Human Resource Development - Assignment Example

Human Resource Development Introduction Before going into the discussion regarding impact of organizational strategy and human resource development on individual and organizational performance, let’s get a better understanding of what human resource development actually is. Human resource development is a key part of human resource management and is concerned with the training and education of employees working in any specific company or organization. Human resource development is the key towards any organization’s success. Digit (2009) asserts, “Human resources training and development is a function within a human resources department that increases individual and organizational performance to achieve desired organizational results”. Without a proper mechanism of human resource development in an organization, the desired goals and objectives cannot be achieved because human resource development deals with the training of employees in order to ensure improved organizational performance. Sofo (1999) found that human resource development plays a critical role in organizational success among the competitors. 2. Tasks Included in Human Resource Development The main tasks included in the human resource development are related to training of the newly hired employee, providing the employee with the opportunities to learn job related skills, making the employee familiar with the workplace environment, providing the employee with the knowledge regarding job responsibilities, distributing resources among the employees regarding their job tasks, and all those activities which are related to employee development. These tasks play an important role in development of an employee’s skills and abilities which result in improved employee performance. Human resource development is also essential for the improvement of organizational performance. It is because when the employees are properly trained to fulfill their job responsibilities, it definitely brings a positive impact of overall organizational performance which helps the organization in achieving desired goals and objectives set by the management. 3. Focus of Human Resource Development If we talk about the main focus of human resource development in an organization, we can say that employee training, education and employee development come under the main focus of human resource development. It is because human resource development is primarily concerned with the employees’ superior performance which is essential for any organization in order to ensure successful achievement of desired goals and objectives. Sims (2002) found that all contemporary organizations strongly believe in the importance of human resource development because success of any organization is directly related to the performance of employees. Kazanas and Rothwell (2003) assert that management of the organization must know that proper sessions regarding employee training and arranging workshops play a critical role in improved employee performance. Human resource development works as the foundation for all other departments of an organization. It is because every department needs efficient and skillful employees in order to be run effectively and it is the task of human resource development programs to ensure employees’ competency by providing the employees with required training and guidance regarding their jobs. It is very important to train the employees in a professional manner in order to make them skilled enough to compete for the organizational success through working with great level of enthusiasm, motivation and dedication. Human resource development can either be formal or informal. “Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort” (Heathfield, n.d.). Coaching of any employee by the manager is an example of informal form of human resource development. 3.1 Role of Human Resource Management Human resource management includes management of all activities regarding employees of any organization. Henderson (2008) asserts that human resource management is concerned with the management of employee population in an organization. These activities include employee recruitment, employee selection, employee training, dealing with workplace issues regarding employees, performance appraisal systems, analysis of employees’ performance and productivity, and employee development. Groenewald (2009) asserts, “Staffing, training, compensation and performance management are basically important tools in the human resources practices”. Recruitment is a process in which available vacant jobs are identified and published in the newspapers and in internal vacancy lists in order to hire a suitable candidate for the vacant position. In the process of job advertisement, required skills and qualifications are also specified in order to let the public know about the skills required for any specific job. Claude (2010) stated that “employee recruitment forms a major part of an organizations overall resourcing strategies”. Selection is another activity to be performed by human resource department. In the selection process, job interviews and various tests are conducted in order to select the most appropriate candidate for the vacant position. Another important activity is employee training in which the selected employees are given suitable training regarding their job responsibilities. It not only helps the employees learn new skills and techniques but also keeps the employees up to date regarding their tasks. Performance appraisal and reward systems are also those activities which have a great influence on employee performance and employee retention. Kelly (2010) asserts, “Reward systems have a direct and fundamental link between strategic imperatives facing the Company and overall effectiveness achieved by the company”. Rewards for good performance include cash prizes, fringe benefits, bonuses, and holidays. Human resource department of any organization is considered to be the most valuable department because it is concerned with employees who are the most valuable asset of any organization because they make the organization able to compete in this world of competition. All these activities play an important role in the success of any organization because when all issues regarding employees are dealt efficiently, it brings a positive impact on the working of whole organization. 3.2 Why Employee Training and Development are Important? Employee training and development are crucial for the growth and prosperity of any organization. Employees are always one of the key factors for the success of any company or organization. Quality and experience of employees has a great influence on the performance of the organization. The better the training of the employees better will be the performance of employees and the organization. Procknow (2010) asserts, “Employee training is the attempt at improving the employees performance, to result in overall increased organizational performance”. Well trained and developed employees are able to handle any sort of risky and difficult situation by using their experience. Heptinstall (2009) stated that “human Resources departments invariably see training as a simple remedy to a performance problem”. Trained employees also help the company in retaining the customers through providing them with quality services. Training and development of employees play a major role in determining long-term profitability of an organization. Investment in the development of the employees’ skills not only improves the employees’ performance but also increases the productivity of the organization. Training sessions should not be only for new employees. Current employees of any company or organization also need ongoing training sessions in order to successfully adjust to rapidly changing business environment. Training and development of employees is also important in order to create a pool of adequate replacements for those employees who either leave the organization or move up to some higher rank within the organization. Training of employees helps the organizations in the formation of an efficient, enthusiastic and motivated team of employees in order to enhance the competitive position of the organization. So we can say that training and development of employees not only enhance the employees’ performance and but also improves organizational performance. 3. Benefits of Human Resource Development Wilson (2005) asserts that HRD plays a very significant role in improved employee performance which results in improved organization performance. Some of the most important benefits of human resource development include increased productivity, increased employees’ efficiency, economic development of a country, eradication of backwardness, increased level of entrepreneurship, and achievement of desired goals and objectives. 3.1 Increased Productivity Increased productivity is one of the greatest benefits of human resource development. Better training, education and motivation of employees result in efficient use of the available resources which results in increased level of productivity by the organization. The organizations, which consider human resource development as a key success factor, effectively manage to compete in the market. If the employees will be trained and skilled, productivity will increase when the employees will make use of their skills and abilities in order to achieve the desired level of productivity for the organization. 3.2 Increased Employees’ Efficiency Another benefit regarding human resource development is increased efficiency of employees. Employees’ efficiency increases when they are provided with required training and education regarding their job responsibilities. Provision of healthy work atmosphere to the employees also results in increased employee performance. Employees’ efficiency also get increased when they are properly supervised during the initial period of their jobs because new employees are inexperienced regarding their job responsibilities but once they get required training and experience, they turn out to be very fruitful for the organization. 3.3 Economic Development of a Country Development of human resource is not only important for the organizations but also it is very beneficial for the infrastructure and economy of a country. A well trained and skilled labor force helps the country in development of roads, buildings, hospitals, and other infrastructural facilities which result in increased economic development of any specific country. Higher the number of well trained and educated doctors and engineers in a country, higher will be the economic development of that country. A well developed human resource is the most valuable asset for any country because it not only helps the organization in achieving success but also results in economic development of a country. 3.4 Increased Entrepreneurship If in a country human resource development is given consideration while setting up policies regarding industries and organizations, it brings a positive impact on the economy of the country. It is because investment in human resource results in creating job opportunities in any specific country and when the job opportunities are increased, people get employed in different organizations which results in flourishing the business environment of the country. Catherine (2008) asserts, “Human resource development should be and in fact is the most primary concern of most of the countries of the world”. 4. Role of Organizational Strategy in Improved Organizational and Employee Performance While talking about human resource development and its role in improved organizational and employees’ performance, lets also talk about role of organizational strategy in improving the organizational performance. Making an appropriate strategy regarding business activities and processes is of extreme importance for the success of any organization. Organizational strategy is mainly concerned with the future aspects of the business, increasing the customer satisfaction, increasing the productivity through a well trained and efficient workforce, and achieving market domination in a competitive market. Change is one of the basic motives of developing the organizational strategy which means that the operating style of the business must change with the changing business atmosphere, economic conditions, and customer demand. Jensen (1998) found that for every company or organization, a well planned strategy is the key towards achievement of desired goals and objectives. Organizational strategy is an approach which is used to know how the organization should change its functions and processes over time. Some of the key factors included in the development of an organizational strategy are extended structure of the organization, the skills and abilities which are required by the workforce in order to be productive, development of a high performance workforce, essential changes in the operating culture of an organization, changes in the business operations, analysis of the organizational and employees’ current performance, and integration of the operating activities in order to ensure whether the organization is aligned to the basic cause or has deviated from it. An appropriate organizational strategy results in improved organizational and employee performance. It is because organizational strategy is concerned with the vision, external and internal assessment, and achievement of organizational goals and objectives. Organizational strategy also involves development of human resource in a perfect manner because it is the human resource element which acts as the foundation for the successful achievement of desired goals and objectives for an organization. Organizational strategy provides the employees with a clear direction and strategic objectives which are to be achieved by the employees in order to increase the organizational productivity. 5. Role of Human Resource Development in Improved Organizational and Employee Performance As we have discussed role and importance of organizational strategy in an organization, let’s now discuss role of human resource development in improving organizational and employee performance. Human resource development is primarily concerned with the maximization of productivity by developing the human resource of an organization in a professional manner. Rouda and Kusy (1995) stated in an article that “to be successful in the current rapidly-changing world, we need to maximize the productivity of all of our resources -- physical, financial, information, and human”. Investment in physical, financial and human resources always bring a positive impact on the performance of any organization. The basic goal of human resource development is to increase the productivity of an organization and improve the organizational performance through effective utilization of the workforce. Training is one of the most important activities included in human resource development but it can not be considered the only activity of HRD. Rouda and Kusy (1995) exemplify this by saying that “In the paper industry, training has been big with capital projects but often is not continued into operational improvement”. The functions of human resource development show its deep involvement in improved employee and organizational performance. Some of the most important functions include training of the new individuals, organizing training sessions for existing employees, making the employees learn skills related to use of new and advanced technologies, making the employee familiar with the business environment, motivating the employees to be innovative in their approach, distributing resources among the employees regarding their job tasks, and all those activities which are related to employee development. Let’s take an example of two companies in order to demonstrate the importance of human resource development. Let’s suppose that both companies started their business operations in the same year. First company, ABC limited, brought in latest technology and equipment in order to get a competitive edge in the market whereas the second company, XYZ limited, did not have enough capital to bring in the latest equipment for the company. But when the analysis regarding their performance was done after two years, the company with latest technology and equipment was found less productive than the second company. The reason for being less productive was that ABC limited did not give much consideration to development and training of human resource regarding the use of new technology which resulted in failure of the company in achieving the desired level of productivity whereas XYZ limited made best possible use of the available technology by producing an efficient, well-trained, motivated and result-oriented team of workers. So by the example it is clear that human resource development not only improves the performance and efficiency of employees but also results in improving the performance of the organization. 6. Conclusion Summing it up, human resource development and an appropriate organizational strategy are extremely important for the success of any company or organization. Making an appropriate strategy regarding business activities and processes is important because organizational strategy is concerned with the future aspects of the business, increase in the productivity through a well trained and efficient workforce, and achievement of market domination in a competitive market. Similarly, without an efficient human resource department, the desired goals and objectives can never be achieved because human resource development deals with the training of employees in order to ensure improved organizational and employee performance. References Catherine, A 2008, Low Human Resource Development Directly Proportional to Economic Growth, viewed 04 May 2010, . Claude, T 2010, What is Human Resources, viewed 04 May 2010, . Digit, K 2009, Training & Development Management, viewed 04 May 2010, . Groenewald, J 2009, Human Resource Management and Organizational Effectiveness, viewed 04 May 2010, . Heathfield, S n.d., What is Human Resource Development (HRD)?, viewed 04 May 2010, . Henderson, K 2008, Human Resource Management Training and Development, viewed 04 May 2010, . Heptinstall, K 2009, Human Performance and Specific Skills Development, viewed 04 May 2010, . Jensen, M., 1998. Foundations of Organizational Strategy. U.S.A: Harvard University Press. Kazanas, H. & Rothwell, W., 2003. Planning and Managing Human Resources: Strategic Planning for Personnel Management. 2nd ed. Massachusetts: Human Resource Development Press, Inc. Kelly, C 2010, Best Practice as a Human Resource Strategy, viewed 04 May 2010 . Kusy, M. & Rouda, R 1995, Development of Human Resources--Part 1, viewed 04 May 2010 . Procknow, G 2010, Why Training and Development of an Employee is Essential, viewed 04 May 2010, . Sims, R., 2002. Organizational Success through Effective Human Resources Management. Westport: Greenwood Publishing Group. Sofo, S., 1999. Human Resource Development: Perspectives, Roles and Practice Choices. New South Wales: Woodslane Pty Ltd. Wilson, J., 2005. Human Resource Development: Learning & Training for individuals & Organizations. 2nd ed. London: Kogan Page. Read More