In the ever changing liberalized market scenario and a highly competitive market economy, human resource development (HRD) practices and organizational culture will provide an edge to organizations. This article attempts to understand the effect of HRD practices on organizational effectiveness.
The current economic situation today not only at the global level but also in the country demands changing workplace now to focus more on HRD practices to scale up their level of performance. HRD is an ongoing process whereby employees are constantly learning, unlearning, changing, adapting and reinventing themselves for organizational objectives and set out goals. HRD deals with creating the enabling environment that allows people to get the best out of themselves and perform optimally. People must build value-added HR practices and competencies that align with and help accomplish strategic organizational goals. HRD is believed to promote autonomy and organizational independence. The integration and globalization, not just of the economy, but also of technology, culture and governance brings different nations and people closer and the utilization of effective HRD will lead to high performance and productivity among them. The world has a huge population in the working age group and potential working population. Efficient use of HRD will facilitate a rise in the standard of living and organizational achievements.
HRD functionaries analyses the situation to determine realistic ways in which the management practices can be developed or modified to achieve the intended organizational goals. A market place has an unprecedented degree of flexibility. There will be cultural differences within any global organization. In order to reach common goals and values; HRD function can help the organization to function as a unified and successful entity. However, some people believe that organizations do not possess values, but key players in organizations does; that means individuals possesses values and at times the most powerful of them can influence the goals and policies of their organizations and mend in the direction that are consistent with their personal values. To achieve success they have to initiate, promote, device, and follow up HRD practices in the organization. HRD is now widely seen "as a system of frameworks, methods and processes aimed at systematically discovering, developing and using a person's capabilities to the fullest extent both for individual and organizational growth.
HRD has explored the construct of HR flexibility and its relationship with firm performance to improve organizational effectiveness. In a dynamic competitive environment, components of HR flexibility should be seen as strategic assets that provide long-term competitive advantage to organizations by developing the ability to flexibly achieve fit with constantly changing strategic needs for human resources. HRD also reveals that flexibilities of skills, behaviors and HR practices have both direct and indirect effects on firm-level HR outcomes as a structural mechanism in achieving superior organizational performance and achievements.
So, due to globalization there is increase in competition as a result development of human resource has become essential in virtually every organization. However, organized HR practices are being adopted mostly by many small companies. In last the decade a lot of companies have not performed so well, this was because of lack of effective HRD department. But the scenario has changed as HRD departments have taken up their role to perform effectively and optimally. Various training programmes pertaining to training of workforce, company related topics have helped in enhancing the overall performance of these companies.
In order to get increased productivity from workforce it is essential to have a well framed HRD system in the organization. If the principles of HRD are adopted it could result in decrease in non-attendance by 20% and increase in productivity by 30%. So to cope up with the market competition HRD is very essential element for organizational growth.
Organizational effectiveness through HRD in the Changed Liberalized markets cannot be over emphasized because the HRD department is responsible for developing the feeling of motivation in the employees, this motivation in other words is the commitment of the employees towards the job and the organization. When the work of HRD is done effectively it would result into co-operation among team members, demolition of centralized system of decision making, creates homely environment, feeling of ownership and positive working atmosphere for the employer and employees.
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