Why is Human Resource Development Important in an Organization?

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

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)