What is Human Resource Developmet?

HRD Deals with development and up gradation of human capital. Hrd is a process for
developing and unleashing human expertise through organization development and
personnel training and development for the purpose of improving performance. HRD
tries to bring about qualitative changes in human capital in accordance with the needs of
the organization and corporate objectives. It tries to mould the organization as per
requirements. With the 21st century in progress, nonprofit, government, and private
organizations seek to adapt to an ever-changing professional environment. Within these
organizations, human resources, HR, departments face many challenges. Their role
includes the hiring of new employees, the administration of benefits, and the monitoring
of regulation observance. To best prepare themselves for the changing face of human
resources management, HR departments must rise to the challenges of retaining and
building a talented workforce. Multi-Generational Workforce One major challenge
human resources departments face is serving multiple generations within a single
workforce. For the incoming workforce, the "hired for life" mentality of the past will be
outdated as workers increasingly change employers after 3 to 5 years of work. Placing
more emphasis on proper work-life balance, they will be motivated by learning
opportunities and positive feedback. To hold these employees, human resources
departments must be ready to respond to these needs. Changing Role As they prepare
themselves for the 21st century, human resources departments must adapt to their
changing role within an organization. Moving from a traditional to a strategic approach,
human resources management in the 21st century will be much more dynamic than in the
past.

HRM vs HRD
HRD

HRM/Personnel Management

1. continuous process

1.a routine and administrative function

2. sub-system of a large

2. Function more independent with separate

system, more organizational oriented

roles to play.

3. More proactive; it copes with the changing 3. Mainly a reactive function responding to the
needs of the people as well as anticipate thesedemands which may arise.
needs.
4. Developing the whole organization, e.g. OD.

4. Concerned with people Only.

5. involvement of the entire work force from top 5. It is basically the responsibilities of the HR
to bottom is more and a must in most of the cases department.

HRD Core Beliefs

Organizations are human-made entities that rely on human expertise to establish and
achieve their goals. Human expertise is developed and maximized through HRD
processes and should be done for the mutual long- and/or short-term benefits of the
sponsoring organization and the individual involved. HRD professionals are advocates of
individuals/group, work process, and organizational integrity

Beliefs about the Role of HRD

Helping and facilitating
Learning is the heart of HRD
Change is a learning process
Learning occurs on multiple levels
Learning and performance are both valued roles of HRD
Strong commitment to the development of people
Development of systems is important

HRD Discipline Field of Practice

Training
T&D
Employee development
Technical training
Management development
Executive and leadership development
Organization development
Organizational learning

HRD Points of Agreement

Goal of improvement

Making things better for the future

Problem / Opportunity orientation

HRD is problem oriented

It is going to improvement opportunity thinking

System Thinking

System thinking allows HRD to view things as a system

AREAS DISCUSSED UNDER HRD

Human Resource Planning
Manpower planning and human resource planning are synonyms. The basic idea of
manpower planning is, we look at the numbers we are likely to need because of growth or
contraction, promotion and wastages. In other words, it simply means ensuring
availability of right numbers of men , right kinds [types in terms of skill], at the right
point of time, at the right places for utilizing the most economically and effectively and
develop their potentials in terms of skills, performance and capacity.
Recruitment and Selection
Recruitment is the process of generating of applications or attracting applicants for
specific positions through four common sources, viz. Advertisement, state employment
exchange agencies , present employees and campus recruitment. Having identified the
potential applicants the next step is to evaluate their experience and qualification for
ascertaining their suitability for a job and make selection. Selection refers to the process
of offering job to one or more applicants from the applications. Selection is thus a means
of selecting the best-fit for a job by using multiple hurdles such as screening, short
listing based on marks, tests, interviewing ,and an equal opportunity dispenser.

Performance & Potential Appraisal

Performance appraisal also called merit rating or employee rating is a means of
helping supervisors to evaluate the work of employees. It is the name given to the regular
formalized and recorded review of the way in which an individual performs in his or her
job. This is normally carried out by the job holders immediate boss. Performance
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appraisal focuses of helping the individual to develop his or her present role capabilities
and to assume more responsibility for that role. Potential appraisal focuses primarily
identifying the employees future likely roles within the organization. Potential appraisal
is done for placement as well as for development purposes keeping in mind futuristic
requirement of the organization.
Counseling
Counseling is helping the employee to recognize his own strengths, weaknesses and
potential and potential and helping him to prepare action plans for own development.
Giving feedback in a threatening way or correcting the undesirable or unsatisfactory
behavior of employees by pointing it out the deficiencies or other malfunctioning and
warning them not to repeat these behaviors are all integral parts of a managers role and
are not the same as counseling.
Career Planning

Career planning involves identifying the right potential well in time, for development to
take over higher responsibilities. This includes promotion and planned job rotation under
various conditions and environments of challenge. In this process, attention is focused on
individuals style of working than his current performance results. Current results can
provide reasonable clues of future potential, but they are not the sole criterion; current
results only, could be misleading in judging ones potential. A persons achievements are
invariably affected by the forces outside his control. Similarly, a person may be highly
successful in one situation, but he may not continue to be a high achiever when
transferred to another job or situation.

Succession Planning

Succession planning entails in identifying the key jobs in an organization and ensuring
that , if anything, planned or unplanned were to remove the present job holder from his
post, there would be some one ready to take the place. This benefits the company by
ensuring that there are no expensive gaps, or panic measures to fill them. It benefits the
individual by providing him with opportunities for advancement. Three broad steps are
required in this context (I) to decide which are the key jobs in the organisation; (ii) to
identify the potential incumbent who can fit the position; & (iii) to make necessary
records in the organization chart. Therefore, a succession plan to indicate who can
succeed whom in the hierarchy.
Training
Training comprises an integral part of HRD process. The purpose of training is to
improve the capabilities of the human resources in order to increase their efficiency and
effectiveness on the job. Training is expected to indicate positive changes in knowledge,
skill and attitudes. Training is job oriented and fulfills the current needs of an individual
to overcome job difficulties. Training wont solve all problems, not all problems are
training problems. As we all know Training aims at development of the people in an
organization. HR Department analyses and develops various Training programs
Job Evaluation
Job evaluation is concerned with establishing the relative worth of a job compared to
other jobs within an organization. In job evaluation one attempts to consider and measure
the inputs required of employees (know-how, accountability and problem solving etc.) for
minimum job performance and to translate such measures into specific monetary returns.
Transfer, Promotion & demotion.

Transfer is a lateral movement within the same grade, from one job to another. A
transfer may result in changes in duties and responsibilities, supervisory and
working conditions, but not necessarily salary.

Promotion is the advancement of an employee from one job level to a higher one,
with increase in salary.

Demotion is the opposite of promotion. It is a downward movement from one job

level to another, leading to a reduction in rank, status, pay and responsibility

Job Analysis
Job analysis is the process of studying and collecting department information relating to
operations and responsibilities of a specific job. The immediate products of this analysis
are job description and job specification. Job description is an organized factual statement
of duties and responsibilities of a specific job, whereas, job specification is a statement of
the minimum acceptable qualities necessary to perform a job properly.
Rewards
Rewards are the positive reinforcements given by the organization. Rewards act as
effective motivators and help people to increase productivity and efficiency. Rewards
include:

Promotion

Incentives

Increments, etc

PHASES FOR ADOPTING HRD

Learning and HRD
Maximizing learning and creating a learning environment is essential for building
HRD in organization
Individual differences in the learning process should be recognized and treated
differently accordingly. Making full use of individual skills and knowledge is the
core essence of HRD
Learning strategies and styles by adopting strategic planning and adopting
leadership according to the situation so to have effective decision making.

Assessing HRD needs

Strategic organizational analysis.
Conducting a strategic analysis and assessing what organization needs are
and how they are to be dealt with. Keeping in focus the external pressure
that may effect the organization such as:

Political pressure

Technology

Economic factor

competition

Task analysis
This involves the task and guidelines needed to manage HRD practices.
The organization must follow SOPs to effective implement HRD
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practices. Must evaluate each alternative so to have a better view of how

to manage.

Person analysis.
Conducting a persosn analysis of individuals who are responsible for
implementing HRD. Evaluating whether they would be able to manage
and implement practices.
Prioritizing HRD needs.
Giving priority to HRD resource as to when which practice is to be
focused first. In case of technological change it would be necessary to
provide effective training first. Similarly in case of increasing performance
conducting performance appraisal and provided incentives would be the
first priority.

Designing Effective HRD Programs

Defining the objectives of HRD interventions.
Creating or purchasing HRD programs.
Selecting the trainer.
Preparing a lesson program.
Scheduling the HRD program.

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Implementing HRD Programs

Training delivery methods.
o On the job training method.
o Classroom training approach.
o Self-Paced/computer-based training.
o Media and methods.
Some final Issues concerning training.
o Post-training evaluation

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FACTORS AFFECTING THE ROLE OF HRD

Globalization
Greengard (1995) defined globalization as the system of interaction among the countries
of the world in order to develop the global economy. Globalization refers to the
amalgamation of economics and societies around the world which means that world trade
and financial markets are becoming more integrated. Growing internationalization of
business has its impact on HRM in terms of problems of unfamiliar laws, languages,
practices, competitions, attitudes, management styles, work ethics etc (Srivastava &
Agarwal). Globalization has an effect on employment patterns worldwide. It has
contributed to a great deal of outsourcing which is one of the greatest organizational and
industry structure shifts that change the way business operates (Drucker, 1998).
Globalization is also seen as changing organizational structures where expenses can move
up or down as the business climate dictates (Garr, 2001). As a result HR managers have
to confront with more heterogeneous functions and more involvement in employee's
personal life.
Technological advances
Technological advances have a significant impact on HR business practices. Due to the
advancements in the technology there has been a drastic change in the approach to the
various projects and the scenarios that guide to the organizational regulations.
Firstly, the need of skilled personals is mentionable. In order to survive in a competitive
environment the organization definitely in need of the skilled personals in substantial
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number to handle the situations and technical equipments. In an organization there are
"hot" sectors which require a high of technical experts like telecommunications,
hospitality, retailing, banking, insurance, bio-technology etc. Next head which is worth
mentioning is the downsizing. New technologies have decimated many lower-end jobs
with frustrating regularity. The increased automation also has reduced the employee head
counts everywhere. The pressure of remaining cost-effective in every aspect has also
compelled many a firm to go lean, and thereby cutting down extra fat at each and every
managerial level (Anurag, 2011). Managing the expectations of knowledge workers is
also going to be a major area of concern for all HR managers in the years ahead.
Other aspect is telecommuting where the employees started to work remotely from a
place other than their primary office. Telecommuting became a popular alternative to
avoid the daily commute where the employees use phones and internet to transmit their
office works.
This has been a powerful cost effective tool in the sense that companies have been
successful in increasing their applicant pool through this mode and staffs also may live
far away from cities and gain considerably due to savings in rents, transportation, etc.
The biggest issue due to technological advancement is adaptability, with companies
looking at tools which can integrate with the internet, while other issues of concern
include data privacy, security and business continuity/disaster recovery.
Workforce Diversity
Diversity by definition for the business world means having a workforce that represents
many different viewpoints, backgrounds and cultures. Diversity affects all areas of
organizations from recruitment to compensation, to the affect it has on the corporate
culture, morale and competitiveness. Diversity in the workplace is an increasingly topical
theme in management. Diversity within HRM, termed as workforce diversity, is a
multifaceted phenomenon that can be defined as any visible or invisible difference
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between organisational members. Diversity can be labelled into two distinct aspects:
observable differences (e.g. nationality, age) and underlying differences (e.g. values,
sexual orientation). Workforce diversity becomes a particular issue in HRM as it has
legal, moral and business implications for an organization.
There are a number of ways in which people respond to diversity. Behavioural and
emotional reactions to diversity are explained largely by three theories: the similarity
attraction paradigm, social identity theory and social categorisation theory (Pearson,
1995). Workplace diversity has its positive effects (e.g. innovation, flexibility) as well as
negative effects (e.g. high turnover, decreased job satisfaction). However, diversity
management can help mitigate the adverse effects of diversity and capitalise on the
positive effects.
With the fusion of talents of diverse cultural backgrounds, genders, ages and lifestyles, an
organization can respond to business prospects more vividly and creatively, especially in
the global arena, which must be one of the main organizational goals to be attained. The
risks of losing talents to competitors occur when an organizational environment does not
support diversity. This is especially factual for a multinational company (MNCs) who
have ventures on a global scale and employ people with varies ethical and cultural
backgrounds. Thus, a HR manager needs to be mindful and may employ a Think Global,
Act Local approach in most circumstances.
Changes in political and legal environment
If there are Changes in political and legal environment, then almost all aspects of HRM
will be affected by the legal and regulatory environment. The key drivers of a political
climate include the extent of external regulations, nature of work contracts, various
labour legislations and case laws etc. Such factors remain ever changing, and as such, the
political atmosphere of human resource management remains in a constant change of
flux. It is the duty of human resource and industrial relations executives to anticipate the
changes and fully examine the implication, of these changes and brings about necessary
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adjustment within the organization so that they can face any changes without any
breakdown in its normal functioning.

Changes in the Economic Environment

In an economic situation companies suffer both internal and external pressures. The
external competitive pressure stemming from the economic crisis produces a drop in
demand and an increase in unemployment, which in turn affects the global competition in
the market. On the other hand the internal management of the company focuses on
efficiency. This leads to pressure to reduce costs and fringe expenditure, as well as to the
need to justify the need for each and the total amount of all expenditure to be incurred.
High unemployment and layoffs are clearly HRM and managerial issues. Without a
doubt, these matters influence the strategic HR function. In an inflationary economy, the
resources tend to become scarce and the costs of machine, materials and labour multiply.
These push up the capital and running costs.
Ethics
While considering the challenges of human resources there is a need to discuss about
ethics. The discussion about ethics happened during mid 2000s when several companies
were found to have engaged in gross unethical and illegal conduct, resulting in the loss of
billions of dollars from shareholders. Companies are seeing the value of implementing
ethics codes within the business. Many human resource departments have the
responsibility of designing codes of ethics and developing policies for ethical decision
making. According to Steve Miranda, chief human resources officer for the Society for
Human Resource Management (SHRM), "[the presence of an ethics officer] provides a
high-level individual with positional authority who can ensure that policies, practices,
and guidelines are effectively communicated across the organization"( McGraw, 2011).
Developing policies, monitoring behaviour, and informing people of ethics are necessary
to ensure a fair and legal business.
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In the present era most of the organizations are competing globally for their best
reputation, by keeping in view the above issues and challenges the HR mangers are
responsible to train all the young workers, to provide them best rewards as a result they
will show their commitment and loyalty.
- Technology has changed each and everything with great extent, the methods of
production, the process of recruitment, the training techniques, new equipment and
technology should be introduced and purchase by the organization and training should be
provided to young and educated workers.
- To cope up with the issue of Globalization HR manager should adopt the concept of
Globalize Human Resource Management (GHRM) where it prepares the skill people or
manager worldwide. This way the trend of globalization can be minimized with some
extent.
- Human resource manager should develop such a HR system which consistent with other
organization elements such as organization strategies, goals and organization style, and
organization planning.
- Regarding the debate on work force diversity, the HR manager accountable to make
such a broad strategies which help to adjust employees in global organization, HR must
increase the ability to compete in the international market.
- Organization culture is also another important element which must be consider by the
HR manager, the culture must be like to shape their behavior and beliefs to observe to
what is imperative.
- To provide more and more talent people into the organization the HR manager must redecide and re-arrange the staffing functions, for recruitment selection, training and

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transfer, promotion, dismissals, placement, demotion and layoffs of the employees

separate strategies should be developed and implemented.

HRD Scenerio in Indian Organization its Problems and Prospects

INTRODUCTION
From the early days of HRD Interventions introduced in Larsen & Tubro in 1975, we
have traversed a period of 26 years and during these period, in Indian Organisations the
importance of Human Resource Development has been comprehensively felt and various
processes and instruments of HRD are being applied in different Organisations in the
manufacturing, financial and Service sectors. Whether it is a case of SBI, LICI, GIC or
Canara Bank, Indian Bank or it is a case of HMT, TISCO, TELCO, NDDB, Thermax,
Hindustan Motors, the importance of HRD in managing people for results and bringing
effectiveness in the field of `Management' have been widely appreciated in all the
Conferences of National HRD network.
Critical Issues
Critical issues which are identified by the Top Management Team in different
Organisations share the same concern and deal with identical problems. It is found on a
survey of the Indian Organisations that in the following fields HRD has to be
Strengthened.

Recruitment and Promotion Policies of different Organisations are to be reviewed

on a recurrent and continuous basis. Merit and competence should be given
greater emphasis in promotions.

Performance Appraisal System in the Organisations is to be modified so that the

right persons are rewarded in the right manner and placed in the right posts.

Greater emphasis is to be laid on Human Resource Development and Training.

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Communication system is to be improved.

Motivation, morale, commitments and sense of belongings and involvement of

employees at all levels should be enhanced.

Greater attention is to be paid regarding development of first line supervisors,

second and third line executives.

Policies, Rules and Procedures of the Organisation are to be consolidated and

reviewed on a consistent and recurrent basis.

DEFINE GOALS OF HRD

In LIC, it has been identified the following goals of HRD. To facilitate in giving
sufficient and prompt service to the customers, LIC reorganised structures and system in
the early 1980s. The goals of the personnel Policies in the restructured set up are
identified as follows.

To ensure that adequate number of persons with sound insurance background and
experience both in generalist and specialist are available at different operative and
supervisory and managerial levels.

To evolve the personnel system so that the employees are provided equitable
opportunities to move up in the Organisation on the basis of their performance
and ability.

The employees repose confidence in the personnel practices followed by the

Corporation. The Policy should not only be fair and just but also to be perceived
as fair and just.

To ensure that responsibility for results is provided right from the lower level so
that employees can develop a sense of independence and self confidence.

That jobs are enlarged and enriched and are performed in a manner that nurtures
team work providing opportunity for learning new and varied skills thus, making
the work more satisfying and meaningful.

That those employees who show special aptitude for different skills are carefully
provided appropriate training experiences.
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Several strategies to achieve the above stated objectives and goals were
developed. Consistent with the Policy of Consensus, new strategy were circulated
and discussed with groups of employees. It was clear that LIC needed a
comprehensive HRD approach in 1987. The Organisation stated its beliefs about
HRD as under :
* That Human potential interest in every employee is vast; it can be further
enhanced by various Interventions like Training, Job-rotation, counselling
Organisation Action etc.
* That people are major assets and that an Organisation can make full utilisation
of individual

potential by providing a developmental environment and

opportunities by encouraging and rewarding innovativeness and creativity.

* That such people, who are unable to contribute to the Organisation fully due to
reasons beyond their control can also give their best if they are taken care of and
proper environment and conditions are provided.
* That competency can be developed in people at any point of time; as model
employer it is desirable that we encourage competency enhancement.
* That HRD provides higher quality of work-life through opportunities of a
meaningful career, job satisfaction and professional development.
* That HRD philosophy emphasises human well being and Organisational growth.
* That HRD Policies are relationship centered and the extent of relationship under
HRD is life long and not merely for 8 hours a day.

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* That as a model employer we must provide for employee growth; if an

employee perceives anurturing environment, automaticaly there would be a
positive response to match individual aspirations with Organisations needs.
* That HRD processes have to be planned and continuous in order to be effective.
Keeping the above HRD beliefs and goals in front of the organisation our Central
Office, HRD Cell, have so far undertaken the following few steps to bring about
change and turn around in the Organisation.
Another important and significant decision has been taken by LIC to upgrade the
servicing standard by technical up-gradation, by introducing over a period of time in a
phased and progressive manner the Front-end Application in our Branches, indicating that
the Cash, NB, Sales, PS work will be controlled, monitored and regulated through
Machines. This has been contemplated in order to reduce response time and also in order
to generate speed in our working of different Desks of our Branches. This has also been
envisaged that through Front-end which will ultimately be developed to a Local Area
Net-working System (LAN) definitely, our Organisation will be in a position to satisfy
the Policy Holders who are having high levels of expectations and who want that
Organisation should use modern technology to satisfy their demands and needs. The
entire Programme for 2,000 plus Branches in LIC, will be implemented in a phased
manner through a process of trial and experimentation and reviewing the results achieved
and arranging for mid-course correction and Co-ordination at different levels.
The entire organisation need for facing the change and entire HRD thrust will be
determined by comprehensive modern and effective system of training to be imparted to
our Assistants, HGAs and different levels of Officers in the Organisation, both in the
marketing side as well as in the administrative side.
This also involves a wide net-working of training for our large number of Agents on a
selective and time budgeted basis. Without adequate efforts, total sincerity and massive
involvement in the training field, the Organisation can not develop appropriate strategy to
face the changes and challenges of modern competitive World. Therefore, MDC, ZTC,
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STC all have to play their significant role in bringing about a total cultural changes in the
organisation. 180 degree turn in the Organisation is possible only if the operating
Departments, the Supervisors and Executives of the Organisation supported by the
massive co-operation of all classes of employees and Agents, work in close co-operation
with the training establishments. The different instruments of HRD have to be integrated
through proper implementation of our objectives for the raising of the standard of output
and productivity of each employee and bringing about a new change in the organisation
so that it can serve its objectives and successfully implement the goals of the
Organisation.
HRD can not be conceived in isolation; it is the imperative need for the individuals
growth, Organisational growth and making the Organisation prepared to face any new
challenges which may emerge from the external and internal environment. It is also not a
pious philosophy without any pragmatic root, it is a strategy as we have seen in the case
of Steel Authority of India, how they have brought about a turn around in the
Organisation by adopting HRD strategy. We shall have to distinctly understand the
significance of this strategy. Not only SAIL or Indian Oil Corporation or in Organisations
like HMT and Thermax, HRD has been assigned a major role in changing the work
approach and work ethics of the employees and Officers but even in a small Organisation
in our Country, the need for Human Resource Development, the need for training
updation and bringing about innovative strategy have been felt comprehensively.
This is a continuous process. We cannot expect magical results. This is also painstaking
and has to pass through lot of Organisational constraints and difficulties. The internal
Policy of the Government, the internal outlook, the outlook of the Government towards
employees in the PSUS and other Semi Government concerns, the overall IR climate, the
Social, political, cultural network in the Country, the fulfilment of legitimate aspirations
of employees of different cadres and different Organisations - all these are variable
factors for a new instrument of Human Resource Development. New interventions, new
innovative practices and lot of creative designs have to be thought of in making HRD
design and HRD strategy successful; there can not be a set pattern of HRD
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implementation for all Organisations. The Organisations potential, existing state of

affairs and existing industrial relation climate also have to be specially considered to
bring about effective change in the Organisation, through HRD Interventions.
To sum up, after surveying the HRD climate in different Organisations, we may feel that
there is huge scope in making HRD really effective, result-oriented and achievementoriented. Potentiality of every human individual in the Organisation is immense and
people will have to change their perception about the job, work systems and work
approach on a continuous basis. Because the market is in the midst of, massive and
radical changes in the present World, the customers expectations and demands are also
changing very fast. So, by upgrading our capability and by utilising optimum level of
skill through training and orientation, we can develop a vibrant and consumer-friendly
Organisation. Problems before HRD practitioners are many. Social problems,
Oranisational problems, psychological problems relating to mental blocks and prejudices,
problems from the Trade Unions, problems relating to lack of commitment from the top
management and middle level management - these are all passing phases in the
developing scenario of an Organisation. The constraints before HRD implementation
have to be faced in a radical manner through process of Organisational diagnosis. Once
the problems are sorted out and solved and we can see new prospects before the
Organisation. HRD helps our power of rational judgement to understand the problems; it
also helps to build up new initiative and vision to solve the problems in the Organisation
concerning people, product, system and technology. Therefore, HRD is the most
important challenge before all organisations in the 21st Century.

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HRD ISSUES / CHALLENGES

Strengthening Primary and Secondary Education
Primary and secondary education provide the basic skills of literacy, numeracy,
communication and problem solving skills and develop the required attitudes which are
necessary for the workplace. These skills and attitudes enable the people concerned to
acquire job specific knowledge and skills They are a foundation for further education and
training which has become increasingly important with fast changing technology, rapid
obsolescence of knowledge and the intense competition of the globalised marketplace.
Studies show that primary schooling improves the productivity of small farmers.
Evidence from 13 low income countries show that 4 years of schooling were
accompanied by some 8% increase in farm output. Where there were complementary
investments in better roads or access to marketing facilities, fertilisers and improved crop
varieties, the positive impact of 4 years of primary schooling was higher.
Expanding Post Secondary Technical Education and Training
A number of developing Asian and Pacific countries are at present involved in labour
intensive lower technology manufacturing. They intend to or are already upgrading into
medium technology manufacturing. Higher technology manufacturing involves fewer but
more skilled workers and more technicians and engineers. In this regard, it may be of
interest to note that when Singapore decided to restructure into medium technology
products from labour intensive lower technology manufacturing in 1979, it expanded the
training of skilled workers, technicians and engineers from 1980 onwards. An issue for
developing Asian and Pacific countries, which want to move into medium technology
manufacturing, is the need to expand post secondary technical education and training.
Given the time lag in education and training institutions producing the needed graduates,
23

alternatives like importing foreign manpower and working with foreign companies to
train skilled workers and technicians for the economy in excess of their own requirements
may be considered.
Upgrading Skills in the Service Sector
As developing countries in Asia and the Pacific industrialise further, the size and
contribution to output and employment of the service sector will increase. Liberalisation
will also increasingly affect the service sector. The development and the productivity of
the service sector will become more important. Service industries which are not exposed
to international competitiveness tend to have lower productivity. Developing countries in
Asia and Pacific will increasingly need to pay greater attention to the development of the
service sector and the raising of its productivity. This may involve the development of
new service industries, the rationalisation of existing service industries, where applicable,
and the improvement of productivity of individual service enterprises. There are
opportunities for the development of new service industries in many developing Asian
and Pacific countries to service national, subregional or regional markets. An example of
a seized opportunity is the software industry in Bangalore which services not just the
region but also OECD countries. Other possibilities include medical services, legal
services, logistics, lifestyle, information and communications. Various measures will have
to be taken to develop these new service industries including having the appropriate
policies, regulatory framework and infrastructure. Manpower will also have to be
developed and overseas recruitment of trained and experienced professionals and
supporting staff will be necessary. The experiences of outstanding service companies in
the world, especially the United States and Japan, indicate that the development of a
quality culture is essential to higher productivity. Such a culture enables the enterprise to
develop management systems to improve productivity and to motivate employees to
deliver quality service. The commitment by top management to its implementation is
critical. At the same time, management systems designed to achieve higher productivity
and customer satisfaction are also necessary. These include quality improvement
practices; good human resource management practices; performance management
systems providing for clear customer oriented performance standards in work; and
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technology management which involves the use of modern technology to improve

customer service and to make work easier and more rewarding to employees. The
attitude, knowledge and skills of workers is a major ingredient in service quality. The
upgrading of service skills is an issue for many developing countries of Asia and the
Pacific. Skills standards for service jobs are generally underdeveloped. Without such
standards, it would be difficult to improve performance and have career development.
Training in the service sector tends to be inadequate. There is a need to set skills
standards for service vocations and to certify service skills. Training programmes should
then be developed to teach these skills. To this end, industry bodies in the service sector
will need to work with government bodies dealing with training and certification to
develop standards and certification of skills and training programmes to teach such skills
for their respective service industry.
Continuing Education and Training
Given the rapid obsolescence of knowledge and the fast change in technology, there is a
need for continuing education and training on the part of all employees whether they are
managers, supervisors or rank and file workers. Greater attention needs to be paid to
continuing education and training in many developing Asian and Pacific countries.
Continuing education and training will have to be looked at holistically and
systematically and improved and expanded. Government training agencies, employers'
organisations, education and training institutions and trade unions should be involved in
the exercise to review the existing situation in regard to continuing education and training
and to map out its future development.

Greater Employers' Involvement in Education And Training

Presently major national decisions on education and training in developing countries of
Asia and Pacific are invariably made by the government. A major responsibility of
education and training institutions is to produce trained manpower to meet the needs of
industry. Employers should seek greater involvement in national education and training
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policy making. They should be consulted as a matter of course in the formulation of

major education and training initiatives. This should be complemented by greater
exchanges between individual enterprises and schools and training institutions. The
prospect of industry receiving job entrants better equipped for the world of work will be
enhanced. This involves ensuring the continued relevance of courses and syllabi of
tertiary educational and training institutions and accepting and ensuring the effective
industrial attachment of students of tertiary institutions. At the school level, the linkage
may involve increasing the awareness of students to the world of work, the relevance of
vocational courses and the familiarity of vocational teachers with the industry they are
preparing their students for.
Adapting Education and Training
To The Market Economy The education and training system of countries in transition to a
market economy was designed for a command economy. Under such a system basic
education was of a high standard but subsequent training was too specialised. Adult
education and training was neglected since workers were expected to be in one job
throughout their working life. Furthermore subjects such as economics, management
science, law and psychology were ignored or underemphasised. Such a socialist
education and training system was inadequate for the needs of the market economy which
is being set up. Reform of the education and training system is needed. The World Bank
lists the financing, content and delivery of education as the three priority areas for
education reform in countries in transition to a market economy (World Bank 1996).
Much progress has been made in the reform of the education and training system in these
countries as they move closer towards a market economy. However much more remains
to be done. The above is not a comprehensive list of the HRD issues/challenges
confronting developing countries of Asia and the Pacific. It is a list of the major
issues/challenges from the perspective of employers. They do not affect all the
developing countries in the region. Nor do they necessarily affect them to the same
degree when applicable. Furthermore the list does not in any way imply that no country is
dealing with the issues/challenges at all. Thus in regard to the poor education level of the
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workforce, Thailand was reported to be intending to launch a programme on October

1995 to upgrade two million poorly educated factory workers from primary to lower
secondary school level by the year 2000. As regards the issues of expanding technician,
engineering and scientific manpower, Malaysia for instance has unveiled a ten-year
blueprint to promote technical education from 1996. It has announced its intention to
increase enrolment in universities to 40% of those between the ages of 19 and 24 by the
year 2020. It also has inaugurated the Academy of Sciences, Malaysia, and designated
twenty one research institutes as approved institutions whose services would enjoy
double taxation deductions when used by the private sector. A Science and Technology
Human Resource Fund of M$300 million to provide scholarships for postgraduate studies
as well as fellowships for graduate research has been set up. Even when countries are
dealing with them, it is useful to draw the attention of employers and their organisations
to these issues so that they can play a role in the implementation and review of the
measures being taken. Where action has not been taken by countries, employers and their
organisations can contribute to the formulation and implementation of measures to deal
with these HRD issues. The measures to be adopted must necessarily take into account
the situation in each individual country -- its stage of education and training and
economic development as well as its historical and political context. There cannot be one
single solution to each of the HRD issues/challenges. However the experience of other
countries in and outside the region in dealing with these HRD issues/challenges will be
useful. The principles and approaches behind their best practices will be useful in the
quest for measures to deal with these HRD issues/challenges.

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THE HRD ROLE OF EMPLOYERS' ORGANISATIONS

Employers' organisations in Asia and Pacific developing countries have an important role
to play in HRD. Since they deal with labour matters, HRD is an area within their
responsibility. Their prime task is to ensure that the education and training system is
"demand driven" and responsive to the changing needs of industry. One role they can
undertake is to contribute to HRD policy making. They should seek representation on
national education and training bodies and the policy making bodies of tertiary education
and training institutions. Submissions should be made on major aspects of education and
training requiring improvement or on any planned major education and training changes.
In this regard they may wish to take up the issues/challenges listed in part five which are
applicable to their countries. Employers' organisations may want to encourage individual
enterprises to work with schools and other education and training institutions in
programmes which improve the relevance of vocational courses, introduces the world of
work to students, increases the familiarity of teachers with the industries they are
preparing their students for and promotes the teaching of the basic skills required by
industry. In this regard the employers' organisation may want to establish jointly with the
Ministry of Education, a committee to improve linkages between industry and education
and to promote collaborative programmes between enterprises and schools.

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CONCLUSION
The importance of HRD cannot be overemphasised. The Chinese philosopher, Guanzi
(551 - 479 BC) said that
"When planning for one year, there's nothing better than planting grain, When planning
for ten years, there's nothing better than planting trees, When planning for a lifetime,
there's nothing better than planting men".
In his own words he explained that grain is something that is planted once and produces
only a single harvest. Trees are planted once but may produce ten harvests. Men are
things that are planted once but may produce a hundred harvests. HRD contributes to
economic development. It does not by itself make such growth possible. Employers'
organisations of Asian and Pacific developing countries face the challenge of defining
their HRD role. Their decision will affect the standing and relevance of their
organisations to enterprises and their contribution to the economic and social
development of their countries in the 21st century.

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BIBLIOGRAPHY
http://www.shilpabichitra.com/shilpa2000/v197.htm
http://www.citehr.com/research.php?q=hrd-scenario-in-indian-organisation&pag=6
Jac Fitz-enz, The Saratoga Institute, June 6, 2002.
Web Self-Service Technology Begins to Deliver Result Towers Perrin e-Track Survey
press release, Towers Perrin, January 16, 2002.
Nigel Rayner, Lee Geishecker, Gartner, Corporate Performance Management: BI
Collides with ERP, December 2001.
META Group Inc., Workforce Management Study, 2001.

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