Dissertation: Role of HRD in Individual and Organizational Growth

This dissertation report, submitted for an MBA in International Business at Amity University, examines the crucial role of Human Resource Development (HRD) in fostering both individual and organizational growth, ultimately leading to job satisfaction. The study analyzes various factors such as rewards, training, and employee welfare, and their impact on organizational performance. The report defines HRD, its instruments, processes, and outcomes, and addresses common problems faced in this area. It explores the goals and aspects of HRD, including organizational development, job descriptions, staff planning, training, and performance appraisal. The literature review covers key HRM concepts and the importance of HRD in today's rapidly changing business environment, including the strategic use of employees, various functions of HRM, and the ongoing debate on defining the boundaries of HRD.

DISSERTATION REPORT SUBMITTED TOWARDS THE PARTIAL
FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL
BUSINESS
ROLE OF HRD IN INDIVIDUAL AND
ORGANIZATIONAL GROWTH
SUBMITTED BY:
Name: Meghna Jain
MBA-IB (2014-2016)
Roll No. : 1614D16
Enrollment No.: A1802014014
FACULTY GUIDE
MR. V.P. KAKKAR
Assistant Professor
AMITY INTERNATONAL BUSINESS SCHOOL,
NOIDA
AMITY UNIVERSITY – UTTAR PRADESH
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DISSERTATION PROJECT REPORT
MBA-IB BATCH 2014-2016
AMITY INTERNATIONAL BUSINESS SCHOOL
(AIBS)
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ACKNOWLEDGEMENT
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ABSTRACT
As a part of curriculum of the university of learning through practical live experiences and as a
part of my MBA program specializing in H.R ,the study on Role of Human Resource
Development in Individual and Organizational Growth which further leads to job satisfaction
is what gains my importance. The purpose of doing this study is to understand and gain the
knowledge on how the human resource development plays an important role in the growth of an
organization and the growth of an individual as well and to analyze the numerous factors such as
rewards and recognition, opportunities for ideas, employee’s welfare, training and development,
job satisfaction, etc. which can affect the organization performance.
Human resources are also viewed as the sum of knowledge, skills, attitudes, commitment, values
and the like of the people of an organization. Development is possession/acquisition of
capabilities needed for a present job, or the future expected job.
Human Resource Development means developing or tapping hidden qualities in people in
order to make them accomplish new functions leading to organization and individual goals. HRD
concept was first introduced by Leonard Nadler in 1969 in a conference in US. He defined HRD
as an organized learning experience within a given period of time with the goals of creating the
opportunity of performance change. HRD is the framework intended for helping employees to
develop their personal and company skills, knowledge and skills. It includes employee teaching,
career development, performance administration, coaching, mentoring, succession arranging.
The focus is upon developing the most remarkable workforce in order that the firm and
individual employees can easily accomplish their work goals in service to consumers.
HRD is a procedure by which the personnel of an organization will be helped in an ongoing and
a planned approach to-
 Acquire or develop functions required to carry out various functions associated with their
present or anticipated future roles.
 Develop their particular general functions as people and discover and take advantage of
their own potential intended for their particular and or company development purposes.
 Develop an organizational culture in which usually superior subordinate relationships
staff work and collaboration amongst sub unit are good and contribute to the professional
well-being motivation and pride of employees.
HRD is aimed at supporting persons to acquire expertise required to perform almost all their
functions effectively and make their organizations perform well.
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TABLE OF CONTENTS
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INTRODUCTION
In this highly technological society organizations are learning to adapt to rapid changes, to
develop new products and produce high quality goods to remain competitive in the global market
place. Human resource management is viewed as an investment as it is a way to integrate
business plans and human skills, to achieve and maximize the profits and organizational goals in
terms of economic growth, products or services. The staff too gains in terms of remuneration,
opportunities for learning and career development.
The HRD matrix shows the interrelationship between HRD instruments, processes, outcomes
and company’s effectiveness.
 HRD instruments: These include performance appraisal, counseling, role analysis,
training, communication guidelines, job rotations, rewards, job enrichment programs, etc.
the size of the organization, the inside environment, the support and commitment from
the top administration, the competitive policies are different for every organization and
the HRD instruments vary according to it.
 HRD processes: These includes position clarity, performance planning, advancement
climate, risk taking, dynamism in employees. The HRD instruments lead to the
generation of HRD processes and results in more competent, satisfied and committed
people that would make the organization grow by contributing their very own best to it.
 HRD outcomes: The people are more committed and satisfied, where they tend to offer
their best towards the firm enthusiastically and if the HRD instruments and processes are
functional in an organization.
 Organizational effectiveness: The HRD outcomes influence the organizational
effectiveness, which in turn, will depend on several factors like environment, technology,
competitors, etc.
HRD often faces following common PROBLEMS at the time of individual and organizational
growth:-
 HRD is not always perceived as being linked to developing the employee competencies
most needed to help an organization meet its strategic business or organization goals and
objectives.
 HRD doesn’t consistently receive the level of senior management visibility, endorsement
and support which is required in order for it to have optimal impact on improving
employee’s job competence and performance.
 HRD curricula and the instructional programs or learning opportunities that result from
them often lack conceptual and cohesive integration.
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 HRD doesn’t consistently and explicitly acknowledge, include and integrate a “total
corporate” of strategic organization perspective into its curricula, learning activities and
instructional implementation processes.
 HRD curricula and the instruction which results from them frequently focus on only the
knowledge or skills that employees require to complete job tasks and activities.
 Classroom experiences are frequently too heavily invested in “learning about” the job and
don’t provide to employee experiences in thinking, feeling and acting competently
through their acquisition of global job competence.
The following are the GOALS of HRD:
 It aims at preparing people for performing jobs which they may be required to perform in
the future as they go up on the organizational hierarchy.
 To identify competency gaps of employees to perform the present roles or jobs functions
effectively and create conditions to help employees bridge gaps through development.
 Motivation development is also an aim of HRD it means the desire to work or put in
work effort it is a commitment to the job, work and the organization.
 It helps in building free expression of ideas.
 It ensures promotion of collaborations.
ASPECTS of HRD:
1. ORGANIZATIONAL DEVELOPMENT-
It may be defined as a change effort that is planned focused on an entire organization or a large
sub- system managed from the top, aimed at enhancing organizational health and effectiveness
based on planned interventions. Organizations never remain static they keep on changing and
accordingly employee’s skills and abilities, therefore require continual upgrading and
organizational development is a tool for this purpose.
2. JOB DESCRIPTIONS-
All employing organizations plan their workload in terms of undertakings or projects that are
needed to be completed to achieve their goals. The personnel department has to prepare complete
job descriptions to find out the skills to be possessed by the candidates which need to be hired to
the jobs.
3. STAFF PLANNING AND RECRUITMENT-
Personnel planning is linked to business strategies, a forecast of economic events, national
demographic trends and the seniority and the age of the existing workforce. It involves matching
people to jobs. So, all the decisions regarding staffing has to be taken in advance and also the
skill analysis has to be carried out to evaluate the employees continuously.
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4. STAFF BENEFITS -
Staff benefits are usually arranged by the personnel department and can include basic
remuneration and reimbursement of costs incurred during the course of work e.g. travel cost.
5. TRAINING AND DEVELOPMENT-
Employees are trained through on-the-job and off-the-job training programs. Staff developers
play a vital role in assisting in the creation and development of their company as a learning
organization. They may organize, or take part in, any educational or training initiative designed
to enable individual employees to achieve their full potential.
6. PERFORMANCE APPRAISAL-
The purpose of it is it to provide accurate picture of past and future projections. Now-a-days
organizations follow, Balance Score Card in order to evaluate the performance of an employee in
a more objective manner.
7. EMPLOYEE WELFARE AND QUALITY OF WORKLIFE-
The purpose is various services, facilities and benefits offered to the employees, to improve the
living standard of workers and thereby improve their quality of work life.
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REVIEW OF LITERATURE
 HRM is the process of managing people in organizations in a structured way or pattern.
This covers staffing, retention, perks or perquisites, performance management and taking care of
exits from the organization to round off the actions. (Jackson,schuler & Werner,2009).
HRM is both the art of managing people by resource to creative approaches it is also known as
science because of the precision and rigorous application of theory.
HRD means to develop available manpower through suitable methods such as training,
promotions, transfers and opportunity for career enhancement. HRD tasks create a team of
trained, efficient, focused and capable managers and employees. One organization is different
from the other mainly because of the people working there in. The human resource should be
nurtured and used for the benefit of the organization. (casey ichniowski, Kathryn
shaw,Giovanna prennushi, paper number 5333 issued in November 1995).
USES OF HUMAN RESOURCE MANAGEMENT IN AN ORGANIZATION (by ishik
university, published in Russian federation,2010):
 HRM is the function within an organization that focuses on recruitment, management and
giving direction for the people who work in the organization.
 HRM is a function that deals with issues related to people such as compensation, hiring,
performance management, organization development, safety, wellness, employee
motivation, communication, administration and training.
 HRM is also a strategic and comprehensive approach to managing people and workplace
culture. HRM ensures employees to contribute effectively and productively to the overall
company direction and the accomplishment of the organization’s goals and objectives.
 HRM is moving away from traditional/old type of personnel and administration roles
which are outsourced. HRM is expected to add up value to the strategic utilization of
employees and that employee programs impact the business in many ways.
 HRM function includes a variety of activities and key among them is responsibility for
human resources, deciding staffing needs that you have whether to use independent
contractors or hire employees to fill these gaps, selecting and training the suitable
employees, ensuring high performers, dealing with performance issues and make sure
your personnel and management practices conform to the regulations. Activities also
include how you manage your approach to employee benefits and salary, employee
records and policies. Usually small businesses have to carry out these activities
themselves because they can’t afford all time help. However they should always ensure
that employees must have, and should be aware of policies which conform to the rules
and regulations. The policies are in the form of manuals.
 HRM is widening every day. It is not limited only to HR planning, hiring, training and
development, payroll, rewards, industrial relations, grievances, legal issues, etc. We can
also say that it is about developing and managing harmonious relationships at workplace
and striking a balance between organizational goals and individual goals.
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 Human Resource Development is an important and very attention receiving discipline of
present time. It is a relatively young academic discipline but an old and well established field of
practice (Swanson and Holton). Researchers have developed new theories and conceptual
frameworks that address a broad range of phenomena of interest to the HRD profession
(Torraco 2004). A key area of enquiry has been to try and figure out the current boundaries of
HRD (Metcalfe and Rees, 2005) but defining HRD has not been so straightforward, and the
writers and researchers are continuously debating the issue, and there seems to be no consensus.
According to Rao(1995) the scope of HRD is extended, at one side, to developing competencies
of human resource by enhancing knowledge, building skill, changing attitude and teaching
values, and at other side, creation of conditions through public policy, programs and other
interventions to help people to apply these competencies for their own and other’s benefits and
making things happen. The objective of this paper is to present an organizational model of HRD
encompassing all the aspects of human resource development from organizational point of view.
The research article has been developed from descriptive secondary information searched by
reviewing literature about HRD and HRM, published in research journals in the form of research
articles, research reports of various organizations and books of human resource scholars on this
topic.
It is concluded that HRD in organizational perspective id focused in narrow sense by its function
on learning, education, training and development to the human resources selected and recruited
to identify, assure and help to develop the key competencies that enable individuals to perform
current or future jobs with planned individual learning accomplished through training, on the job
learning, coaching, etc.
Whereas the scope of HRD in organizational perspective has broadened and extended beyond a
narrow concentration on training and development to include organizational and systems level
issues that influence the development of broad skills set including behavioral skills, abilities and
knowledge associated with learning in technical, social an interpersonal areas and also expanded
to include a strong connection to corporate strategy, individual responsibility of learning,
extension into team learning an emphasis on internal consultancy, organizational learning and
knowledge management and the nurturing of the intellectual capital of an enterprise, so HRD is a
process of developing and unleashing expertise for the purpose of improving individual, team,
work process and organizational system performance. HRD along with education and training
also involves activities related to empowerment, awareness raising, skills enhancement, team
building, community mobilization and development, organizational development,
entrepreneurship development, sensitization and conscientisation, human resource planning and
policies, etc.
 Chipunza(2010) explored in this examination looked at the degree to which differs
inherent and outward motivational variables affected the upkeep and reduction of specialist
turnover in both open and private region co operations. The examination was pointed at finishing
the going with ends of the line: distinguish and secure the key trademark and outward
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motivational variables being used by picked open and private part affiliations in holding their
specialists; center the degree to which the recognized natural and incidental motivational
variables are affecting delegates' upkeep and turnover in the picked co operations; and make
suggestions to organization of the picked companionships on the most ideal approach to feasibly
hold agents and reduce turnover. The study accepted the cross-sectional diagram investigation
design, inspecting the degree to which picked motivational variables effect delegates' decision to
either remain or quit an acquaintanceship. Quantitative examination diagram was used and this
setup was picked in light of the way that its revelations are aggregate up fit and the data
objective.
The research article has been developed from secondary information searched by reviewing
literature about HRD and HRM, published in research journals in the form of research articles,
research reports of various organizations and books.
It is concluded that Chipunza(2010) focused and examined the motivational factors which are
required for improving the individual and organizational growth. Therefore, motivational
variables are very essential for an organization as it helps in increasing the productivity as well.
Motivational variables play a very critical role for an organization because it affects affecting
delegates' upkeep and turnover in the picked co operations; and make suggestions to organization
of the picked companionships on the most ideal approach to feasibly hold agents and reduce
turnover.
 Munusamy naidu(2013) Human resource is needed to be developed as per the change in
external environment of the organization, hence, HRD helps to adapt such changes through the
development of existing human resource in terms of skill and knowledge.
The importance or significance of HRD can be explained as follows:
1. HRD Develops Competent HR-
HRD develops the skills and knowledge of an individual, hence, it helps to provide competent
and efficient HR as per the job requirement. To develop employment's skill and competencies,
different training and development programs are launched.
2. HRD Creates Opportunity For Career Development-
HRD helps to grasp the career development opportunities through development of human skills
and knowledge. Career development consists of personal development efforts through a proper
match between training and development opportunities with employee's need.
3. Employ Commitment-
Trained and efficient employees are committed towards their jobs which is possible through
HRD. If employees are provided with proper training and development opportunities, they will
feel committed to the work and the organization.
4. Job Satisfaction-
When people in the organization are well oriented and developed, they show higher degree of
commitment in actual work place. This inspires them for better performance, which ultimately
leads to job satisfaction.
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5. Change Management-
HRD facilitates planning, and management of change in an organization. It also manages
conflicts through improved labor management relation. It develops organizational health, culture
and environment which lead to change management.
6. Opportunities For Training And Development-
Trainings and development programs are tools of HRD. They provide opportunity for employee's
development by matching training needs with organizational requirement. Moreover, HRD
facilitates integrated growth of employees through training and development activities.
7. Performance Improvement-
HRD develops necessary skills and abilities required to perform organizational activities. As a
result of which, employees can contribute for better performance in an organization. This leads
to greater organizational effectiveness.
The research article has been developed from primary and secondary information searched by
reviewing literature and about HRD and HRM, published in research journals in the form of
research articles, research reports of various organizations and books and also gathered
information through questionnaires which are being filled by the employees of the organization.
Munusamy naidu(2013) concluded that the factors which are stated above plays a very
important and crucial role in the organizations as it states the importance of Human Resource
Management and this helps in the organizational as well as in individual growth.
 Muhammad Azhar Sheikh(2007) The function of human resource development is
to improve performance and ability. While employees are often expected to know a certain
amount about their jobs or have a specific degree or level of education upon hire, much of what
an employee learns about their job is developed over the course of doing the job. This
development includes specific organizational knowledge or job-specific duties that are not
necessarily taught in the classroom.
Regardless of the form the development takes, it functions as a means to improve the overall
performance and ability of employees in the jobs they are doing as well as in future positions.
Human resource development can function to improve performance or individual abilities in an
area in which an employee is weak (such as management skills or accounting practices). It can
also function to teach an employee about an area in which the employee has had no prior
experience, such as when transitioning from one role into a different role (i.e., cross-training).
HR development may also function to help an organization conform to government regulations
or guidelines by training employees on relevant laws or regulations for which they are
responsible. It may also take the form of professional development by educating in specific areas
or fields. The Professional in Human Resources certification, Project Management Professional
certification, and Six Sigma Black Belt are examples of courses and certifications designed to
train and develop professionals in these specific fields.
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