Human Resource Development or HRD is considered as the theoretical framework that assists in expanding human capital within the organisation. The process is done with the help of organisational as well as individual development for achieving the improvement in performance. HRD is considered as the integrated utilisation of training as well as development of career for the improvement of employee’s performance that can enhance the effectiveness of the organisation. HRD helps in developing the key competencies which enable the organisational employees in performing the current as well as future jobs by planned activities of learning (Muduli 2015). Organisation utilises HRD in order to initiate as well as manage the changes. HRD also helps in ensuring the connection between the requirements of employees and organisational objective.
Background of the Study
In order to conduct this study, the selected organisation is Southwest Airlines. The organisation is looking for expanding their business in the international market and therefore they require implementing the human resource development process within the organisation. As the organisation is having the mission for attaining the growth in the international market, therefore, they required in attaining the growth of the organisation by implementing the process of training as well as development for the employees. The process of training as well as development for the employees will help in identifying the gap of knowledge of the employees. HRD process will help the employees in gaining the required training related to their job and thus will help the organisation in the market expansion. The significant activities that are being incorporated in the process of HRD are training, education as well as development.
Human Resource development process is one of the significant processes for enhancing the organisational performance. Southwest Asia Airlines is looking for expanding their business in the international market and therefore, they required in training their individuals so that they can perform well in the new segment of the organisation. The major challenge for the department of training and development is selecting the employees for the new segment of the business. The employees who are in the direct payroll of the organisation will be given priority for attaining the training whereas the employees who are being outsourced from the consultancy firm or agencies will be given less priority.
Aim of the Research
The aim of the study is to assess the effectiveness of Human Resource Development process on the organisational performance of Southwest Airlines.
- To determine how the performance of the organisation is being enhanced with the help of effective HRD
- To determine the effectiveness of training as well as development for the growth of the organisation
- To determine the significant of HRD on the profitability of the organisation
- To determine the effectiveness of HRD practices for enhancing the motivation of the employees
- To determine the effectiveness of HRD practices in regulating the employee retention rate
- To recommend some suitable suggestions for improving HRD in enhancing the organisational performance of the Southwest Airlines
- Is the organisation performing efficiently with the improved practice of HRD?
- Is effective training as well as development enhancing the organisational growth?
- Is there any effective relationship in between HRD and organisational profitability?
- Does effective process of HRD assists in employee motivation.
- Does effective process of HRD regulates the retention rate of employees?
- What are the effective recommendations for improving HRD in enhancing the organisational performance of the Southwest Airlines?
Scope of the Research
The research may be conducted on the organisation Southwest Airlines. In order to get the holistic result of the research, adequate measures must be implemented for incorporating the executives of all the hierarchies. Primary data must be collected as much as possible and the secondary data should include productivity of the employees, employee strength and profit, which can be collected from the organisation’s annual report.
Limitation of the Research
- The main limitation is with the size of the sample. Large sample size will not be possible to obtain as response from all the executives may not be achieved
- Employee productivity also depends on the up-gradation of technology besides the practices of HRD. The factor of up-gradation of technology cannot be considered in this research.
What is HRD?
Human Resource Development or HRD is considered as the hypothetical structure that helps in extending human capital inside the association. The procedure is finished with the assistance of authoritative and also singular advancement for accomplishing the change in execution. HRD is considered as the incorporated usage of preparing, association and additionally advancement of vocation for the change of representative's execution that can improve the viability of the association. HRD helps in building up the key capabilities, which empowers the hierarchical workers in playing out the present and future employments by arranged exercises of learning (Muduli 2015). Association uses HRD to start and deal with the progressions. HRD additionally helps in guaranteeing the match in the middle of the prerequisites of workers and association.
Relation in between HRD and Organisational performance
In many literatures, it is being observed that there are positive linkages in between HRD and organisational performance. Organisation providing emphasis on human resource exhibits that the market value is highly independent on the tangible resources and is dependent on the intangible resources like human resources (Prayag and Hosany 2015). Besides recruiting and retaining the best employees, HRD also concentrates on leveraging the skill as well as capabilities of the organisational employees. This is done by encouraging the employees to learn as well as create a work environment where the knowledge is being created as well as shared for achieving the organisational goals.
Enhancing the skills as well as capabilities of employees assists in increasing the organisational productivity and performance of business. Resourcing as well as development process also help in enhancing the skills of the employees as it have direct impact on the employee’s motivation, satisfaction and commitment. The attitudes as well as behaviours of the employees are highly dependent on the procedures of HRD, utilised by the organisation. The rate of employee turnover is also influenced by factors like motivation, commitment and job satisfaction. However, it is being observed that job satisfaction is important than commitment and motivation for an employee to stay in the organisation (Bakotic 2016). However, the researcher suggested that the above stated three factors are very much interlinked with each other. A positive relationship is being observed between the training provided to the employees and the commitment of the employees for the organisation. The researcher stated that the training and development department of the organisation is providing necessary training to the employees that help them to get committed to their work. This further has an impact on the behaviours of the employees, which in turn has a positive effect on the employee retention rate (Nolan and Garavan 2016). Comprehensive activities of training are being associated in a positive way with the organisation productivity and in a negative way with the rate of employee turnover. This in turn increases the effectiveness of the organisation. Staffing as well as training is considered as the heart of HRD process as it helps the organisation to maintain the competitive advantages in the market and enhance organisational performance (Rees and Smith 2017).
In further conduction of study, the theory for organisational performance can be utilised. Theories like organisation change theory, contingency theory, system theory and goal setting theory will provide more insight on the organisational performance. However, organisational performance can also be discussed with respect to Burke-Litwin Change model, 6-Box model and performance reference model. The concept of HRD can be discussed with the help of Training and Development theory and Motivational theory. Training and HRD process model can also be utilised for discussing HRD.
Research methodology incorporates different sorts of techniques as well as research methods. It is considered the systematic approach, which helps in conducting the entire process of research in an organised way. It also contributes for comprehending various research techniques. Thus, research methodology describes the research’s structural process through which the researcher can complete the study proficiently.
Research investigations are of three types namely, exploratory, descriptive as well as hypothesis testing. Exploratory research is done when the researcher is not having the clear idea about the research topic and the study is being conducted with the help of scientific view-point. Descriptive research is done with the help of the relevant theory as well as concepts on the research topic. In case of, Hypothesis testing research, the hypotheses are being fixed by the researcher and the researcher analyse the theories, models as well as principles to evaluate the hypotheses. In this study, hypothesis research testing can be performed, where the hypothesis will be established first by the researcher and then the theories and model will be explained based on it.
Method for Data Collection
Data can be collected in two ways, namely, primary data collection and secondary data collection. The data collected from the response of the research’s respondent is called primary data and this data is collected by implementing the method of survey, interview and questionnaires. In case of secondary data, data are being collected from online journals, articles, book and organisational website and annual report. In this study, primary data and secondary data both are required. Primary data are required as conduction of interviews as well as questionnaires are to be given to the employees of Southwest Airlines and secondary data are required for calculating the employee turnover rate, retention rate and organisational productivity. It is collected from the annual report of the organisation.
Sampling method is of two types, namely probability and non-probability sampling. Non-probability sampling can be followed as the researcher requires selecting specific respondents according to the requirements.
During the conduction of the research, the researcher needs maintaining the ethical conducts. The researcher also requires in maintaining the privacy of the data that are being unpublished and Data Protection Act 1998 abides this. The personal details of all the respondents should be maintained with privacy.
It can be seen that, HRD is a significant process for the organisation growth. However, in the research there will be more scope of discussion about the model and theories of HRD and organisational performance, which can highlight the significant of HRD in organisational performance. However, the study can be done by longitudinal design as well as the non-executive level employees may be incorporated in the study for increasing the sample size.
- Bakotić, D., 2016. Relationship between job satisfaction and organisational performance. Economic research-Ekonomska istraživanja, 29(1), pp.118-130.
- Muduli, A., 2015. High performance work system, HRD climate and organisational performance: An empirical study. European journal of Training and development, 39(3), pp.239-257.
- Nolan, C.T. and Garavan, T.N., 2016. Human resource development in SMEs: a systematic review of the literature. International Journal of Management Reviews, 18(1), pp.85-107.
- Prayag, G. and Hosany, S., 2015. Human resource development in the hotel industry of Mauritius: myth or reality?. Current Issues in Tourism, 18(3), pp.249-266.
- Rees, G. and Smith, P. eds., 2017. Strategic human resource management: An international perspective. London: Sage.