HRD and Organizational effectiveness

HRD practices enhance the internal capabilities of an organization to deal with current or future challenges to be faced by an organization. Good HR practice also energizes people.
The commitment and motivation built through good HR practice can lead to hard work and can have a multiplier effect on the conversion of human capital to organizational capital. The culture so built can help to create a sustainable and lasting capability of the organization to manage itself and not only cope with the external turbulence but even encash on the opportunities offered by the changing environment.
The HRD tools if effectively used can create a conducive HRD culture and HRD learning processes. HRD processes are intermediate variables and affect the HRD outcomes. They are less easily observable and are softer dimension that indicates the effectiveness of HRD tools.

HRD process variables include role clarity on a continuous basis, working planning, awareness of competencies and a more directed efforts to build them, better communication and the practice of HRD values like openness, trust, pro-action authenticity, autonomy, confrontation etc. Such HRD culture and processes can result in more observable and quantifiable outcomes which include a higher level of competencies of the employees, better utilization of human resources through better developed roles, higher work commitment, work motivation, greater team work and synergy etc. the HRD outcome can influence the organization’s business goals which may be in terms of higher productivity, cost reduction, more profits, better image and more satisfied customers and stake holders.