An Introduction To Human Resouce Development | Leadership | Finance & Management For RBI Grade B Mains
Human Resource Development is sectioned under the Leadership topic of Finance & Management paper in RBI Grade B Mains Exam. It is a very scoring topic to prepare owing to the fact that it is simpler in comparison to finance topics from FM paper and also questions worth 7-10 % of the total marks are asked from this topic alone according to the current trends of the RBI Grade B Exam.
To understand the topic better, let us first delve into the basics of Human Resource Development and then go about understanding its objectives, importance and other related areas.
Introducing Human Resource Development
Equipping the human resource and making them adept is essential for any organization to ensure its dynamicity and growth. Human Resource Development is a framework to incentivize the human resource which unlike any resource has unlimited potential.
It includes training an individual, providing learning opportunities and skilling them to use them as a resource for your organization. Hence, HRD is the integrated use of organization, training, and career development efforts to improve individual, group and organizational efficiency and effectiveness.
What Is The Difference Between HRM (Human Resource Management) and HRD (Human Resource Development)?
Human Resource Development and Human Resource Management are both equally important concepts of management specifically concerning human resources. They are different from each other on various levels that are discussed below:
- While Human Resource Development is oriented towards learning, Human Resource Management is majorly concerned with maintenance including the admin tasks, employee assistance, appraisal system, payroll, etc. So, while HRD focuses itself on developing an employee’s skillset, HRM is focused on bringing new people onboard and retention of the employees by offering them required assistance.
- The organization structure of Human Resource Management is independent while Human Resource Development is interrelated as it involves the development of an employee on various levels.
- While the task at hand for HRM is to improve the efficiency of the employees, HRD aims at improving the capabilities and effectiveness of the employees and the organization as a whole.
- The onus of HRM generally lies with the HR Manager or the personnel manager whereas the responsibility of HRD is given to all the managers of different departments within the organization.
- HRM motivates the employees by giving them incentives, bonuses, appraisals and other rewards whereas the HRD concerns itself with fulfilling an employee’s higher-order needs by giving them opportunities to attain growth in knowledge and skills through on-job training and exposure.
Benefits of Human Resource Development
Human Resource Development serves as the key driver for organizations to attain higher productivity, greater profitability, and better relationships. Organizations can leverage innumerable benefits through adept use of Human Resource Development. Some of these benefits include:
- Human Resource Development can make people efficient and productive. A methodical Human Resource Development can develop new skills, attitude and knowledge bank of their employees to ensure their effectiveness and relevance in their organization.
- With a robust HRD in place, organizations can improve their productivity and make their employees extremely committed to their jobs.
- Having a proper performance appraisal system designed by the HRD will allow the workforce to be extremely efficient and productive in their work.
- Human Resource Development can create an environment of respect, trust, and responsibility in the organization making everyone feel at home in the organization.
- HRD can help in creating an agile and flexible ecosystem in the organization that can enhance the acceptability of the workforce towards any kind of change. In such an environment, employees found themselves better equipped mentally and professionally to deliver their best even during a crisis situation.
- A robust HRD will help organizations making their employees efficient at problem-solving. It will enhance the team spirit in the organization.
- It also improves the employee-participation allowing the employees to take pride in the work they deliver for the organization.
- HRD is also helpful in generating and collecting data that could be put to use to further develop employee-benefit policies.
So, these are some of the basic and foundational level concepts from the Human Resource Development topic that can give you a brief overview of why is it important and relevant for the management of any organization. In our courses, we delve deeper into each topic and also introduce you to the question types that are asked from these topics in the exam.
Explore more such informative subject-centric articles and preparation-specific articles here.
Should you want to check out our range of courses for RBI Grade B Exam, click here. You can also get in touch with our course counselors to get more details on our course offerings.