Human Resource Development (HRD) - Meaning & Importance
Published by MBA Skool Team, Last Updated: January 09, 2021
What is Human Resource Development (HRD)?
HRD or human resource development is a process in companies to enhance the expertise & potential of employees. Human resource development is critical for a company as it not only increases employee productivity but also helps the employee grow their career. This then helps the company grow their business. Technic education, managerial training & personality development are keys elements to drive HRD.
The main aim of human resource development is to have employees who have the skills, knowledge & potential to keep contributing to the company. With more competition, newer technology, better processes etc, it is imperative companies focus on HRD to have an effective workforce.
The key functions of HRD are:
1. Manpower planning
2. Performance appraisal
3. Training & development of employees
4. Career development & planning
5. Succession planning
6. Organization change
7. Job Functional
8. Compensation evaluation
Importance of HRD
Human resource development is an integral part of Human resource function of an organization that deals with development of the human resource through trainings and experiential learning. HRD develops the key competencies of a person through performance analysis, identifying the gap and providing training to fill the gaps. The efficiency of the system can be measured by comparing the performance of employees before and after the various trainings, counseling etc. Human Resource development has a dual objective of growth of the employee and the growth of organization. As this provides learning and growth for employees, it also leads to higher levels of employee satisfaction.
Objectives of Human Resource Development
HRD aims at having an efficient, technically equipped & a competitive workforce. The keys objectives to develop employees are:
3. Keep employees motivated & competitive by training them.
4. HRD prepares employees for taking up senior roles in the company.
5. Imbibes a sense of responsibility, ownership & job satisfaction in employees.
6. Human resource developments focuses on technical, managerial & personality development of an employee.
The overall objective of developing employees through HRM is to increase business efficiently & effectively.
Hence, this concludes the definition of Human Resource Development (HRD) along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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