Human Resource Development-Micro Perspective

Areas of HRD

There are three fundamental component areas of human resource development (HRD): individual
development (personal), career development (professional), and organizational development.

The importance of each component will vary from organization to organization according to the
complexity of the operation, the criticality of human resources to organizational efficiency, and the
organization's commitment to improved human resources. But all three have one focus—individual
performance improvement. Since individual performance improvement is the heart of an HRD program,
HRD can be described as the "area of congruence" among the three components.

 INDIVIDUAL DEVELOPMENT Individual development refers to the development of new

knowledge, skills, and/or improved behaviors that result in performance enhancement and
improvement related to one's current job (training). Learning may involve formal programs, but is
most often accomplished through informal, on-the-job training activities.

 CAREER DEVELOPMENT Career development focuses on providing the analysis necessary

to identify the individual interests, values, competencies, activities, and assignments needed to
develop skills for future jobs (development). Career development includes both individual and
organizational activities. Individual activities include career planning, career awareness, and
utilizing career resource centers. Organizational activities include job posting systems, mentoring
systems, career resource center development and maintenance, using managers as career
counselors, providing career development workshops and seminars, human resource planning,
performance appraisal, and career pathing programs.

 ORGANIZATIONAL DEVELOPMENT Organizational development is directed at developing

new and creative organization solutions to performance problems by enhancing congruence
among the organization's structure, culture, processes, and strategies within the human resources
domain. In other words, the organization should become a more functional unit as a result of a
closer working relationship among these elements. The ultimate goal of organizational
development is to develop the organization's self-renewing capacity. This refers to the
organization's ability to look introspectively and discover its problems and weaknesses and to
direct the resources necessary for improvement. As a result, the organization will be able to
regenerate itself over and over again as it confronts new and ever-challenging circumstances. This
occurs through collaboration of organizational members with a change agent (an HRD
practitioner), using behavioral science theory, research, and technology.

HRD Interventions

Human Resource Development (HRD) is an organizational framework for improving and developing
their human capital for which the management implement certain sub-systems or methods. The intended
purpose of implementing such HRD instruments is to gain a competitive edge in market place through a
competent and capable work force. Methods of HRD can focus on teaching the necessary skills to the
employees on the job, more specific abilities that help to accomplish any task or responsibilities in an
organization; it improves technical and communicative skills which improves the efficiency of
employees.

There are different types of subsystems/ mechanisms/methods which are employed to implement HRD in
an organization viz;

 Performance Appraisal
 Potential Appraisal and Development
 Career Planning
 Training and Development
 Career Development or Performance Coaching
 Employee Welfare and Quality of Work Life
 Rewards

Performance Appraisal: It is an indispensable aspect of HRD of analyzing the performance of

employees which enables the management to understand where their people stand, what is been expected
from them and what they are actually contributing The purpose of designing the mechanism of
performance appraisal is to portray the actual position of past and/or future employee’s performance. To
meet this, the targets of performance are set which are being desired to be attained by the organization.
The targets are based on job-related criteria that best determine the successful job enactment.

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Performance Appraisal is the most crucial HRD instrument, under which the performance of the
employees is periodically appraised in the light of the difficulties faced by the employees, along with the
identification of their growth needs. It is a process of rating the performance of an employee of his job in
a systematic way. The purpose of conducting such an analysis is to assess the present position of
employees and to forecast the need for training.

Performance Appraisal consists of

 Job Analysis
 Establishing Performance Standards
 Communicating Performance Standards to the employees
 Measurement of actual performance
 Comparison of Actual with the Standards developed and evaluating deviations in performance

Potential Appraisal: The term ‘potential’ refers to the abilities and skills possessed by an employee. It is
different from performance appraisal which shows an employee’s current performance in his existing
role. The purpose of Potential Appraisal is to develop latent abilities of individuals. It provides all
important information regarding individuals that could be beneficial for them in framing career
opportunities. It ensures a good match between the potential of employees and their job. Nowadays,
organizations are diversifying their operations which demands cognoscibility on the part of employees
working in an organization. To meet these needs, organizations may require employees which are
competent enough to beat the competition of today’s dynamic world. Therefore they have to make a
potential appraisal of the present employees so that they can undertake a variety of tasks. The appraisal is
carried out on the basis of (i) supervisor’s observations, (ii) data retrieved from the earlier performance of
the employee’s, (iii) performance on roles in simulated settings related to a new position.

Career Planning
Planning of Career is of utmost importance for the growth of employees. The first and the foremost step
in career planning is to make one’s SWOT analysis-an analysis of Strengths, Weaknesses, Opportunities
and Threats present in an individual. Career must be planned in accordance with the education, training,
job search an them work experience. Employees should trace their career in the light of their individual
needs and capabilities. They should be aware of their potentiality and capabilities that could exploit the
available opportunities and career should be planned accordingly.

Training and Development

Training refers to the systematic process of developing the competencies relating to the job of employees
for the present and future roles and responsibilities in the organization. It includes:

 Assessing employee training needs;

 Setting performance goals;
 Planning developmental strategies accordingly;
 Diagnosing the available aids for internal and external training;
 Developing strategies for training, Programmes and modules; and
 Evaluating training efforts.

Training Programmes are designed to increase the knowledge, skills and capabilities of the employees in
order to make them competent to face the dynamic challenges of globalization. Training is necessary to
enhance the performance of the employees at job for better outcomes. . To be effective, training
programme should be premeditated in a systematic way- backed up by the careful needs assessment and
thorough analysis of results. Training is very essential to develop the skills and enhancing the
competencies of the work force in an organization for make them capable of handling big responsibilities

Career Development
The action plans undertaken by the organization and the individual employee to meet out the demands of
their job and career aspirations is to be termed as Career Development. It refers to a set of programmes
designed to match an individual’s needs, abilities and career goals with current and future opportunities in
the organization. Since, Career Development focuses on future prospects of development and growth; it
has essentially a long term orientation. It consists of all those activities that could promote the
development of an individual’s career.

Employee Welfare and Quality of Work life

Welfare of employees should be the prior issue among the managers in an organization. Since employees
are considered to be the greatest asset in any organization, their welfare must be given preference by the
management. Proper healthy and hygienic working conditions and a cohesive environment must be
provided to them which could motivate them for exhibiting better performance at work. The work life of
the employees should be of good quality so that they could feel comfortable at work and a sense of
belongingness would be developed among them, enabling them to perform in an organized and optimum
manner.

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Rewards
Reward is the appreciation of work in the form of bonus, promotion, salary increment, control of
preferred job assignment etc which enhance the morale of employees and motivate them to work with
more zeal and enthusiasm. It is the utmost important task of HRD department to look after the reward that
has to be given to the deserving employees over and above their usual wages and salaries. It increases the
productivity and leads to maximum utilization of resources. Slow work tendencies of some employees
could also be removed for the sake of being acknowledged by the management in an organization.
Rewards are of two types viz; intrinsic and extrinsic. Intrinsic rewards are those which are received by the
individuals themselves as a result of satisfaction on job. Extrinsic reward on the other hand is in the form
of direct compensation to be linked with the assessment of performance of employees at work.

ROLE OF HRD

 An essential part of your overall management strategy should be to consider how HRD can help your
organisation fulfil its mission. Looking at HRD from this strategic perspective will help you focus on the
relationship between human resources and your organization’s mission, strategies, and objectives.

Often, people view HRD as having a limited, administrative role focused on salaries, benefits, personnel
policies and procedures, job descriptions, and training. While this administrative role is very important
and an essential part of an HRD system, you should not limit the role of human resources to these
activities. HRD should:

 Be a strategic partner in developing and attaining organizational goals and strategies;

 Act as an administrative expert in establishing and managing administrative policies, procedures,
and structures;
 Represent and support employees;
 Be a change agent for the organization  

HRD as a strategic partner. Senior managers in both the public and private sectors can use HRD
strategically by working with human resource professionals to establish systems and practices that align
human resources with their organization’s goals and strategies. Human resources practices that could
support strategic objectives might include:

 Creating new jobs;

 Revising job descriptions;
 Recruiting new personnel with different skills;
 Establishing clear transfer policies;
 Conducting orientation sessions and training for staff at all levels;
 Implementing leadership seminars for top managers;
 Training supervisors.

HRD as an administrative expert. Human resource development also involves managing the
administrative infrastructure of an organisation so that it is more efficient. Administrative infrastructure
tasks may include designing and establishing procedures for recruiting, hiring, work planning, and
performance review. They could also include developing clear policies for job classification,
compensation, disciplinary actions, and labour law compliance; and maintaining the human resources
database.

HRD representing and supporting employees. Human resource development can also be an employee
champion in the organisation by providing a mechanism for employees to express their needs and
concerns, acting as an employee advocate, and developing and maximising staff skills and knowledge and
commitment to the organisation. Ways in which HRD can fulfil its champion role include:

 Holding face-to-face meetings between human resource staff and individuals and groups of
employees;
 Supporting the work planning and performance review process;
 Surveying employees;
 Talking informally to employees in the workplace;
 Bringing employees' concerns to senior management in a timely fashion;
 Taking corrective action with supervisors and employees as needed;
 Coaching or mentoring managers to help them to be more effective and sensitive leaders.  

HRD as a change agent. Human resource development can play a key role in identifying and
implementing processes for change and in preparing employees for change. Human resource activities
that support change can include analysing competency, supporting reform processes, and redesigning

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systems to help an organisation meet new objectives, such as increasing organisational sustainability or
reaching new target populations using existing staff.
Stress associated with change may be manifested at all levels in an organisation by lack of cooperation
and a decline in performance. Steps that human resource professionals can take to minimise the negative
impact of change on employees and, ultimately, on their organisations, include:

 Keeping all employees informed about the changes taking place and the anticipated benefits;
 Creating opportunities for staff to contribute ideas, help plan, ask questions, and discuss the
impact of the changes;
 Being realistic about the expected benefits of the changes;
 Soliciting ideas from employees about how to prepare for changes;
 Encouraging team work and team spirit;
 Following through on agreed-upon actions.

Taking a Leadership Role in Human Resources

 Every organization or program needs leadership at the highest level to support human resources.
To take a leadership role in HRD, you should:
 Create a positive climate for human resources;
 Create a management structure for human resources;
 Define what needs to be done;
 Forge new organizational arrangements that foster employee participation, team work, and
growth;
 Ensure that human resource activities are integrated throughout the organization;
 Involve staff at all levels and from all departments in HRD;
 Dedicate staff and budget to building human resource capacity within the organization;
 Make learning an organizational priority;
 Provide a link between internal human resource management and external stakeholders;
 Influence health policy makers;
 Influence the curricula offered by pre-service training organizations;
 Forge new directions for HRD in the organization.

HRD Audit

HRD audit is a comprehensive evaluation of the current human resource development strategies, structure,
systems, styles and skills in the context of the short and long-term business plans of a company. HRD audit
attempts to find out the future HRD needs of the company after assessing the current HRD activities and
inputs available.

HRD Score card

On the basis of HRD audit a Score is assigned to the company, which indicates the level of HRD in relation
to four dimensions. HRD Systems Maturity, HRD Competencies (including the competencies of line
managers, union leaders, top management and the HRD department and its structure), HRD styles and
culture, and Business linkages of HRD. The scorecard is a form of rating of the level of maturity of HRD
in the company.

Concepts of HRD Audit

 HRD Audit is Comprehensive

HRD audit starts with an understanding of the future business plans and corporate strategies. While HRD
audit can be done even in organizations that lack well formulated future plans and strategies, it is most
effective as a tool when the organization already has such long-term plans. The HRD audit starts with
attempts to answer the following questions:

 Where does the company want to be ten years from now, three years from now and one year from
now? (Answers to this question ensures business linkages part of the HRD score card)

Answer to this question needs to be provided by the top-level management. If there are long-term plan
documents these are reviewed. On the basis of the answers to these questions the consultants finalize the
subsequent audit strategies and methodology. The consultants make an attempt to identify the nature of core

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competencies the organization needs to develop in order to achieve its long-term, five to ten year plans. The
consultants also attempt to identify skills required to be developed by the company at various levels (example
- workmen level, supervisors level, junior management level, middle management level, top management
level, etc.) and with respect to various functions (finance, production, marketing, etc.). Listing all these core
competencies and skills for the future is the starting point of HRD audit. The HRD audit normally attempts
to assess the existing skills and the competency gaps in order to achieve the long-term business goals and
short-term results of the company. The competencies may deal with technical aspects, managerial aspects,
people related or conceptual. They may cover knowledge base, attitudes, values and skills.

 What is the current skill base of HRD staff in the company in relation to various roles and role
requirements? (HRD Competencies Score on the HRD score card)

This is assessed through an examination of the qualifications of HRD staff, job descriptions, training
programmes attended, etc. Besides this, through interviews an attempt is normally made to identify the skill
gap in the organization. Training needs and performance appraisal forms provide further insights.
Departmental heads and other employees provide insights into the competency and other skill requirements.

 What are the HRD sub-systems available today to help the organization build itself competency
base for the present, immediate future as well as for long-term goals? (HRD systems maturity
score of the HRD score card)

The auditors attempt to identify various HRD sub-systems that are available to ensure the availability,
utilization and development of skills and other competencies in the company. All the HRD tools existing in
the organization are listed and studied in detail.

 What is the current level of effectiveness of these systems in developing people and ensuring that
human competencies are available in adequate levels in the company? (HRD systems maturity on
the HRD score card)
Assessing the effectiveness of each system makes this. For example, discussing with employees, individually
and in groups, about the efficacy of the system, assesses the effectiveness of performance appraisal system.
The auditors look at the appraisal forms, look at the linkages between appraisal and training, conduct
questionnaire surveys to assess the extent to which coaching and other components of other appraisals are
being utilized and also conduct workshops if necessary to assess the effectiveness of these systems.
Similarly, in relation to induction training, the consultants make it a point to meet those who have been
through the induction training recently or those who are in the process of being inducted into the company
and take their views to improve the induction training methodology etc.

 Does the HRD structure exist in the company adequate enough to manage the HRD in the
company? (Contributes to HRD competencies score)
In the next stage, an attempt is made by the auditors or consultants to examine whether the HRD structure at
present can handle the pressing and future HRD needs of the company. This examination will assess the
existing skill base of the HRD staff of the company, their professional preparation, their attitudes, their
values, their developmental needs, the line managers perceptions regarding them, etc. In addition to
examining the full time staff, the HRD structure is also assessed in terms of use of task forces and other
mechanisms.

 Are the top management and senior manager styles of managing people in tune with the learning
culture?

Here an attempt is made to examine the leadership styles, human relations skills, etc. of senior managers. The
extents to which their styles facilitate the creation of a learning environment are examined.

 HRD Audit Examines Linkages with Other Systems

The HRD audit also examines the linkages between HRD and other systems like total quality management,
personnel policies, strategic planning etc.

Suggestions are made on the basis of evaluation on the above questions about the future HRD strategies
required by the company, the structure the company needs to have for developing new competencies and the

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systems that need to be strengthened, the styles and culture that has compatibility with HRD processes in the
company particularly the styles of the top management, etc.

 HRD Audit is Business driven

HRD audit always keeps the business goals on focus. At the same time, it attempts to bring in
professionalism in HRD. In keeping the business focus at the centre, HRD audit attempts to evaluate HRD
strategy, structure, system, staff, skills and styles and their appropriateness.

HRD Audit is not a problem solving exercise. It may not be able to provide any solutions to specific
problems the organizations is facing - for example Industrial Relations problem, or discipline problem,
poor performance problems etc. However, it may be able to throw insights into the sources for the
problem. It will not give feedback about specific individuals. It will however give feedback about the HRD
department, its structure, competency levels, leadership, processes, influence of the HRD on the other
systems etc. HRD audit is against the HRD framework. HRD audit is comprehensive. However it is
possible to focus on one or more systems thoroughly. Action on HRD audit is entirely in the hands of the
CEO and the auditor has no control over this.