UNIT-I

The process of assisting individuals in acquiring competences and skills to assure their value
to the business in terms of both the current and future organisational conditions is known as
human resource development (HRD). Additionally, it aids employees in a better
understanding of their own capacities, enabling them to make the greatest use of them and
meet both their professional and personal expectations.
A recent new systematic technique called human resource development (HRD) seeks to
proactively address problems affecting specific people, teams, and the entire organisation.
Concept of HRD
The concept of Human Resource assumes that human beings are a great asset to an
organization. They can contribute a great deal to the achievement of organisational goals.
This positive view of people working in the organisations as an asset with unlimited potential
is the core of the concept of the human resource system.
HRD is a process of helping people to acquire competencies. HRD is needed by any
organisation that wants to be dynamic and growth-oriented or to succeed in a fast-changing
environment. Organisations can become dynamic and grow only through the efforts and
competencies of their human resources

In 1970, Leonard Nadler published his book “Developing Human Resources” in which he
coined the term ‘human resource development’ (HRD). Human resource refers to the talents
and energies of people that are available to an organization as potential contributors to the
creation and realization of the orga­nization’s mission, vision, values, and goals.

Development refers to a process of active learning from experience-leading to systematic and

purposeful development of the whole person, body, mind, and spirit. Thus, HRD is the
integrated use of training, organizational and career development efforts to improve
individual, group, and organizational effectiveness
Definitions of HRD:

1. According to South Pacific Commission ‘human resource development is equipping people

with relevant skills to have a healthy and satisfying life’.

2. According to Watkins, ‘human resource development is fostering long-term work related

learning capacity at individual, group and organizational level’.

3. The American Society for Training and Development defines HRD as follows: ‘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’.
Features of HRD:
1. Systematic approach:

HRD is a systematic and planned approach through which the efficiency of employees is

improved. The future goals and objectives are set by the entire organization, which are well

planned at individual and organizational levels.

2. Continuous process:

HRD is a continuous process for the development of all types of skills of employees such as

technical, managerial, behavioural, and conceptual. Till the retirement of an employee

sharpening of all these skills is required.

3. Multi-disciplinary subject:

HRD is a Multi-disciplinary subject which draws inputs from behavioural science,

engineering, commerce, management, economics, medicine, etc.
4. All-pervasive:

HRD is an essential subject everywhere, be it a manufacturing organization or service sector

industry.
5. Techniques:

HRD embodies with techniques and processes such as performance appraisal, training,

management development, career planning, counselling, workers’ participation and quality

circles.
Important Definitions of HRD
1. HRD is the integrated use of training and development, career development, and
organisational development to improve individual and organisational effectiveness
2. HRD is the study and practice of increasing the learning capacity of individuals,
groups, and organisations through development and applications of learning based
intervention for the purpose of optimizing human and organisation growth and
effectiveness
3. HRD develops available manpower through suitable methods such as training,
promotions, transfers and opportunities for career development. It is a systematic
approach to deal with issues related to individual employees, teams and an
organisation
What is the need of Human Resource Development (HRD)?
People need competencies (knowledge, attitudes, values and skills) to perform tasks. Higher
degree and quality of performance of tasks requires higher level of degree of skills. Without
continuous development of competencies in people, an organisation is not likely to achieve
its goals.
Any organisation that is interested in improving its services and its effectiveness needs to
develop its employee competencies to perform the tasks required to bring about such
improvements
The HRD is required for:
• Growth of organisation.
• Diversification in an organisation
• Renewing itself to become more effective
• Improving the systems and services of an organisation
• Change and becoming more dynamic
• Playing leadership roles
Scope of HRD
Human resources management deals with procurement, development, compensation,
maintenance and utilisation of human resources. HRD deals with development of human
resources for efficient utilisation of these resources in order to achieve the individual, group
and organisational goals. Thus the scope of HRM is wider and HRD is part and parcel of
HRM. In fact, HRD helps for the efficient management of human resources. The scope of
HRD invades into all the functions of HRM.

The scope of HRD includes:

(i) Recruiting the employees within the dimensions and possibilities for developing human
resources.
(ii) Selecting those employees having potentialities for development to meet the present and
future organisational needs.
(iii) Analysing, appraising and developing performance of employees as individuals,
members of a group and organisations with a view to develop them by identifying the gaps
in skills and knowledge.
(iv) Help the employees to learn from their superiors through performance consultations,
performance counselling and performance interviews.
 (v) Train all the employees in acquiring new technical skills and knowledge.
(vi) Develop the employees in managerial and behavioural skills and knowledge.
(vii) Planning for employees’ career and introducing developmental programmes.
(viii) Planning for succession and develop the employees.
(ix) Changing the employees’ behaviour through organisation development.
(x) Employee learning through group dynamics, intra and inter team interaction.
(xi) Learning through social and religious interactions and programmes.
(xii) Learning through job rotation, job enrichment and empowerment.
(xiii) Learning through quality circles and the schemes of workers’ participation in the
management.
The Principles of Human Resource Development (HRD)
Following are some of the principles of human resource development (HRD) which must be
kept in mind while framing a Human Resource Development system so as to have a proper
and regular development of the human resource in an organization.
Principle of Development of Organizational Capability:
An ideal HRD system should be based on the principle of overall development of employees
and the organization as a whole. The capabilities include overall development of the work
force in all aspects, may it be technical, physical, psychological or moral development in an
organized manner.
Principle of Potential Maximization:
HRD system must enable their employees to identify their hidden potential and make them
competent enough to exploit their talent in an optimum manner so that they could contribute
their efforts in attaining organizational goals.
Principle of Autonomy Maximization:
Autonomy is the degree of independence given to employees at work so that they could be
able to tackle responsibility to some extent of what they are capable of handling. A proper
HRD system must provide certain level of autonomy to its employees enabling them of
handling duties on their own.
Principle of Maximum delegation:
Delegation of responsibilities means sharing responsibilities of authorities with subordinates
so that a cohesive and a congenial environment could be developed in an organization.
Principle of Participative Decision-making:
Participation of subordinates must be encouraged by top level managers in an ideal HRD
system to create a comfortable working atmosphere where workers are free to discuss their
ideas and always welcomed for suggestions.
Principle of Change Management:
Change is the only permanent thing in this universe but usually people resists change. To beat
the competition an organization and its human resource should be as much flexible in getting
itself adapt to the changing scenario of 21st century. A good HRD system must attempt to
strike a balance between the organizational culture and the changing culture.
Principle of Periodic Review:
Review and renewal of HRD functions like training and development, career planning and
development, performance and potential appraisal, counselling, etc. of employees should take
place regularly in an organization at certain periodic intervals.
What is the Historical Perspective of Human Resource Development?
The term HRD has been growing at a very fast pace in the recent past. But the formal
introduction of the concept was done by Prof. Len Nadler in 1969 in American Society for
Training and Development Conference. In India, Larsen & Toubro was the first company to
design and implement this concept in 1975 among the private sector companies with an
objective of facilitating growth of employees, especially people at the lower levels. Among
the public sector government company, it was BHEL which introduced this concept in 1980.
The intended purpose of human resources development efforts is to gain a competitive
advantage in the market place through a superior workforce. There are several trends from
which the concept of HRD has emerged. Let us look into those trends more closely by
examining the transformation of personnel function from one stage to another in a
chronological sequence.
The evolution of human resource development can be easily understood in the following
chronological Sequence:
1. The Commodity Concept:
Human resource was referred as ‘a commodity’ to be ought and sold. Wages were decided on
the basis of demand and supply forces. Government also did not care much about the work
force at that time.
2. The Factor of Production Concept:
Labour is treated as any other factor of production, viz; money, material, land, etc.
3. The Goodwill Concept:
Welfare measures like safety, first aid, lunch room, rest room etc. These measures proved to
be a source of boosting up the morale of workers and enhancing their performance.
4. The Paternalistic Concept:
Management must assume a fatherly and protective attitude towards employers. Paternalism
does not mean merely providing benefits but it signifies to satisfy various needs of employees
just as parents meet the requirements of the children.
5. The Humanitarian Concept:
To improve the productivity, physical, social and psychological needs of workers must be
fulfilled. Elton Mayo and some other along with him stated that money is less a factor in
determining output, than group standards, group incentives and security. The Organization is
a social system that has both economic and social dimensions.
6. The Human Resource Concept:
Employees are the most valuable assets of an organization. There should be a conscious
effort to realize organizational goals by satisfying needs and aspirations of employees.
7. The Emerging Concept of Human Resource Development (HRD):
Employees should be accepted as partners in the progress of a company. They should have a
feeling that the organization is their own. To this end, managers must offer better quality of
working life and provide opportunities to people to exploit their potential fully. There should
be opportunities for self-fulfilment in one’s work.

HRD Culture

Organisational culture refers to a system of shared meaning held by its members. It is

expressed in terms of norms, values, attitudes and beliefs shared by organisational members.
The organisational culture must be created and sustained in such a way that it develops the
congenial environment in the organisation. On the other hand, organisational climate consists
of a set of characteristics and factors that are perceived by the employees about their
organisation. Organisation must create favourable organisational climate for improving the
organisational effectiveness.
Culture is the pivot of any group or society. It determines the way members interact with one
another and with outsiders. Stoner, Freeman and Gilbert have described culture, as the
complex mixture of assumptions, behaviours, stories, myths, metaphors, and other ideas that
fit together to define what it means to be a member of a particular society. However scope of
this chapter is limited to the study of culture within the organisation. When an organisation
takes on a life of its own, apart from any of its members, and acquires immortality, the
organisation is said to be institutionalised. When an organisation takes on institutional
permanence, acceptable modes of behaviour become largely self-evident to its members. So
an understanding of what makes up an organisation’s culture, and how is it created, sustained,
and learnt will enhance our ability to explain and predict the behaviour of people at work.
Organisational culture is described as the set of important understandings, such as norms,
values, attitudes, and beliefs, shared by organisational members. According to the recent
understanding about organisational culture, ‘system of shared meaning among members’, is
the essential core of organisational culture.
According to various studies, following are the primary characteristics of an organisation’s
culture:
Innovation and Risk Taking: The degree to which employees are encouraged to take
innovative steps and
to take calculated risk;
Attention to Detail: The degree to which employees are expected to pay attention to detail;
Outcome Orientation: The degree to which management focuses outcome rather than on
process to achieve outcome;
People Orientation: The degree to which management gives attention to effect of decisions on
people working in the organisation and on its shareholders;
Team Orientation: The degree to which works are organised around team rather than
individuals;
Aggressiveness: The degree to which people are aggressive or competitive rather than
easygoing;
Stability: The degree to which maintaining status quo is emphasized in contrast to growth;
Individual Autonomy: The degree of responsibility, independence, and opportunities for
exercising initiative that individuals in an organisation have;
Structure: The degree of rules and regulations and the amount of direct supervision that is
used to oversee and control behaviour;
Support: The degree of assistance and warmth managers provide for their subordinates;
Identity: The degree to which members identify with the organisation as a whole rather than
with their particular work group or field of professional expertise;
Performance-Reward: The degree to which reward in the organisation are based on employee
work performance;
Conflict Tolerance: The degree of conflict present in relationships between peers and work
groups as well as the willingness to be honest and open about differences;
Attitude Towards Change: The response given to new methods, ways, and values;
Focus: the vision of the goals and objectives of an organisation’s operations as communicated
by those in control;
Standard and Values: The levels of performance and behaviour considered to be acceptable
by formal and informal criteria;
Rituals: Expressive events that support and reinforce organisational standards and values;
Openness, Communication, and Supervision: The amount and type of interchange permitted;
the communication flow can be downward, upward, across the organisation, and in other
directions as spelled out by the culture;
Market and Customer Orientation: The extent to which the organisation is responsive to its
markets and customers;
Excitement, Pride, and esprit de corps: A tangibly good feeling about the organisation and its
activities;
Commitment: The willingness of the individuals to work toward goals on a continuing basis.

BASIC ELEMENTS OF CULTURE

According to Schein there are three basic elements of organisational culture:
Artifacts: It is the first level of organisational culture. It is observable symbols and signs of
the organisations. It includes visible parts of organisation e.g., structures, processes etc.
Artifacts are hard to decipher.
Espoused Values: These are the reasons (e.g., strategies, goals, philosophies) given by an
organisation for the way things are done. It is the second level of organisational culture.
Basic Assumptions: Basic assumptions are the beliefs that are taken for granted by the
members of an organisation. These are ultimate source of values and action that include:
unconscious, perceptions, taken for-granted beliefs, thoughts, feelings etc. It is the third level
of organisational culture.
FUNCTIONS OF ORGANISATIONAL CULTURE
• It provides a sense of identity for members;
• It enhances commitment to the organisation’s mission;
• It clarifies and reinforces standards of behaviour.
Child has explained that culture is one of strategic tools of control in organisations.
According to him cultural control helps in four areas:
• Development of strong identification with management goals;
• Development of semi-autonomous working with few formal controls;
• Having strong emphasis on selection, training and development of personnel;
• Having reward oriented climate towards security of tenure and career progression.

However there is another side of the coin. If organisational culture can be an asset, sometimes
it may become liability also. There are dysfunctional effects of culture, especially a strong
one, on organisational effectiveness. Some of the barriers created by especially a strong
organisational culture are following:
Barrier to Change: Consistency of behaviour is an asset to an organisation when it faces a
stable environment. It may, however, burden the organisation and make it difficult to respond
to changes in the environment.
Barrier to Diversity: Especially in multicultural organisations, people from different cultural
background may bring diverse strength to the work place. Yet these diverse strengths and
behaviours are likely to diminish in strong organisational culture due to strong pressure for
conformity. Again, organisational culture may become liability if it creates institutional bias
or perpetuates insensitive approach to people from different cultural background.
Barrier to Acquisition and Merger: During acquisition and merger, high degree of cultural
confluence takes place. When two or more companies having different organisational culture
are merging, all need to evolve a unique culture for the newly emerged organisation.
However if one or more partners are having stubbornly strong culture, the culture may play
negative role in the whole episode of acquisition and merger.

CULTURE-PERSON COMPATIBILITY
Culture is basically not a subject of evaluative study rather is basically a descriptive study.
Every type of culture has its functional as well as dysfunctional aspects. It would be
interesting to see that different types of culture suit to different types of person. Study of
Goffee and Jones suggest that there are two factors, which determine organisational culture.
The first is sociability. It is consistent with a high people orientation,high team orientation,
and focus on processes rather than outcomes. The second is solidarity. It is a measure of task
orientation, and is consistent with high attention to detail and high aggressiveness. The two
dimensions may be either high or low in a particular culture.
These two dimensions yield four types of distinctive organisational culture which are
discussed below:
• Networked culture (high on sociability; low on solidarity): Positive aspect of this culture is
open sharing of information; negative aspect includes tolerance for poor performance and
creation of political clique. You might fit into networked culture if you possess good social
skills and empathy; you like to develop close work-related friendships; you thrive in a relaxed
and convivial atmosphere; and you are not obsessed with efficiency and task performance.
• Mercenary culture (low on sociability; high on solidarity): Positive aspect is strong focus on
goal and objectivity; negative aspect includes inhuman treatment to people who are perceived
as low performers. You are likely to fit in well in mercenary culture if you are goal oriented;
thrive on competition, like clearly structured work tasks, enjoy risk taking, and are able to
deal openly with conflict.
• Fragmented culture (low on sociability; low on solidarity): Employees are judged solely on
individual’s productivity; negative aspect include excessive critiquing of others and absence
of team spirit. Perhaps you are made for fragmented culture if you are independent; have a
low need to be part of a group; are analytical rather than intuitive; and have a strong sense of
self which is not easily perturbed.
• Communal culture (high on sociability; high on solidarity): Positive aspect is a feeling of
belonging yet a ruthless focus on goal achievement; negative aspect includes hyper
intervention of the leader who tends to create disciples rather than followers. You may fit into
communal culture if you have a strong need to identify with something bigger than yourself,
enjoy working in teams, and are willing to give first priority to the organisation.

HRD CLIMATE
Organisational climate can be said to relate to the prevailing atmosphere surrounding the
organisation, to the level of morale, and to the strength of feelings of belonging, care and
goodwill among members.
According to Tagiuri and Litwin, organisational climate is relatively enduring quality of the
internal environment of an organisation that:
• is experienced by its members;
• influences their behaviour;
• can be described in terms of the values of a particular set of characteristics of the
organisation.
Meaning of HR+D+Climate
HR means employees in organisation, who work to increase the profit for organisation.
Development, it is acquisition of capabilities that are needed to do the present job, or the
future expected job.
After analyzing Human Resource and Development we can simply stated that, HRD is the
process of helping people to acquire competencies.
Climate, this is an overall feeling that is conveyed by the physical layout, the way employees
interact and the way members of the organisation conduct themselves with outsiders. (It is
provided by an organisation.)
“Organisational climate is a set of characteristics of an organisation which are referred in the
descriptions employees make of the policies, practices and conditions which exist in the
working environment”.
What is needed to Develop Organisational Climate in Organisation

Top to Bottom effort : - Organisation is considered to be complete organisation after

including top authority to bottom line of workers. And whenever we talk about development
at organisational level effort is needed from top level to bottom level. Top authority should
not have thinking in their mind that their task is to only take decisions but they should also
emphasized on proper implementation of decision by adopting various controlling technique.
Bottom level workers should have loyal mind-set towards their organisation. Bottom level
workers have to work with dedication. They should have realisation that organisation is their
organisation.

Motivator role of Manager and Supervisor : - To prepare Human Resource Development

Climate, Manager and Supervisor’s responsibilities are more or we can say that they are the
key players. Manager and Supervisors have to help the employees to develop the
competencies in the employees. To help the employees at lower level they need to updated
properly and they need to share their expertise and experience with employees.

Faith upon employees : - In the process of developing HRD Climate employer should have
faith on its employees capabilities. Means whatever amount is invested that should be based
on development of employees. Top management should trust the employees that after making
huge effort to develop employees, employees will work for the well being of organisation and
for human being also.
Free expression of Feelings : - Whatever Top management feels about employees they have
to express to employees and whatever employees think about top management it must be
express in other words we can say that there should not be anything hidden while
communication process. Clear communication process will help to establish the HRD
Climate.
Feedback : - Feedback should be taken regularly to know the drawbacks in system. This will
help to gain confidence in employees mind. Employee will trust on management and he can
express his opinion freely which is very good for HRD Climate. Feedback will help to
remove the weakness.
Helpful nature of employees : - Whenever we talk about 100% effort then we have to talk
about employees effort too. Nature of employees should be helping for management and for
its colleagues. They should be always read to help to customers too.
Supportive personnel management: - Personnel policies of organisation should motivate
employees to contribute more from their part. Top management’s philosophy should be clear
towards Human Resource and its well being to encourage the employees.
Encouraging and risk taking experimentation : - Employees should be motivated by giving
them authority to take decision. This concept is risky but gradually it will bring expertise in
employees to handle similar situation in future. It will help to develop confidence in
employees mind. Organisation can utilize and develop employees more by assigning risky
task.
Discouraging stereotypes and favouritism : - Management need to avoid those practices
which lead to favouritism. Management and Managers need to give equal importance. Those
people who are performing good they need to appreciated and those who are not performing
good they need to be guided. Any kind of partial behaviour should be avoided.
Team Spirit : - There must be feeling of belongingness among the employees, and also
willingness to work as a team.

Components of HRD Climate

The organizational climate consists of:-

Organisational Structure-

An organization’s structure is actually a ‘snapshot’ of a work process, frozen in time so that it

can be viewed. The structure enables the people’s energy to be focused towards process
achievement and goal achievement. Employee must have a clear definition of not only the
work structure but also the role used to organize the work. If the structure and the role is not
clear, people will not know what the work process is, who is responsible for what, whom to
go for help and decision, and who can Assist in solving problems that may arise.

Organisational Culture-

Organisational culture is the pattern of beliefs, knowledge, attitudes, and customs that exists
within an organisation. Organizational culture may result in part from senior management
beliefs or from the beliefs of employees.

Organizational culture can be supportive or unsupportive, positive or negative. It can affect

the ability or willingness of employees to adapt or perform well within the organisation.

The most effective work culture is one that supports the organizations HR strategies by
aligning behaviors, processes and methods with the desired results. It is not just achieving
results but the methods through which they are achieved that are critical to long-term success.

Before any HR strategy is designed there must be a clear understanding of the organisation,
its current values, its structure, its people as well as its goals and vision for the future.

HR Processes-

The HR system of an organisation should be comprehensive enough to take care of

employees from the time they join till the time they leave HR. Their demands must not be
ignored, but a feeling of belongingness be created. Process should be very clear and
impartial, so that employee’s faith in organisation. From recruitment to retirement whole
process should be according to employees expectation and ability of employer.

Importance of looking at the organisation climate are:

Looking at the organizational climate, which means taking a closer look at what is happening
in and around in the HR scenario of the various organization. It is essential to work on
because directly or indirectly this environment affects the organization and the employee.

Importances are:

• Environmental factors of HR are prime influencing elements of change in HR strategy.

• It gives HR professionals time to anticipate opportunities in HR area and time to plan

optional responses to these opportunities.
• It helps HR professionals to develop an early warning system to prevent threats emerging
out from HR scenario, or to develop strategies, which can turn a threat.

• It forms a basis of aligning the organisation strengths to the changes in the environment.

• It enables the entry of the latest national/international HR developments.

Measuring HRD Climate

Economic condition –

An organisation’s economic condition influences its culture in several ways. The more
prosperous an organisation is the more it can afford to spend on research and the more it can
afford to risk and be adventurous.

Leadership Style : -

An organisation leadership style plays a profound role in determining several aspects of its
culture. An authoritarian style may make the organisation’s culture characterized by high
position structure, low individual autonomy, low reward orientation, low warmth and support
and so on, or it may be opposite, like goal directed leadership.

Managerial assumption about human nature : -

Every act on the part of the management that involves human beings is predicated upon
assumptions, generalizations and hypotheses relating to human behaviour. There are two
theories of behaviour (Theory X and Theory Y).

Managerial values and ethos : -

The feeling of managers about norms and values what is good and what is poor as
management practice. There are few dimensions on which it can be checked. They are – self-
awareness, risk-taking, participation, bureaucracy, equity, employee’s security and growth.

Organisation size : -

An small organizations there are few levels of management, these are generally more
amenable to democratic and participative functioning than big organisations. More open
communication system in small organisations. Hence these organisations have a different
type of climate than what are in big organizations.