and knowledge.
iv) Planning for succession and develop the employees.
v) Changing the employee’s behaviour through organization development.

Features of HRD
1. HRD is a system: HRD is made up several subsystems and there are
feedback loops from one subsystem to the other.
2. HRD is an inter-disciplinary concept: it based on the concepts, ideas and
principles of sociology, psychology, economies etc.
3. HRD is a continuous and planned process: always goes on in an organization
as a proactive measure integral to a planned program for organizational
growth.
4. HRD develops competencies.
Individual level: employees are made aware of the expectations of others
about their roles, so that they can improve their skills and attitudes.
Dyadic level: Stronger employee-employer relationship is developed
through trust, mutuality and help.
Group level: Committees or task groups are made more effective by
developing collaboration in their inter-group relationship.
Organizational level: development of competencies involves
development of self- renewing mechanisms in the organization which
enable it to adjust to the changes in its environment and to be proactive.
5. HRD helps in developing inter-personal relations
6. HRD promotes team spirit.
7. HRD promotes a healthy organization culture: it aims to develop an
organization culture in which there is a good senior- subordinate relations,
motivation, quality and a sense of belonging.
8. HRD facilitates a systematic learning process: development is a long-term
process through continuous and systematic learning.

Need for HRD Or Factors Affecting HRD

 i. Changes in Economic Policies: Even the Government of India Liberalised
its economic policies in 1991. Liberalisation, Privatisation & Globalisation
posed threat to weak firms and created opportunities to the large firms.
These firms started developing their human resources in order to exploit the
opportunities.
ii. Changing Job Requirements: Organisational dynamism brings changes in
organizational design and job design. The Changes in job design in job
description and job specifications, these changes demand for HRD.
iii. Need for Multi Skilled Human Resources: The customer cantered
approach led to de-jobbing, flexible organizations and flexible work. All
these changes demand the employees with multiple skills.
iv. Organisational Viability and Transformation Process: Organisational
viability is continuously influenced by the environmental threats. Of the
organisation does not adapt itself to the changing environmental factors, it
will lose its market share of the organisation derives to adopt these changes
first it has to develop human resources.
v. Technological advances: Organisations in order to survive and develop
should adopt the latest technological adaptation of the latest technology will
not be complete until they are manned by developed employed.
vi. Organisational Complexity: With the emergence of increased
mechanization and automation manufacturing multiple products and rending
of service organizations become complex manager of organizational
complexity is possible through HRD.

Role of Training in HRD:

Training plays the most important role in the HRD. Training helps the
organisation to impart basic technical skills and knowledge to the employees in
addition, it also upgrades the technical skills and knowledge as and when there
is change in technology. Technical skill is the basic component of human
resource that is most essential for employee performance, thus, training imparts
and develops the basic skill & thus contributes to the basic area of human
resource development.
Job and organisational requirements are not static. They are changed
from time to time in view of technological advancement and trends towards
Total Quality management consequents upon increased competition and
globalization.
Organisational efficiency, productivity, progress and development to a
greater extent depend on the level of HRD Training is important as it constitutes
significant part of human resource development and manages thus training plays
important role HRD and achieving changing organizations strategies, goals and
objectives.

Knowledge Management
The term knowledge management is coined by Kael Wiig – a Consultant
Knowledge management is “a systematic, explicit & deliberate
building renewal & application of knowledge to maximize an enterprise
knowledge related effectiveness & returns from its knowledge assets.”
Knowledge management process includes:
i) Identify Stage: This stage includes identification of competencies necessary
for organizational success.
ii) Collect Stage: This stage includes Acquiring existing knowledge, skills,
experience, etc. to process competencies.
iii) Select Stage: It deals with the Assessment of value of collected knowledge
against the standard requirements for success.
iv) Store Stage: This stage takes the nuggets of knowledge, classifies them and
includes them in the organizational existing knowledge.
v) Share Stage: This stage makes the new and existing knowledge accessible
for employees.
vi) Apply Stage: This stage enables employees to apply knowledge in
organisational activities, decision making, problem solving etc.
vii) Customers Acceptance: This stage involves customer’s acceptance or client
approval for the products / services.
viii) Create Stage: This stage involves development of new knowledge through
observation feedback, brainstorming, etc.

Knowledge Management and Resources

Knowledge management can be viewed as three levels which are:
a) Enterprise intelligence
b) Information creation sharing and management
c) Document management
 a) Enterprise intelligence: This level contains
 Leveraging organizational know-how performance support.
 Interacting with operational databases.
 Building expert networks.
b) Information, creation, sharing and management: This level includes
 Capturing and distributing expert stories
 Real time information management
 Communication and collaboration
 New content creation.
c) Document management: This level includes
 Assess and retrieval
 Documents stored online

Benefits of Knowledge Management

1) Discovering the opportunities.
2) Reduce threats created by environment.
3) Derive more value and competencies from intellectual property.
4) Increase productivity and profit.
5) Continuous learning and retain competence.
6) Getting maximum from information technology.

Impact of Globalisation on HRM

Liberalizations include liberalizing industry business and trade both
domestic and foreign.
The economic reforms announced by the government, change the
direction of the country from socialistic pattern to market economy. The trends
of market economy result in intense and vibrant competition, entry of new
multinationals, intensification of competition due to import liberalization and
changed notions about small scale industry.
Now the survival and development of industry in India, mostly depends
on the ability to compete with other Indian firms, multinationals and in foreign
markets. The ability to maintain high quality and maximize productivity
determines the ability of Indian firms, which in turn is largely dependent on the
quality and commitment of human resources.
i) Impact on Employment: India is the second largest country next to china in
terms of population in the world. The structural shifts caused by liberalization
would provide better employment to the qualitative human resources.
ii) Impact on Human Resource Development: Liberalisation has positive
impact on HRD, HRD Strategies of industries of liberalized India would be:
a) Creating Autonomous jobs
b) Competence building
c) Preferring Empowerment

iii) Impact on Wages & Benefits: Wage differentials are highly essential under
the market economy to attract the skilled, talented and committed human
resources through offering higher salaries and benefits.
iv) Impact on Trade unions: Trade unions in India played a phenomenal role
in protecting the interests of workers even by controlling and regulating the
management at the cost of the organisation but trade unions now by play an
important role by co-operating with the management as the “Survival of the
organisation under competitive environment would be at state.
v) Managing Diversified Cultures: In the recent part, managing diversity has
emerged as a Strategic Challenge in the area of the human resource
management due to globalization.
The increasing globalization of workspace has contributed to the need for
managing different cultures and sub cultures effectively.

Problems in relation to Transnational’s and Multinational’s:

MNC refers to “a company which is like holding company having one fixed
head office in one country or origin and business activities spread within the
country of origin and other countries”.
Eg: IBM of USA, Siemens of Germany, Sony of Japan, ITC of India, etc.

TNC (Trans National Company) is having a structure in which both parent and
subsidiaries interact with each other before or in the process of manufacturing a
product or service.
 Transnational and multinational companies create the problems to the domestic
companies in several areas including human resource management areas. These
problems include:
i. Pay discriminatory Salaries: Multinational and Transnational companies
pay higher salaries for the employees of their home country and low salaries
for the employees drawn from developing countries like India.
ii. Higher Salary level: Multinational and Transnational companies in general
pay higher level salaries compared to domestic companies. This in turn
forces the domestic companies to enhance the salary levels for their
employees.
iii. Exploit Human resources: MNC’s and TNC’s exploit the human resources
by prescribing heavy workloads higher work targets and long working hours.
They do not provide welfare measures as provided by public sector and other
domestic companies.
iv. Hire and Fire Policy: MNC and TNC’s Hire the employees, whenever they
need, exploit their human resources and fire them whenever the employee
skills are redundant or business conditions are adverse.
v. Downsizing and Delayering: MNC’s and TNC’s reduce human resource
cost per unit of output and consequently adopt various human resource
strategies without considering the employee’s future.
vi. Attract the competent employees: MNC’s and TNC’s attract more
competent human resources by offering better working conditions and terms
of employment.
vii. Weaker the collective bargaining: MNC’s and TNC’s do not encourage
collective bargaining as they fix the salaries and provide benefits based on
individual performance.
viii. Multi-skills: MNC’s and TNC’s provide multi-skills to the employees to use
them excessively and reduce the number of employees