Human Resource Development | NABARD Grade A & Grade B Preparation - Bank Exams PDF Download

 Page 1


107
UNIT 5 HUMAN RESOURCE 
DEVELOPMENT
Structure 
5.0 Objectives
5.1  Introduction
5.2 Human Resource Management (HRM) and Human Resource 
Development (HRD)
5.3 Concept, Meaning and Definitions of HRD
5.4 Significance of HRD
5.5 HRD Strategies
5.6 Management Development Programmes
5.7 Let Us Sum Up
5.8 Keywords
5.9 Suggested Further Readings/ References
5.10 Possible Answers to Check Your Progress
5.0 OBJECTIVES
After studying this unit, you should be able to:
 ? explain the importance of human resource development (HRD) in 
agribusiness management;
 ? define the concept and meaning of human resource development;
 ? identify HRD strategies relevant to agribusiness development; and
 ? explain the significance and process of management development 
programmes in HRD.
5.1  INTRODUCTION
With increasing global competition, organizations are under tremendous 
pressure to improve their performance through reduction of cost and quality 
up-gradation. The effective performance of an organization depends not just 
on the available resources, but its quality and competence as required by 
the organization from time to time. Increasingly, more importance is being 
given to “people” in organizations. This is mainly because organizations are 
realizing that human assets are the most important of all assets or resources. 
Moreover, the efficiency of the production process and various areas of 
management depend to a greater extent on the level of human resources 
development. The term human resources refer to the knowledge, skills, 
creative abilities, talents, aptitude, values and beliefs of an organization’s 
workforce. Several steps were taken, such as conceptualisation of employees 
as resources; the strategic role of personnel functions; greater partnership 
to line managers in managing human resources; dovetailing of training 
with other personnel functions; synthesis of different personnel functions, 
Page 2


107
UNIT 5 HUMAN RESOURCE 
DEVELOPMENT
Structure 
5.0 Objectives
5.1  Introduction
5.2 Human Resource Management (HRM) and Human Resource 
Development (HRD)
5.3 Concept, Meaning and Definitions of HRD
5.4 Significance of HRD
5.5 HRD Strategies
5.6 Management Development Programmes
5.7 Let Us Sum Up
5.8 Keywords
5.9 Suggested Further Readings/ References
5.10 Possible Answers to Check Your Progress
5.0 OBJECTIVES
After studying this unit, you should be able to:
 ? explain the importance of human resource development (HRD) in 
agribusiness management;
 ? define the concept and meaning of human resource development;
 ? identify HRD strategies relevant to agribusiness development; and
 ? explain the significance and process of management development 
programmes in HRD.
5.1  INTRODUCTION
With increasing global competition, organizations are under tremendous 
pressure to improve their performance through reduction of cost and quality 
up-gradation. The effective performance of an organization depends not just 
on the available resources, but its quality and competence as required by 
the organization from time to time. Increasingly, more importance is being 
given to “people” in organizations. This is mainly because organizations are 
realizing that human assets are the most important of all assets or resources. 
Moreover, the efficiency of the production process and various areas of 
management depend to a greater extent on the level of human resources 
development. The term human resources refer to the knowledge, skills, 
creative abilities, talents, aptitude, values and beliefs of an organization’s 
workforce. Several steps were taken, such as conceptualisation of employees 
as resources; the strategic role of personnel functions; greater partnership 
to line managers in managing human resources; dovetailing of training 
with other personnel functions; synthesis of different personnel functions, 
108
Human Resource Management
etc. It is difficult to categorize these activities under a single label. Rather, 
they can be brought under the umbrella of Human Resource Development 
(HRD). Human Resource Development includes the strengthening of 
individuals and the aims at the improvement of procedural, organizational 
and intra-institutional capabilities of institutions and organizations in charge 
of development. As a layman, one may wrongly conceptualise Human 
Resource Management (HRM) and Human Resource Development (HRD) 
as similar concepts but there is a significant difference between them.
5.2 HUMAN RESOURCE MANAGEMENT (HRM) 
AND HUMAN RESOURCE DEVELOPMENT 
(HRD)
Human Resource Management (HRM) is the art of managing the human 
workforce in an organization in an optimum manner having benefits to both 
employees as well as organization in achieving the organizational goal. It 
aims to provide an optimal environment for employees to utilize their skills 
to their best to achieve the organizational intended output. It is an overall 
concept of human resources like recruitment, selection, induction, training, 
compensation, performance appraisal, employee development, employee 
separation. Whereas, HRD is limited to employee training, employee 
development, succession planning, talent management, etc. Thus, HRD can 
be defined as the multidisciplinary process and management of developing 
learning and performance to enhance both individual and organizational 
goals. HRD aims at developing a superior workforce so that the company 
and individual employees may achieve their work goals in the customers’ 
service. It can take on a formal approach as in a classroom or laboratory 
training in a case where it may apply. It may also take the informal route 
where an employee receives coaching or simple mentorship from his 
superior, usually a manager. The major differences between HRM and HRD 
are summarized below:
 ? HRD is a subsection of HRM, i.e. HRD is a section with the department 
of HRM.
 ? HRM deals with all aspects of the human resources function while 
HRD only deals with the development part.
 ? HRM is concerned with recruitment, rewards among others while 
HRD is concerned with employee skills development.
 ? HRM functions are mostly formal while HRD functions can be 
informal like mentorships.
5.3 CONCEPT, MEANING AND DEFINITIONS 
OF HRD
From the beginning of the use of the term human resource development 
(HRD), there have been struggles over the meaning of the term and, even 
more broadly, of the field itself. In recent years, there has been increased 
attention to the question of the field’s definition, in general, as well as 
attention to the emerging field of HRD. Human Resource Development 
(HRD) is the framework for helping employees develops their personal 
Page 3


107
UNIT 5 HUMAN RESOURCE 
DEVELOPMENT
Structure 
5.0 Objectives
5.1  Introduction
5.2 Human Resource Management (HRM) and Human Resource 
Development (HRD)
5.3 Concept, Meaning and Definitions of HRD
5.4 Significance of HRD
5.5 HRD Strategies
5.6 Management Development Programmes
5.7 Let Us Sum Up
5.8 Keywords
5.9 Suggested Further Readings/ References
5.10 Possible Answers to Check Your Progress
5.0 OBJECTIVES
After studying this unit, you should be able to:
 ? explain the importance of human resource development (HRD) in 
agribusiness management;
 ? define the concept and meaning of human resource development;
 ? identify HRD strategies relevant to agribusiness development; and
 ? explain the significance and process of management development 
programmes in HRD.
5.1  INTRODUCTION
With increasing global competition, organizations are under tremendous 
pressure to improve their performance through reduction of cost and quality 
up-gradation. The effective performance of an organization depends not just 
on the available resources, but its quality and competence as required by 
the organization from time to time. Increasingly, more importance is being 
given to “people” in organizations. This is mainly because organizations are 
realizing that human assets are the most important of all assets or resources. 
Moreover, the efficiency of the production process and various areas of 
management depend to a greater extent on the level of human resources 
development. The term human resources refer to the knowledge, skills, 
creative abilities, talents, aptitude, values and beliefs of an organization’s 
workforce. Several steps were taken, such as conceptualisation of employees 
as resources; the strategic role of personnel functions; greater partnership 
to line managers in managing human resources; dovetailing of training 
with other personnel functions; synthesis of different personnel functions, 
108
Human Resource Management
etc. It is difficult to categorize these activities under a single label. Rather, 
they can be brought under the umbrella of Human Resource Development 
(HRD). Human Resource Development includes the strengthening of 
individuals and the aims at the improvement of procedural, organizational 
and intra-institutional capabilities of institutions and organizations in charge 
of development. As a layman, one may wrongly conceptualise Human 
Resource Management (HRM) and Human Resource Development (HRD) 
as similar concepts but there is a significant difference between them.
5.2 HUMAN RESOURCE MANAGEMENT (HRM) 
AND HUMAN RESOURCE DEVELOPMENT 
(HRD)
Human Resource Management (HRM) is the art of managing the human 
workforce in an organization in an optimum manner having benefits to both 
employees as well as organization in achieving the organizational goal. It 
aims to provide an optimal environment for employees to utilize their skills 
to their best to achieve the organizational intended output. It is an overall 
concept of human resources like recruitment, selection, induction, training, 
compensation, performance appraisal, employee development, employee 
separation. Whereas, HRD is limited to employee training, employee 
development, succession planning, talent management, etc. Thus, HRD can 
be defined as the multidisciplinary process and management of developing 
learning and performance to enhance both individual and organizational 
goals. HRD aims at developing a superior workforce so that the company 
and individual employees may achieve their work goals in the customers’ 
service. It can take on a formal approach as in a classroom or laboratory 
training in a case where it may apply. It may also take the informal route 
where an employee receives coaching or simple mentorship from his 
superior, usually a manager. The major differences between HRM and HRD 
are summarized below:
 ? HRD is a subsection of HRM, i.e. HRD is a section with the department 
of HRM.
 ? HRM deals with all aspects of the human resources function while 
HRD only deals with the development part.
 ? HRM is concerned with recruitment, rewards among others while 
HRD is concerned with employee skills development.
 ? HRM functions are mostly formal while HRD functions can be 
informal like mentorships.
5.3 CONCEPT, MEANING AND DEFINITIONS 
OF HRD
From the beginning of the use of the term human resource development 
(HRD), there have been struggles over the meaning of the term and, even 
more broadly, of the field itself. In recent years, there has been increased 
attention to the question of the field’s definition, in general, as well as 
attention to the emerging field of HRD. Human Resource Development 
(HRD) is the framework for helping employees develops their personal 
109
Human Resource Development
and organizational skills, knowledge, and abilities. Human Resource 
Development includes such opportunities as employee training, employee 
career development, performance management and development, coaching, 
mentoring, succession planning, key employee identification , tuition 
assistance, and organization development.
A beginning definition offered is not as a definitive answer but to facilitate 
ongoing discussion in the dialogue on HRD definitions. 
McLean and McLean (2001) as cited in Rao (2013) offered the following 
global definition of HRD after reviewing various definitions across the 
world:
“Human Resource Development is any process or activity that, either initially 
or over the longer-term, has the potential to develop adults’ work based 
knowledge, expertise, productivity, and satisfaction, whether for personal 
or group/team gain, or for the benefit of an organization, community, nation, 
or, ultimately the whole humanity” (p1067).
Strategic HRD puts…” particular emphasis on the development of 
comprehensive, coordinated and dynamic approaches for major learning 
initiatives within and outside an organization in order to facilitate the 
achievement of all stakeholder objectives in a competitive and turbulent 
environment.
An analysis of the concept and definitions would lead us to draw the 
following characteristic features of HRD:
 ? Training and Development: HRD involves training and developing 
the employees and managers. It improves their qualities, qualifications 
and skills. It makes them more efficient in their present jobs. It also 
prepares them for future higher jobs.
 ? Organisational Development (OD): HRD also involves 
Organisational Development. OD tries to maintain good relations 
throughout the organisation. It also solves problems of absenteeism, 
internal conflicts, low productivity and resistance to change.
 ? Career Development: The scope of HRD encompasses career 
planning and the development of employees. It helps the employees 
to plan and develop their careers. It informs them about future 
promotions and how to get these promotions. So HRD helps the 
employee to grow and develop in the organisation.
 ? Performance Appraisal: HRD conducts Performance Appraisal, 
Potential Appraisal, etc. It informs the employees about their strengths 
and weaknesses. It also advises them about how to increase their 
strengths and how to remove their weaknesses.
 ? Multidisciplinary: HRD is multidisciplinary. That is, it uses many 
different subjects. It uses education, management, psychology, 
communication, and economics. HRD uses all these subjects for 
training and developing the employees.
 ? Key Element for solving problems: Nowadays an organisation faces 
many different problems. These problems are caused due to economic, 
technological and social changes. These problems can be solved only 
Page 4


107
UNIT 5 HUMAN RESOURCE 
DEVELOPMENT
Structure 
5.0 Objectives
5.1  Introduction
5.2 Human Resource Management (HRM) and Human Resource 
Development (HRD)
5.3 Concept, Meaning and Definitions of HRD
5.4 Significance of HRD
5.5 HRD Strategies
5.6 Management Development Programmes
5.7 Let Us Sum Up
5.8 Keywords
5.9 Suggested Further Readings/ References
5.10 Possible Answers to Check Your Progress
5.0 OBJECTIVES
After studying this unit, you should be able to:
 ? explain the importance of human resource development (HRD) in 
agribusiness management;
 ? define the concept and meaning of human resource development;
 ? identify HRD strategies relevant to agribusiness development; and
 ? explain the significance and process of management development 
programmes in HRD.
5.1  INTRODUCTION
With increasing global competition, organizations are under tremendous 
pressure to improve their performance through reduction of cost and quality 
up-gradation. The effective performance of an organization depends not just 
on the available resources, but its quality and competence as required by 
the organization from time to time. Increasingly, more importance is being 
given to “people” in organizations. This is mainly because organizations are 
realizing that human assets are the most important of all assets or resources. 
Moreover, the efficiency of the production process and various areas of 
management depend to a greater extent on the level of human resources 
development. The term human resources refer to the knowledge, skills, 
creative abilities, talents, aptitude, values and beliefs of an organization’s 
workforce. Several steps were taken, such as conceptualisation of employees 
as resources; the strategic role of personnel functions; greater partnership 
to line managers in managing human resources; dovetailing of training 
with other personnel functions; synthesis of different personnel functions, 
108
Human Resource Management
etc. It is difficult to categorize these activities under a single label. Rather, 
they can be brought under the umbrella of Human Resource Development 
(HRD). Human Resource Development includes the strengthening of 
individuals and the aims at the improvement of procedural, organizational 
and intra-institutional capabilities of institutions and organizations in charge 
of development. As a layman, one may wrongly conceptualise Human 
Resource Management (HRM) and Human Resource Development (HRD) 
as similar concepts but there is a significant difference between them.
5.2 HUMAN RESOURCE MANAGEMENT (HRM) 
AND HUMAN RESOURCE DEVELOPMENT 
(HRD)
Human Resource Management (HRM) is the art of managing the human 
workforce in an organization in an optimum manner having benefits to both 
employees as well as organization in achieving the organizational goal. It 
aims to provide an optimal environment for employees to utilize their skills 
to their best to achieve the organizational intended output. It is an overall 
concept of human resources like recruitment, selection, induction, training, 
compensation, performance appraisal, employee development, employee 
separation. Whereas, HRD is limited to employee training, employee 
development, succession planning, talent management, etc. Thus, HRD can 
be defined as the multidisciplinary process and management of developing 
learning and performance to enhance both individual and organizational 
goals. HRD aims at developing a superior workforce so that the company 
and individual employees may achieve their work goals in the customers’ 
service. It can take on a formal approach as in a classroom or laboratory 
training in a case where it may apply. It may also take the informal route 
where an employee receives coaching or simple mentorship from his 
superior, usually a manager. The major differences between HRM and HRD 
are summarized below:
 ? HRD is a subsection of HRM, i.e. HRD is a section with the department 
of HRM.
 ? HRM deals with all aspects of the human resources function while 
HRD only deals with the development part.
 ? HRM is concerned with recruitment, rewards among others while 
HRD is concerned with employee skills development.
 ? HRM functions are mostly formal while HRD functions can be 
informal like mentorships.
5.3 CONCEPT, MEANING AND DEFINITIONS 
OF HRD
From the beginning of the use of the term human resource development 
(HRD), there have been struggles over the meaning of the term and, even 
more broadly, of the field itself. In recent years, there has been increased 
attention to the question of the field’s definition, in general, as well as 
attention to the emerging field of HRD. Human Resource Development 
(HRD) is the framework for helping employees develops their personal 
109
Human Resource Development
and organizational skills, knowledge, and abilities. Human Resource 
Development includes such opportunities as employee training, employee 
career development, performance management and development, coaching, 
mentoring, succession planning, key employee identification , tuition 
assistance, and organization development.
A beginning definition offered is not as a definitive answer but to facilitate 
ongoing discussion in the dialogue on HRD definitions. 
McLean and McLean (2001) as cited in Rao (2013) offered the following 
global definition of HRD after reviewing various definitions across the 
world:
“Human Resource Development is any process or activity that, either initially 
or over the longer-term, has the potential to develop adults’ work based 
knowledge, expertise, productivity, and satisfaction, whether for personal 
or group/team gain, or for the benefit of an organization, community, nation, 
or, ultimately the whole humanity” (p1067).
Strategic HRD puts…” particular emphasis on the development of 
comprehensive, coordinated and dynamic approaches for major learning 
initiatives within and outside an organization in order to facilitate the 
achievement of all stakeholder objectives in a competitive and turbulent 
environment.
An analysis of the concept and definitions would lead us to draw the 
following characteristic features of HRD:
 ? Training and Development: HRD involves training and developing 
the employees and managers. It improves their qualities, qualifications 
and skills. It makes them more efficient in their present jobs. It also 
prepares them for future higher jobs.
 ? Organisational Development (OD): HRD also involves 
Organisational Development. OD tries to maintain good relations 
throughout the organisation. It also solves problems of absenteeism, 
internal conflicts, low productivity and resistance to change.
 ? Career Development: The scope of HRD encompasses career 
planning and the development of employees. It helps the employees 
to plan and develop their careers. It informs them about future 
promotions and how to get these promotions. So HRD helps the 
employee to grow and develop in the organisation.
 ? Performance Appraisal: HRD conducts Performance Appraisal, 
Potential Appraisal, etc. It informs the employees about their strengths 
and weaknesses. It also advises them about how to increase their 
strengths and how to remove their weaknesses.
 ? Multidisciplinary: HRD is multidisciplinary. That is, it uses many 
different subjects. It uses education, management, psychology, 
communication, and economics. HRD uses all these subjects for 
training and developing the employees.
 ? Key Element for solving problems: Nowadays an organisation faces 
many different problems. These problems are caused due to economic, 
technological and social changes. These problems can be solved only 
110
Human Resource Management
by knowledge, skill and creative efforts. This knowledge, skill, etc. 
is achieved from HRD. Therefore, HRD is a key element for solving 
problems in the organisation.
 ? Continuous in Nature: HRD is not a one-time affair. It is a continuous 
process. The development of human resources never stops. This 
is because continuous changes happening in the organisation and 
environment.
 ? Integrated use of sub-systems: HRD system involves the integrated 
use of sub-systems such as performance appraisal, potential appraisal, 
career planning, training, etc.
 ? Placement: HRD places the right man in the right job. Placement is 
based on performance appraisal, potential appraisal, training, etc. The 
proper placement gives satisfaction to the employee, and it increases 
efficiency.
 ? Promotions and Transfer: HRD also gives promotions and transfers 
to the employees based on performance appraisals, etc.
 ? Motivation by Rewards: HRD also motivates the employees by 
giving them rewards for performing and behaving better, suggesting 
new ideas, etc. Financial and non-financial rewards are given.
Check Your Progress 5.1
Note: a)  Write your answers in the space given below.
  b)  Match your answers with those given at the end of the unit.
1.  What is the difference between HRM and HRD?
 ………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
2.  State any four features of human resource development.
 ………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
5.4 SIGNIFICANCE OF HRD
Behind the theoretical debates concerning the nature of HRD, there is a 
set argument on the purpose of HRD.  Fundamental changes in business 
and organizational environment have created a sudden shift in the focus of 
HRD functions. Changes are based on the global economy, on changing 
technology, on our changing workforce, on cultural and demographic 
changes, and on the changing nature of work itself. The main changes are:
 ? The rapid rate of change and uncertainty in the organizational and 
business environment.
Page 5


107
UNIT 5 HUMAN RESOURCE 
DEVELOPMENT
Structure 
5.0 Objectives
5.1  Introduction
5.2 Human Resource Management (HRM) and Human Resource 
Development (HRD)
5.3 Concept, Meaning and Definitions of HRD
5.4 Significance of HRD
5.5 HRD Strategies
5.6 Management Development Programmes
5.7 Let Us Sum Up
5.8 Keywords
5.9 Suggested Further Readings/ References
5.10 Possible Answers to Check Your Progress
5.0 OBJECTIVES
After studying this unit, you should be able to:
 ? explain the importance of human resource development (HRD) in 
agribusiness management;
 ? define the concept and meaning of human resource development;
 ? identify HRD strategies relevant to agribusiness development; and
 ? explain the significance and process of management development 
programmes in HRD.
5.1  INTRODUCTION
With increasing global competition, organizations are under tremendous 
pressure to improve their performance through reduction of cost and quality 
up-gradation. The effective performance of an organization depends not just 
on the available resources, but its quality and competence as required by 
the organization from time to time. Increasingly, more importance is being 
given to “people” in organizations. This is mainly because organizations are 
realizing that human assets are the most important of all assets or resources. 
Moreover, the efficiency of the production process and various areas of 
management depend to a greater extent on the level of human resources 
development. The term human resources refer to the knowledge, skills, 
creative abilities, talents, aptitude, values and beliefs of an organization’s 
workforce. Several steps were taken, such as conceptualisation of employees 
as resources; the strategic role of personnel functions; greater partnership 
to line managers in managing human resources; dovetailing of training 
with other personnel functions; synthesis of different personnel functions, 
108
Human Resource Management
etc. It is difficult to categorize these activities under a single label. Rather, 
they can be brought under the umbrella of Human Resource Development 
(HRD). Human Resource Development includes the strengthening of 
individuals and the aims at the improvement of procedural, organizational 
and intra-institutional capabilities of institutions and organizations in charge 
of development. As a layman, one may wrongly conceptualise Human 
Resource Management (HRM) and Human Resource Development (HRD) 
as similar concepts but there is a significant difference between them.
5.2 HUMAN RESOURCE MANAGEMENT (HRM) 
AND HUMAN RESOURCE DEVELOPMENT 
(HRD)
Human Resource Management (HRM) is the art of managing the human 
workforce in an organization in an optimum manner having benefits to both 
employees as well as organization in achieving the organizational goal. It 
aims to provide an optimal environment for employees to utilize their skills 
to their best to achieve the organizational intended output. It is an overall 
concept of human resources like recruitment, selection, induction, training, 
compensation, performance appraisal, employee development, employee 
separation. Whereas, HRD is limited to employee training, employee 
development, succession planning, talent management, etc. Thus, HRD can 
be defined as the multidisciplinary process and management of developing 
learning and performance to enhance both individual and organizational 
goals. HRD aims at developing a superior workforce so that the company 
and individual employees may achieve their work goals in the customers’ 
service. It can take on a formal approach as in a classroom or laboratory 
training in a case where it may apply. It may also take the informal route 
where an employee receives coaching or simple mentorship from his 
superior, usually a manager. The major differences between HRM and HRD 
are summarized below:
 ? HRD is a subsection of HRM, i.e. HRD is a section with the department 
of HRM.
 ? HRM deals with all aspects of the human resources function while 
HRD only deals with the development part.
 ? HRM is concerned with recruitment, rewards among others while 
HRD is concerned with employee skills development.
 ? HRM functions are mostly formal while HRD functions can be 
informal like mentorships.
5.3 CONCEPT, MEANING AND DEFINITIONS 
OF HRD
From the beginning of the use of the term human resource development 
(HRD), there have been struggles over the meaning of the term and, even 
more broadly, of the field itself. In recent years, there has been increased 
attention to the question of the field’s definition, in general, as well as 
attention to the emerging field of HRD. Human Resource Development 
(HRD) is the framework for helping employees develops their personal 
109
Human Resource Development
and organizational skills, knowledge, and abilities. Human Resource 
Development includes such opportunities as employee training, employee 
career development, performance management and development, coaching, 
mentoring, succession planning, key employee identification , tuition 
assistance, and organization development.
A beginning definition offered is not as a definitive answer but to facilitate 
ongoing discussion in the dialogue on HRD definitions. 
McLean and McLean (2001) as cited in Rao (2013) offered the following 
global definition of HRD after reviewing various definitions across the 
world:
“Human Resource Development is any process or activity that, either initially 
or over the longer-term, has the potential to develop adults’ work based 
knowledge, expertise, productivity, and satisfaction, whether for personal 
or group/team gain, or for the benefit of an organization, community, nation, 
or, ultimately the whole humanity” (p1067).
Strategic HRD puts…” particular emphasis on the development of 
comprehensive, coordinated and dynamic approaches for major learning 
initiatives within and outside an organization in order to facilitate the 
achievement of all stakeholder objectives in a competitive and turbulent 
environment.
An analysis of the concept and definitions would lead us to draw the 
following characteristic features of HRD:
 ? Training and Development: HRD involves training and developing 
the employees and managers. It improves their qualities, qualifications 
and skills. It makes them more efficient in their present jobs. It also 
prepares them for future higher jobs.
 ? Organisational Development (OD): HRD also involves 
Organisational Development. OD tries to maintain good relations 
throughout the organisation. It also solves problems of absenteeism, 
internal conflicts, low productivity and resistance to change.
 ? Career Development: The scope of HRD encompasses career 
planning and the development of employees. It helps the employees 
to plan and develop their careers. It informs them about future 
promotions and how to get these promotions. So HRD helps the 
employee to grow and develop in the organisation.
 ? Performance Appraisal: HRD conducts Performance Appraisal, 
Potential Appraisal, etc. It informs the employees about their strengths 
and weaknesses. It also advises them about how to increase their 
strengths and how to remove their weaknesses.
 ? Multidisciplinary: HRD is multidisciplinary. That is, it uses many 
different subjects. It uses education, management, psychology, 
communication, and economics. HRD uses all these subjects for 
training and developing the employees.
 ? Key Element for solving problems: Nowadays an organisation faces 
many different problems. These problems are caused due to economic, 
technological and social changes. These problems can be solved only 
110
Human Resource Management
by knowledge, skill and creative efforts. This knowledge, skill, etc. 
is achieved from HRD. Therefore, HRD is a key element for solving 
problems in the organisation.
 ? Continuous in Nature: HRD is not a one-time affair. It is a continuous 
process. The development of human resources never stops. This 
is because continuous changes happening in the organisation and 
environment.
 ? Integrated use of sub-systems: HRD system involves the integrated 
use of sub-systems such as performance appraisal, potential appraisal, 
career planning, training, etc.
 ? Placement: HRD places the right man in the right job. Placement is 
based on performance appraisal, potential appraisal, training, etc. The 
proper placement gives satisfaction to the employee, and it increases 
efficiency.
 ? Promotions and Transfer: HRD also gives promotions and transfers 
to the employees based on performance appraisals, etc.
 ? Motivation by Rewards: HRD also motivates the employees by 
giving them rewards for performing and behaving better, suggesting 
new ideas, etc. Financial and non-financial rewards are given.
Check Your Progress 5.1
Note: a)  Write your answers in the space given below.
  b)  Match your answers with those given at the end of the unit.
1.  What is the difference between HRM and HRD?
 ………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
2.  State any four features of human resource development.
 ………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
5.4 SIGNIFICANCE OF HRD
Behind the theoretical debates concerning the nature of HRD, there is a 
set argument on the purpose of HRD.  Fundamental changes in business 
and organizational environment have created a sudden shift in the focus of 
HRD functions. Changes are based on the global economy, on changing 
technology, on our changing workforce, on cultural and demographic 
changes, and on the changing nature of work itself. The main changes are:
 ? The rapid rate of change and uncertainty in the organizational and 
business environment.
111
Human Resource Development
 ? Global and highly professionalized competition and emphasis on cost 
reduction.
 ? Rapid technological change s raisings the demand for higher skills.
 ? Complexity in organizations and need for multi-tasking.
 ? Lack of labour availability emphasizes more efficiency of the existing 
workforce.
 ? New rules and regulations. 
Organizations are beginning to recognise the importance of people to the 
success of the business. Human resource issues are, in fact, business and 
organizational related issues as they influence the essence of business – 
profitability, survival, competition, adaptability and flexibility (Srinivas, 
2004). 
Human resources are being increasingly recognized as the most vital and 
critical resource that determines the success or otherwise of an organization 
or business enterprise.  The adequacy, quality and skill-sets available with 
the human resource of an organization determine its success. Organizations 
in general and agri-business organizations, in particular, operate in an 
increasingly competitive and complex business environment. They have 
to continuously adapt their business and operational strategies as per the 
demands of the external environment and market. Analogously, they need to 
have a dynamic approach to attract human talent as per the market demands 
and also to reorient and retain their human assets by a well-stated HRD 
strategy with explicit plans for continuous capacity development. 
HRD, thus, has to play a vital role in keeping the human resources relevant, 
useful and purposeful by: 
 ? Growth of organisation: The growth of an organisation is associated 
with the development of its workforce. In changing situation HRD 
must be viewed as the total system interrelated and interacting with 
other systems at work: production, finance, and marketing.
 ? Development of work culture: The need for HRD is felt as it 
improves the efficiency of employees, checks monotony at work, 
better communication, development of cooperation and creativity of 
all the members comes into the limelight.
 ? Developing potentialities: The focus of HRD managers essentially 
is on enabling people to self-actualise through a systematic approach 
by which their existing talents are further developed.
 ? Growth of employees: HRD is associated with the growth of 
employees. It helps employees to know their strengths and weaknesses 
and enable them to improve their performance. The management 
should provide adequate opportunities for the development of human 
resource management for the development of their talents so that their 
development will benefit the organisational growth.