Human Resource Development (HRD) involves improving the effectiveness of organizations, it provides employees with new skills, knowledge and attitude, improves their performance and growth in an organization and makes them more competent.
In this blog, we will explore why human resource development is important in an organization.
Why is HRD Important to an Organization? - Difference between HRD and HRM
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| The importance of human resource development in an organization |
What is Human Resource Development?
Human Resource Development (HRD) is the process of helping employees to develop their personal and organizational skills, knowledge, and abilities, which in turn improves an organization's effectiveness and performance.
Human Resource Development is one of the frameworks that help improve the individual, group, and organizational skills, in order to develop their knowledge, and develop their professional, psychological and personal capabilities.
Human
resource development is also defined as increasing the capabilities, skills,
and knowledge of the workforce that has the ability to work in various fields.
Human resource development includes a number of special opportunities such as employee career development, employee training, key employee identification, tuition assistance, coaching, mentoring, succession planning, organization development and performance management and development.
Human
resource development is essential for any organization that desires to be
dynamic and growth-oriented.
Human resources have unlimited potential capabilities that can only be used by creating a workforce that can continually identify, bring to the surface, and use the capabilities of individuals.
Human
Resource Development is a subsystem of Human Resource Management (HRM) and
draws many functions, attributes, and processes from HRM.
What is the Difference between HRD and HRM?
HRD and
HRM can be differentiated on the following grounds:
➤ Human resource
development mostly aims at the development of the employees as well as the
organization as a whole whereas human resource management mainly aims to
improve the efficiency of the employees.
➤ HRD is mostly development-oriented while HRM is mainly maintenance-oriented.
➤ HRD
creates a structure, which is inter-dependent and inter-related while HRM
creates a structure, which is independent.
➤ HRD is
concerned with developing all aspects and people within the organization and
manages its skill development processes while HRM is about people at work
both as individuals and a group and has concerns for people only and it handles
recruitment, rewards, etc.
➤ HRD professionals motivate people to increase eustress and improve performance so that they may satisfy higher-order needs while HRM motivates the employees by giving them financial incentives or rewards.
Read Here: Relationship between HRM and HCM
The Importance of Human Resource Development
The basic
need for human resource development is to develop competencies in individuals
at all levels in the organization.
The goal of human resources operations is to increase the individual's culture, and the development of his principles and values, in order to increase the ability to adapt to the environment that surrounds him, which contributes to increasing his overall effectiveness.
The main
objectives of human resource development systems are to develop:
- The capabilities of the employees in relation to their expected future responsibilities.
- Cooperation between the various units of the organization.
- Team spirit and performance in every organizational unit.
- The dyadic relationship between employees and their supervisor.
- Overall health and self-renewing capabilities of an organization.
Human
resource development also helps to create a culture of efficiency in the
organization and leads to increased organizational effectiveness.
HRD develops new skills, knowledge and attitudes of the people in the concerned organizations and makes people more competent.
Human
resource development creates the acceptability toward change as well as an
environment of trust and respect.
HRD helps to collect objective and useful data on employees' programs and policies that facilitate better human resource planning.
The
importance of human resource development can be divided into three sections:
Importance of HRD to employees
Working in human resource development helps to achieve many benefits for individuals, including the following:
– HRD provides
employees with the right climate to increase per capita production.
– HRD works
to bring out the forces that drive individuals to achieve themselves.
– HRD helps
to satisfy individuals' basic needs, motivates them to find jobs that challenge
their capabilities.
– HRD
notifies the individual differences, which helps to take advantage of that in
completing tasks, through assignments that are commensurate with those
differences.
– HRD helps
develop individuals, which helps increase their ability and desire to assume
responsibilities.
Importance of HRD in a Community Setting
Human
resource development in community settings is often implemented by NGOs, with
training as the main tool.
The importance of human resource development at the community level can be summed up in two points, namely:
– HRD helps
spread the spirit of cooperation among the community so that they can improve
production efficiency and make use of resources.
– HRD helps
to raise the group's ability to analyze problems, then develop appropriate solutions.
Importance of HRD at an Organizational Level
Human
resource development aims to improve performance and productivity in an
organization by increasing knowledge, competencies, skills, and attitudes.
HRD
provides employees with greater opportunity for growth and success within the
organization and for strengthening management and the professional team at all
organizational levels.
HRD
process contributes to achieving the good performance of the organization as a
whole and helps to increase the valuation of shares.
The importance of human resource development at the organizational level can be summed up in two points, namely:
– The
success of human resource development in one part of the organization helps its
application to the remainder of the other parts of the organization.
– HRD helps increase the organization’s effectiveness and its ability to face the competitions around it.
Read Also: 10 Key Functions of Human Resource Management (HRM)