To cope with the fast changing environment, organizations need to review their HRD approach continuously. HRD is neither a concept nor a tool, but an approach, using different personnel systems, depending on the needs and priorities of the organization.

There has been revolutionary challenge in the human resource field in the last one decade. The most important of these is the recognition of the importance of Human Resource Development (HRD) as a strategic business partner. Even UNDP (United Nations Development Program) has recognized the importance of development of human resources at the nation level. In fact, UNDP, through its human development index, put people and their competencies as a strategic resource that gives competitive advantage to corporations. An increasing recognition of the importance of the personnel function, and an equally increasing disappointment with it, characterize the personnel management scenario in India today. Both these stem from the importance being given to the development of persons in the organization – HRD.

With increasing global competition, organizations are under tremendous pressure to improve their performance through reduction of cost and in quality upgradation. Indian business organizations too have now realized that they are now in a more open, highly competitive and market-oriented environment. In the past decade, something quite different was happening in many Indian organizations, calling for a re-look at traditional personnel functional functions and their integration with organizational objectives.

The HRD in India is of recent origin, and the term gained currency only the early 70s. HRD was first applied in 1968 in George Washington University. According to some management professionals, Japan is the first country to begin with HRD practices. However, the term HRD was first introduced in India in 1975 by L&T. By the late 70s and early 80s, this professional outlook on HRD caught on to a few PSUs, namely, BHEL, MUL, SAIL, IA&AI, IOC. L&T and TISCO were the first two organizations in the private sector to implement and practice HRD.

Organizations need to be dynamic and growth-oriented to sustain in the competitive environment. This is possible only through the competence of human resources. The basic assumption is the belief in human potential and its development by providing a suitable sustaining and congenial environment.

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