The paper “ How Human Resource Development Leads to Improved Individual and Organisational Performance” is a meaningful variant of the literature review on human resources. In modern companies, human resource has become an extremely crucial factor in determining the competitive advantage of a business. Contemporary organizations require people to excel and must, therefore, equip their workforces with all the necessary skills, competencies, and behaviors in order to position themselves high in the competition ladder. Accordingly, HRD is a core organizational process whose aim is to develop a highly competitive workforce in terms of capabilities and behaviors.
When properly done, HRD leads to improved individual and organizational performance. The process equips workers with the necessary skills and competencies (or tools) so that they are highly effective and efficient while producing high-quality products and services. The resultant is not only high employee productivity/output, but the organization’ s performance improves in terms of market competition (resulting from high reputation) and profitability (high output, increased revenues, and reduced operating costs). HRD also increases employee engagement and commitment, which leads to increased employee and consequently organizational performance. How HRD Leads to Improved Individual and Organisational PerformanceDefining HRDIn understanding how HRD contributes to improved employee and organizational performance, it is important to define the term.
Authors who have written about this organizational issue consider it as a process. Consequently, this paper will also consider HRD as an organizational process. Lakshmi (2005) defines HRD as an organizational process in which workers are assisted, in a systematic manner, to improve their capabilities by acquiring new or expanding existing skills and competence. Holton and Swanson (2009) note that HRD aims at continuously increasing the skills, knowledge, and capacities of employees to enable them to attain personal and/or organizational goals.
Therefore, one goal of HRD is to enhance employee capability and performance.
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