HUMAN RESOURCE DEVELOPMENT AND CHALLENGES FACED TO SURVIVE HRD IN INDIAN ORGANISATION

K.Pragathi ; N.Sailaja Department of Business Management V.R.Siddhartha Engineering College Kodali.pragathi@gmail.com; sailunims@yahoo.co.in

Abstract:

Human resources Development (HRD) plays significant role in market economies and more so in an economy tending towards market conditions like India. Global competitiveness has created customers diagonally opposite to what we have today. This is the problem, challenge and opportunity. So the present paper is to give review on the basic of what is HRD in organisational context. it also gives the functionality and scope of this field along with its current facing and future perspective challenges. It also touch the problems at employee perspective. Keywords: HRD, organisational context, challenges, perception. scope & functionality, problems, employee

I.

Introduction

Opening up of the Indian economy more than a decade ago sparked off a series of events that have impacted the way of perceiving the available resources especially human resources. Human resources have unique capacity to formulate and consciously transmit knowledge from one generation to other. In recent era knowledge has taken new forms because of advancements in technology and relevant applications. Thus the knowledge form change brought fundamental change human development form being limited to material processs to the infinite and creative potential of human processes. Applying new knowledge continuously results in continuous innovation which yields social dividends for the civil society through inter alia, greater levels of education, empowerment of women health, which together results in improved human resource development (HRD). It is also an important objective for planning the development, since it is an important means to achieve higher levels of overall development. Whereas in case of organisations the point of realisation (need of HRD) started at the point of competitive nature the industries adopted after liberalisation. Human Resource Development also started gaining focus as organisations realised that it was not just the machines but the humans running them counted. Management gurus also propounded that Human Resource Development was the only source of providing sustainable

competitive advantage to organisations. This view was based on sound reasoning; hence Human Resource Development started getting the attention from industry champions. Human Resource Development in India earlier was s seen as a support function to take care of hygiene factors. Many organisations mixed up Human Resource Development with industrial relations function; others saw Human Resource Development as a necessary requirement, and quite a few considered Human Resources Development as a cosmetic semantic adornment to impress. Now Human Resources Development in India has gained a strategic position in the corporate scheme of things. Human Resources Development decisions now actually shape the future of organisations and have the power to dictate revenue streams. Human Resource Development is not just a department function anymore. Increasingly managers and technocrats are required to build on Human Resource Development skills as a means to generate success for themselves and their organisations. The former president of India, Dr.A.P.J.Abdul Kalam, a renowned scientist projected a vision for India in 2020 as a strong democratic country. He firmly believed that his vision of a strong country will be fulfilled by building upon the contributions of each individual citizen. This statement clearly states about the significance of HRD in the development of organisations.

II.

General Purposes and Functions of HRD

Behind the theoretical debates concerning the nature of HRD, there is a set argument pertaining to the purpose of HRD. The purposes of HRD are said to influence the nature and extent of HRD activities being implemented (McLean and McLean, 2001). Holton (2000) proposes that the purposes of HRD are centred on learning and performance perspectives, both benefiting the individual and the interests of shareholders. In a wider perspective, Hatcher (2000) argues that the purposes centre on economic benefits, social benefits and the ethics of HRD. These points indirectly suggest that a reconciliation of the purposes of HRD centrally focus on training, development and learning within organisations for individual development to achieve business strategies and for the development of organisational competence (Gourlay, 2001). In general, the purpose of HRD, extracted from the definitions above, is to enhance individual performance and improve organisational effectiveness and productivity (see, for example, McLagan, 1989; Chalofsky, 1992; Stewart & McGoldrick, 1996). However, some definitions have very specific purposes, from behavioural change (Nadler, 1970; Chalofsky & Lincoln, 1983; Megginson et al, 2000) to developing a learning climate or learning organisation (Marquardt & Engel, 1993; Marsick & Watkins, 1994: see Table1). Moreover, in consonance with globalisation and new technology, the purpose of HRD is to meet regulatory requirements, improving quality and training for implementing new technology (Parker & Coleman, 1999; Rothwell & Kolb, 1999). Conversely, the purpose of HRD could also be seen from the perspective of the activities or key functions in HRD. The main key functions of HRD are individual development, organisational development, career development and performance improvement. In analysing the various definitions of HRD, most writers and researchers have indicated that the primary focus of HRD is individual development (see for example, Nadler, 1970; McLagan, 1983) or organisational development (Nadler & Wiggs, 1986; Swanson, 1987). However, some researchers have argued that individual and organisational development are connected and

interrelated. From this perspective, employees are expected to be provided with T&D or learning activities to improve performance, which leads to organisational effectiveness (see, for example, Chaflofsky, 1992; Swanson, 1995; Stewart & McGoldrick, 1996). On the contrary, it has been argued that when T&D is provided, other than for organisational effectiveness, it helps to develop key competencies, which enable individuals to improve their current job performance and enhance future performance for career development (Gilley & Eggland, 1989; Marsick & Watkins, 1994; Desimone, et al, 2002: see Table 1). Hence, it has been argued that the purpose of HRD is to develop an individuals career progression, rather than to encourage individual and organisational development (Marsick & Watkins, 1994; Desimone et al, 2002; Gilley et al, 2002).

Nevertheless, another key purpose of HRD drawn out from the various definitions is performance improvement. It has been claimed that performance forms one of the four key functions of HRD, as it is an important extension of HRD theory (see, for example, Smith, 1990; Chalofsky, 1992; Marquardt & Engel, 1993; Swanson, 1995; Desimone et al, 2002; Gilley et al, 2002). Hence, individual are the four main functions of HRD and can be described as interrelated functions within HRD. However, some researchers hold contrasting viewpoints on these four functions (see, for example, Nadler, 1970; Craig, 1976; Chalofsky & Lincoln, 1983). Interrelated Functions of HRD Performance Improvement (PM) Individual Development (T&D) Organisational Development(Change Management) Career Planning & Development

Purposes of HRD Improve quality Improve productivity Organisational Development Individual Development Regulatory Requirement Systems Development Economic benefits &Social benefits Ethics New technology Behavioural change Performance improvement Increase productivity Learning organisation HRD Career Development Performance Improvement

Motivation

Therefore, it is clear from the various positions of different writers and researchers that there is no consensus regarding the conceptual and theoretical purpose and functions of HRD. The purposes of HRD could be said to be changing and evolving in accordance with organisational strategies and goals. Moreover, the concepts and purposes of HRD are suggested to be in consonance with the individual countrys requirements and structure (McLean & McLean, 2001).

III.

HRD AND THE ORGANISATION : The role of the human resource development (HRD) function is to ensure that the current and future knowledge, skills, abilities and performance needs of the workforce are understood and can be achieved within the timeframe required by the organization. This is accomplished through processes and programs designed to address employee training, change and performance management initiatives, and other development needs that may be unique to specific employee groups within the organization. Competitive advantage in the marketplace is driven by people assets. In order to remain competitive, organizations must include employee education and development as part of their corporate strategy. Given the dynamics of todays business environment, it is a given that employees will be required to learn throughout their careers. This need for lifelong learning will require organizations to accept that investments in their HRD programs are a wise and strategic choice Functions of Human Resource Development in organisations: Organizations that elect to establish and invest in a formal HRD function are making a commitment to provide their employees with the skills necessary to meet current and future job demands. Ideally, HRD activities should be planned for all employees, regardless of their positions, from the time they are hired through to the conclusion of their career with the organization. Organizations provide HRD activities in order to: Support the organizations mission and strategy. Increase productivity. Enhance workforce and organization flexibility. Lower and remove performance deficiencies.

 Increase employee commitment. Lower turnover and absenteeism rates. Make and keep the workplace safe. Meet regulatory requirements.

The organizational benefits that can be realized from successful HRD initiatives are outlined in Figure 1.

Adapted from SHRM Learning System (2004), p. 121. HRD activities are divided into three main functions: 1) training and development; 2) organizational development; and 3) career development Training and Development

Training involves the process of providing knowledge, skills and abilities (KSAs) specific to a particular task or job. Training is appropriate when it has been determined that a person does not possess the requisite knowledge and skills to perform a certain job or task, but the individual is willing and capable of learning them. Training is used to fill short-term skills gaps, i.e., to provide skills for immediate use. An example of a training activity would be a medical laboratory assistant being trained as a phlebotomist to collect blood samples. Conversely, developmental activities are directed at preparing an individual for future responsibilities while, at the same time, increasing the capacity of the individual to perform his or her current job. Examples of developmental activities could include formal education and training, participation in a high-visibility project, an interdepartmental assignment and one-on-one mentoring

Organizational Development Organizational development (OD) is a planned, systematic change process that uses behavioral science knowledge techniques to improve companies effectiveness by improving relationships and increasing learning and problem-solving capabilities. 1 OD initiatives can occur on either a large or a small scale. In either instance, their primary purpose is the sameto manage change within the organization. For example, these changes can stem from an interest on the part of senior management in improving organizational effectiveness, enhancing peer or individual relationships or shifting strategic direction due to competitive pressures. Career Development Career development is the process in which employees progress through a series of stages, each characterized by a unique and personalized set of developmental tasks, activities and relationships. Employee retention, motivation and performance are affected by how well the company addresses the development tasks at each stage. Although it is widely accepted that the concept of a career has changed, the research literature does not agree on which model is best. Research suggests that employees current career stage influences their needs and attitudes, and job behaviors. 2 Figure 2 illustrates an example of a four-stage career model.

Adapted from Employee Training and Development by Raymond A. Noe, 2005, pp. 357-358 Career development consists of two distinct processes career planning and career management. Career planning involves activities performed by the individual, with the assistance of management or experienced HR professionals, to assess the employees skill sets and competencies in order to establish a career plan. Career management helps employees, managers and the company identify solutions to career development needs. A companys career management system will vary in sophistication based on the level of investment the company has made in the system. However, all career management systems should include, at a minimum, the following components: a self-assessment tool, a reality check (i.e., information about how the company evaluates the knowledge, skills, competencies and how they fit into company plans, potential for promotion, lateral moves, etc.), goal setting and action planning. IV. CHALLENGES FACED BY HRD TO SURVIVE IN INDIAN ORGANISATIONS HRD research and, to some degree, practice appear divorced from real-time problems in organizations; HRD professionals see their work being completed by those from other professions; there is limited evidence that HRD has really moved far from the fad-ridden gutters of false short-term training panaceas; and practitioners are still measuring training person-hours rather than the relationship between learning and productivity. Short, Brandenburg, May, and Bierema (2002) summarized the main trends identified by that work, focusing on the implications for HRD of the increasing pressure for organizations to deliver shareholder value, the trend toward globalization, and the need for just-in-time products, services, and solutions. However when we think about what are critical challenges that HRD is facing on its way to develop the organisations are as follows Challenge 1: Responding to Multiple Stakeholders The ongoing critical debate about whether corporations have a responsibility to a wider group of stakeholders beyond their focus on shareholders continues to capture attention (May & Kahnweiler, 2002). HRD

practitioners are caught up in the shareholder-stakeholder debate, in part because they are responsible for the learning supply chain that supports organizations. HRD cannot blindly focus on shareholder value alone if it must also respond to learning supply chain stakeholders, including primary, secondary, postsecondary, and postgraduate education institutions; continuing education, training, and development entities; just-in-time knowledge delivery systems; and other learning solutions both inside and outside corporations. As companies proceed from manufacturing to "mentalfacturing," not to take a strong position in support of the interests of learning supply chain stakeholders is as reckless as it would be for a senior supply chain manager to disregard the various contributors to the manufacturing supply process. The suggestion that HRD orient itself to multiple stakeholders implies that HRD professionals should promote corporate accountability beyond shareholders to communities and societies (Kaufman & Guerra, 2002). Perhaps HRD professionals will be able to educate the organization on the meaning of social responsibility and its relationship to corporate performance, while demonstrating effective strategies for addressing multiple needs and negotiating various stakeholder interests. No doubt, there is risk in taking a bold position in favor of stakeholder interests, but the risk is greater in doing nothing.

Challenge 2: Measuring HRD Impact and Utility To establish themselves as key players in the development of organizational strategy, HRD practitioners must demonstrate how what they do correlates with the productivity and welfare of the company (Russ-Eft & Preskill, 2001; Swanson & Holton, 1999). The future of HRD depends to a great degree on the extent to which the value it brings can be confidently measured. We believe that a focus on demonstrating impact and utility will not only lead to greater overall influence of HRD on the organization but will strengthen HRDs reputation as a legitimate profession. Therefore, over the next decade, linking learning and human process to performance and measuring learning, human process, and the resulting change in performance are crucial challenges to the field. Well-designed studies linking learning to productivity will be critical to these efforts.

HRD professionals must become skilled systems thinkers who can design and conduct measurement and analysis across the organization and pinpoint the influences of HRD efforts on employee productivity and organizational performance, linking past research results to current practice. HRD professionals must have the skills to identify valid measures of learning and growth and develop meaningful and accurate interpretations, while being ever mindful of the myriad of intervening variables that can influence learning and performance curves in work settings (Preskill & Russ-Eft, 2003). Ethical engagement in measurement work will maintain integrity around the complexity of learning and performance processes and will protect against laying shortfalls on the backs of learners and those who facilitate their learning.

Challenge 3: Orienting Toward the Future We are concerned about how little time HRD spends focused on the future. Its research and theories struggle to keep up with the present, let alone anticipate what may be needed in the coming months and years. The void is

filled by the fads, which falsely offer panacea solutions and lead to the poor reputation of HRD in delivering real long-term outcome benefits. To put it another way, HRD contains some products that are "quick-fix, flavor-of-the-month, buzz-worded remnants of a slick sales job" (Leimbach, 1999, p. 1).

Yet practice desperately needs to benefit from research and theories that apply to leading-edge issues. The challenge to HRD researchers is to anticipate what research is needed and how it can contribute to HRD practice in one, two, or three years, and then to make it available in ways that maximize the likelihood that research findings influence practitioner behavior. The ability of our profession to be consistently ahead of the game will elevate the status of HRD as a key investment in the knowledge economy.

It is just as easy to be critical of HRD practitioners for failing to focus on the future. Many are running learning activities that are out-of-date relative to new business strategies and new knowledge about learning, and the same practitioners are often late to the table when it comes to discussions on the potential learning implications of likely business decisions. The challenge to HRD practitioners is to be strategically proactive rather than reactive. Challenge 4: Focusing on Problems and Outcomes of HRD Practice Organizations are arenas with real problems that cry out for solutions. Yet the field of HRD appears to get lost in exploring its own processes. A glance through published research shows a wide variety of research agendas in HRD, but how many of them are focused on solving real problems that matter to stakeholders outside HRD? Chermack and Lynham (2002) listed the top twenty symposia topics from past conferences of the Academy of Human Resource Development. Included in the list are such internal process issues as core directions in HRD, university HRD programs, and advancing the profession through journals. Absent from the list are the major trends identified by Short, Brandenburg, May, and Bierema (2002): the increasing pressure for organizations to deliver shareholder value, the trend toward globalization, and the need for just-in-time products, services, and solutions. By focusing on outcome-level problems and determining the HRD contribution to the solution, HRD is forced to think systemically and deliver a major contribution. HRD authors need to cease writing for the converted and seek a significant contribution in the world of those who are yet to be converted and those who could be labeled as being unaware that HRD could have any role in finding the solution to their problems.

The challenge to practitioners is to move beyond a silo mentality in which solutions can be found only within HRD and to embrace a perspective that organizational problems are systemic and require systemic solutions. This requires that HRD practitioners work in problem-focused, solution-driven, multidiscipline teams within organizations.

Challenge 5: Achieving Professional Recognition

HRD is a relatively young field. Few outside HRD consider it a profession. Chalofsky (1998) argued that HRD had yet to reach the level of a mature profession because practice is based on guesswork and not on theories tested by research, practice is based on research and thinking that are at least ten years out of date, and practice is based on what the client wants rather than on what works.

As long as HRD is seen as fad driven and reactive and those who lack a sound understanding of core HRD theory and practice fill HRD jobs, then HRD will be viewed as secondary to other professions in organizations. Although it will mean painful effort, either further professional development of practitioners or the loss of existing people, HRD as a profession needs to take specific steps to increase its credibility in organizations and its recognition as a discrete field of research and practice.

Efforts to build professional recognition will require HRD to construct a sound theory base and apply those theories in practice. As Swanson (2001) stated, "HRD practice does not come close to what we know from sound theory" (p. 309). The efforts will also require a sound education for HRD professionals with accompanying professional recognition and continuing professional development, and ethical standards that are understood and applied by professionals and overseen by professional bodies. More important, as we promote awareness and recognition of HRD as a profession, we must keep our focus on values, ethics, the quality of practice, and a set of competencies through which both research and practice can be undertaken, and avoid investing energy in the building of bureaucratic processes of credentialing and standardization. Other common challenges at employee level perspective are Alignment of HRD Initiatives with Organizational Needs & Objectives. Ineffective Learning Delivery. Lack of Support from Senior Managers. Budget Constraints. Employees Unwillingness to Learn and Develop. Rate of Learning Transfer and Behavior Change. Under Resourced Learning & Development Function in the Organization. Inadequate Implementation of E-Learning Initiatives. Inadequate Implementation of E-Learning Initiatives.

Problems HRD faces in INDIA Un conscious organization. Finding place in corporate mission. Lack of identification of elements of training program. Lecture method is used. Language & cultural differences.

 Unconducive environment. Emphasis on job training only. Lack of institutes and experts. Lack of interest shown by HRD staff. Not a lucrative profession. Pitfalls in education system.

FUTURE CHALLENGES FOR HRD PROFESSIONALS Change workforce demographics. Eliminating the skills gap. Competing global economy. Meeting life-long individual learning. Facilitating organizational learning.

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