Introduction to HRD (Unit 1) 1

2 Thakurs BBM Fifth Semester HB (Human Resource Development) Bangalore

1.1. HUMAN RESOURCE DEVELOPMENT (HRD)

1.1.1. Meaning & Definition of Human Resource Development

HRD is an effort to develop capabilities and competencies among employees as well as
create organizational environment conducive to the employees development.

The word Human Resource Development can be broken up as under:

Human Resource Development = Human Resource + Development

Human Resource refers to the talents and energies of people who are available to an
organization as potential contributors to the creation and realization of the organizations
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.
Development combines the concepts of development (change and growth) and training
(learning specific skills).

According to South Pacific Commission, Human Resource Development is equipping

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

According to Rogers, Human Resource Development is a holistic concept,

incorporating intrinsically social, cultural, and spiritual dimensions to build capacity and
empower people.

According to Swanson and Holton, Human Resource Development is a process for

developing and unleashing human expertise through organization development and
personnel training and development for the purpose of improving performance.

According to Giley and Eggland, Human Resource Development is organized learning

experiences provided by employers within a specified time to bring about the possibility
of performance or personal growth.

Thus, human resource development is the integrated use of training, organizational

development, and career development efforts to improve individual group and
organizational effectiveness.

1.1.2. Features of HRD

Features of HRD are shown in figure below:
Features of Human Resource
Development

Planned and Systematic

Approach Continuous Process

Inter Disciplinary
Approach Both Micro and Macro
Aspects
Introduction to HRD (Unit 1) 3
4 Thakurs BBM Fifth Semester HB (Human Resource Development) Bangalore

1) Planned and Systematic Approach: HRD is a planned and systematic approach to

the development of people. HRD is a system consisting of several interdependent and
interrelated subsystems, e.g., performance appraisal, training, job enrichment etc.
While designing a HRD system, enough attention should be paid to building linkages
between the various subsystems.
2) Continuous Process: HRD is a continuous and dynamic process which believes in the
need for continuous development of personnel to face the innumerable challenges in
the functioning of an organization. It is based on the belief that there is no end to the
development of an individual and the learning process can continue throughout the life.
3) Inter Disciplinary Approach: HRD is an inter-disciplinary approach. It involves
collection of ideas for many sciences. It makes use of principles and concepts of
behavioral sciences for the development of people. It uses knowledge drawn from
psychology, sociology, anthropology, economics and political science for planning
and implementing various programs for the development of individuals, groups and
the organization.
4) Both Micro and Macro Aspects: HRD has both micro and macro aspects. At the
macro level, HRD is described as the core of all development activities in the sense
of improvement of quality of life of people of a nation. At the micro level, HRD
involves the improvement in the quality of managers and workers so as to achieve
greater quality and higher levels of productivity.

1.1.3. Need for HRD

HRD is needed for the following reasons:
1) To Develop Competencies: No organization can survive, let alone make a mark, if
its employees are not competent in terms of knowledge, skills and attitudes.
Competent employees are as much the necessity of a non-profit organization as of a
profit -making organization. Both types of organizations need competent employees
for the success of their internal and external operations. A profit organization
interested in growing, diversifying or improving its working (such as cost reduction,
reduction in delays, increased customer satisfaction, improved quality, market image,
etc.) must first think of developing its employees competencies. Similarly, a non-
profit organization, say a university or a hospital interested in improving its work
culture, must first think of orienting its employees attitudes.
2) To Mitigate Some of the Evil Consequences of Industrialization: It is common
knowledge that the factory system has dehumanized and deskilled various jobs by
enriching workers roles HRD satisfies their needs of advancement, growth, self-
respect, recognition, creativity and autonomy. Under career development plans
workers are more or Jess assured about their future. Other HRD mechanisms such as
counseling, monitoring, quality of work life, etc. enable workers to lead an integrated
life which is mostly partitioned by the factory system into two lives: the
organizational life and the personal life.
3) To Bring About System-Wide Changes: Whereas traditional human resource
development methods (such as training, job-rotation, etc.) have their relevance and
usefulness, they are by themselves inadequate to bring about the kind of system-wide
change which is visualized in the concept of HRD. In traditional methods often top
management personnel have the attitude that all is well with themselves, and it is
Introduction to HRD (Unit 1) 5

only the lower level which needs to be trained and developed. Such attitude makes
these programs ineffective because by keeping the interdependent and interacting
higher levels out, these levels continue to remain plagued by forces of mistrust,
jealousy and authoritarianism. HRD programs bring about a system-wide change.
They gradually enrich the entire socio-technical system.
4) To Develop a Proper Climate in Organization: No other traditional method can do
this. Executives in most of the traditional organizations seem to hold the following
values:
i) The important human relationships are those which are related to achieving the
organization objectives, i.e., getting the job done.
ii) For being effective in human relationships one needs to be more rational and
logical in his behavior rather than emotional.
iii) Human relationships are most effectively motivated by carefully defined
direction, authority and control as well as appropriate rewards and penalties that
emphasize rational behavior and achievement of the objective.

1.1.4. Objectives of Human Resource Development

The main objectives of HRD are shown in figure below:

Objectives of Human
Resource Development

Facilitating Organizational
Effectiveness Enhancing Quality and
Productivity
Promoting Individual
Growth and Development Integrating People into
Business

1) Facilitating Organizational Effectiveness: To ensure that adequate number of

persons with sound industry background and experience both in generalist and
specialist are available at different operative and supervisory and managerial levels in
order to facilitate organizational effectiveness.
2) Enhancing Quality and Productivity: To evolve the human resource development
system so that the employees are provided equitable opportunities to move up in the
organization on the basis of their performance and ability so as to enhance quality
and productivity. Organizations should ensure that responsibility for results is
provided right from the lower level so that employees can develop a sense of
independence and self-confidence.
3) Promoting Individual Growth and Development: The employees confidence in
the personnel practices must be reposed. The policy should not only be fair and just
but also to be perceived as fair and just so as to promote individual growth and
development.
4) Integrating People into Business: Jobs should be enlarged and enriched so that they
are performed in a manner that nurtures team work providing opportunity for
learning new and varied skills thus, making the work more satisfying and
meaningful. This will ensure integration of human resources into business.
6 Thakurs BBM Fifth Semester HB (Human Resource Development) Bangalore

1.1.5. Scope of Human Resource Development

The scope or boundaries of human resource development in the continuously changing
context must be dynamic to accommodate new initiatives. A high performing organization
needs high performing employees to meet a variety of challenges due to the rapid
technological advents and sharp competition. Corporates are concentrating on the
development of human capital, considering this as a key to sustainable competitive
advantage. Corporate bodies are using competency sets in this endeavor. Organizations
are rightsizing, downsizing, flattening, and adopting business process outsourcing. The
search for right and competent people has gained momentum in all organizations that are
initiating all-out efforts. Recruitment as usual follows induction and placement. During
the induction, companies are using psychometric tests to identify the potential of
individuals. HRD functions have expanded and now include some new aspects helping
the HRD to become a strategic partner.

Business tycoons are now expressing voracious appetites for mergers and acquisitions.
Accordingly, human resources need new types of skills to cope with the situations.
Recruitment, induction, and placement have gained momentum and new dimensions.
Organizations are searching for competent persons who will work in the organization for
a fairly long period. The information technology, telecom, and BPO organizations (call
centers) have intensified their search for manpower from the market, management
institutes, and recruitment agencies. Some corporates have started their own universities
and colleges to encourage management development programs and competency building.
For example, Tata, Nirma, Birla, Mahindra, Kirloskar, Camelia Group, and others have
started their own management institutes. Organizations are using assessment centers or
development centers for identifying, developing, and promoting talented individuals for
recruitment and outlining retention strategies. To get the best from the employees,
organizations have become keen on mentoring and coaching processes. Leadership
development at all levels, training and re-training, improving quality of worklife, and
attempting to implement a structured quality management system are the boundaries or
aims of human resource development.
Thus, the scope or boundary of HRD should incorporate:
1) Re-structuring the organization,
2) Merger and acquisition,
3) Recruitment, induction, and placement,
4) Starting corporate universities and colleges,
5) Use of assessment or development centers,
6) Mentoring and coaching,
7) Leadership,
8) Training and re-training,
9) Improving quality of worklife, and
10) Managing quality initiatives.

1.1.6. Importance of Human Resource Development

The importance of human resource development is shown in figure ahead:
1) Utilizes Individuals Potential: People are major assets and that an organization can
make full utilization of individuals potential by providing a developmental
environment and opportunities by encouraging and rewarding innovativeness and
creativity.
Introduction to HRD (Unit 1) 7

Importance of Human Resource

Development

Utilizes Individuals Potential

Improves Problem-Solving and Skills
Improves Collaboration & Teamwork
Fosters Growth
Provides Higher Quality of Work-life
Builds Long-Term Relationship
Identification with Organizational Goals
Facilitates Communication between
Management and Employees
Improves Communication System
Provides Job Enrichment
Increases Awareness
Generates Useful Data
Fosters Commitment
Develops Competencies

2) Improves Problem-Solving and Skills: HRD improves problem-solving and

adaptation skills of employees. They become more innovative, proactive and risk
taking. Resistance to change is reduced.
3) Improves Collaboration and Teamwork: HRD improves collaboration and
teamwork. Employees become more open and trust each other.
4) Fosters Growth: HRD provides an opportunity of continuous and all round growth
of employees through succession and career planning. If an employee perceives a
nurturing environment, automatically there would be a positive response to match
individual aspirations with organizations needs.
5) Provides Higher Quality of Work-life: Human resource development provides
higher quality of work-life through opportunities of a meaningful career, job
satisfaction and professional development.
6) Builds Long-Term Relationship: Human resource development policies are
relationship centered and the extent of relationship under human resource
development is life long and not merely for 8 hours a day.
7) Identification with Organizational Goals: Human resource development facilitates
identification with organizational goals through better employee understanding.
8) Facilitates Communication between Management and Employees: Human
resource development provides for two-way, open and interactive communication
between management and employees.
9) Improves Communication System: HRD also improves the communication system
in the organization. Every member better understands the expectations of other
members from his role.
10) Provides Job Enrichment: Human resource development provides job enrichment
through training and the acquisition of new skills.
8 Thakurs BBM Fifth Semester HB (Human Resource Development) Bangalore

11) Increases Awareness: Human resource development increased awareness of the

importance of change management and consequent adaptability of employees.
12) Generates Useful Data: HRD generates a lot of useful data which facilitates human
resource planning and control.
13) Fosters Commitment: HRD fosters commitment through the communication of
values. It improves employee commitment to the organization due to greater
objectivity in the administration of rewards. Contributions of employees are valued
and rewarded in a better way.
14) Develops Competencies: HRD aid to develop competencies among individuals in the
organizations that allow them to perform their present and future works thoroughly, by
means of intended learning activities. Competency can be developed in people at any
point of time and organizations must encourage competency enhancement.

1.1.7. Essentials for HRD

While introducing HRD in an organization, the following essentials have to be kept in view:
1) Will to Improve: An urge and desire on the part of the human resources to find
better methods to improve quality and productivity.
2) Removing Hurdles: Removal of hurdles and irritants from the organization affecting
productivity of the employees.
3) Competent Members of HRD Team: Requisite skills, attitudes, and ability in the
persons engaged in HRD.
4) Proper Coordination: Proper rapport between the HRD members and the key
personnel in the organization. Involvement of the personnel of the organization to get
a lot of unwritten information for understanding the dynamics of the organization for
developing a HRD program.
5) Appropriate Methods: The need for suggesting the introduction of only such
indigenous methods which can be implemented by the HRD division without much
cost and resistance.
6) Effective HR Information System: Strengthening of human resource information
system to keep continuous track of every employee and use performance appraisal,
training, etc., to change in desired direction.
7) Solution for Resistance: The HRD department must be ready to face resistance to
their ideas and dispel these with facts, patience, and consideration. The aim should be
to develop acceptance through cooperation.
8) Emphasis on New Methods: The HRD department must make all the employees in
the organization understand the implications of new methods through seminars,
lectures, role plays or any other method to thwart the potential fears amongst the
employees of the proposed changes.

1.1.8. Factors Affecting HRD

Factors that affect HRD are as follows:
1) Extra-Institutional Factors
i) The character of national and international economic trends determines to a great
extent the level of activity in HRD.
Introduction to HRD (Unit 1) 9

ii) National development policies tend to affect manpower supply and demand and
hence HRD.
iii) Shifts in sectoral needs (e.g., from agriculture to manufacturing) tend to cause
changes in the focus of HRD programs.
iv) The faster the acceleration of growth of knowledge and development of new
technology, the greater will be the demand for HRD.

2) Intra-Institutional Factors
i) Institutional decisions to organize/re-organize/strengthen unit functions tend to
increase the demand for HRD.
ii) Increasing incentives and rewards tend to be directly related to intensified HRD
activities and programs.
iii) The amount of institutional resources (funds, space, equipment, training
capabilities) tends to be directly related to the intensity of HRD activities in an
organization.
The more severely lacking these resources are, the more depressed are the HRD
activities.
iv) The higher the level of institutional morale, the greater is the intensity of HRD
activities and the greater is the level of staff retention.
v) The greater the disparity between personnel needs and organizational goals, the
less effective is HRD.
vi) The greater the incidence of management problems, the greater will be the
perceived need for HRD.

3) Inter-Institutional Factors
i) The greater the acceptability of common standards and standard-setting
mechanisms, the more accelerated is HRD among similar organizations.
ii) The greater the extent of cooperative linkages among institutions, the greater are
both the perceived need for and eventually the number of HRD activities.
iii) The keener the competition for talent and skills, the greater is the tendency for
institutions to increase HRD activities.

1.1.9. Roles of HRD Executives/Managers

The roles of HRD managers are shown in figure below:

Roles of HRD Executives/Managers

Training Role
Research Role

Consulting Role
Change Management Role

1) Training Role: To develop needed competencies of various role occupants, the

trainer must develop good training considering the curriculum, content, training aids,
and learners receptivity. Trainers must keep themselves updated and must have the
relevant technical knowledge.
10 Thakurs BBM Fifth Semester HB (Human Resource Development) Bangalore

2) Research Role: Trainers must identify the competencies that are needed for
accomplishment of the product range and what will be needed in the organization in
the future. The trainers who function as researchers need to develop their insight into
the organizational needs and process. This role is of great help to the organization.
3) Consulting Role: In addition to a researcher role, trainers should preferably
discharge a consulting role for organizational effectiveness. Various teams, while
striving to accomplish tasks, need consultation. The trainers should extend the
requisite consultancy to keep the wheels of synergy moving through teamwork.
4) Change Management Role: Changes are part and parcel of the present-day business
scenario. In todays competitive world, training becomes a true strategic partner.
Leadership emerges as the focal point and training appears inescapable if leadership
is to be developed at all levels. Training becomes essential to enhance the ability of
strategic thinking, taking responsibility, feeling accountable, enhancing creativity,
and empowering others. Training as a strategic partner serves to transform the
organization. The trainer must be involved in the main business of the organization,
or trainers with exposure in multiple functional areas are to be drawn from within the
organization.

1.1.10. Principles of HRD

The major principles of human resource development are shown in figure below:

Principles of Human Resource

Development

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

1) Principle of Development of Organizational Capability: Human resource

development systems should help the organization to increase enabling capabilities.
The capabilities include: development of human resources in all aspects,
organizational health, improvements in problem solving capabilities, diagnostic
skills, capabilities to support all the other systems in the organization, etc.
2) Principle of Potential Maximization: Human resource development systems should
help individuals to recognize their potential and help them to contribute their best
towards the various organizational roles they are expected to perform and excel in it.
3) Principle of Autonomy Maximization: Human resource development systems
should help maximize individual autonomy through increased responsibility.
4) Principle of Maximum Delegation: Human resource development systems should
facilitate decentralization through delegation and sharing of responsibility.
Introduction to HRD (Unit 1) 11

5) Principle of Participative Decision-Making: Human resource development systems

should facilitate participative decision-making.
6) Principle of Change Management: Human resource development system should
attempt to balance the current organizational culture with changing culture.
7) Principle of Periodic Review: There should be a continuous review and renewal of
the human resource development function.

1.1.11. Mechanisms or Instruments of HRD

The mechanisms or instruments of HRD are shown in figure below:

Mechanisms or Instruments of
HRD

Performance and Potential Appraisal

Feedback and Performance Coaching
Career Planning
Training
Organization Development
Honors and Awards

Employee Welfare and Quality of

Work Life

1) Performance and Potential Appraisal: If the performance of people is to be

enhanced, their performance needs to be periodically evaluated. For this purpose,
performance appraisal interviews between the manager and the subordinate are to be
conducted at regular intervals. During these interviews, the performance over the
review period is evaluated, strengths and weaknesses identified, and reasons for any
shortfall in performance are examined. The goal, objectives, and action plan with
target dates for future is also worked out.

Potential appraisal means the possibility of career advancement. A dynamic and

growing organization needs to continuously review its structure and systems, creating
new roles, and assigning new responsibilities. Capability to perform new roles and
responsibilities must continuously be developed among employees. Potential
appraisal focuses on identifying the employees likely future roles within the
organization, and can be assessed by observing employees perform different (usually
higher level) functions.

2) Feedback and Performance Coaching: Knowledge of ones strengths helps one to

become more effective, to choose situations in which ones strength is required, and
to avoid situations in which ones weaknesses could create problems. This also
increases the individuals satisfaction. Often, people do not recognize their strengths.
Managers in an HRD system have the responsibility for observation and feedback to
subordinates about their strengths and weaknesses on a continuous basis. These are
also responsible for providing the employees proper guidance to improve their
performance capabilities.
12 Thakurs BBM Fifth Semester HB (Human Resource Development) Bangalore

3) Career Planning: The HRD philosophy is that people perform better when they feel
trusted and see meaning in what they are doing. People want to know the possibilities
for their own growth and career opportunities. As managers have information about
the growth plans of the organization, it is their responsibility to transmit information
to their subordinates and to assist them in planning their careers within the
organization. In the HRD system, long-term corporate growth plans are not kept
secret but are made known to the employees. Employees are helped to prepare for
change whenever such change is planned. Major changes are discussed at all levels to
increase employees understanding and commitment.
4) Training: Training is linked with performance appraisal and career development.
Employees generally are trained on the job or through special in-house training
programs. Some employees may be deputed for outside training to enhance, update,
or develop specific skills. This is especially valuable if the outside training can
provide expertise, equipment, or sharing of experiences that are not available within
the organization. Periodic assessments are made of the training needs within the
organization. Training programs are developed and conducted by in-house trainers or
consultants/institutions hired for the task. The effects of all training programs are
monitored, analyzed and used for fine-tuning. Managers and employees who attend
in-house or outside training events are also expected to submit suggestions
concerning any changes they would like to be implemented on the basis of their new
knowledge. The training received by employees is thus utilized by the organization.
5) Organization Development (OD): This function includes research to ascertain the
psychological health of the organization. This is generally accomplished by means of
periodic employee surveys. Efforts are made to improve organizational health
through various means in order to maintain a psychological climate that is conducive
to productivity. The OD specialists also help any department in the organization that
has problems such as absenteeism, low production, interpersonal conflict, or
resistance to change. These experts also revamp and develop various systems within
the organization to improve their functioning.
6) Honors and Awards: Honoring and awarding employee performance and behavior is
an important part of HRD. Appropriate honors and awards not only recognize and
motivate employees, but also communicate the organizations values to the
employees. In HRD systems, innovations and use of capabilities are awarded in order
to encourage the acquisition and application of positive attitude and skills. Typical
awards include cash awards, certificates of appreciation/commendation, newsletter
announcements, pay rise, special privileges, etc. Awards may be given to individuals
as well as to teams, or departments.
7) Employee Welfare and Quality of Work Life: Employees at lower levels in the
organization usually perform relatively monotonous tasks and have fewer
opportunities for promotion or change. In order to maintain their work commitment
and motivation, the organization must provide some welfare measures such as
medical insurance, disability insurance, holidays/vacations, etc. Quality-of-work-life
programs generally focus on the environment within the organization. HRD systems
focus on employee welfare and quality of work life by continually examining
employee needs and meeting them to the extent feasible. Job enrichment programs,
educational subsidies, recreational activities, health and medical benefits, etc.,
generate a sense of belonging that benefits the organization in the long-run.
Introduction to HRD (Unit 1) 13

1.1.12. Difference between HRM and HRD

Human resource management (HRM) is a process of bringing people and
organizations together so that the goals of each are met. It is that part of the
management process which is concerned with the management of human resources is
an organization. It tries to secure the best from people by winning their whole hearted
co-operation. In short, it may be defined as the art of procuring, developing and
maintaining competent work force to achieve the goals of an organization is an
effective and efficient manner. Human resource management is the utilization of
individuals to achieve organizational objectives. Consequently, managers at every level
must concern themselves with HRM. Basically, all managers get things done through
the efforts of others, this requires effective HRM.

According to Invancevich and Glueck, HRM is concerned with the most effective use
of people to achieve organizational and individual goals.

According to Byars and Rue, HRM encompasses those activities that are designed to
provide for and coordinate the human resources of an organization.

Basis of Difference HRM HRD

1) Objective Its objective is to develop Its objective is to develop human
competitive advantage based on resources matching with organizational
human resources. culture and provide inputs for the
effective performance of various HRM
functions.
2) Status It is viewed as a set of It is seen as a subsystem of a larger
independent sub-functions. system, i.e., the organization. It is
assumed to be made up of mutually
dependent parts.
3) Orientation It is considered to be mainly a It is considered a proactive function
service function responding to which does not merely cope with
the demands of the organization organizational needs but anticipates them
as and when they arise. and acts on them in advance in a planned
and continuous manner.
4) Aim and It is narrow in scope and aims It is wider in scope and aims at
Scope at developing and administering developing the total organization. The
people only. focus of human resource management is
on increasing the efficiency of people.
But the focus of it is on building the right
organizational culture that can
continuously identify, nurture and use
human capabilities.
5) Incentives In HRM, salary, wage, It relies on job enrichment, job challenge,
Used incentives and job simpli- informal organization, autonomous work
fication are considered to be the groups, and creativity for motivating
main motivations. people.
6) Responsibility HRM is supposed to be the It is regarded as the responsibility of all
exclusive responsibility of the managers in the organization. In fact, it
human resource department. aims at developing the capabilities of all
line managers to carry out various human
resource management functions
themselves.
14 Thakurs BBM Fifth Semester HB (Human Resource Development) Bangalore

7) Morale Under HRM, high morale and It considers improved performance as the
Productivity satisfaction are regarded as the cause of improved job satisfaction and
Relationship cause of improved morale.
performance.

1.2. WRITE BRIEF NOTES

Ques 1) Human Resource Development.

Ans: Meaning and Definition of Human Resource Development

Human Resource refers to the talents and energies of people who are available to an
organization as potential contributors to the creation and realization of the organizations
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.
Development combines the concepts of development (change and growth) and training
(learning specific skills).
According to South Pacific Commission, Human Resource Development is equipping
people with relevant skills to have a healthy and satisfying life.

Ques 2) Two Features of HRD.

Ans: Two Features of HRD

Features of HRD are:
1) Planned and Systematic Approach: HRD is a planned and systematic approach to
the development of people. HRD is a system consisting of several interdependent and
interrelated subsystems, e.g., performance appraisal, training, job enrichment etc.
2) Continuous Process: HRD is a continuous and dynamic process which believes in
the need for continuous development of personnel to face the innumerable challenges
in the functioning of an organization.

Ques 3) Importance of HRD.

Ans: Importance of HRD

HRD is important because of the following reasons:
1) Utilizes Individuals Potential: People are major assets and that an organization can
make full utilization of individuals potential by providing a developmental environment
and opportunities by encouraging and rewarding innovativeness and creativity.
2) Fosters Growth: HRD provides an opportunity of continuous and all round growth
of employees through succession and career planning.

Ques 4) Two Objectives of HRD.

Ans: Two Objectives of HRD
1) Facilitating Organizational Effectiveness: To ensure that adequate number of
persons with sound industry background and experience both in generalist and
specialist are available at different operative and supervisory and managerial levels in
Introduction to HRD (Unit 1) 15

order to facilitate organizational effectiveness.

16 Thakurs BBM Fifth Semester HB (Human Resource Development) Bangalore

2) Enhancing Quality and Productivity: To evolve the human resource development

system so that the employees are provided equitable opportunities to move up in the
organization on the basis of their performance and ability so as to enhance quality
and productivity.

Ques 5) Scope of HRD.

Ans: Scope of HRD

The scope or boundaries of human resource development in the continuously changing
context must be dynamic to accommodate new initiatives. Thus, the scope or boundary of
HRD should incorporate:
1) Re-structuring the organization,
2) Merger and acquisition,
3) Recruitment, induction, and placement,
4) Starting corporate universities and colleges,
5) Use of assessment or development centers,
6) Mentoring and coaching,
7) Leadership,
8) Training and re-training,
9) Improving quality of worklife, and
10) Managing quality initiatives.

Ques 6) Difference between HRD and HRM.

Ans: Difference between HRD and HRM

Basis of Difference HRM HRD
1) Objective Its objective is to develop Its objective is to develop human
competitive advantage based on resources matching with
human resources. organizational culture and provide
inputs for the effective performance
of various HRM functions.
2) Status It is viewed as a set of independent It is seen as a subsystem of a larger
sub-functions. system, i.e., the organization. It is
assumed to be made up of mutually
dependent parts.
3) Aim and It is narrow in scope and aims at It is wider in scope and aims at
Scope developing and administering developing the total organization.
people only.

Ques 7) Name the Mechanisms or Instruments of HRD.

Ans: Mechanisms or Instruments of HRD

1) Performance and potential appraisal,
2) Feedback and performance coaching,
3) Career planning,
4) Training,
5) Employee welfare and quality of work life,
6) Honors and awards, and
7) Organization development.
Introduction to HRD (Unit 1) 17

Ques 8) Two Principles of HRD.

Ans: Two Principles of HRD
The major principles of human resource development are:
1) Principle of Development of Organizational Capability: Human resource
development systems should help the organization to increase enabling capabilities.
2) Principle of Potential Maximization: Human resource development systems should
help individuals to recognize their potential and help them to contribute their best
towards the various organizational roles they are expected to perform and excel in it.

Ques 9) Potential Appraisal.

Ans: Meaning of Potential Appraisal

Potential appraisal means the possibility of career advancement. A dynamic and growing
organization needs to continuously review its structure and systems, creating new roles,
and assigning new responsibilities. Capability to perform new roles and responsibilities
must continuously be developed among employees. Potential appraisal focuses on
identifying the employees likely future roles within the organization, and can be assessed
by observing employees perform different (usually higher level) functions.

Ques 10) Human Resource Management (HRM).

Ans: Human resource management (HRM) is a process of bringing people and

organizations together so that the goals of each are met. It is that part of the management
process which is concerned with the management of human resources is an organization.

According to Invancevich and Glueck, HRM is concerned with the most effective use
of people to achieve organizational and individual goals.