1. Introduction

The recent decades of business and management strategic improvement have proved that human resource development has objectively become a major concern of both government and organizations in the today’s world of work. To analyze this phenomenon it is necessary to understand what Human Resource Development (HRD) truly is. First of all the term Human Resources has literally two main interpretations. The first one is widely used in political economy in order to substitute the word labor. So this interpretation implies the general character of the term human resources, while the second one, commonly used within the business world is used to refer to the individuals working in any business firm and coping with various personnel problems.

HRD is therefore nothing but the development and improvement of the “framework for employers and employees which promotes a skilled and flexible labor market” [1]. It is also important to understand that the basic principle of this “skilled and flexible labor market” is partnership and therefore is created to bring mutual advantages both for the employers and the employees. HRD protects also protect the rights of the sides making their interactions well-coordinated.

2. Human Resource Development today

HRD has radically changed in the last years and nowadays it corresponds to the demands on the level of large business organizations and governmental institutions. Its impact on the functioning of any organization is being analyzed by the major experts. What is one of the best sides of HRD is that it has become a synthesis of many vital global aspects including occupational psychology, organizational behavior and theories of learning. Therefore HRD may be called an integrated formation with high performance through correct human resource management on top of it.

HRD since its “birth” has been a target for numerous arguments because many professionals could not make 100% confident statements concerning the effectiveness of human resources in the economic value. The primary goal of HRD is to be a progressive mediator between the employer and the employee in term of the intellectual contribution that each employee can make into the development of his organization. HRD is more than just an ordinary business strategy it is an organized concentration of the best management practices within personnel management with high potential, nevertheless its application can be seen as a rather problematic issue as not all companies are ready to change the way of their interactions and establish a cooperation relations with the employees. HRD sees each employee not as a simple “work force” but a type of investment into the successful future of a given organization. It changes the priority of functioning of many companies for only a few of them see workers as their primary advantage over the others.

HRD is a tool that nowadays can help firms and corporations to “foresee” what kind of intellectual contribution they will need to prosper tomorrow and not solve this problem when they face it. HRD offers a prognosis of the tomorrow’s intellectual requirements or according to Alan Price “the planning of skill availability in advance of need” [2].

3. Importance of HRD

It is no surprise that HRD has become a real issue for numerous business organizations because it offers of high-tech management principle which can bring more profit. It is aimed to help organizations to become competitive through possessing workforce qualified in different up-to-date directions. It is a contemporary system based on three “elephants” concerning the employees: “personal challenge, counseling and accurate assessment” [2]. This three “elephants” help each employee completely correspond to the “culture” of their company and therefore also have a social character. It will not be an error to say that HRD “brings up” employees of full value, with versatile effective business-qualities and intellectual “property”.

Every single HRD strategy existing in a company is initiated by the needs of the contemporary world. The policy of hiring employees is chosen according to the specific needs of a company. For instance one of the approaches implies the distribution of the HRD budget in the following way: a major part of the planned expenses are directed to educate and develop the employees while the expenses on hiring new employees are minimized through the decrease of the personnel flow and also through the scheduled promotion of the employees. The personnel flow is inevitable in terms of HRD and HR experts suppose that it is necessary for the prosperity of the company. Taking into account the plan of the company’s development and therefore the program of all the transformations including structural ones and considering the statistics of the personnel flow in the previous periods, it is possible to predict the need for hiring new employees with a rather small error. This saves the investments of the company and creates a mature employee-base.

HRD creates employees with a sufficient qualification to satisfy the company’s requirements and works in three basic directions of the personnel development: professional skills, human skills and motivation. Such a development converts each employee an integral part of the company’s mechanism. It works with the notion that strong employees bring advantages, and weak ones bring consequences, so one of the tasks of HRD is to provide strong personnel representatives and improve the company’s results in its sphere of activity.

HRD principles reveal the intention to have a complicated system of compensation, motivation and development, because during the initial stage of work in the company a lot of investments are made into the development of the employees. This makes every single employee unique and extremely valuable for the company and therefore extremely increases its productivity, competitiveness and therefore profit. In its turn increasing of profit means that the government will get more taxes and the country will become more stable in general.

4. Conclusion

The growth of interest to the HRD is conditioned by the need of various organizations and the government to establish a strong economy in the country and increase its business competitiveness in terms of economic globalization, where HRD is just the best choice to make!

Bibliography:

1. http://www.dti.gov.uk/er/
2. Alan Price “Human Resource Management in a Business Context”/ Thomson/ 2004.
3. Employee Relations: www.dti.gov.uk/er/
4. Personnel Today: www.personneltoday.net
5. HR Global Network: www.mcb.co.uk.hr
6. HR Network: www.hrnetwork.co.uk
7. Society for Human Resource Management: www.shrm.org/



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