Functions of Human Resources Development

HRD at Macro and Micro Level:

HRD as stated earlier is mainly concerned with developing the competencies of people. When we all see it
as a people oriented concept then several questions come to the mind like should the people be developed
in the larger and national context or in the smaller institutional context? Are they different at the macro
level and micro level? As things stand now, HRD applies to both institutional (micro) as well as national
(macro issues).The main objective however is to develop the newer capabilities in people so as to enable
them to tackle both present and future challenges while realizing organizational goals. However, it is useful
both at macro and micro levels.

Macro level:

At the macro level HRD is concerned with the development of people for the nation’s well being. It takes
health capabilities skills, attitudes of people which are more useful to the development of the nation as a
whole. While calculating the national income and economic growth the prospective HRD concept
examines the individual’s potentialities, their attitudes, aspirations, skills, knowledge etc. and establishes a
concrete base for economic planning. However, HRD’s contribution at macro level has not gained
popularity as yet.

Micro Levels:

HRD is concern for development in the organizations at the grass root level. Small wonder then, that HRD
was well received by companies and managements as they realized its importance and foresaw its future
contribution for the individual and organizational development. Generally HRD at micro level talks of the
organizations’ manpower, planning, selection, training, performance appraisal, development, potential
appraisal, compensation, organizational development etc. HRD’s involvement in all these areas is mainly
with an objective to develop certain new capabilities in people concerned to equip them to meet the present
job challenges and to accept future job requirements.

HRD versus Personnel Function:

The traditional personnel function is a service oriented activity, responding to the needs of the organization
as and when they arise. On the other hand, HRD has productive functions which do not merely respond to
organizational requirements but anticipates them and prepares the people and the organizations to face
future challenges with confidence. HRD is wider in scope as it tries to develop the whole organization
instead of focusing attention on people alone. Instead of concentrating on maintenance factors (wages,
incentives, day to day plans, operating procedures etc.) it tries to focus on motivating factors (job
enrichment, developing potentialities of people, creating autonomous work groups, fostering innovation
and creativity, developing trust etc). Personnel function, traditionally is viewed as the primary job of
personnel department HRD, however, is the responsibility of all managers in the organization. The
personnel function views higher morale and improved job satisfaction as the causes of improved
performance. HRD on the other hand regards job challenges, creativity and opportunities for development
as the main motivating forces.

Points of difference HRD and Personnel:

Personnel Function:

1) Maintenance oriented
2) An independent function with independent sub functions
3) Reactive functions responding to events as and when they take place.
4) Exclusive responsibility of personnel department
5) Emphasis is put on monetary rewards
6) Improved performance is the result of improved satisfaction and morale
7) Tries to improve the efficiency of people and administration.

Points of distinction: (1) orientation (2) Structure (3) Philosophy (4) Responsibility (5) motivators (6)
Outcomes (7) AIMS

HRD (Human Resource development):

1) Development oriented
2) Consists of inter dependent parts.
3) Proactive function, trying to anticipate and get ready with appropriate responses.
4) Responsibility of all managers in the organization.
5) Emphasis is on higher order needs such as – how to design jobs with stretch pull and challenge how to
improve creativity and problem solving skills, how to empower people in all respects etc.
6) Better use of human resources leads to improved satisfaction and morale.
7) It tries to develop the organization and its culture as a whole.

HRD — SOME CONCEPTS

HRD is mainly concerned with developing the skill, knowledge and competencies of people and it is
people-oriented concept. When we call it as a people-oriented concept the question of people being
developed in the larger or national context or in the smaller organizational context? Is it different at the
macro and micro level? HRD can be applied both for the national level and organizational level.

But many personnel managers and organizations view HRD as synonymous to training and development.
Many organizations in the country renamed their training departments as HRD departments. Surprisingly
some organizations renamed their personnel department as HRD departments. Some educational,
institutions started awarding degrees and diplomas in HRD even though the concept is not yet crystal clear.

HRD from organizational point of view is a process in which the employees of an organization are
helped/motivated to acquire and develop technical, managerial and behavioral knowledge, skills and
abilities, and mould the values, beliefs, attitude necessary to perform present and future roles by realizing
highest human potential with a view to contribute positively to the organizational, group, individual and
social goals.

A comparative analysis of these definitions shows that the third definition seems to be comprehensive and
elaborate as it deals with the developmental aspects of all the components of human resources. Further, it
deals with all types of skills, the present and future organizational needs and aspect of contribution to not
only organizational also other goals.

The analysis of the third definition further shows that there are three aspects, viz.,
1. Employees of an organization are helped/motivated;
2. Acquire, develop and mould various aspects of human resources; and
3. Contribute to the organizational, group, individual and social goals.

The first aspect deals with helping and motivating factors for HRD.

These factors may be called ˜Enabling factors™ which include: Organization structure, organizational
climate, HRD climate, HRD knowledge and skills to managers, human resource planning, recruitment and
selection. The second aspect deals with the techniques or methods which are the means to acquire develop
and mould the various human resources.

These techniques include: Performance, appraisal, Potential appraisal, Career planning and Development,
Training, Management development, Organizational development, Social and Cultural programs, and
Workers’ participation in management and quality circles. The third category includes the outcomes
contribution of the HRD process to the goals of the organization, group, individuals and the society.

Contribution of Subsystems to HRD Goals

Each of the subsystems described above contribute to the achievement of overall HRD goals. Performance
appraisals help individuals to develop their current role capabilities. Potential appraisal focuses on
identifying the employee’s likely future roles within the organizations. Training helps employees to
improve his job, knowledge and skills. It enables an employee to do his current job more efficiently and
prepare himself for a higher level job. It bridges the gap between job requirements and employee skills
knowledge and behavior. Feedback and performance coaching helps the development of the individual as
well as interpersonal relationships. Organization Development aims at developing team’s spirit and self
renewing skills. Welfare amenities, rewards and incentives improve the quality of life of employees and
make the workplace a stimulating one for employees. The contributions of these HRD subsystems to
various development dimensions are shown in the table below:

Contribution of HRD Subsystem to Development Dimension:

Development Dimensions:
1) Individuals
2) Individuals in the present role.
3) Individual in regard to likely future roles.
4) Dyadic relationships
5) Teams & teamwork
6) Collaboration among different units / teams
7) Self renewing capability and health of organization

HRD Subsystems mechanism:

Training:

1) Feedback and coaching performance

2) Performance appraisal
3) Potential appraisals and development
4) Feedback and performance coaching
5) Organization development
6) Performance appraisal

Career planning:

1) Rewards
2) Training
3) Performance appraisal
4) Organizational development

Potential Appraisal and Development:

1) Feedback and performance coaching

2) Team rewards
3) Training
The HRD mechanisms described above should not be viewed in isolation. They are designed to work
together in integrated systems, although they may cast in an organization that does not have an overall
HRD plan. The collective benefits of integrating mechanisms may not accrue to an organization, when
these are viewed in isolation. Each subsystem is interlinked to other subsystems and offer rich benefits to
an organization when they are well integrated.

Principles in Designing HRD systems:

In order to realize the benefits of integrated HRD systems, top management must invariably observe certain
principles which are catalogued below:

Management support: HRD requires consistent support from managers working at various levels. They
must formulate the HRD policies keeping organizational requirements in mind and implement these whole
wholeheartedly.

Focus of the HRD systems: The system must be designed keeping various contextual factors such as size,
technology, skill levels, support for function in mind. It must focus on developing human resources at
various level (problem solving capabilities leading to increased employee productivity) and commitment. It
must take the organization forward by anticipating changes and preparing people for future challenges. It
must be properly integrated with other long range functions such as corporate planning, budgeting etc. Line
managers must be actively involved in all the above steps.

Structure of the HRD systems:

These system must have a distinct identity of their own headed by a senior managers taking care of the
implementing process. The HR department created for this purpose must have proper linkages with outside
systems as well as internal subsystems. The system must be reviewed periodically so as to find out the
progress and effectiveness of the programs.

Functioning of the Systems: the system must provide for appropriate feedback from various departments at
regular intervals. It is better to quantify the various aspects of HRD and arrange for storage of data in
computers. Internal experts and external consultants could be judiciously used to offer training to various
departments / persons. Various aspects of HRD, should be introduced in a gradual way, after a thorough
review of the organization’s size, its needs and level of sophistication. Each stage should be planned
carefully, with subsequent phases built one over the other.