Introduction

Human resource development has been an important function of human resources management in an organization. In the increasingly knowledge based economy, the development of human resources is vital to the success and effectiveness of an organization (Schuler et. al., 1987). Much benefits can be reap through proper human resources development programs, while improperly implemented human resources development programs has several drawbacks or disadvantages as well. In fact, in the recessionary era in the past few years, there are arguments that human resources development programs should be limited, or eliminated as there is no longer sufficient budget for development of human resources in an organization. Is that an accurate statement? Is it true that human resource development can be ignored under bad market conditions? In this paper, the several advantages and disadvantages of Human Resource Development will be discussed. After considering the advantages and disadvantages of Human Resources Development, a discussion will be presented to analyze if Human Resource Development is still relevant in a gloomy economic climate, where budget is reduced and cost cutting is prevalent in most of the organizations.

Advantages of HRD

It is hard to deny the importance of human resources development in any organization, as people is ultimately the assets and contributors that make a successful organization (Ming, 2002). Without capable, competent and talented employees or management, it is impossible for an organization to rise to the top in the long run. There are many benefits can be delivered by human resources development programs to an organization. Some of this will be discussed as follow.

Enhance employees’ skill-based competencies. By providing relevant trainings to the employees, their skill-based competencies can be improved. Without proper training programs, the employees may not have access or exposed to systematic and properly designed trainings, and thus may be slow in learning the required skills required in workplace. Particularly when the employees are not well trained, they may waste company resources and opportunities costs (Dessler, 2011).

Increase employees’ motivation. With proper and effective development programs, employees can be motivated. This is because as they progress well in workplace, they may feel more confident in performing the assigned tasks. When their confidence level increased, they will become more motivated, as now they understand with certainty that they can do the job well (Ming, 2002; Dessler, 2011).

Shape employees’ attitudes. Human resource development can also be used to shape the desired attitudes of employees. This is because with proper development programs, that are designed to enhance employees’ soft-skills, employees’ attitudes can be shaped. For example, the interpersonal skills, emotional quotient, positive thinking, proactive mindset and creativity of employees can be increased through carefully designed development programs (Dessler, 2011).

Increase employees’ satisfaction. When the employees are trained well, they will learn more, improve more and ultimately, feel satisfied and fulfilled in workplace. Besides, when a company invest the time and financial resources to train employees, the employees may feel being acknowledged and appreciated, and in turn will tend to become more happy to work in the organization. They see hopes and growth opportunities – and lastly, become more satisfied with their jobs and company (Ming, 2002; Legge, 2004).

Ensure efficient and effective use of resources. When the employees are not properly trained, well-equipped and knowledgeable, many useful and valuable resources in a firm can be wasted. Those resources wasted include the time, financial costs as well as opportunity costs. Besides, as the employees cannot bring out the best within them, they may waste their talent as well (Legge, 2004).

Improve organizational effectiveness and performance. Lastly, human resources development can enhance the company bottom line; improve company’s effectiveness and performance that ultimately leading to the sustainable growth and strengthening of competitive advantages of a firm in the marketplace (Legge, 2004; Schuler et. al., 1987).

In fact, in the more competitive, dynamic and challenging business environment, human resources are becoming increasingly vital to the success of an organization. That is true as well in a gloomy economic outlook, where demand had decreased in the marketplace and companies are fighting against each others to secure the limited customers in market. In hard times, it is often firms with the best people win out, and those without talented workforce might disappear due to intense competition. Ultimately, it is more important for firms to manage the human resources effectively and develop them towards attainment of competitive advantages for a firm in the marketplace, especially during the period of economic downturn.

Disadvantages of HRD

Despite the facts that human resources development is critical to a success of a firm, it should be objectively acknowledged that implementation of human resources development program is not without drawbacks and limitations. Sometimes, the perceptions of management that human resources development program can bring more harm to a firm, particularly in a recessionary time, are valid and true. In the following paragraphs, the possible drawbacks of human resources development programs are illustrated.

It is waste of time. If the human resources development program is not properly implemented, a lot of time can be wasted. For example, when the training classes conducted cannot improve the employees’ competencies and capabilities, and then time will be wasted. In such a case, it would be better if not development programs are organized at all, so that the workforce can be directed to work to generate financial return of the firm (Price, 2007; Dessler, 2011).

It is waste of financial resources. Often, human resources development programs will consume quite a large sum of financial resources. When the training programs conducted do not bring any significant benefits to the firms, it is rational to better spend the allocated budget to other activities, such as marketing, investment in new machineries, research and development and many others (Price, 2007; Budhwar, 2004).

Some people do not want to be trained. One of the critical challenges in implementing successful human resource development program is the fact that some people simply do not want to be trained. They have negative attitudes, and may not want to improve or growth; and rather they are more comfortable in staying within the status quo (Beardwell et. al., 2007). When the resistance towards development program, exists, any human resource development programs cannot function well, and may even adversely affect the employees’ morale and firm’s performance in the future (Price, 2007; Dessler, 2011).

Impacts of human resources development is hard to be measured accurately. Another valid argument is that the activities organized and carried out in human resources development are hard to quantified and measured. When it cannot be confidently measured, it is hard for management to investigate if the programs are really benefiting the organizations. People may doubt about the importance of human resources development programs, and it is also rational for management to invest in areas whereby performance can be more easily measured and observed (Price, 2007).

It can be counterproductive. Human resources development can be counterproductive when it is not formulated properly, or not being carried out effectively. For example, it may dilute management attentions from more important issues, and a firm may even suffer as employees under training programs is undergoing the learning curves and make errors (Beardwell et. al., 2007).

It is simply irrelevant when a firm is financially distressed. Last but not least, it is reasonable to stop all human resources development program when the firm is financially distressed. The extra available money can be well spent to pay back the debtors, or to fund necessary operations to keep the company afloat. It is simply not relevant to train or develop the human resources in a division when that particular division is making losses and is to be closed down.

Conclusion

Overall, human resources development is critical to the success of an organization. Management should continuously and proactively train and develop human talents in hard times, as those properly trained workforce will help the firms to survive, change, excel and evolve in the turbulent economy. However, the implementation of human resources development programs is not easy, and if that is not managed well, many drawbacks can occur. Thus, in hard times, it is very critical to ensure that all money spent in developing human talents will reap benefits. Wastages must be avoided.

References & Bibliography

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Briscoe, D., & Schuler, R. (2004). International Human Resource Management 2e. Routledge: London.

Budhwar, P. (2004). Managing Human Resources in Asia. Routledge: London.

Dessler, G. (2011) Human Resource Management ,12^th edition, Prentice Hall,

Legge, K. (2004). Human Resource Management: Rhetorics and Realities (Management, Work and Organisations), (Ed. Edition). Palgrave Macmillan.

McShane, S. L., & Von Glinow, M. A. V. (2010). Organizational Behavior: emerging knowledge and practice for the real world (5^th Edition). McGraw Hill.

Ming, W. (2002). Strategic Human Resource Management. Academy of Chongqing Institute of Commerce: Beijing.

Price, A. (2007). Human Resource Management, (3d edn). Thomson Learning.

Robbins, S.P. (2005). Organizational Behavior, 11^th edn, Pearson Prentice Hall, Upper Saddle River, NJ.

Schuler, R., & Jackson, S. (1987). Linking Competitive Strategies with Human Resource Management Practices. Academy of Management Executive, 1(3), 207-219.

Wilson F.M. (2004) Organizational Behaviour and Work, Oxford, Oxford University Press.