UNIVERSITY OF MALAWI Chancellor College DEPARTMENT OF POLITICAL AND ADMINISTRATIVE STUDIES Subject : Human Resource Development Name : Sinoya

S. Winesi Assignment question: To what extent is human resource development different from human resource management? Demonstrate that human resource development is neith er a cost nor an expense in an organisation. Maximum Length : 10 pages including reference Introduction People are said to be the most important resource of any organisati on that has to be managed and developed for them to work efficiently as well as effectively and then continuously be suitable for the organisations in all seaso ns. The terms Human Resource Management (HRM) and Human Resource Development (HR D) evolved to describe the role which organisations partake to handle people. It is therefore the task of this essay to discuss the extent to which HRD is diffe rent from HRM which is done under Human Resource management versus Human Resourc e Development. The essay also demonstrates how the human resource development (H RD) is neither a cost nor an expense to an organisation and this will be done th rough highlighting the significance of Human Resource Development to an organisa tion. As such, the essay has been organized into: HRM versus HRD which begins by expla ining the contrary perceptions some writers have on the distinction between the two terms, shows why the two terms may be regarded as intricately linked, and th en highlights their differences based on a number of factors; then Significance of HRD to an Organisation which describes the views for HRD in terms of its valu e to an organisation; makes a reflection on what leads to the thinking that HRD is not necessary; the beneficial features of HRD; the compelling conditions for HRDs need; and the required functioning level for it to have value; and lastly co nclusion which summarises the essay. It is therefore important at this stage to clarify right from the outset how the key concepts of this essay such as Human Resource management, Human Resource de velopment and Cost (expense) to an organisation are, in this context, generally understood.HRM is that part of management of organisations that is concerned wit h all aspects that relate to, and interplay with, the work and the people who do the work of and in other organisations (Erasmus and Schenk 2008:4).HRD is any p rocess or activity, either initially or over the long term, has the potential to develop adults work based knowledge, expertise, productivity and satisfaction, w hether for personal or group/team gain, or for the benefit of an organisation, c ommunity, nation, or ultimately the whole of humanity, Maclean & Mclean(in Deckt op and Raymond 2006:94).According to Swanson and Holton(2001:5), HRD may be thou ght of as a process where it does not inform us where it resides in an organisat ion and it is open to engaging different people at different times and to locati ng HRD in different places inside and outside the host organisation; or it may b e thought as a department, a function, and a job where you may have an HRD depar tment or division in particular organisation with people working as HRD managers , specialists, and so forth. Normally in accounting language, a cost according t o Berry et al (2006:75) means a money sacrifice or incurring a liability in purs uit of a business objective and Mowen et al (2011:26) regard a cost as cash or c ash equivalent sacrificed for goods and/or services that are expected to bring c urrent or future benefit to the organisation; and expenses as expired costs. In relation to this, HRD becomes a cost or expense when its inputted activities do not or are seen not to, bring benefits to the organisations. Hence it becomes a loss. Human Resource Management versus Human Resource Development Different scholars h ave different perceptions on the difference between Human Resource Management an d human Resource Development. For example, Armstrong (2012:88) feels that the us ual definitions of HRM and HRD often seek to put the boundaries between the two, but the theoretical and practical parameters are extremely blurred. On the othe r hand, Geet and Deshpande (2008:1-16) contend that, HRD is a term which many ti mes is used as a term synonymous to HRM, but this is not correct. The two terms

are different from each other and represent different concepts. In relation to t his perception, Randhawa (2007:5) explains that there are other terms which are used interchangeably with HRM but there lies a difference. One of such terms is HRD. All this implies that on one hand, Human resource Management and Human Resource Development are viewed as one thing both theoretically and practically; and on t he other hand they are regarded as different. It is therefore imperative at this juncture to point out the areas that underpin the sameness view, before analyzi ng the difference view which is the main task of this essay. Human resource (HR) management entails, designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals (Mathis and Jackson 2010:4). According to general systems theory, a system is a set of inte rrelated elements (Kroenke 1992:20). This then gives rise to probe all or most o f the system areas that make up human resource management. Literature reveals th at the functions of HRM are: Strategic Management; Employee and Labour relations ; Risk Management and worker protection; Total rewards; Staffing; Talent Managem ent(human resource development); and Equal employment opportunities (Mathis and Jackson 2010:6;Werner and DeSimone 2006:9). From this it can be seen that HRD is one of HRM functions. As indicated by Randhawa (2007:5), HRD is the development aspect of HRM which means that it is part of HRM. As also implied by Geet and D eshpande (2008:1-16), without the supportive function of HRD the human resource management cannot be carried out.Hence HRD is a subset of HRM and it really mani fests that it is very intricate to put a boundary between the two. Additionally, as reported by Armstrong (2012:88) their theoretical and practical parameters a re extremely blurred. For example, most systems (e.g. performance management) co ntain a strong element of HRD. In practice it is not particularly useful to main tain artificial distinction. Indeed it could be argued that the whole system of ideas embodied in an HR approach argues for a single, integrated set of policies covering all aspects of people management. It is pragramatically impossible for HRD to escape from, or to function in splendid isolation from its parental rela tionship with HRM. Moreover, both HRM and HRD deal with organisation and the peo ple who are regarded as a critical asset of the organisation. In this respect th en HRM and HRD can be said to be one and the same thing in terms of their relati onship. However, though HRD is a subset of HRM, it is a distinct function within HRM whi ch, to some extent as a function, differs from HRM in terms of definitions, focu s, scope, roles, philosophy or belief and other grounds, all of which are to be presented here. Firstly with regard to definitions, Geet & Deshpande (2009:2-1), describes that HRM is concerned with the planning, organ izing, directing and controlling the operative functions of procurement, develop ment, compensation, maintenance etc of the human resource for achieving the orga nisations goals or objectives. Kumar (2010:2-3), championed the following definit ions of HRM:HRM or PM is defined as the philosophy, policies, procedures and pra ctices relating to the management of people within the organisation; and Michael J Jucious says HRM may be defined as the field of management which has to do wi th planning, organizing and controlling functions of procuring, developing, main taining and utilizing labour force, such that (a) objectives for which the compa ny is established are attained economically and effectively (b) objectives of al l levels of personnel are served to the highest possible degree and (c) objectiv es of society are duly considered and served. Werner & DeSimone (2006:8) define HRM as the effective selection and utilization of employees to best achieve the goals and the strategies of an organisation, a s well as the goals and needs of employees. Lastly, Armstrong (2009:4-5) says th at Human Resource Management (HRM) is a strategic, integrated and coherent appro ach to the employment, development and well-being of the people working in organ izations. He also spiced this with other scholars definitions such as Beer et al, 1987 who said HRM involves all management decisions and action that affect the nature of the relationship between the organisation and its employees; and Boxal l et al, 2007 saying HRM is the management of work and people towards desired en ds.

On the other hand, Human Resource Development also has a number of definitions a nd the following is a sample of such definitions: Werner & DeSimone (2006:4) def ine HRD as a set of systematic and planned activities designed by an organisatio n to provide its members with the opportunities to learn necessary skills to mee t current and future job demands. Swanson and Holton (2001:90) define HRD as a p rocess of developing and unleashing human expertise through OD and personal trai ning and development (T&D) for the purpose of improving performance. Lastly, Dec ktop and Raymond (2006:93-94) came up with different authored definitions such a s :HRD is an integrated use of training and development, organisation developmen t and career development to improve individual, group and organizational effecti veness (McLeagan,1989);HRD is the study and practice of increasing the learning capacity of individuals, groups, collectives and organisations through the devel opment and application of learning based interventions for the purpose of optimi zing human and organizational growth and effectiveness (Chalofsky,1992). The above set of definitions have really sought to put a boundary between human resource management and human resource development in the sense that the definit ions allude to the fact that HRM deals with all aspects of people at work whereb y HRD just deals with an aspect of increasing the capacity of employees. HRM mea ns just what it says--human resource management--the management of people or res ources in an organization. Almost every working organization has to have some fo rm of HRM staff to take care of basic employee management tasks. HRD-human resource development-is the development of the resources in the company: organis ation development, performance management, training and learning and coaching (S trayer 2005:103). As Decktop and Raymond (2006:92) have indicated, HRM is a mana gement activity while HRD is the profession that develops learning and performan ce. Its professionalism is arising because there is a specialization of a specif ic function within the HRM set of functions. Though they both deal with organisa tion and people but in terms of HRM, it is aimed at achieving their goals, strat egies and needs whereas for HRD, as put by Armstrong (2006:535), its powerful ou tcomes are enhanced organisational effectiveness and sustainability and enhanced personal competence, adaptability and employability, respectively. Secondly in terms of focus, HRM focuses on processes while HRD focuses on activi ties. According to Haslinda (2009:181), the definition attached to HRM which sti pulates that, HRM is a process of managing human talents to achieve organisations objective and that which is associated with HRD which says, HRD is a series of org anized activities conducted within a specified time and designed to behavioural change, HRM focuses on processes whereas HRD focuses on organized activities. The processes include: Recruitment and selection; Compensation and benefits; Labor and Industrial relations and Safety & Health management. The activities cover Tr aining and development; Performance Appraisals Management; Career planning and d evelopment; and Change Management. This translates into HRD having two major rea lms of focus within it. One is organisational development (OD); the other is per sonnel training and development (T&D). As implied by their names, OD primarily f ocuses at the organisational level and connects with individuals, while T&D prim arily focuses on individuals and connects with the organisation ( Swanson and Ho lton 2001:5). With reference to the third basis which is scope, the scope of HRM is extensive and exhaustive. It is wider than the scope of HRD. The Institute of Personnel Ma nagement (IPM) has mentioned the scope of HRM as follows: Personnel or Labour As pect. This first aspect deals with man power planning, recruitment, selection, p lacement, transfer, promotion, training and development, lay-offs and retrenchme nt, remuneration, incentives and productivity. The second is Welfare Aspect. Thi s aspect is concerned with the working conditions and with amenities such as can teen, crches, rest-and lunch-rooms, housing, transport, medical assistance, educa tion, health and safety and recreation facilities. Lastly HRM covers an Industri al Relations Aspect. This aspect pertains to the union-management relations, joi nt consultation, collective bargaining, grievance and disciplinary actions and s ettlement of disputes (Durai 2010:5). However, the scope of HRD mainly focuses o n training and development. In terms of role, HRM is there to provide insight, leadership, advice and servic

es on matters affecting the management, employment, development, reward and well being of people (Armstrong 2012:89) whereas HRD is there to identify competence gaps of employees and train them to perform present roles effectively and create conditions to help employees bridge these gaps thro ugh development (Pattanayak 2005:107). With regard to beliefs, HRM seems to have different assumptions to HRD in the se nse that HRM assumes that it is the hr which gives competitive edge; that the ai m should be not mere compliance with rules, but to enhance employee commitment; that hr decisions are of strategic importance and that therefore employee should , for example be very carefully selected and developed and policies should be in tegrated into business strategy (Storey 2007:9; Armstrong 2012:9) whereas HRD as sumes that, organisations are human made entities that rely on human expertise t o establish and achieve goals; human expertise is developed and maximised throug h HRD processes and should be done for mutual long-and/or short-term benefits of the sponsoring organisation and individuals involved; and that HRD professional s have the powerful tools available to get others to think, accept, and act (Era smus & Schenk 2008:10). Lastly, using other grounds HRM is also thought to differ from HRD based on the comprehension of some authors and notable in this category is Khurana et al (200 9:56) who identified the following differences: HRM is mainly maintenance orient ed whereas HRD is development oriented; organisation structure in case of HRM is independent whereas HRD creates a structure which is interdependent and inter r elated; HRM aims to improve the efficiency of employees whereas HRD aim at devel opment of employees and organisation; and lastly HRM motivates employees by givi ng them monetary incentives or rewards whereas HRD stresses on motivating people by satisfying higher-order needs. On the other note, Geet et al (2008:1-17) sti pulate that HRD is mainly concerned with training and development of the employe es whereas HRM is a philosophy, an approach and a concept which regard that empl oyees working in an organisation and the abilities, skills, attitudes possessed by them constitute an important resource which should be used effectively and ef ficiently for achieving organisational goals with the goals of the employees. Significance of HRD to an Organisation According to Roberts (2004:54) Swanson (1998) reviewed the theory and research t hat has been done on the financial benefits of HRD. The review showed that there are four views of HRD within an organisation. These include: essential activity , a major business process; value added activity potentially worth doing; option al activity, a nice to do and wasteful activity costs exceeds benefits. The domi nant view of HRD falls within the third and fourth options, with HRD being perce ived as an optional activity or a wasteful activity having costs greater than be nefits. The simple idea that HRD is not a good investment is popular and entrenc hed (Swanson 1998:285). This ideology is gaining ground in organisations due to a number of factors. The first being that investing in the development of their personnel is not a clear option for most firms on the basis that organisation ca n access expertise in ways other than offering development programs; they can hi re expertise for example, or establish the expectation that employees will manag e the development of their own expertise (Swanson 1998:286). Secondly, labour mobility seems to be scary because organisa tions feel that carrying out HRD programs is one way of preparing employees to b e more competitive on the market as Haslinda (2009:16) quoted a response of a ce rtain manager lamenting that, it is difficult to get employees to stay after gett ing expensive training, these workers are good and skilled, but we cannot stop t hem from going because they are looking for better prospects. In other situations the organisation may see that the HRD programmes employed do not reflect any di fference or at times the organisation may see that it has already achieved the h ighest level of development. This leads to HRD being viewed as a cost or an expense to the organisations to t he extent that it is sometimes submerged within the financial department so that its activities have to be controlled. Contrary to this understanding, Human Resource Development has inherent benefici al features which befit the first two views of HRD which regard human resource d

evelopment as a major business process, something an organisation must do to suc ceed and a value added activity, something that is potentially worth doing. Thou gh an organisation may hire experts from external sources or poach from other or ganizations without being involved in HRD, it remains an essential component to the organisation for a number of reasons. The first is that not all human resour ce development programs require hiring of employees. Moreover, hiring is one rem edy for human resource planning (HRP) activity where there is a deficit from the labour demand and supply forecast which is also dependent on the availability o f the labour in the market. It may also seem that poaching is benefiting employe rs in terms of financial investment in training, but the extent of employees adap tability to the new working environment and their ability to transfer previous e xperience and learning to their new jobs are unclear, Debrah et al (in Haslinda 2009:15). Secondly, much as the employees can handle development issues themselv es, not all training and development needs can ably be handled by the employees themselves. It is not easy for the employees to seek the development that is in line with the objectives of the company and the changing circumstances of the or ganisation. On the other hand, though labour mobility is inevitable but the sum total of the value of HRD programs to an organisation is more since the very same programmes make the organisation become an employer of choice thereby positioning it on a competitive advantage with other employers leading it to be more productive. As coined by Erasmus and Schenk (2008:447) that one of human resource developments i mportance is to improve interpersonal skills and to make organisations a better place to work, lack of HRD activities may lead to even a higher employee turnove r which will translate into recruitment costs and low productivity. Lastly when an organisation is felt to have achieved highest level of development, it is eve n then when the employees competencies will have to be sharpened and developed s o that the organisation remains at the top as organisations operate in the envir onments that keep changing requiring its employees to have necessary competencie s to respond to the challenges arising out of the change (Ahmad 2007:17). Theref ore in all situations HRD will play a greater role. Furthermore the HRD supports the shaping of the organisations strategy and missio n. The influential role of HRD as a shaper of strategy is premised on a clear un derstanding of the relationship between the development of employee expertise an d the ways in which the strategy emerges. Following the definition given by Tich y, Fombrun and devanna (1988) that strategy is the process by which the basic mis sion and objectives of organisation are set, and the process by which the organi sation uses to achieve those objectives, HRD becomes a critical component in this view of strategy as the developer of key resources-the human resources-needed to achieve business objectives. Setting strategy itself may involve using a broad range of analytical and decision-making techniques that assist the strategists i n determining the present and future direction of their organisation, (Swanson & Hilton 2001:342).In the midst of strategy formulation, planners and decision ma kers with HRD understanding and expertise are in a critical position to examine business opportunities, determine the key performance requirements of new busine ss objectives, and position highly competent people within state-of-the-art work systems to achieve those objectives. The strategy implementation inevitably req uires high levels of employee expertise to realize fully and capitalize quickly on opportunities for growth as they become available, (McClernon &Swanson 1997:2 ) The driving parameters for the inference that HRD is a major business process an d a value added activity are numerous. Beard well and Holden 1997/279 (in Loosem ore et al 2003:253-254) identified ten principal motivations behind the need to invest in SHRD which are as follows: new employees are like raw materials that n eed to be processed in order to perform their tasks and fit into their work grou ps and organisations; jobs change overtime and so employees knowledge, skills and abilities need to be adapted so that they maintain their performance in the fac e of changing demands and requirements; new jobs will be created which will need to be filled by existing employees, who will need support and redirection; peop le change their own interests, skills, confidence and aspirations with time, and

the organisation must take into account of this; employees may move jobs either to be promoted or broaden their experience and will require further training in order to perform in their new roles; the organisation itself may change over ti me and so employees knowledge, skills, and abilities must be adapted regarding ne w ways of working together more effectively; the organisation may wish to ready itself for predicted future change by equipping employees with transferable skil ls; the organisation may wish to respond flexibly to its environment and therefo re may require some employees to develop flexible, transferable skills; and mana gers require further training and development to allow for performance improveme nt succession via the development of new and potential managers. The HRD need also derives from the assumption that no matter how effective an or ganisation is in attracting, recruiting and selecting people, this will not resu lt in longer term development and performance without the sustained effort to tr ain and develop them, ( Loosemore et al 2003:253). It is axiomatic that, every o rganisation whether large or small is always composed of employees who come from different walks of life and who are different in their outlook, qualit ies, qualification, understanding, etc. from this point of view, development of employees, i.e. human resources is needed by organisation if it wants to become successful in the fast-changing environment, (Geet &Deshpande 2-1).Thus hrd is n eeded by every organisation that is interested in stabilizing, growing, diversif ying, renewing itself to become more effective, and in improving its systems and services, changes and for becoming more dynamic and for playing leadership role s (Ahmad 2007:18) HRD therefore serves a broad range of interest and outcomes in organisations. Th e primary purposes to be served by HRD can range from instituting programs to me et the personal development needs of individuals to establishing efforts that in volve everyone in the organisation. For HRD to be a value-added activity and cri tical process in the organisation it must contribute directly to important busin ess and financial goals.HRD must operate at three levels to be truly of strategi c value to organisations: helping create strategic results, assisting in strateg y implementation, and participating in strategy formation (McClernon &Swanson 19 97:3-5). As Sims (2007:342) expounds, several criteria that demonstrate the incl usion of HRD in strategic planning are: when adequate resources are proactively allocated; HRD and other HRM issues are given same weight as other business issu es; HRD is used for such things as quality management, team building, technical skill improvement and organizational learning, there is ongoing involvement of s enior leaders in determining HRD needs and involvement in HRD efforts. However, the creation of a strategic role for HRD requires assessment of two fac tors: The role of HRD performance within the context of an organisation and the role of HRD performance within the internal processes and practices within its o wn functions. The what is and what should be perspectives must be considered for eac h factor. The initial what is assessment provides a basis for defining the require ments for strategic role required for HRD. The what should efforts results in a pl an to reinvent the HRD function to be able to deliver on its strategic role (Hol ton 1997:7). In summary, Human Resource Development is neither a cost nor an expense to an or ganisation but it is an investment because as observed by Elwood (1997:103), it can advance the firms competitive position by serving a number of strategic roles which include providing HRD in the methods of strategic planning, direct involv ement of HRD professionals in the strategic planning process and providing HRD s upport on strategic plans. Further to this, the employed HRD instruments such as HRD department and performance appraisal help to create human resource developm ent climate and processes like role clarity, planning of development by every em ployee and awareness of competencies required for job performance. These then re sult in outcomes such as more competent people, better development roles, higher commitment, better problem solving, higher job satisfaction and work motivation , better organisational health, more team work and synergy and respect for each other. Ultimately these HRD outcomes improve the organisational effectiveness th rough the dimensions like higher productivity, growth and diversification, more profits an

d better image (Khurana et al 2009:7) which will greatly reduce costs and make t he organisation be unique. However much as HRD has value in its own right, that value in an organisation is determined by its context. For instance, HRD cannot add value to the shaping of strategy if the strategy is already fully formulated without HRDs involvement (Elwood and Holton1997:6) and irrelevant programs are s et. Conclusion The essay has discussed the extent to which human resource management is different from human resource development and also demonstrated the driving forces that may lead the human resource development not being regarded as a cost or an expense to the organisation. It then has been portrayed that some scholar s feel that theoretically as well as practically HRM and HRD have blurred differ ences and that other scholars feel that Human Resource Management is a concept w hich is different from Human Resource Development. So the essay has outlined the differences based on definitions, scope, focus, philosophy, roles and other gen eral grounds. Likewise, it has been noted that there are four views which are used to describe the value of HRD to an organisation which covers a major business process, some thing an organisation must do to succeed; a value added activity, something that is potentially worth doing; an optional activity, something nice to do; and a w aste of business resources, something that has costs exceeding the benefits. It has then been demonstrated that HRD is neither a cost nor an expense and that th e benefits of HRD may be achieved only if it operates at all levels of strategic planning in the organisation. Reference Michael Armstrong 2009: Armstrongs Handbook of Human Resource Managemen t, 11th Edition, Kogan Page, London and Philadelphia. Swanson, R.A. (2009); Demo nstrating the financial benefit of human resources development: 285-295; (Access ed on Richardson.com/selectedarticles.html, at 18/4/12 at 7; 59 pm.) McClernon TM & Swanson RA (1997).Redefining human resources development role in t he corporation: A case study on becoming a world- class business partner; In E H olton (Ed), Leading Organisational Change. Alexandria: ASTD Press.pp.1-21 Richar dson.com/selectedarticles.html, Accessed on 18/4/12 at 7; 55 pm. Haslinda A 2009 : The Journal of International Social Research volume 2/9 Fall. Uluslararasi Sos yal Arastirmalar Dergisi Haslinda A 2009: The Journal of International Social Re search, Major Challenges to the Effective Management of Human Resource Training and Development Activities. Volume 2 / 8 summer 2009 Werner J M and DeSimone R L (2006) Human Resource Development 6e; South Western- Cengage Learning USA (Acce ssed at books. google.mw) Deck top J R and Raymond J (2006): Human Resource Management Ethics. Randhawa G 2007: Human Resource Management: Atlantic Publishers and Distributors. A Khurana et al 2009: Human Resource Management, Printed at Star Off set. Delhi Kumar R 2 010: Human Resource Management: Strategic Analysis Text and Cases; 2011 K Intern ational Publishing House Pvt Ltd Armstrong 2012: Hand book of management and Lea dership: Developing effective people skills for better leadership and management 3rd edition Kogan Page. Martin Loosemore et al 2003; Human Resource Management in construction Projects: and Operational approaches. Sims R 2007: Human Resourc e Management: Contemporary issues, challenges, and opportunities; IAP-informatio n Age Publishing Inc. Printed in United States Geet D S and Deshpande A 2008: El ements of Human Resource Management; Niral Prakashan Elwood &Holton E F 1997: In Action: Leading Organisation Change; American Society of Training and Developme nt Roberts G 2004: M.A. Thesis. A Literature Review on the Impact of investing i n Human capital on Economic success; how do Human resources Practices affect org anisational Performance Swanson RA and Holton EF 2001: Foundation of Human Resou rce development, Berret-koehler publishing Inc, San Francisco, CA. Geet SD et al 2009: Human Resource Management, Niral Prakashan. (Accessed at books.google.mw) Mathis and Jackson 2010: Human Resource Management, South-Western, Cengage Lear ning, printed in United States of America Kroenke 1992: Management Information S ystems; Mitchell McGraw-Hill, Watsonville, CA 95076 Strayer S 2005: Vault Guide to Human Resource Careers, vault (firm) and the staff of vault; vault Inc. Swans on R and Holton E 2001: Foundation of Human Resource Development; Printed in Uni ted States of America. Erasmus & Schenk: South African Human Resource Management

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