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Human Resource Development & Development of Human Capacity

Human Resource Development & Development of Human Capacity!

The essence of management of any organization is to utilize effectively all the available human and physical resources, financial and technological resources. HRD is concerned with development of human capac­ity. Human capacity or human potential includes-aptitude, knowledge, values, skills of HR, responsiveness, loyalty and commitment, transparency, leadership development.


Aptitude refers to the potential for learn­ing or acquiring a specific skill. Aptitude differs from achievement which refers to previous learning. It also differs from intelli­gence which refers to a person’s general potential to find solutions to problems, think ideally, adapt to changing situation and gain from experience.

The distinction between the three concepts is thin because they are closely interrelated. At work, employee should have aptitude for learning which is beneficial to him and organisation. All the three concepts aptitude, achievement and intelligence are grouped as human ability. Aptitude of per­sons can be tested to evaluate individual differences. The aptitude test measures poten­tial for acquisition of a specific skill. Through aptitude employees potential for learning can be evaluated.

Through aptitude tests, evalu­ation of wide range of experiences obtained by the employees can be made. Aptitude test is used to judge or predict future perform­ance. It also evaluates the effect of an un­known or uncontrolled set of experience, to gain from a course of training. The interest and choice of the person can also be known from the aptitude test. These tests are the useful tool in the hands of employers who are in search for right persons for the right job.


Knowledge is another capacity acquired and possessed by a person through his or her efforts. The knowledge is the fact or condition of knowing something with familiarity or acquaintance gained through experience or association. It understands of technique, science or art by an individual. It is a condition of being aware of something. Knowledge is acquired through learning. Knowledge facilitates learning. Knowledge of results leads to increases in learning.

The learner acquires knowledge in the following stages:

(1) Declarative Knowledge:

The factual information and concepts relevant to the task acquired by the trainee, or learner is known as declarative knowledge. It is also recognized as ‘knowing what’ in respect of task. In this stage of acquiring knowledge intelligence plays a key role as memory and attention are important in learning or acquiring skills about the task.

(2) Knowledge Compilation:

In this second stage the performance of task learned through the first stage improves and become polished.

(3) Procedural Knowledge:

This is the final stage the learner or trainee not only knows what to do but know how to do. The performer applies his knowledge in carrying out the task procedures fluently and automatically. For confirming whether the trainee has received the perfect knowledge about the task or not, a feedback is taken. This feedback is known as knowledge of results. Taking feedback is important because learning of the trainee is ascertained through it otherwise he may lose the motivation to learn. Feedback makes the learning process more interesting.

Employee involvement in acquisition of knowledge is a must. Employees should be provided information about overall performance of the firm. The enhancement of knowledge takes place through additional job skills, training and cross training. In the process learning or acquiring knowledge the manager should assume the position of a coach or facilitator, revolutionary changes should take place, the goal should be to attain organizational effectiveness and quality of working life instead of economic goal of productivity. The hierarchy should be flattened to motivate further the employees to gain knowledge.

Sometimes knowledge and know how are used as synonyms. The sum total of all knowledge and skills acquired for satisfactory job performance is known how three dimensions – practical, managerial and skill of motivating people have.


According to M. Rokeach values represent basic convictions that, “a specified mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.” Values focus on the judgment about what is right, good or desirable.

The values have two attributes:

(1) Content Attributes:

Under content attribute the made of conduct or end-state of existence is important.

(2) Intensity Attributes:

Intensity attribute specifies how important end-state of existence is.

According to M. Rokeach there are two types of values:

(1) Terminal Value:

It is a final goal in a desired status, e.g. a person’s desire to achieve happiness.

(2) Instrumental Value:

It is a means for acquiring a learning value e.g. – a person’s desire to achieve happiness (i.e. terminal value) with the means of being ambitious or independent (i.e. instrumental value) The combination of both values in an individual can create a value system. Values generally, influence attitude and behaviour. The value systems determine what we as individuals are. Values are enduring and stable.

The following table shows Terminal and Instrumental values in Rokeach value survey:


There is one more way to categories values given by Allport at. el.

According to them there are six types of values:

(1) Theoretical:

Gives stress on the discovery of truth through a critical and rational approach.

(2) Economic:

Put more emphasis on usefulness and practicality, accumulation of wealth.

(3) Aesthetic:

Emphasises the highest value on form and harmony.

(4) Social:

Interest in the highest value to the love of people.

(5) Political:

Emphasis on acquisition of power and influence on people.

(6) Religious:

Interest in the unity of experience and understanding of the cosmos as a whole. The findings or several studies have confirmed that Rokeach value Survey values vary among groups. While according to Allport’s findings people in the same occupations or professions such as company managers, union members, students, parents etc. tend to hold similar values.

The studies of values are important because they are the starting point for understanding attitudes motivation and perceptions. The dominant values in work force are hard work, conservative, loyalty to organisation, quality of life, nonconforming, seeks autonomy, loyalty to self, success, achievement, ambition, hard work, loyalty to career, flexibility, job satisfaction, leisure time, loyalty to relationship

Values are acquired through experiences with people and institutions. Elders and parents influence values, of their children. Values are acquired through schools, religious institutions, and society. With our growth values dominate our life and work.

They play vital role in shaping our life and affect the work environment. Culture dominates the value formation. What is good or bad are derived from culture. Today values are the backbone of latest management revolution in the world. Therefore it is necessary to understand values.

Significance of Values:

Our efficiency and effectiveness at work is tied with intrinsic human values i.e. moral and ethical values. Self development takes place through human values which support business values like service, creativity, credibility, excellence, innovation communication, coordination direction and control.

Interpersonal communi­cation becomes effective through values minimizing conflicts and disputes. Human values built up good reputation and goodwill of the organisation. Values enhance job satisfaction as well as improvement in customer satisfaction. Values are the means of perfection. Values are enduring.

Everyone have permanent basic values. Values are integral part of management and work culture. Values help in human resource development. All executives, employees and workers should inculcate values in a manner as said by Eslies clarkson, “Every fibre of our personality must glow radiate and manifest itself with a conduct identical with what we profess to be.”

Human Relations Skill:

Organisations are composed of people who come from different walks of life; differ with each other in psychological makeup. People are human resources constituting the sum total of inherent abilities, knowledge skills, represented by talents and aptitudes.

They behave in different manners. A manager has to understand human relations and behaviour to extract hundred percent from the employees to the advantage of enterprise. Quality of human resources can be modified through education, training and devel­opment.

Human resources are distinct from physical resources which are passive. Human resources differ in qualities possessed by them. They possess immense skills. According to Sophocles, “the wonders of wonders is man who has infinite capacity to think, to develop to create, to invent, to feel, to love, to give, to kill, to respect and to hate, analyze or destroy.”

Efficiency of employees can be maximized by creating and maintaining good human relations among them. W.W.G. Scott defined human relations as “a process of an effective motivation of individuals in a given situation in order to achieve a balance of objectives which will yield greater human satisfaction and help accomplish company goals.” Human relations refer to the interaction of people in all walks of life including in enterprises.

Human relations are interdisciplinary. It embodies psychology, anthropology, sociology, physiology, political science.

Basics of Human Relations:

Human relations are a part of organisational behaviour which is based on certain concepts relating to nature of people and nature of organisations.

Nature of People:

In order to understand people one should know the basics of human behaviour which is the following:

(1) Individual Differences:

People have some common traits e.g. they get excited or they grieve by the loss of their near or dear one. Even though they have much in common they are different. They differ in attitude, thinking, likes and dislikes, opinion, other qualities. Organisational behaviour commences with the individual. Individuals make decisions. Group is effective when individuals act.

(2) A Whole Person:

Organisations do not employ skills and brain of an individual but a ‘whole person.’ Skill, qualities, attitude and behaviour cannot be separated from the person. When employ a person you are employing good and bad qualities of the person which influence his working. The main aim of the management is to develop a better employee in terms of growth and fulfillment. Employees are the members of many organisations other than the enterprise where they are working. So, if whole person is developed the enterprise as well as the society is benefitted.

(3) Caused Behaviour:

Individual do not act without any cause. There is a reason behind every action. He works to fulfill some of his needs. Therefore management should understand that human behaviour has some cause. The manager must understand this fundamental and act rationally. The cause of human behaviour is the result of an interaction between a stimulus and person’s interpretation of that stimulus. The actions are people have some object in sight. They are goal oriented. There is some motivation which forces the organisation to run smoothly.

(4) The Value of the Person (Human Dignity):

Poeple are treated differently than other factors of production because they are the better creation of the universe. They are to be treated with respect and dignity. With the involvement of people in organisational behaviour ethical philosophy is involved in every action of the manage­ment.

Nature of Organisation:

The second basic in human relations is to know the nature of organisation which comprises of the following:

(1) Social System:

Organisations are social systems. Social and psychological law governs organisations. Status and social roles of people and their behaviour get influenced by their group and individual aspirations or drives. In organisation formal and informal groups exist which are interdependent and influenced by each other. The social system thus makes the human behaviour complex in organisations.

(2) Mutual Interest:

There is mutuality of interest. Organisations need people to accomplish their goals and people need organisations to fulfill their personal objectives. Thus people work in cooperation in meeting organisational problems.

Aims of Human Relations:

Human relations relate with human aspect of management and it aims at improving morale and motivation of employee through effective communication and participation of employees in decision making.

According to Stan Kossen understanding of human behaviour can:

(1) Assist manager to develop a better realisation of his own attitude and behaviour play a part in day today work.

(2) Help manager to develop a keener sensitivity towards other.

(3) Help manager to develop improved understanding of the problems of reconciling his own interests and capabilities with the needs and goals of the organisation of which he is a part.

(4) Enable manager to anticipate and prevent problems.

(5) Assist him to see things as they are not as they should.

(6) Assist him to keep aside or get relief from excess mental load.

How to Develop Sound Human Relations:

There are ways and means to promote effective Human Relations in an organisation.

The following are some of them:

(1) Develop honesty among people at work.

(2) Remove misunderstanding and promote frankness.

(3) Restore good relations among and with employees.

(4) Develop effective three way communication system.

(5) Respect feelings of others.

(6) Have a word of appreciation for the ideas of others.

(7) Managers have to develop good leadership qualities to bring cohesion in his group which helps in improving good human relations.

(8) Accept your wrongdoing to avoid criticism by others.

(9) Request is a powerful weapon than orders.

(10) Praise your subordinate for his good work.

(11) Respect the opinions of others

(12) Create such an environment where everyone is happy and is willing to work.

(13) Treat subordinate with respect and dignity.

(14) Understand the human needs and help achieving them.

(15) Help employees in their job performance.

The knowledge of human behaviour helps in understanding people as to why they behave as they do.


Responsiveness is yet mother human capacity present in employees. Responsiveness means responding readily and positively to a call or command from superior to the subordinate. This is the quality possessed by an employee which enables speedy work. This quality among human assets put them ahead of others.

For being responsive you must possess some other qualities and analytical mind. Positive response means ability to execute the work with perfection and that too on time. You should approach problems with logic and sound reasoning.

Executives must respond to the opportunities for involving others in decision asking. You should be good communicator and provide outstanding support to your subordinates. Responsiveness leads to seeking out innovative solutions to challenging problems and give you a chance to establish benchmark of performance and standard of excellence.

An employee with this quality is busy in developing new appropriate systems and procedures to function efficiently. The benefits like early promotions accrue to the employee He/She remains in the good books of superiors is an added advantage of the quality of responsiveness. These are the people who take initiative in their organisations and accept change easily.

Loyalty and Commitment:

Loyalty is the state of being loyal to the work and to the organisation. A sense of loyalty develops a strong feeding of support or allegiance. A loyal employee shows a firm and constant support or allegiance to the organisation and its members. Employee is loyal to the established rules, regulations, and procedures and follows them strictly. Every employee must be loyal to his organization. Loyalist supports the organisation when it is passing through difficult times.

Another human capacity commitment means the state or quality of being credited to a cause or policy. It is a pledge or undertaking or an obligation to remain committed to the cause of the organisation. Every organisation needs committed people for its progress.

The committed workforce establishes a long term emotional relationship with their organisation. They are dedicated people for accomplishment of objectives of the organisation. They restrict themselves from taking undue advantage from the organi­sation.

They give their hundred percent to their organisation. They are the hand-working people. They receive full faith of their superiors. They enjoy confidence of their higher ups. Superiors delegate authority to such people. Organisations flourish where such committed people work.


Transparency means the condition of being transparent. It means no concealment of action, command, policy, procedure, work culture of the organisation. The employees should be made known by the organisation about rules and regulations, procedure for action in case of any breach committed by the employees. Transparency ensures fairness. There should not be any hidden agenda on the part of the organisation. There must be fair deal which is ensured only when transparency prevailed in the organisation. It takes out fear from the minds of the employees and they work without any worries. Transparency is image building tool for the organisation. It leads to the speedy growth.

Leadership Development:

Managers have to work with many people having distinct behaviour patterns. Managers have to lead and guide his subordinates at the workplace. Hence he must possess leadership qualities for effective management of people. A good leader extracts work from the toughest employee. He can take anyone to task in his endeavour to attain organisational objectives. Leadership qualities can be an acquired through experience and training.

Leadership is a process of influencing the behaviour of others in the direction of an objective or set of objectives or toward a vision of the future. A constructive leadership style which provides vision and direction and furthers cooperation and productive group effort is essential for organisational effectiveness.

Some of the experts feel that leadership can be distinguished from management. But leadership and management overlap. According to John Kotter management involves, “planning and budgeting, organising and staffing, controlling and problem solving.

In contrast, leadership involves establishing direction which includes developing a vision and strategies for getting there, aligning people, which includes communicating the direction and securing cooperation and motivating and inspiring,” which according to Kotter often requires “appealing to very basic, but often untapped, human needs, values, and emotions” Both effective leadership and effective management are essential, according to Kotter, if organisations are to be successful for the long term. So leadership and management go hand in hand.

For effective leadership, a leader should have self confidence, physical attractiveness, intelligence, drive, alertness and insight in respect of tasks to be performed and the feelings of the persons performing those tasks.

A leader must encourage and support his people and provide information and suggest new procedures. He must be production centric i.e. he should assign task by fixing a deadline and make a review of deficient work.

He should also be employee centric i.e. behaving friendly, easily accessible to the employees, must listen to subordinates and allow them to participate in planning and decision making. Manager should adopt a suitable style depending upon situation and the forces present therein.

Further the choice of appropriate style of leadership depends upon the forces in the manager, subordinates the situation and behaviour patterns.

Organisations should provide conducive environment for leadership development because empowerment is the consequence. Leadership developments have implications in several areas of HRM e.g.:

(1) Staffing where selection and promotion are made on the basis of working efficiency and leadership qualities needed in particular settings.

(2) Training and development help to acquire leadership qualities among supervisors.

(3) Interacting with other managers requires leadership qualities in planning, developing and managing human resources in the organisation.

About the author

Salman Qureshi

Salman Qureshi is an Accountant by profession & he loves to write on Commerce & Management Sciences Subject to assist Students. Hope you guys will like his effort.