INVESTMENT IN HUMAN RESOURCE AND

DEVELOPMENT
In any organization, the most important and crucial
asset is the Human resource. Performance of any
organization is directly proportional to the quality of
Human resource the organization have. The quality of
human resource of an organization depends on the
quality of the the education the resource have got and
the extent of knowledge provide to the resource in
training.
HRD is the systematic process through which
employees of any organization learn new and improved
skills and talent that can be beneficial for the
organizations. HRD is not a defined Object, but is based
on the series of organized processes with specific
learning objectives (Nadler 1984). Human resource
development as a theory is a framework for the
expansion of human capital within an Organization
through the development of both the organization and
individual to achieve performance improvement
(Elwood, Holton and Trott 1996).

Significance of Human Resource Investment for

an Organization
In an organization, human resource is different from
other resources in many aspects. Time to time as per
the requirement, other resources of an organization can
be hired, retained or discarded, but human resource is
entirely different. Human resources should be hired
with utmost care. To upgrade and improve the

capabilities and skills, human resource need proper

training.
Human resource is a kind of investment and as in any
other investment, care and strategy is required,
likewise investment in human resource requires careful
strategy to retain them after investment. Some
organizations
associate
theire
human
resource
investment decisions with prductivity and growth over
a period of time. The simplified equation in such case
for human resource investment decision would be:
Human resource investment = Productivity &
Growth x Minimum stay with organization

Significance of Human Resource Investment for

an Economy
The society builds the Knowledge, skills and abilities of
human resource. In economic perspective, it is the
accumulation of human capital, the effective use of
which can facilitate the development process in the
economy. Development of human resources is
unequivocally the first pre-requisite for both individual
success and collective national progress (Azhar, 2004).
More
broadly,
human
resource
development
contributes to civil liberties, political stability
advancing economic development... (Coppel,2006).
Development of Human Resources leads workers to
transform their capabilites into success in their
professional career.