ANALYSIS OF THE IMPACT OF HUMAN RESOURCE DEVELOPMENT ON ORGANIZATIONAL GROWTH.
Background to the Study
A rapidly changing economic environment, characterized by such phenomena as the globalization and deregulation of markets, changing customer and investor demands, and ever-increasing product-market competition, has become the norm for most organizations. To compete, they must continually improve their performance by reducing costs, innovating products and processes, and improving quality, productivity, and speed to market. Beyond the start-up and survival phases of an organization’s life lies the potential for its growth. Yet not all organizations move along the growth and expansion path. One factor explaining the presence or absence of growth is the entrepreneur. Studies have linked psychological characteristics of the organization to growth (Sexton and Bowman- Upton, 1986; Davisson, 1991; Cooper and Gascon, 1992). Others have examined the motivation of entrepreneurs towards growth but have not explained the extent to which motivational factors determine organizational growth (Liao, Welsch and Pistrui, 1999). The intolerable gap between the rich and the poor countries has in these five decades hit the conscience of mankind and has informed the search for the role investment in human resources has helped in bridging this yawning gap overtime. This has informed the current emphasis on the transformation of the most economies to be anchored on the development, planning and utilization of its human resources, though this attempt had also been glaring with earlier efforts in development through the accumulation of material capital which has waned and has been replaced with a new dimension of human capital (Meier, 1978), Meier and Rauch, 2000, Meier and Stiglitz, 2001). The ongoing emphasis hinges on the fact that: improvement on the quality of life of the people who constitute the main agents of production is the central focus of development strategies and policies. Yet, this has not yielded adequate results in terms of developing an economy. The problem then lies with how to exploit, improve, motivate and modify organizations and firms’ human potentials and skills towards transforming the economy. For an organization to advance away from its present state of underdevelopment, new and intricate forms of human potentials have to be exploited so as to transform the scale of production. This will be possible only with repositioning and redirection of economic setting of resources with human capital playing active productive and social roles. In this vein, Floud and Halsey (1965), Jhingan (2002) might be right when they asserted that investment in human resources constitute a foundation in which a society can be advanced and transformed towards a civilization. For a nation to advance, it has to exploit and develop its existing human potentials. The philosophy, ideology and inherent dialectics on the direction of its human investment must be clearly stated and how this should be achieved must be clarified. Going by the contemporary global arrangement, human resources is essentially a prelude to a long- term investment by both the state and individuals for the continued existence, preservation of cultural values and improvement of the society. Human resource development constitutes the basic potent instrument that could effect national development as well as containing self-reliance. This, when juxtaposed with the ancient military city state of Sparta, through the middle ages and the modern times, investment in human resource development is seen as being always used by the state for the advancement of the society and the overall national welfare. Human resources development (HRD) is a concept associated with Human Resources Management (HRM). Organizations that implement HRD treat Human Resources as asset and not expense .HRD departments motivate, support employees to learn continuously. HRD needs and...
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