Human Resources Development as an Integral Component of Human Resources Management - Coursework Example

Human Resources Development is an Integral Component of Human Resources Management Question1 Is HRD a component of HRM or a fundamentally different approach? Introduction The design of management systems, with the objective of putting human talent to the optimal use in achieving the goals of the organisation, is termed as human resource management (Mathis & Jackson, 2011, p. 1). An organisation undertakes the human resources development process, in order to enable its employees to improve their capacity for carrying out their present and future jobs. It is also aimed at developing their general competence for their benefit, as well as that of the organisation. Thus, human resource development is concerned to a greater extent with the development of human resources in an organisation (Krishnaveni, 2008, p. 38). Human resource development emerges from training and development (Martin, 2006, p. 15). The latter has been a traditional function of human resource management. It is generally conceded that human resource management is based on the principle of positioning the apt persons in a manner that ensures the best possible performance, with a view to achieving the strategic objectives (Sims, 2010, p. 158 – 159). Discussion Human resource development is a part of Human resource management. The following discussion substantiates this contention. Hall and Torrington had believed that personnel management was focused upon the workforce, while human resource management concentrated upon resources and the holistic human resource requirements of the organisation (Talloo, 2007, p. 223). Hall described strategic human resource management as the identification of the required skills and the active management of learning, in the context of business and corporate strategy. Subsequently, Walton defined it as the introduction, elimination, modification, direction and guidance of procedures in a manner that furnishes teams and individuals with the competencies, knowledge and skills necessary for concluding the tasks of the organisation proficiently (Armstrong, 2007, p. 533). As such HRM encompasses all the aspects of the various procedures for managing employees for the development of organisation. However, strategic human resources development has been defined as development that derives from a clear idea about the ability and potential of people and functions within the strategic system of the business. It consists of strategies that are aimed at realising the business objectives (Truss, et al., 2012, p. 99). HRD comprises of strategies employed in order to achieve the objectives of the organisation. As such, human resources development and human resources management are very important concepts of management and are intimately associated with the human resources of an organisation (Beaumont, 1993, p. 1). These concepts can be distinguished on the basis of the following. Human Resource Management First, human resource management is principally seized with maintenance; whereas, human resource development is primarily concerned with development. Second, the structure of an organisation with regard to human resource management is independent. However, with regard to human resources development, a structure is created by it, which is inter related and inter dependent (Khurana, et al., 2011, p. 6). Third, human resource development attempts to develop the employees and organisation, as a whole. On the other hand, human resource management chiefly aims at improving the efficiency of the employees. Fourth, responsibility for human resource development is vested with the department of personnel or human resource management, and specifically with a personnel manager. However, all the managers of the organisation are made responsible for human resource development, irrespective of the level that they occupy in the organisation’s hierarchy. Fifth, human resource management provides monetary incentives or rewards to employees, so as to motivate them. Human resource development, on the other hand, emphasises motivating employees by satisfying needs of a higher order (Khurana, et al., 2011, p. 6). Human resources development is seized with coordinating the efforts of the organisation to provide its employees with adequate training and development (Sims, 2002, p. 165). Organisations that have limited opportunities for career development tend to have human resources retention strategies that are significantly different from organisations undergoing substantial expansion and growth. In this context, it is to be realised that investment initiatives should aim to attain very high levels of organisational performance (Deb, 2006, p. 86). At the level of the individual employee, it is indispensable that the staff believe that the skill necessary for performing their job has been provided to them. At the team level, individual workers should be able to work with others and ensure that team and individual competencies and activities are aimed at achieving the business goals of the organisation (Deb, 2006, p. 86). In the 1990s, it was generally believed that the multinational corporations adopted a non – uniform approach to the development of human resources. It was perceived that the multinational companies provided intensive training in areas that were directly relevant to the performance of the employee. On the other hand, the Indian public sector firms were seen to provide wider knowledge regarding the job (Ratnam, 1998, p. 582). One of the reasons for the ability of the Indian public sector to entice and retain employees was attributed to this perception. This was especially true of the high technology and highly competitive industries. Such, preference for the public sector in India was seen to persist, despite the substantial difference in pay and other benefits (Ratnam, 1998, p. 582). HRM and Financial Performance Human resource management practices have been shown to have a positive relationship with firm financial performance. This was established by several studies conducted in the US. A very important test regarding the transferability of human resource management practices, between nations, is with regard to the similarity of impact. However, even in the US, it has proved difficult to determine whether organisation gains are opposed to employee gains (Galang, 2004, p. 1232). Human resource development deals with the development and implementation of strategies related to people. These strategies are combined with corporate strategies. This integration is aimed at ensuring that the organisation’s culture, values and framework, and the commitment, quality and motivation of the members of the organisation contribute the utmost, with respect to attaining the objectives of the organisation (International Quality & Productivity Center, 2011). Human resource management performs the functional activities carried out by the personnel department in the past. Some examples of these activities are; human resource planning, job analysis, recruitment, employee relations, performance management, appraisal of employees, management of compensation, and training and development of employees. However, human resource management carries out these functions in a manner that is distinct from that of the personnel department (International Quality & Productivity Center, 2011). On the other hand, human resource development is indispensable for individual success, as well as national development and prosperity. The absence of such measures and the dearth of skilled human resources has prevented the growth of Pakistan. This nation’s abundant natural resources have proved to be of no avail, due to these major deficiencies (Kazmi , 2013, p. 13). Human Resource Development The human resource development model proves to be of considerable significance in aligning the concerns of employees with the operational objectives of the management. Such a model should be compliant with the management needs of the organisation and should be transparent to the organisation (Damsch, 2009, p. 1). The development of an enabling culture in an organisation is brought about by human resource development. The term enabling culture connotes the creation of an environment, wherein the organisation’s employees are encouraged to undertake initiative and risk (Khurana, et al., 2011, p. 4). In addition, human resource development enables the employees of an organisation to improve their functional capacities. This is with regard to their existing and anticipated functions in the organisation; the development of their skills to make better use of their latent potential, with a view to promoting the development of themselves and their organisation; and the development of organisational culture. The latter is aimed at facilitating a harmonious superior – subordinate relationship, motivation and teamwork, among other things (Goyal, 2005, p. 133). Moreover, education and development programmes are created by human resource development, with the objective of training and developing the employees. The term organisation development has been ascribed to this aspect of human resource development. The goals of organisation development are set out below (Goyal, 2005, p. 133). The first of these aims to develop the competencies of all the people working in an organisation, Vis – a – Vis their contemporary function. Second, to develop the capabilities of all the members of the organisation’s staff, with respect to their functions in the future. Third, to improve interpersonal relationships and the association between employer and employee in the organisation (Goyal, 2005, p. 133). Fourth, to develop team spirit in the organisation. Fifth, to achieve coordination among the distinct departments of an organisation. Sixth, to promote the health of the organisation. This is to be achieved by keeping abreast of the technological changes and by continually renewing the competencies of individuals (Goyal, 2005, p. 133). Objectives of Human Resource Development The common objectives of development responses are to improve business skills, the application of business skills and behavioural features. These elements have a major impact upon the effective performance of an organisation. It is essential for organisations to review their developmental practices and methods. Moreover, the process of investing in human resources should include certain notions. Some of these are; lifelong learning, making employees responsible for their learning and the provision of recognition for previous learning (Deb, 2006, p. 86). In one particular study, it was revealed that the large Chinese companies possessed exceptionally erudite techniques, with respect to planning managerial resources. In this regard, these companies were seen to be similar to the more advanced companies of the UK. With regard to making appointments, considerable variation in the procedures was noticed in the UK and China. On several occasions, UK companies had forsaken the supposedly rational systems, while making appointments. The emphasis of the UK companies, in the context of appraisal procedures, was seen to be on the contractual relationship between the company and the individual. These relationships were mediated, via an annual interview with the relevant member of the management. In China, the process was seen to be much more diffuse and perhaps more democratic (Easterby – Smith, et al., 1995, p. 55). As such, organisations have been attempting to make the human resource function more competent and strategic. This has been discerned after a perusal of the contemporary human resource models. In the year 2002, the Chartered Institute of Personnel and Development sponsored a study on the changing function of human resource management (Francis & Keegan, 2006, p. 231). This study has described the manner in which the notion of business partnering has dominated the views of respondents regarding human resource policy and practice. This concept has also generated queries regarding its influence in terms of the relationship of human resource management with employees and their welfare (Francis & Keegan, 2006, p. 231). In addition, successful organisations are characterised by the importance that they attach to human resource development. The fundamental beliefs, ideals, views and principles entertained by the management, with regard to the growth and development of the employees constitutes the human resource development philosophy (Krishnaveni, 2008, p. 49). One of the features of this philosophy is; the possession of unlimited potential for growth and development by individuals. In addition, organisations engage in the investment of time and concern for growth, and this is what is involved in human resource development. Moreover, human resource development is a process and not just a class of techniques and devices (Krishnaveni, 2008, p. 49). The structures of human resource development tend to be need based evolutions. Consequently, these structures vary between organisations and assume several forms. Moreover, human resource development mechanisms are the formal or systematic means that organisations undertake, in order to develop employee competencies, and for motivating and channelising their conduct. The human resource development culture of an organisation is identified by the manner in which it deals with, trusts and handles its employees. It is essential to design the subsidiary systems of human resource development in a complete and integrated system. Integrated subsidiary systems produce a synergic effect that combine to achieve the desired developmental outcomes of the organisation (Krishnaveni, 2008, p. 49). Human Resource Management in the Global Context In addition, the human resources function tends to enjoy a centralisation at the global level. In one survey, 42% of the respondents expressed their preference for centralisation at the global level, rather than that at the domestic and regional levels. The latter had been preferred by just 29% of the respondents. It was also discerned that the location of the headquarters had a tangible influence upon the place where the human resource function was centralised (ADP, 2010). In the year 2009, human resource transformation experienced a decline. However, this trend was reversed and there has been an increase in such transformation (ADP, 2010). In addition, with regard to the Americas, it was observed that 45% of the respondents were in favour of centralisation at the global level. The proportion of the respondents preferring centralisation at the domestic level was 31%. With respect to centralisation at the regional level, the proportion of the respondents was 24% (ADP, 2010). The majority of the human resource functions are frequently centralised at the global level. However, individual human resource processes are usually managed at the local level. The management of stock option is likely to be at the global level; whereas, most of the human resource processes are likely to be managed at the local level (ADP, 2010). As such, several practices relating to the enhancement of human capital are in existence. Selection tests provide organisations with a means to minimise the disparity between the objectives of the organisation and individuals. Companies that require highly skilled employees have increasingly resorted to hiring staff selectively. In other words, increased deployment of resources by an employer, while hiring employees, leads to the selection of individuals with better competence (Rodwell & Teo, 2008, p. 1828). Furthermore, the growth of human capital in an organisation is improved when compensation to employees is associated with their abilities, knowledge and skills. The presence of an equitable reward system in an organisation that promotes the motivation and retention of employees, tends to benefit the organisation to a greater extent than the cost savings procured from hiring more frequently (Rodwell & Teo, 2008, p. 1828). In this context, the presence of a developmental performance appraisal mechanism indicates a human capital philosophy. However, this system of appraisal should accord importance to the development of human resources. This is on account of the fact that it suggests that investment in human capital leads to an enhancement in organisational outcomes (Rodwell & Teo, 2008, p. 1828). This is a very important function of the management of an organisation. In fact, managements tend to make substantial investments of time and effort with the objective of providing employees with comments and criticisms regarding their performance. This information can help the employees to improve work performance and develop their potential (Rodwell & Teo, 2008, p. 1828). In combination, these human resource practices highlight an integrated and strategic approach towards human resource management. This approach entails the formulation and implementation of internally consistent policies and practices. These practices and policies endeavour to utilise the human capital of the organisation for the realisation of its business objectives (Rodwell & Teo, 2008, p. 1829). For example, in the health sector, it has been demonstrated that human resource practices constitute a crucial feature of employee and organisational level outcomes. The delivery of health care tends to be intricate. Consequently, collaboration and knowledge sharing in health care organisations can be promoted, by implementing human resource practices and systems in these entities (Rodwell & Teo, 2008, p. 1829). It has been contended that the specification of objectives results in enhanced productivity among workers in the health sector. In addition, strong associations have been discerned between human resource practices. Instances of this are the complexity of performance appraisal and training; and organisational outcomes, such as patient mortality. Furthermore, some studies have shown that competency levels in the public sector can be improved by correlating competencies to reward and performance management (Rodwell & Teo, 2008, p. 1829). The importance of human resource functions in public sector organisations can be comprehended by examining the temporal interaction of the intricate co – evolutionary influences, institutional isomorphism, social capital and strategic choice. Some organisations have significant contextual similarities. All the same, these organisations are likely to develop randomly different human resource functions and forms (Truss, 2009, p. 734). Human Resource Management in China Greater China provides an interesting instance of human resource management. This has not achieved the position of a homogenous phenomenon and there are few if any indications that it will achieve such a status in the future. Apparently, Asian or Western practices could find greater acceptance in Mainland China, if the overseas Chinese firms were to behave as filters. External management systems are rarely adopted in their entirety, by the Chinese. This seems to be all the more true regarding human resources (Warner, 1997, p. 567). Nevertheless, China has been portraying transformation in this area. It is possible for culture to influence job satisfaction. In one study, the application of the Two – Factor Theory in Brazil, showed that motivators could be employed to promote job satisfaction among those working in the hoteliering industry. The Brazilian employees exhibited the maximum job satisfaction. Their satisfaction with the work was 84% and 75% with regard to achievement (Sledge, et al., 2008, p. 1679). From these observations the importance of work, by itself, becomes evident. At the same time, one is lead to conclude that work brings about good feelings among the employees. Moreover, the common values of personal dignity, family orientation, and living and earning by honest means among Brazilians have been emphasised by these results (Sledge, et al., 2008, p. 1679). In addition, employee turnover is substantially affected by having a system of High Performance Work Practices in place. Improved employee turnover results in better financial performance by the firm. This proposition is strengthened by the existence of a positive relationship between the practices of human resource management, such as the perceived performance of the firm, and training and selection (Rhodes, et al., 2008, p. 1175). An important conclusion can be deduced from this state of affairs. This deduction states that the formulation and implementation of internally consistent policies and practices can ensure that human capital brings about the realisation of the objectives of the firm. Such achievement of the aims of the firm is by means of the development of a culture that facilitates exemplary performance (Rhodes, et al., 2008, p. 1175). As such, organisational performance tends to be influenced by several of the human resource best practices. Some of these are; rendering the reward system relevant to the corporate objectives; integration of training, so that it promotes capabilities at the corporate and individual levels; and making corporate strategy compliant with strategic human resource planning (Rhodes, et al., 2008, p. 1175). The adoption of a human resource scorecard matrix tends to correlate people, performance and strategy. This has been disclosed by several of the contemporary studies in this area. It has been suggested that an organisation can have a high performance work system by adopting a workforce scorecard approach (Rhodes, et al., 2008, p. 1175). This initiative should combine human resource functions and system with employee conduct. The benefit provided by this approach is that it combines the human resource scorecard matrix with not only strategy formulation, but also the implementation of such strategy (Rhodes, et al., 2008, p. 1175). Human Resource Management in Japan The companies of Japan adopt a novel approach towards the development to skills among their workers. This approach has been seen to be quite different from that adopted by the companies of Europe and North America. Moreover, considerable divergence has been discerned within the multinational companies of Europe. For instance, the German companies had adopted strategies that were markedly different from those adopted by the British companies (Ratnam, 1998, p. 582). Human Resource Management in India Albeit, a degree of uniformity exists in the human resource management and development approaches in a specific industry, the practices related to industrial relations tend to be quite disparate. In one study involving 99 randomly selected Indian firms, during 1991 to 1992, it was observed that the multinational companies accorded slightly greater attention to training, in comparison to the Indian companies of the public and private sector (Ratnam, 1998, p. 583). The development of people is the subject matter of human resource development. The very fact that an organisation terms people as human resources indicates that people are considered to be resources like the financial and capital resources (Gilley, et al., 2002, p. 4). Therefore, human resource development relates to the development of individuals in an organisation. Conclusion From the above discussion, it can be surmised that human resource development is one of the most important functions of human resource management. The practices of human resource development directly affect human resource development outcomes, and these have a major bearing upon the organisational outcomes. 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