INTRODUCTION TO HUMAN RESOURCE DEVELOPMENT (HRD)

HRD is development process were it focuses on improving the existing capabilities of employees
and helping them to acquire new capabilities required for the achievement of organizational and
individual goals.

Human Resource Development is the integrated use of training, organization and career
development efforts to improve individual, group and organizational effectiveness. HRD
develops the key competencies that enable individuals in organizations to perform current and
future jobs through planned learning activities.

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The term HRD is often confused with HRM (Human Resource Management) – so how are they
different?

Difference between HRD and HRM

Both are very important concepts of management specifically related with human resources of
organization. Human resource management and human resource development can be
differentiated on the following grounds:

 Human resource management is mainly maintenance oriented (admin tasks, employee

files, payroll, etc.) whereas human resource development is learning oriented. HRM
motivates employees by giving them monetary incentives or rewards whereas human
resource development stresses on motivating people by satisfying higher-order needs.
 Responsibility of human resource development is given to the personnel/human resource
management department and specifically to personnel manager, whereas responsibility of
HRD is given to all managers at various levels of the organization.
 Organization structure in the case of human resource management is independent,
whereas human resource development creates a structure that is inter-dependent and
inter-related. Human resource management aims to improve the efficiency of the
employees, whereas HRD aims at the development of the employees as well as
organization as a whole.

Benefits of Human Resource Development

Human resource development s considered as the key to higher productivity, better relations and
greater profitability for any organization. Appropriate HRD provides unlimited benefits. Some of
the most important are:

 HRD (Human Resource Development) makes people more competent. HRD develops
new skills, knowledge and attitudes of the workforce.
 With an appropriate HRD program, people become more committed to their jobs. People
are assessed on the basis of their performance by having a acceptable performance
appraisal system.
 An environment of trust and respect can be created with the help of human resource
development.
 Acceptability toward change can be created with the help of HRD. Employees found
themselves better equipped with problem-solving capabilities.
 It improves the all-around growth of the employees. HRD also improves team spirit in
the organization.
  It also helps to create an “efficiency culture” in the organization. It leads to greater
organizational effectiveness. Resources are properly utilized and goals are achieved in a
better way.
 It improves employee participation. Workers feel a sense of pride and achievement while
performing their jobs.
 It also helps to collect useful and objective data on employee programs and policies
which further facilitate better human resource planning.

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REWARD MANAGEMENT

Reward management is concerned with the formulation and implementation of strategies and
policies in order to reward people fairly, equitably and consistently in accordance with their
value to the organization. It deals with the development of reward strategies and the design,
implementation and maintenance of reward systems (reward processes, practices and procedures)
which aim to meet the needs of both the organization and its stakeholders. Reward can be
regarded as the fundamental expression of the employment relationship.

The reward system

A reward system consists of a number of interrelated processes and activities which combine to
ensure that reward management is carried out effectively to the benefi t of the organization and
the people who work there. These are described below.

Reward policies
Reward policies address the following broad issues:

• the level of rewards taking into account ‘market stance’ – how internal rates of pay should
compare with market rates, eg aligned to the median or the upper quartile rate;

• achieving equal pay;

• the relative importance attached to external competitiveness and internal equity;

• the approach to total reward;

• the scope for the use of contingent rewards related to performance, competence, contribution or
skill; • the role of line managers;

• transparency – the publication of information on reward structures and processes to employees.

Total reward

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TYPES OF REWARD IN HRD

Rewards can be anything in the form of pay, benefits, facility and or status paid by
organization to employees that motivates employees for the best performance. Rewards
can be classified on the various bases. The bases are feeling, economic value and
evaluation;

Intrinsic Reward

The reward linked with the internal satisfaction of an employee for their best performance
perceived from their side is known as intrinsic reward. This reward is experienced by an
employee himself/herself perceived from the result of their job performance. This reward is
not related to what an organization provides to an employee. This type of reward can't be
seen or touched. This achievement oriented reward. Employees feel pleasure for this type
of reward.

Extrinsic Reward

Reward received by an employee from an external source is known as extrinsic reward.

Salary, wages, bonus, facilities, recognition, praise, medal, certificate of appreciation,
promotion etc. provided by an organization for job performances are the examples of
extrinsic reward. This reward has a physical appearance and can be touched, felt and seen
by an employee. Since, this type of reward affects many employees, special attention
should be provided while making the provisions for the extrinsic reward. This type of reward
must be transparent, fair, and performance based.

Financial Reward

If the employees are financially rewarded for their performance, it is known as financial
reward. Financial reward is related to the enhancement of employee's financial well-being. It
helps to fulfill the basic and other requirement of employees.

Non Financial Reward

Rewards which are not related to financial matter is known as non
financial reward. Financial reward doesn't always motivate the
employees. This reward is not related with the economic well being. An
organization has to make an appropriate combination of financial and
non financial reward.
Performance based reward

Reward which is based on the job performance is known as performance based reward.
Under this provision, high producing employees will be rewarded highly and low producing
employees will be rewarded at low level. Likewise, employees producing higher quality will
receive high level of reward and employees producing lower level of quality will receive
lower level of reward. It is not just distributed because of being associated of spending more
time in an organization. It is paid for the outstanding performance or remarkable contribution
made by an employee.

Membership based reward:

This type of reward is indifferent to the level of performance and position of employee. In
fact, this types of reward is paid for being a member of organization. This reward is based
on the policy, rules and procedure of the organization.

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TALENT MANAGEMENT