CHAPTER I

CONCEPTUAL FRAME WORK

Every person is a potential resource who deserves to be

nurtured and nourished into a real resource. This process of converting the

potential into a real resource is called Human Resource Development.'

The term 'human resource' is sometimes criticized mainly on the ground

that it treats people as a 'resource' and not as human being. The concept of

human resource systems assumes that human beings are a great asset in the

organization. They can contribute a great deal to the achievement of

organizational goals. This positive view of people working in the

organization as an asset with unlimited potential is the core of the concept

of the human resource system. HRD attempts to enable people to overcome

their defects and develop their productive potential so that they are able to

contribute to the ethical and harmonious growth of society, fulfil their

individual needs and wants, and with pleasure too. Human resources are

the most valuable resource of an organization as the productivity of all

other resources depends upon people.

1 [Link] (ed.), Human Resource Development: Strategic Approaches &

Experiences, Arihant Publishers, Jaipur, (1989), p. 193.
2 [Link], Human Resource Management and Development in the New
Millennium, Common Wealth Publishers, New Delhi, (2000), p. 1.
 UNDP defines HRD as referring to those policies and

programmes that support and sustain equitable opportunities for continuing

acquisition and application of skills, knowledge and competencies which

promote individual autonomy and are mutually beneficial to individuals,

the community and the larger environment of which they are a part. HRD

is the process of increasing the knowledge, the skills and the capacities of

all the people in the society. In economic terms, it could be described as the

accumulation of human capital and its effective investment in the

development of an economy. In political terms, human resource

development prepares people for adult participation in political processes.

From the social and cultural points of view, the development of human

resources helps people to lead fuller and richer lives."* HRD is the very

process of life itself. Everything that man does ultimately affects human

development. Since the process of life itself is about the progressive

unfolding of one's unmanifest potential, HRD is life itself^ The view we

hold of people is that we all have a divine core of worth and unbounded

and unbroken joyfulness. HRD is the process of continuous learning and

evolution towards this core of joyftilness and well-being. It is the

3 T.V. Rao, Human Resource Development: Experiences, Interventions, Strategies,

Sage Publications, New Delhi, (1996), p. 27.
4 M.P. Srivastava, Human Resource Planning Approaches, Needs Assessment and
Priorities in Manpower Planning, Institute of Applied Manpower Research, Manak
Publications, New Delhi, (1997), p. 4.
5 T.V. Rao, [Link], CM. Srivastava, Rajesh Vidhyasagar (eds.), HRD in the
New Economic Environment, Tata Mc Graw-Hill Publishing Company Ltd., New
Delhi, (1994), p.35.
progressive unfolding or developing of the unbounded love and

responsiveness within each human being. It is easy to work in this field

when you remember this possibility. It protects one from despair and is a

source of faith and hope. The development of human resources has been

recognized as one amongst many objectives of long-term economic growth

by most developing countries, since the early fifties. It moved to

development priorities during early seventies because it was felt that it

would make a positive and significant contribution to economic

development.^ Human beings can be resources only when they have

productive uses. In a broad sense human resources denotes energy, skill,

talent, knowledge and attitude of the human beings which can be used for

productive purpose.^ HRD is pursuing excellence of people through

enhancing knowledge, skills and attitudes and thereby seeking committed

and motivated resources for their intense participation. HRD therefore

plays a vital role in creating a climate for sustained high quality. HRD is a

phrase that has come into recent usage. This follows from the increasing

realization that human resources are as important as capital, technology and

machines for growth. Industries in advanced countries are giving

6 M.P. Srivastava, op. cit., p. 33.

7 Dr. Uddesh Kohli and Prof. Vinayshil Gautam, Human Resources Development
and the Planning Process in India, Vikas Publishing House, New Delhi, (1988),
p.l7.
increasing attention to human resources as a means of gaining competitive

advantage.^

The concept of HRD was first introduced by Len Nadler at

the American Society for Training and Development in United States of

America in 1969. Since a decade it has been gaining importance in India.

Prof Len Nadler defines HRD as "an organized learning experience within

a given period of time with the objective of producing the possibility of

performance change".^

India has the second largest pool of human resources in the

world. The human potential that can be utilized in our country is mind-

boggling. Human resources are used broadly in three sectors, Agriculture,

Industry and Service sector.

The slogan of the world today is development. The less

developed countries are trying to overcome poverty, diseases and

ignorance in their path to development, ie, they are aiming at economic,

social and political development. The early development planners over-

emphasized the role of physical capital in economic growth. However by

1970's the development of human resources was recognized as the most

8 [Link] & [Link] (eds.). Excellence Through Human Resource

Development: In^roving Productivity and Conqtetitiveness, Tata Mc Graw-Hill
Publishing Company Ltd., New Delhi, (1990), p.64.
9 [Link] Krishna, Human Resource Development, Discovery Publishing House,
New Delhi, (1998), p.8.
^ ^ ^ . /•

K?7j|0id^ objective of long-term economic grow1;h. International

organizations, governments and scholars all have their own perceptions as

to what, in practice, constitutes human resource development and the

concept of human resource development has expanded in scope greatly in

recent years.'°

A workshop on human resource development held at Tokyo

in 1986 concluded that human resource development is a concept that goes

far beyond conventional skill formation and training practices. Its ultimate

purpose, in the words of the UNDP is "to enlarge and enrich human lives".

All other factors education, training, health etc are but means to achieve

this end.^' HRD is a process to develop employees in general enabling

capabilities as individuals so that they are able to discover and exploit their

own and organization's development.

The approach to human resource development is essentially

the result of inter-play of their dynamic forces, the growth and

diversification of educational/training institutions, the growth of population

and working force and the growth and diversification of employment.

HRD is the sum total of inherent abilities, acquired

knowledge and skills represented by the talents and attitudes of the

10 M.P. Srivastava, op. cit., p.35.

11 Ibid., pp. 35-36.
12 Dr. B.L. Mathur, op. cit., p. 144.
employed persons.^^ It may be defined as the development of people by

providing the required envirormient where the human being may grow to

its fullest stature and release his fullest potentialities. The term 'human

resource' is inter-changeably used with manpower, labour force and human

capital. It is understood to cover not merely the qualified manpower, but

also the skilled labour, including all the persons who could be put to

productive work. Human resource development has four dimensions, the

physical, the intellectual, the social and the spiritual. HRD is the process

of helping people to acquire competencies. HRD system depends on work

itself which generates a higher degree of responsibility for the employees,

the individuals personal and professional growth, the improved quality

output as a result of increased responsibility and organization as an open

system.''*

HRD help the individual to know what he is genuinely

capable of, to develop his potentials, to over come physical, social and

emotional defects, to kindle suitable interests and to productively

contribute to society. It also helps the community to understand itself, to

emancipate itself and to help the individual to help society. From the

national standpoint, the human resources can be defined as the total

13 Ibid., p. Si.
14 Laxmi Devi (ed.). Encyclopedia of Management and Behavioural Science Series:
Human Resource Management, Institute for Sustainable Development, Lucknow &
Anmol Publications, New Delhi, (1998), [Link].
knowledge, skills, creative abilities, talents and aptitudes obtained in the

population. Whereas, from the viewpoint of the individual enterprise, they

represent the total of inherent abilities, acquired knowledge and skills as

exemplified in the talents and aptitude of its employees.'^

HRD is an interdisciplinary area and draws upon the usage of

concepts and terms of economics, statistics, management, sociology and

other related fields of study. There are a large number of concepts and

technical terms in the above-mentioned disciplines which are adopted in

the day today work relating to human resource planning, development and

utilization. The human resource utilization subsystem develops

programmes, strategies and institutions that would actually identify and

place workers and develop, execute and monitor activities to enhance

productivity.'^

Integrated human resources development is a broad concept

covering a full range of social and economic development process. It is an

approach to overall development that places the well-being of the people

first and regards human beings as both agents as well as beneficiaries of all

development efforts. The concern in integrated human resource

development is not just on improving purely work and productivity related

human capabilities such as employment and manpower development but

15 Dr. B.L. Mathur, op. cit., p. 143.

16 M.P. Srivastava, op. cit., p. 199.
all aspects that are vital to the improvement of the welfare of the people

and their active participation in the development process.

Human resource is a broad concept and it covers both

quantitative and qualitative human assets in a society. The primary

objective of HRD is to prepare employees for promotion to positions which

require added skills and knowledge.'^ The purpose of HRD is to augment

the productive contribution of its people. HRD in an organizational

context is a process of acquiring human capabilities in the organization.

HRD emerged as a result of an increasing knowledge of organizational

1R

psychology, sociology and organizational change and development.

HRD must address the learners changing environment. The time will come

when training is inextricably linked to how people learn rather than how

they are trained. ^^ Human Resource Development, although a single

concept, encompasses many inter-related elements, which are essential

ingredients in planning. It includes formal education, technical and

professional education and on-the-job training. In addition, it covers

individual development both physical and mental, manpower assessment,

education and training, manpower surveys etc. It has multiple goals, these
17 Biswajeet Pattanayak, Harish C. Verma, Human Resource Management, Wheeler
Publishers, New Delhi, (1997), p. 106.
18 I.S. Singh (ed.)., [Link] workers, Oxford & IBH pubHshing company Ltd., New
Delhi, (1996), p.6.
19 S.K. Ghosh (ed.)., HRD in the Third World: Quest for Empowerment, Vikas
Publishing House & Lai Bahadur Shastri National Academy of Administration,
Mussoorie, (1996), p. 186.
include employee competency development, employee motivation,

development and organization climate development. It also includes,

developing the individual to realize his potential as an individual to the

maximum extent, developing the individuals capabilities to perform his

present job better, developing his capabilities to handle future likely roles,

developing and maintaining high motivation level of employees,

strengthening superior-subordinate relationships, strengthening team spirit

among different teams, promoting inter-team collaboration, and climate

development and organizational health development.

Human Resource Development aims at developing and

tapping newer or hidden qualities in people to make them accomplish new

and emerging challenges and functions leading to organizational,

individual and social goals. It is very critical and vital part of human

resources.

Human Resource Development had a different concept of

growth. This concept hypothesise that the dynamics of growth of

individuals is different. A person would grow best if he were to seek his

own mould. One person may learn from taking up an impossible challenge,

another person will learn from incremental effort. An individual should

understand his own strengths and weaknesses, and analyze the reasons for

20 M.R.R. Nair & T.V. Rao, op. cit., p.82.

 10

both. Human resource development believes that individuals in an

organization have unlimited potential for growth and development and that

their potential can be developed and multiplied through appropriate and

systematic efforts. A good and effective human resource development plan

should ensure that all available human resources should be developed to

91
their maximum capacity.

Planners in developing countries have become increasingly

aware of the need for developing human resources as an integral part of

general economic planning. It has also been thought of as an essential pre-

requisite for accelerated economic growth.

Objectives of Human Resource Development

In order to achieve HRD objectives the HRD Department

should, develop a human resources philosophy for the entire organization

and get the top management committed to it openly and consistently, keep

inspiring the line managers to have a constant desire to learn and develop,

constantly plan and design new methods and systems of developing and

strengthening the HRD climate and conduct human process research,

organizational health surveys and renewal exercise periodically.

21 Dr. B.L. Mathur, op. cit., p. 233.

22 U.B. Singh, Human Resources Development: A Case Study of U.P. Electronics
Corporation Ltd. Luknow, Rawat Publications, New Delhi, (1992), p. 4.
 11

The main objectives of HRD are to provide a comprehensive

frame-work and method for the development of human resources in an

organization, to generate systematic information about human resources for

purposes of manpower planning, placement, succession planning and the

like, to increase the capabilities of an organization to recruit, retain and

motivate talented employees and to create a climate that enables every

employee to discover, develop and use his capabilities to a fuller extent, in

order to further improve both mdividual and organizational goals.

Human resource development aims at helping people to

acquire competencies required to perform all their functions effectively and

make their organization do well. It also aims at effective moulding of

human resources by applying theoretical principles of behavioural sciences

to actual work situations. The term HRD encompasses three areas, namely,

training, education and development. According to some scholars, it means

a series of organized activities, conducted within a specified time and

designed to produce behavioural change. It means developing hidden

qualities in people in order to make them accomplish new functions

leading organizational and individual goals.

Developing people is the essence of any human resource

development effort and it is an important goal of all other development

23 I.S. Singh, op. cit., p. 13.

 12

activities. HRD also holds the key for economic development through

enabling people to become more productive. HRD related activities seek

to design, redesign and continuously upgrade the potential of human

resources so that, the latter continues to contribute to the process of

development in a productive manner.

An integrated HRD system has many potential benefits

namely, moving from alienation to participation, enhancing the individuals

effectiveness in present and future roles, facilitating the design of structures

and roles for optimal utilization and development of human potential,

sustaining and improving the organizational climate and through the

developing cadres, enhance strategic and organizational effectiveness.'^^

There are many instruments used to facilitate HRD. They are

performance and potential appraisal, feedback and performance coaching,

training, organization development and honours and awards. The OD

specialists help any department in the organization that has problems such

as absenteeism, low production, interpersonal conflict or resistance to

change. Honouring and awarding employee performance and behaviour is

an important part of HRD.^^

24 T.V. Rao, op. ciL, p. 40.

25 [Link], K.K. Verraa, Anil K. Khandelwal and E. Abraham S.J (eds.)., Alternative
Approaches and Strategies of Human Resource Development, Rawat Publications,
Jaipur, (1989), p. 381.
26 Biswajeet Pattanayak, Harish .C. Vama, op. cit., pp. 54-55.
 13

Adam Smith, Karl Marx and a host of classical and modem

economists have described and emphasized the importance of human

resources, but have specially focused on labour, dexterity and skill

development which is determined by the amount of labour output of an

97
individual.

Strategies of Human Resource Department

Human resources are perhaps the most strategic and critical

determinant of growth, and yet its development has not received the

required attention. Human effort is required to mobilize, organize and use

the physical resources effectively and efficiently towards the production of

9R

the required goods and services. With the emerging importance of human

resources, it has become utmost necessary that line managers and persormel

specialists should share the responsibility for the implementation of

effective human resource development strategies. The first step in planning

an HRD strategy is to decide the HRD needs of the organization. The needs

should be both in terms of immediate and long-term goals of the

organization.

Development of a nation is identified with the maximum

possible utilization of human resource in productive activities and its

27 [Link], Human Resources Development Conceptual Anafysis and Strategies,
Sterling Publishers, New Delhi, (1990), p.7.
28 [Link] Kohli and Prof. Vinayshil Gautam, op. cit., p. 1.
 14

fullest possible development of skills, knowledge and capacities.

Motivation and skills lead to action. Skills are acquired through practice.

Organizations are becoming more dependent upon people because they are

increasingly involved in more complex technologies and are attempting to

function in more complex economic, political and socio-cultural

29
environments.

After employees are hired, they must be trained to perform

the job. HRD and education become associated in this phase of application.

One of the best applications of the HRD is the selection of personnel.

Measurement of various kinds of human ability and use of tests to predict

job success continue to increase in importance as jobs become more

Oft

complicated and equipments become more expensive. Human resource is

an important corporate asset and the overall performance of companies

depends upon the way it is put to use.

Human resources, if properly motivated, can enhance

production and productivity tremendously because the most promising

single source of productivity is the human will to work, which cannot be

forced to a peak performance simply by physical and economic incentives,

whereas workers participation is considered to be an instrument for

achieving the same. Human resources are important to each individual

29 [Link], Practical Aspects of Human Resource Management, Common
Wealth Publishers, New Delhi, (1999), p. 128.
30 Suresh Vyas, HRD Priorities, Pioneer Publishers, Jaipur, (1998), p. 9.
 15

because it can assist in improving and using his capacities and

potentialities to the utmost. With ever developing skills and aptitudes, the

individual has become increasingly proficient in overcoming many

hurdles. Human resource development is the title of a comprehensive

management perspective and corresponding action plan for managing

people in working organizations. It is a complex and multifaceted concept

and a continuous process. It requires sensitivity to changing needs in order

to set priorities accordingly. The efficient matching of man with the job as

well as removal of all obstacles to the mobility within the organization are

basic requirement for development.

HRD as stated earlier is mainly concerned with developing

the competencies of people. It applies to both institutional (micro) as well

as national (macro) issues. The major objective is to develop the newer

capabilities in people so as to enable them to tackle both present and future

challenges.

At the micro level HRD has concern for grass-root

development in the organizations. HRD at micro level talks of the

organization's manpower planning, selection, training, performance

appraisal, development, potential appraisal, compensation, organizational

development etc. HRD's involvement in all these areas is mainly with an

31 R. Jayagopal, op. cit., p. 9.

 16

objective to develop certain new capabilities in people concerned to equip

them to meet the present job challenges and to accept future job

requirements. However effective HRD depends on the essential orientation

towards the functions of HRM like manpower planning, job analysis,

recruitment, selection and compensation.

At the macro level HRD is concerned with the development

of people for the nation's well being. It not only includes training and

education, it includes other development inputs like health, nutrition,

family welfare, housing etc., which are more useful for the development of

the nation. While considering HRD at macro level another point to be

clearly understood is whether it is the population in working age-group,

that is to be formally included under HRD programmes or the entire

population. Some may argue that even children below five years in age or

between five and fourteen years in age also need developmental inputs and

their development is vital for the future of the country.^''

HRD should play an effective role in optimizing the human

resources, enabling employees to grow with the organization, helping in

the congruence of individual aspirations and organizational expectations,

promoting collaboration and team spirit by establishing a climate of trust,

openness, mutuality and interdependence. HRD is a continuing attempt of

32 Dr. p. Murali Krishna, op. cit., p.9.

33 Dr. Uddesh Kohli and [Link] Gautam, op. cit., p. 17.
 17

the organization to self-renew through the process of building coping

strategies to meet the ever-changing demand. The process of HRD should

aims at creating a conducive atmosphere in which people can trust each

other, discuss issues with openness and candour, establish mutuality and

develop team spirit and be innovative. These will enable the organization

to be proactive instead of reacting to situations.^"*

The main focus of an effective HRD system should be to help

an organization increase what may be called its 'enabling' capabilities.

These capabilities would include development of human resources,

development of total organizational health, improving decision-making

skills, developing diagnostic capabilities and developing a healthy and

open system to ensure optimization of all resources. An effective HRD

system is perhaps the most important element in organizational

effectiveness which not only ensures present performance but also long-

term survival and growth of the organization. Motivated people will have

to be developed and nurtured by managerial competence. Human resources

are perhaps the most strategic and critical determinant of growth. The

knowledge, skills, attitudes and the initiative of the people can contribute

greatly towards economic development. The human resource development

34 M.R.R. Nair & T.V. Rao, op. cit., p. 23.

 18

is essentially a process by means of which all these qualities are upgraded

and used productively.

Human resource is the most invaluable global resource and

any short or long-term development strategy should be oriented towards

the continued well-being of the human race. If the attention is turned to the

development of this human resource, training acquires automatically a

special status. Training is that organized process which is concerned with

the acquisition of capability. The scope of HRD activities should not be

kept confined to the training activities. Though the acquisition of

capabilities required to perform various tasks relating to present and future

roles is the basic thrust of HRD, it also strives to develop an organizational

culture that emphasizes team work, collaboration etc. for enabling the

organization to cope with the fiiture changes. The organizations which are

really professional have taken steps to obtain maximum efficiency,

productivity etc through HRD spirits for achieving the targets and their

required objectives.

If organizations and individuals develop and prosper,

organization develops automatically by attaining mutual goals. Modem

management has to develop the organization through human resource

35 Dr. M. Kutumba Rao, Dr. P. Perraju Sharma (eds)., Human Resource Development
for Rural Development, Himalaya Publishing House, Bombay, (1989), p. 212.
36 Ibid., p. 246.
37 Suresh Vyas, op. cit., p. 5.
 19

development. Therefore, human resource development heavily depends

upon employee training and management development. Every

organization, either big or small, or productive or non-productive,

economic or social should train all its employees irrespective of their

potentials, skills, knowledge and suitability to the job.''^ HRD should be

tuned to ground realities. We cannot talk about HRD w^hen people do not

have the basic needs of living and proper working conditions. It has to

advance from managerial development to worker development. The

campaign cannot take a pause until the message reaches the lower most

man on the shop and interventions are taken up for development at the

grass root level.''^

With the increasing demands of competition and

globalization the expectation of the workers is also rising. The challenge

before the HRD professionals and the line managers is to synthesize the

demands of the organizations as well as the workforce in the interest of the

organization and the workforce. The present economic and environmental

trend suggests that the next decade will witness the emergence of

significant HRD issues and problems. While these pressures on human

38 [Link] Krishna, op. cit., p. 101.

39 [Link], [Link], CM. Srivastava, Rajesh Vidhyasagar, op. cit., p. 312.
 20

dimension may be socially dysfunctional, they represent a unique

opportunity for innovative and proactive HRD."*^

HRD may take various forms in various organizations. For a

growing organization HRD means one thing and for an organization that

reached saturation levels of growth it means different things. So every

Chief Executive should ask their HRD department to prepare a HRD

strategy and plan for his company. Such plan should flow from the

corporate long-term plans and should highlight the HRD instruments the

organization plans to use. One of the major areas for the future HRD

efforts is going to be bringing change in work ethics and work culture of

the employees. One of the reasons for our poor productivity is our poor

work culture. HRD professionals have to play a major role in bringing

change in the Indian work culture."*' The human factor is a key input in the

development process. To harness it successfully to meet development

targets of growth, raising standard of living and full employment has,

however, never been an easy task. The importance of planning in the area

of human resources for the proper growth of industry and economy is fairly

obvious. In fact, it is the human capacity which transforms the passive

national resource into active agents of production. The development of

human resource now a days has become a special subject of economic

40 Ibid., p. 313.
41 Dr. Uddesh Kohli and Prof. Vinayshil Gautam, op. cit., p. 173.
 21

enquiry and forms one of the main streams of analysis in the field of

economic development.''^

Human resource functions ensure that the organization

fulfills all of its equal employment opportunity and other government

obligations. It ensures the development of employee's dynamism,

effectiveness, competencies and motivation in a systematic and planned

manner.

Organizational health can be flashed for gaining competitive

advantages through personal touch where people are the basic natural

resource of business. Personal touch in HRD is a phrase today that has

come into recent usage.'*'' Personal touch has a potential role to play in

establishing and maintaining healthy productive work culture. It may be

used both as a means of carrying out traditional activities like recruitment,

training appraisal, manpower planning etc. Good harmonious relations,

effective personal touch system of participation and sharp negotiating skill

may be the key to the success of all other personal touch HRD activities. It

should cover in its activities the workmen to improve their organizational

effectiveness. Personal touch in HRD is certainly an essential need for

development process, effectiveness can be oriented through these kinds of

programmes.

42 Dr. B.L. Mathur, op. cit., p. 110.

43 Suresh Vyas, op. cit., p. 86.
 22

Features of Human Resource Development

The principal virtue of human resource development is that it

is a managerial responsibility. It is primarily pervasive irrespective of the

activity and dynamics. It is highly respective and sensitive to technological

changes as well as changes in human intelligence and attitudes. It sets a

target in the growth and therefore exploits future opportunities even in

advance making the approach scientific and self-generic. It provides for

continuous development conceptually and materially its benefit reflects

upon performance. Human resource development brings about job

enrichment with better planning and evaluation.'*'*

HRD cannot be considered as only the development of the

resource or abilities in the individual, it has to be combined with one's

social commitment. HRD should aim at the development of professional

competence as well as pro-social attitudes. The human resource is the

ultimate resource of a nation."*^ The investment in human development is

more productive than investment in physical assets, and moreover, it leads

to a faster rate of national growth. The greatest and most renewable

resource of all precious assets are those which never appear in any budget

or balance sheet, ie, a man's brain. Literacy's contribution are higher

44 Dr. B.L. Mathur, op. cit., p. 145.

45 R. Jayagopal, op. cit., p. 99.
 23

productivity, higher income, higher standard of living, better awareness,

better human relationship, better citizenship, eradication of social

problems, eradiation of infant mortality, eradication of poverty, eradication

of in-equality, enhance women's development, enhance human dignity,

enhance prestige of the country as a whole etc.''^

Human resources should be looked after properly and

continuously regarding various aspects like development and economic,

social and psychological aspects. Human resource is not only the most

important resource but also the most expensive and delicate resource which

require a very gentle handling. HRD characteristics of placement may be

divided into four general areas. Capabilities with education, co-ordinating

and communication fiinctions, experience and sensory capacities and

creative and trade knowledge as well as manipulative abilities for both

mental and moral abilities along with personality performance.

HRD process can be facilitated by creating an HRD climate.

A development climate can be considered as consisting of a culture which

support: Productivity : Employees are action-oriented, willing to take

initiative and show a high degree of productivity. Openness and Risk-

Taking : Employees feel free to express their ideas and the organization is

willing to take risks, experiment with new ideas and new ways of doing

46 lbid.,p.\0\.
 24

things. Collaboration : Employees collaborate with each other and have a

feeling of belonging to the same family and working for a common cause.

Trust and Authenticity : Employees, departments, and groups trust each

other and can be relied upon to do whatever they say they will do.

Confrontation : Employees face problems and issues without hiding or

avoiding them for fear of hurting each other. Autonomy : Employees have

some freedom to act independently within the boundaries of their job.'*'

The HRD system should be such that it should maintain all

people involved. It should develop newer and creative qualities in

employees. The term HRD has become very popular in the last decade and

particularly after the creation of Ministry of Human Resource Development

at Union Cabinet. The HRD department of a company should have a

clearly defined strategy rooted in its business needs. Training should

always be tied to corporate objectives, all issues should be converted into

business issues. The departments have to change their orientation to

become more task-oriented without losing sight that people are their focus.

In the past, some of the HRD departments focused only on people since

there were other mechanisms to ensure the achievement of business goals

and no other function took care of the development and motivation of

people. The development process in the organization has two goals, the

47 [Link], [Link]., pp. 2-3.

 25

individual growth for increased satisfaction of the individual employees,

and the increased productivity for organization development. A proper

career planning along with resource planning will give out an action plan

for the total growth in the organization. HRD as a development process

shall aim at individual job satisfaction and also the retention of the skilled

work force in the organization."*^

Developing human resources is something that could be

initiated and facilitated by the HRD departments, but achievement of its

goals depends entirely on various implementing agents and agencies. At

the organization level, these are the line managers and at the national level,

these are the various agencies and agents working for development. Some

organizations in India have taken a lead in defining and implementing

HRD in its right perspective. Dynamic employees are essential for any

organization that would like to be dynamic and growth-oriented.

Employees who are competent, motivated, proactive and have a high

activity level can be considered as dynamic employees. HRD aims at

developing such dynamism in employees along with several other qualities

like values that are congruent with the organization, team spirit,

conmiitment etc that in combination make the organization perform well.

48 T.V Rao, D.M. Silveria, C M Srivastava, Rajesh Vidhyasagar, op. cit., p. 342.
 26

HRD has a greater role in the organizations in effectively

facing the global competition. HRD through training can make the people

more productive, quality and cost conscious. HRD process can effectively

contribute to face the competitive market challenges. The central theme in

the HRD approach is the development of the individual and the

development of work groups. The focus is now on enhancing employee

involvement in internalizing organizational objectives through vibrant

HRD efforts in order to release the springs of dynamism and creativity of

both individuals as well as work groups."*^

HRD implies qualitative growth of people with capabilities

and potentialities to grow and develop. HRD, if taken as total development,

means optimum utilization of existing human capabilities, intellectual,

technological, entrepreneurial and even moral and creation of new ones.

HRD in the context of an organization involves development of the

employees or people who compose it.^° HRD can be thought of both as

consumption and investment. Any consumption of services included as

components of HRD that builds up knowledge, skills and capacities must

also be treated as investment. HRD is more a distributive rather than a

redistribution programme as compared to the other anti-poverty

49 T.V. Rao, K.K Verma, Anil K. Khandelwal and E. Abraham. S.J., op. cit., p. 36.
50 Dr. M. Kutumba Rao, Dr. P. Perraju Sharma, op. cit., p. 9.
 27

programmes because, the capacities, knowledge, health, skills etc gained

through these programmes are not attained at the cost of others.

In essence it has been asserted that human resource alone can

take care of goals of an enterprise. If a company is economically

successful, it means, the management is able to manage human resources

successfully. Organization development concentrates on people's

dimensions like norms, values, attitudes, relationships, organizational

climate etc., which are very essential for any human being and for a person

in-group in particular. It has emerged to help the planned change for

organizational effectiveness. Human resources are the lifeblood of an

institution. They help to conceive the kind of service the institution can

render, to development and implement plans needed to achieve the goals,

and to make adjustments between plans and reality.

Japan suffered the most dangers in the Second World War,

but it has now captured the top position in the developed countries of the

world within very short period. Its economy has gained the present

momentum only because of its human resource development.^^ To achieve

a fast response to market requirements, companies must continually utilize

all the available knowledge and experience. For this there should be job

51 Ibid., p. 11.
52 U.B Singh, op. cit., p. 7.
 28

training that is done to maintain performance standards. The development

of individual and team capability will be based on learning through work,

on-the-job exposure and instruction, movement through progressive

responsibilities as well as by attendance at courses, seminars etc and

reading. Human resource use has two parts, optimum utilization of already

employed human resources within firms and utilization of unemployed

human resources.

Benefits of HRD to an Organization

HRD helps in the integrated growth of employees. Helps

employees to know their strengths and weaknesses and thus enable them to

improve their performance and that of the organization. It helps in

generating valid data about employees for personnel functions like training,

placement, selection, promotion etc. It also creates provision for feedback

and guidance by the superior to the employees for the improvement of their

performance. It helps in the creation of an enabling organization where

opportunities are available for fuller utilization of the known potentials of

the employees. It is very urgent to think about the better utilization of the

valuable resource in view of fast changing composition with more and

 29

more educated people entering into the labour force. Man is the most

versatile resource available to an organization.

HRD programme should provide equal opportunity to all

individual employees of an organization. However, such an objective for

individual development should be complementary and not contradictory to

organizational needs. No organization can thrive or even survive, without

confident, enthusiastic people who are encouraged to use their common

sense, experience and initiative for its benefits and that of its customers.^'*

The employee's productivity or productivity as such is affected by several

factors such as ability to work, will to work, motivation of team works,

favourable work environment and working conditions, participation of

employee in decision-making process, participation of employees in profits

and other relevant factors. The supervisors have to plan and approve their

organizational directions and to be ensured with it clearly. It should be an

enabling function rather than a controlling function.^^

The traditional concept regards salary and rewards as the

main basis of motivation, where as the concept of human resource system

regards job challenges and creativity and opportunities for development as

the main motivating forces. Job rotation and wage and salary

administration and confidence building exercises should be directed

53 Dr. B.L. Mathur, op .cit., p. 94.

54 I.S. Singh, op. cit., p. 198.
55 Suresh Vyas, op. cit., p. 69.
 30

towards the workers and this can be a very good way of human resource

development for workers. By giving the opportunities and by providing the

right type of climate in an organization, individuals can be helped to give

full expression of their potentials, contributing to the achievement of the

goals of the organization, and thereby ensuring optimization of human

resources.

The spirit created by top management is of vital importance

in HRD. The organization's atmosphere, culture and psyche should

stimulate growth. Employees should be in a position to stimulate each

other. There should be open mindedness and decisiveness at the top. One

of the main reasons why HRD remains mainly a training function in many

organizations is that HRD personnel often lack the knowledge, skills and

management support necessary to undertake activities with organization-

wide implications.^^

HRD programmes are continuous and shaped to fit the

culture changes in the organization in relation to the needs of the

individual. In this way training and HRD become tools for effecting change

and the policy ramification can be wide-ranging and strategic. As a result

training takes on a variety of forms and covers a multitude of subjects.^^

56 T.V Rao, K.K. Varraa, Anil .K. Khandelwal and E. Abraham S.J., op. cit., p. 404.
57 Ian Beard well and Len Holden, Human Resource Management: A Contemporary
Perspective, Macmillan India Ltd, Delhi, (1994), p. 338.
 31

People are essentially self-managing. In other words, while

other resources are managed by people, human resources are managed by

themselves. People themselves decide about the nature, time and place of

their employment. And people react to the changing conditions and to the

techniques of management unlike money, material and machine.

Investment for increasing the resource is important, and the more an

organization invests on its human resources, the greater is the return from

the investment. This realization of need for continuous investment, and the

possibility of substantial return is an important concept of the human

resource system.

The pace of development of a country is based upon its

ability to develop and utilize the innate capacities and capabilities of its

people. The most important economic resource of a nation is its

manpower. Human resource is a form of capital, a produced means of

production and the product of investment. The process of economic

development is increasingly being viewed as the source of expanding the

capabilities of people. Economic growth is vital to the end of enhancing

people's capabilities, but that is not all. HRD of an area is chiefly

determined by the size, composition and growth of population. These

 32

determinants of manpower are, in turn, governed by the birth rate, death

CO

rate and net migration.

Resources like material and human resource and technology

are the basic determinants of economic growth. Since early fifties, the

importance of HRD for economic development was recognized by

developing countries, but today human resources occupy a centre stage in

the development plans and policies of developing countries. In the national

context, HRD is a process by which the people in various groups, are

helped to acquire new competencies contmuously so as to make them more

and more self-reliant and simultaneously develop a sense of pride in their

country. Effective human resource development is one of the most pressing

needs that the government faces today. The growing importance and

concern for human resource in organizations is gradually reflected in the

administrative system. HRD is a multifaceted concept. Not only does it

imply the hamessing of the available manpower in a society to the greatest

potential of their productivity, but also to their optimal utilization.

Governments of today especially in the less developing countries, face a

great challenge of effective human resource development. The problem is

both paradoxical and complicated. Paradoxical because while there is an

abundance of labour due to the constant explosion of population, there is at

the same time an acute shortage of economically productive, skilled and

58 M.P. Srivastava, op. cit, p.220.

 33

specialist manpower to meet the needs of the socio-economic

developments of these societies in an equitable manner. The problem is

further complicated because of the non-availability or dearth of the various

inputs required in the process of increasing the knowledge, skills and

capacities of all the peoples in the society.^^ HRD is a strategy aimed at

making optimum use of available resources in order to accelerate the pace

of development. It has become a necessity in the context of the desire to

have a rapid pace of growth. It is not even exogenous to development as a

whole. In fact, theoretically it induces an upward shift in the development

fiinction without quantitative change in the resource use. HRD has been

accepted as an integral part of general economic development and has

assumed a larger role and broader functions in the development process.

So far the role of HRD has been confined, by and large, to the industrial

and business setting, and there has been an emphasis on HRD function in

this limited environment. However, the need for HRD in the unorganized

rural areas is considered vital from the standpoint of its significance to

bring about social change, especially at the grass root levels of the

economy.^"

Trained manpower assumes utmost importance in the new

approach to rural development. HRD, of which training is an important

59 Noorjahan Bava, (ed)., Development Policies and Administration in India, Uppal

Publishing House, New Delhi, (2000), p.l33.
60 [Link] Rao, [Link] Sharma, op. cit., p. 172.
 34

ingredient would involve basis as well as process oriented skill building,

leadership and managerial training as well as training of the trainers and

development administrators. As rightly pointed out in the 7* plan, in these

days of fast development of science and technology, while technical

obsolescence is recognized, skill obsolesce remains unnoticed. The case

for continuous training of farmers, craftsman, artisans, leaders of co-

operatives, panchayats etc, to develop their professional skills is quite

obvious in the context of rural development. The recent realization of the

need for and the emphasis on training of trainers and development

administrators, and the greater role assigned to voluntary organizations in

rural development is the most welcome development in the area of training.

Socio-Economic Aspects of Human Resource Development

One of the notable links between productivity and human

capital is the occupational structure of the labour force. High level of

productivity requires relatively large amount of higher skills, thus

encouraging their generation, thereby influencing the level of productivity.

It is human capacities which transform the passive natural resources into

active agents of production. Man's productive capacity depends upon his

ability to acquire knowledge and to put it to economic use. Converting the

huge human masses into human assets is not only a management problem

but a socio-economic issue as well. The real wealth of a country like,

 35

India, lies in the development and effective utilization of human productive

capacities.^' It is often felt that, though the exploitation of natural

resources, availability of physical and financial resources and international

aid play prominent roles in the growth of modem economics. But none of

these factors is more significant than efficient and committed manpower.

Human resources take active role in the modem economic scenario of any

country. The abundant physical resources alone cannot benefit the growth

of the country without human resource development, which transforms

physical resources into productive resources. The difference in the level of

economic development of the countries is largely a reflection of the

differences in quality of their human resources. The key element in this

proposition is that the values, attitudes, general orientation and quality of

the people of a country that determine its economic development.

A country may possess abundant and inexhaustible nature

and physical resources, and the necessary machinery and capital but unless

there are men, who can mobilize, organize and harness resources for the

production of goods and services, it cannot make rapid strides towards

economic and social advancement. The greatest tragedy with regard to our

country's human resource is not simply the neglect of its development but

its wastage through unemployment, under employment and

61 [Link], op. cit., pp.7-8.

62 Dr. P. Murali Krishna, op. cit., p.l.
 36

malemployment. Men have to be galvanised, human resources have to be

channeUsed, people have to be endowed and enriched with new skills, new

knowledge, new techniques and new approaches. Human resources should

be utilized for challenging jobs, opening, trusting and demanding

relationship in the joint endeavour of building the nation.

There is a growing realization that a rapid rate of human

capital formation is as important a pre-condition of economic growth as the

rapid rate of physical capital formation. Human capital includes the

initiative, resourcefulness, capacity for sustained work, right values,

interests and attitudes, and other human qualities conducive to higher

«

output and accelerated economic growth. Economists have become

interested in the importance of human resource as form of capital only in

last thirty years. [Link], a famous economist, stated that a well-

educated and well-trained workforce was not only an economic resource

but was a nation's greatest form of capital.

Training for Human Resource Development

Training being the most vital tool of HRD, naturally forms

the major part of the present HRD activities. Most of the organizations in

India perceive training and development function as the direct subsystem

of HRD. Therefore, there is increased recognition for training as the most

63 U.B. Singh, op. cit., p. 5.

 37

important organizational activity. Training is the shorter-term, systematic

process through which an individual is helped to master defined tasks or

areas of skills and knowledge to pre-determined standards. The central

role of employee training and development is to ensure that the human

resources of an organization have, and will continue to have, the requisite

abilities to perform the work that they have been given to do.^'*

After having successfiiUy recruited the right people for the

right job at the right time, effective human resource system should lead to a

proper induction training system which ensures smooth induction of people

recmited.^^ New employees will need some kind of training to fill the gap

between their present levels of knowledge and skills and those needed for

effective performance of work. Training is needed to bridge the gap

between what the employee has and what the job requires. Training is

needed to make employees more productive and usefiil in the long run. A

trainee learns new habits, refined skills and usefiil knowledge during the

training helping him to improve performance. Training is mainly job-

oriented as it enables an employee to do his present job more efficiently

and prepare himself for a higher-level job. Training is a means of making

64 A.S. Bhambra, Nature of Human Resource Management, Common Wealth

Publishers, New Delhi, (1999), p. 117.
65 M.R.R. Nair & T.V. Rao, op. cit., p. 21.
 38

the objectives known; and of defining them for all at various levels.^^

According to Encyclopedia of Social Sciences, "training is a process

whereby individuals learn the skills, attitudes and orientation congruent to

a particular role. Role is the pattern of actions expected of a person in the

social system with its accompanying rights and obligations, power and

responsibility".^^

Job training and employee development is becoming

generally a first accepted activity in HRD centre. HRD showed that

supervised training was more valuable for developing a special skill in

employees rather than the job experience. Employees possess untapped

intellectual and skill reservoirs that if properly developed can serve as a

vast human resource for an organization. Training and development

activities may be precisely the key to unlocking this untapped potential.

The term 'rural development' is a focal interest and is widely

acclaimed both in the developed and the developing countries of the world.

There is, however, no universally acceptable definition of the rural

development, and the term is used in different ways and in vastly divergent

contexts. As a concept, it connotes overall development of rural people.

Rural development may be defined as a process for developmg and

utilizing natural and human resources, technologies, infra-structural

66 [Link] (ed)., Readings in Public Administration: Issues in Public

Administration, Volume 1, Kanishka Publishers, New Delhi, (1995), p. 268.
67 U.B. Singh, op. cit., p. 36.
 39

facilities, institutions and organizations, and government policies and

programmes to encourage and speed up economic growth in rural areas, to

provide jobs, and to improve the quality of rural life towards self-

sustenance. In addition to economic growth, this process typically involves

changes in popular attitudes, and in many cases even in customs and

beliefs.^^ It denotes an integrated development of rural areas encompassing

the social, cultural and economic aspect of village life.^^

A vast number of persons are concerned with and engaged in

rural development, such as administrators, technicians, social workers,

experts in various areas of agriculture, input suppliers, etc. The pace of

rural development depends on the competence and co-ordinated action of

all these. It is, therefore, necessary that such persons must be trained and

re trained in particular functions of their respective areas. In order to fulfil

this purpose the Ministry of Rural Development has set-up National

Institute for Rural Development in Hyderabad, with a sub-centre at

Guwahati and the Administrative Staff Colleges in the States. In Kerala,

State Institute of Rural Development, Kottarakkara, is the training centre

for Commissioners and Officers. Training for Extension Officers and

68 Nand Lai, Rural Settlements, Planning and Development, Chugh Publications,

Allahabad, (1989), p. 242.
69 Ashok Kumar (ed).. Encyclopedia of H.R.M. Series: HRD Dynamics in
Government Systems, Anmol Publications, New Delhi, (1998), p. 55.
70 Dr. Jagannath Mishra, My Vision for India's Rural Development, Vikas Publishing
House, New Delhi, (1997), p. 160.
 40

Village Level Workers are being held in Extension Training Centres at

Kottarakkara, Mannuthi and Thaliparambu.

Rural development is presently receiving foremost attention

in all the developing countries. Sizeable investment is being made in rural

development programmes with the twin objects of improving and

stabilizing the rural economy and improving the quality of life of the

people in rural areas.