Page 183 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes in substantial benefits to the organization in the long run. It aims at overall development of
human resources in order to contribute to the well being of the employees, organization and the
society at large.

Notes HRD is rooted in the belief that human beings have the potential to do better. It,
therefore, places a premium on the dignity and tremendous latent energy of people.
Where balance sheets show people on the debit side, HRD seeks to show them as assets on
the credit side.

According to Prof. T.V. Rao, HRD is a process by which the employees of an organization are
helped in a continuous and planned way to: (1) acquire or sharpen capabilities required to
perform various functions associated with their present or expected future roles; (2) develop
their general capabilities as individuals and discover and exploit their own inner potential for
their own and/or organizational development purposes; (3) develop an organizational culture
in which superior-subordinate relationships, team work and collaboration among sub units are
strong and contribute to the professional well being, motivation and pride of employees. (Udai
Pareek and T.V.Rao).
In short, HRD aims at helping people to acquire competencies required to perform all their
functions effectively and make their organization do well.

It is about updating the human skills to meet the changing needs. HR Manager has to act as a
change-agent and OD consultant for organizational development and R&D.

Did u know? HRD is that component of HRM which deals with the development of human
resources.
Competent employees may not remain competent forever. Some are minimally qualified upon
entering the organization and require additional training or education. Others enter the
organization, capable of performing at the optimum level, but their skills become obsolete after
some time. Organizations change over time and management must ensure that there is an
appropriate match between individual ability and organizational needs for the future. Employee
training gives individual the specific skills that they require for effective execution of their
responsibilities. Management development, career planning, career counseling and guidance
are also the key responsibilities of HRD.

!

Caution Even though we have latest technology but if there is none to operate, then there
is no use. So, proper training is required to upgrade the skills of the employees.

Self Assessment

State whether the following statements are true or false:

4. Human Resource Development (HRD) is a negative concept in human resource
management.
5. HRD aims at helping people to acquire competencies required to perform all their functions
effectively.
6. Competent employees may remain competent forever.

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