Human Resource
UNIT 1 HUMAN RESOURCE Development: An
Overview
DEVELOPMNENT: AN OVERVIEW
Objectives
After going through this unit, you should be able to:
• understand the meaning of Human Resource Development;
• explain the Mechanisms of HRD;
• enlist issues/challenges in HRD;
• identify best practices in HRD; and
• predict future of HRD
Structure
1.1 Introduction
1.2 Meaning of HRD
1.3 Importance of HRD
1.4 Evolution of HRD
1.5 HRD Mechanisms
1.6 Issues and challenges in HRD
1.7 Role of top management in HRD
1.8 Self-Assessment Questions
1.9 Further Readings/ References
1.1 INTRODUCTION
The human relation movement approach dates back to the era of 1920-1930,
when Elton Mayo’s Hawthorne experiments leading to give relevance to
‘human’ as prime mover of all the resources. This movement further led to
the development of human behavior at work in the decade 1950-1960s.
Gradually, it became evident that the growth and success of the organization
depends upon human asset and focus shifted from only profit to managing
such valuable asset for better and sustainable returns. Many organizational
have realized the potential of their employees and are working towards
enhancing their growth and development. They understand that this has direct
relation with the organizational competences. In this regard, several
organizations have adopted separate department dedicated towards grooming
and skilling their human resources (Rao & Abraham, 1984). This department
termed as human resource department deals with managing employees by
providing them training, development, mentoring, counseling for their career
and personal growth by providing them performance management support
eco-systems. There are many organizational success stories which confirms,
that, if you focus on human potential by developing pragmatic, innovative 7
Introduction to and radical interventions, it is imperative to see unprecedented and
HRD
exponential growth of the organization. Similarly, the organizations that
ignore human and synergies of human potential they tend to remain either
stagnant or fade away.
The VUCA (Volatile, Unprecedented, Complex and Ambiguous)World
brought tsunami of changes in the way human resources have been managed.
However, Covid -19 has brought a screeching halt to all practices ever since
we realized it as Pandemic. The ‘New Normal’ welcoming disruptions
beyond imagination and has brought a completely new avatar of HR making
work from home, hybrid work and third places work stations a reality. The
fluidity of HR interventions has become a grand challenge where digital age
solutions only can make things happen. The virtual world has taken over
from physical spaces and employee experiences have gone to Gen-Next of
highest ever screen times ever.
The biggest challenge to HRD is facing to upkeep the morale of the
employees, take care of 360 degrees of employee well being and manage
things 24×7×365 days partnering the disruptive dynamics of business and
still continue to add value in the revenue function. Work from home has
welcome virtual organizations where managing human resource is a
stimulating task. The digital world has transformed the role of HR
managersand therefore, it is essential to understand human resource
development.
Gary L Nielson, Karla L Martin and Elizabeth Power state in their HBR
article ‘The secrets to successful strategy execution’ that the time has come
for all the organizations to alter to flexi-organizational structure, redesign
expectation matrices, re-align people power, improve on maximizing efforts
to pace idea to execution, include and involve teams and keep pumping the
motivation.
Box 1
Scenario Analysis
There are 3000+ employees in your organisation which is a leading IT
solutions company in Bengaluru.
The company has allowed choosing any model of working in the post
pandemic scenario and now 43% employees wanted to continue to work
from home, 26% want the hybrid model of working and 31 % who are
desperate to join back full time office.
Questions
• What shall be the strategy of employee development interventions of
HR function in such situation?
• Can this be same for all? How easy or tough it may be for the HRD
function to plan such interventions?
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Human Resource
1.2 MEANING OF HUMAN RESOURCE Development: An
DEVELOPMENT Overview
Several definitions have been proposed to describe the meaning and concepts
of human resource development.
• HRD concept was first introduced by Leonard Nadler in 1969 in a
conference in US. He defined HRD as “…those learning experience
which are organized, for a specific time, and designed to bring about the
possibility of behavioral change”.
• In the words of Prof. T.V. Rao, "HRD is a process by which the
employees of an organization are helped in a continuous and planned
way to:
o acquire or sharpen capabilities required to perform various
functions associated with their present or expected future roles;
o develop their general capabilities as individual and discover and
exploit their own inner potential for their own and /or organizational
development purposes;
o Develop an organizational culture in which superior-subordinate
relationship, team work and collaboration among sub-units are
strong and contribute to the professional wellbeing, motivation and
pride of employees."
• According to M.M. Khan, "Human resource development is the across
of increasing knowledge, capabilities and positive work attitudes of all
people working at all levels in a business undertaking."
• In the Harvard Business Reviews 10 Must Reads for CEOs series, Boris
Graysberg and Michael Slind in their article ‘Leadership is a
Conversation’ recommend that the Command and control approach has
had a paradigm shift making corporate to work more on value and deeper
experiences with interactive and top down approach. The multi faceted
channels of communication connecting leader and teams to have
genuine, frank and dynamic conversations for bringing people to the core
of business can make huge impact.
Thus, human resource development is a continuous process in which
organization through various intervention help an employee:
1. To bring people at the core and to continuously work towards excellence.
2. To assess capabilities and skills, knowledge and attributes in human
resource to perform desired roles and responsibilities.
3. To continue to up-skilling and enhance knowledge through training and
development interventions.
9
Introduction to 4. To maximize the talent and potential for individual and organizational
HRD
growth.
5. To foster and nurture human relation, teamwork and collaboration.
6. To create a road map of employee development.
7. To inculcate values, norms and excellence in work culture.
8. To make human resource a catalyst of change and perform the role of
business partnership and business development.
9. To create work environment with positive energies and synergies to
create great place to work and best employee experience.
10. To envision new avenues of human venture within and outside
organization for better stakeholder value.
Thus, HRD aims to create a harmonious and growing climate. The process of
HRD involves undertaking various interventions or techniques like training,
development, learning, counseling, coaching, mentoring, feedback, review,
rewards and recognition on a continuous basis to facilitate smooth
functioning of the organizations. Organization understands the relevance of
humans by using such mechanism that enhances human development and
organizational growth. Hence, care, nurture, compassion, listening and
people management are ever important skills in the human trend reports by
various global reports.
In the new age, It has become almost imperative to add functions like
employee well being, focus on mental health and extension of corporate
social responsibility as the extended arms of HRD functionaries within
organizations that strive and thrive to be the great place to work.
Box 2
Scenario Analysis
Evaluate the following statement by Diane L Coutu and reflect that can
HRD help in the given situation? Answer If yes How and if No then Why?
“These dark days’ people are losing jobs, taking pay cuts, suffering
preclosure on their homes. Some of them are snapping-sinking into
depression or suffering a permanent loss of confidence”
1.3 IMPORTANCE OF HRD
Gary Hamel and C K Prahlad in their HBR paper titled ‘Strategic Intent’
have advocated that the strategic intent keeps the individual and teams
challenged in phased manner keeping the fun of adrenaline gush up for
creating competitive advantage, using competitive intelligence and
continuous learning environment for up skilling, re-skilling and
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collaboration. This also requires continuously working on rewarding and Human Resource
Development: An
motivating every individual who can champion the cause of transformation. Overview
For every organisation it is important to have valuable employees. They rely
on human asset to run their operations efficiently. Employee competencies
like knowledge, values, attitudes, behaviour and skills helps in attaining the
competitive edge over others. They are essential for performing the tasks and
activities of the organisations. The function of the HRD Manager is to be
like a gardener and procure right kind of seed, preparing the soil, and sowing
the right seed, nurture it with right plans and policies, mentor and provide
support like water, sun, manure etc. Also, to make the plant fructify, you
need pruning and care, similarly the HR needs to be guided for performing
best and reaching their highest potential. (Lohara, Om Prakash, 2012).
It is very important to realize that competent skilful and motivated employees
are crucial required at various stages of the organisational development. The
development of organisation is not possible without the development of
human assets. The companies need to invest their financial resources on
enhancing the competencies of their employees. Human resource
development aims at satisfying the higher need of employees by satisfying
their sense of belongingness, by enhancing their self-esteem and realising
their self-actualisation.
The 2020 and 2021 has seen the great resignation drives starting from USA,
however the trend has entered in many other parts of the world
whereeveryone is taking the wake up call to follow the passion and inner
voice to give more importance to health, healthy eating exercising, family,
human relations, peace of mind, exploring the world, taking care of their
hobbies, living on minimalism to doing charity as personal drive, as the ‘You
Only Live Once’ (YOLO) syndrome has come as new realization in the
young generations more than fancy jobs or six digits salary and luxurious
life. The growing change in the working environment,shifting from offline
offices to online workstations, Hybrid or flexi work places, the HRD has
become more critical and the need of the hour. Essentially in the new normal
and approaching GIG economy workers the following became more relevant
in absolutely on new terms:
1. Planning the Human Resource Information System (HRIS), Human
Resource Accounting System (HRAS) and Human Resource Planning
(HRP)
2. Acquiring talent from the global markets
3. Nurturing and retaining talent in hybrid systems
4. Measure performance matrices in fluid work systems
5. Use assessment and feedback for continuous development and
strengthening the core of business and not building huge infrastructures
11
Introduction to 6. Provide continuous improvement through education, learning and
HRD
development (L&D) and organization development intervention using
platforms like Unacademy, MOOCs, Udemy, EdEx, Coursera and many
more like that
7. Due diligence in creating employee engagement best practices
8. Providing flexi, online and offline modes of learning
9. Digitising human resource practices with the help of Artificial
Intelligence (AI)
10. Utilising HR analytics for business intelligence
1.4 EVOLUTION OF HUMAN RESOURCE
DEVELOPMENT
An idea started by Robert Owen and Charles Babbage during the industrial
revolution helped in identifying that people plays utmost important role in
defining the success of the organization. Their thoughts led the beginning of
shaping human resource filed in 19th Century Europe. Gradually, human
resource started taking a specific filed of interest under the influence of
Fredrick Winslow Taylor (1856-1915) who is also referred as “father of
scientific management”. Taylor focused towards enhancing the efficiency of
manufacturing jobs by provided identifying methods of managing people at
work.
CS Myer led to the seed of human relationship by cofounding National
institute of Industrial Psychology in 1921. The importance of human relations
has been demonstrated through various others scholars in their study like
Elton Mayo (1880-1949) who contributes that along with the formal
structure, there is significant role of informal organizational structure that
impacts organization effectiveness and efficiency. He emphasized on the
importance and role of group relationships in the organization described in on
of experiment done under Hawthorne study.
The more focus shifted on analyzing the need of human and thus Maslow
contribution towards five needs of human became very popular emphasizing
on five needs: Psychological, safety, love, esteem and self-actualization. In
line with this, Frederick Herzberg has two factor theory determining
motivator and hygiene to be important to motivate employees at workplace.
As the human aspect was coming out in the light, the more focus was given
to their improvement so that the productivity will improve as the final result.
For this purpose, focus was shifted to provide training. As a result, people
gradually started developing which further led to more welfare activities such
as increased demand for compensation, more emphasis on individual needs,
participative management etc. Organizational Development which was
focused on training of employees, then turned into Human Resource
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Management and focus on individual development got the concept of Human Human Resource
Development: An
Resource Development in light. Overview
Box 3
Case Situation
KS Readymade is a small enterprise which deals with readymade
garments. There are 3 top level managers, 12 administrative staff, 40
technical staff and 7 managers, involves in manufacturing. Now as the
business has picked up well KS Readymade is now planning to expand the
business operations into more cities. If you are an external HRD
consultant, what would be your advice regarding the expansion and also
reflect if is there a need for separate HRD department?
1.5 HRD MECHANISMS
The HRD mechanism is also termed as HRD sub-systems or instrument, as it
contributes towards the achievement of HRD goals. Therefore, it can be said
that all policies, procedures, activities, and rules, aimed at fulfilling the HRD
goals are termed as HRD mechanism.
Some of the aspects covered in the HRD mechanism are listed as follows.
1. HRD department
2. Performance appraisal
3. Review discussions and feedback counseling sessions
4. Role analysis exercise
5. Potential development exercise
6. Training
7. Communication Policies
8. Job-rotations
9. OD exercises
10. Rewards
11. Job-enrichment programs
12. 360-degree feedback
13. Assessment and development centers
14. Employee engagement surveys
15. Competency mapping
16. Other mechanisms in the new age like HR Analytics, Platform based
learning Management sytems (LMS), HYBRID work places etc.
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Introduction to Box 4
HRD
Case Situation
Sunita has joined as LDC in LIC India. She has been always a bright
student and possesses B.Tech and MBA as her educational qualification.
She aspires to be in managerial cadre. If you are the HRD manager
knowing this talented high potential performer, how would you mentor for
her career progression.
1.6 ISSUES AND CHALLENGES IN HRD
HRD is vital as very as critical to handle in small, medium and large
organisations. The growing dynamics in organisation has changed the role of
HR in the organisations. The shift in the working style in past decade has put
more challenges for HR. No matter how the world is changing, the role of
HR will remain intact and also will keep on growing. The following
challenges are faced by HRD in this time:
1. Managing diversity at the workplace
2. Providing virtual training
3. Grooming and training digital leader
4. Adapting to the changes
5. Understanding benefits and packages
6. Motivating employees in the crisis.
7. Providing adequate training
8. Retaining talented employees
9. Changing Workforce demographics
10. Eliminating skill gaps
Different organizations viz. public sectors, private sectors, NGOs, start-ups,
etc., deal with different kind of challenges. While public sectors may be
known for bureaucracy, rigidity and long decision dilemmas the private
sector may have hyper competition, lack of transparency and difficulty in
retaining talent. Similarly,NGOs may have lack of structures and are driven
by passions while start-ups may not afford a separate or dedicated HR
department and may function on intuitively only. Thus, the various sectors
may have a specific need of understanding the HRD function from a different
perspective.
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Human Resource
1.7 ROLE OF THE TOP MANAGEMENT IN HRD Development: An
Overview
It is important for the management to support and promote the growth of
employees within their organizations. In the words of Dr. Aquil Busrai,
Former President, National HRD Network India ‘HR manager has to be both,
a gardener as well as a florist. While as a gardener, the HR manager is
responsible to play a nurturer’s role. As a florist, one has to arrange the talent
and potential in such a way that it gives best fitment and contributes towards
organizational excellence.’ HRD will take place only when there is
harmonious environment within the organization. The top management
should consider following aspects to effective human resource development-
1. Vision, missions, goals with focus on human development synchronization.
2. Defining and designing HR policies clearly and updating them on a
regular basis
3. Organizational commitment to HRD
4. Leadership development
5. Empowerment
6. Return on investment of human resources
7. Stakeholder value
8. OCTAPACE
9. Providing a work life balance.
10. Create a care and compassion quotient in the organization
In the discussions it is important to see that the father of HRD Movement in
India Dr Udai Pareek and Dr TV Rao from Indian Institute of Management,
when started experimenting at Larsen and Toubro (L & T) group, there was
very limited understanding about how the systems and culture would change.
Slowly, seeing unprecedented success of the HRD intervention, there were
organizations like IL&FS, State Bank of India, Crompton and Greaves Ltd,
who paved way for the idea forward and the rest is history of success of HRD
Movement in India.
15
Introduction to Box 5
HRD
Source: “Future of HRD”, Dr. T.V. Rao, Reprint-2004, Macmillan India Ltd. Page no. 97
In the nut shell of all the above experiences in HRD, Dr T V Rao has created
HRD Prayer which tells the entire preparedness of an organizational change
with beautifully explained pointers as given below; this can be a befitting
conclusion of the chapter as it has all elements which are timeless in nature
and still relevant despite decades of its origin.
1.8 SELF ASSESSMENT QUESTIONS
1. Mark true /False for the following statements:-
o HRD is needed only in large corporate T/F
o HRD includes all functions from hire to fire or retire T/F
o Career Progression in included in HRD T/F
o Coaching & Mentoring are executive development methods T/F
16
o HRD is only a service/advisory function T/F Human Resource
Development: An
Overview
o Retrenchment is a part of HRD T/F
o HRD can be strategic partner in top management T/F
o The new normal has enhanced the need meaningful role of
HRD T/F
o Employee health and emotional intelligence are parts of
managing talent T/F
o People development has to be core of HRD Vision and mission T/F
2. How do you see the relevance of HRD intervention in modern times?
Read some vision and mission statements of reputed businesses in
different sectors and cite examples to justify your answer.
3. Will artificial intelligence replace HRD? Present arguments in favor and
against and support with examples.
4. If you are heading the business transformation of a medium sized
business as an owner, will you include the HRD manager in your
strategy team? Write positive and negative consequences of including
HRD manager in this venture.
5. Analyse this case-let with all the elements of HRD in mind and attempt
to answer the question given below.
o Yukta has joined as a young L&D manager in a large MNC, where
many activities of HRD already exist. To find her niche, she plans to
propose some out of the box training and learning interventions.
However, she is suffering dilemma that how would her senior L&D
colleagues would respond to her crazy ideas in the upcoming annual
plan meet and how to pitch her ideas without being offensive to any.
Considering yourself as the head of L&D, what response you may
give in terms of encouragement and if there may be some concerns
to give go ahead to Yukta?
1.9 FURTHER READINGS/ REFERENCES
• Tripathi P.C., ―Human Resource Development‖, Sultan Chand &
Sons.
• Haldar, U. K., ―Human Resource Development‖, Oxford University
Press.
• Rao, T.V., ―Future of HRD‖, Macmillan India.
• Rao T.V., ―Reading in human Resource Development, Oxford and
IBH
• Deb, T. (2016). “Human Resource Development- Theory and
Practices”.
• Kaplan, R. (1992). “Balance Score Card”, Harvard Business Review,
January-February. 17
Introduction to • Pareek, V. and Rao, T.V. (1981). Designing and Managing Human
HRD
Resource Systems, Oxford & IBH Publishing Co., New Delhi.
• Pfeffer (1994). Competitive Advantage through People, Harvard
Business School Press.
• Rao, T.V. and Pereira, D.F. (1986). Recent Experiences in Human
Resource Development, Oxford & IBH Publishing Co., New Delhi.
• Ulrich, D. (1997). Human Resource Champions, Harvard Business
School Press.
• Rao, T.V. (1984) ―Role of Training in Human Resources
Developments. ‖ in Indian Journal of Training and Development, pp.
118- 122, July-September
REFERENCES
• HBR’s Ten Must Reads for CEOs
• Deb, T. (2016). Human Resource Development- Theory and Practice.
Ane Books Pvt. Ltd.
• Shaikh, J. (2014). Human Resource Development- Strategies and
Systems. New Delhi.
• https://www.egyankosh.ac.in/bitstream/123456789/6575/1/Unit-1.pdf
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D%20Systems.doc
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