Creating Corporate Advantage through Human Resource Development

The purpose of the paper is to ascertain the extent to which human resource development impacts the economy in general and the corporate sector in particular. The paper, while analysing in detail the situation prevailing in the international arena, concludes that there is no close correspondence between economic development and human resource management at the aggregate level. A high ranking of the Human Development Index does not necessarily imply wealth creation which would lead the economy on a high growth trajectory. However, a closer look at corporate performance-demonstrated through case studies-shows that employee satisfaction and HRD does help companies to leverage their production pattern and create new advantages through sustained value addition. The success stories of corporates across the globe, made possible through human resource management, has spurred a number of professional companies in India to adopt HR practices and invest in human resource development. Companies are increasingly adopting innovative HR polices which would empower their skilled and qualified employees and motivate them to add value to the production process. However, corporate India has yet to invest in HR in a big way. This is especially the case when it comes to investing in unskilled labour which continues to be regarded as a fixed cost in the manufacturing process. Hence, there is a need for a planned strategy on manpower development as well as recruitment and remuneration which would enthuse workers to score high on the productivity index.