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Opening of the Indian economy to the world saw a sudden spurt in business. A large English-speaking population and a highly skilled and knowledgeable population allured many companies to start their business in India. This saw a drastic change in the role of human resource department from a support function performing payroll and selection process to a vital wing of the organization. With the increase in the size and variety of business entities, the complications in dealing with the human talents and their needs saw a spurt. Human resource department is to tackle the problems and guarantee a motivating environment to the workforce.

The dynamic transition in technology calls for a workforce who can keep up with the challenges to provide quality services. With the competition intense and a perpetual need for talented workforce, it is upto the HRD to lure and retain the employees in the organization. The human resource policies should be capable of motivating the employees by providing necessary monetary and non monetary benefits. The monetary benefits must vary with the changing economic environment taking into account the cost of living, the rates prevalent in the industry, the taxation rules formulated by the Government and the needs of the people.

A platform to improve the human talents must be created through effective training programmes. The training programmes must be formulated taking into account the technological needs, industry needs, company needs and the human needs. Organisation system must be so framed to provide chances for career growth and attainment of the personal objectives of the individual. A good system of performance appraisal is inevitable to decide on performance based remuneration. With the globalization, the need to understand the culture of other nations to have better relationship is necessary. Cross culture training helps to have a better understanding of different cultures to have a smooth working relationship and avoid confusions and misunderstandings.

The rise of IT and ITES brought an era of long working hours, stressed work and severe competition. This saw the rise of stress management as an additional task of HRD to bust work related as well as personal stress to improve productivity. With doors of China and other low cost countries opening to the world, the need to bring out better quality of work is crucial for sustenance, thereby leaving a big responsibility on the HRD.

Survival of the business entity to a large extent depends on how effective it is in cost saving. HRD along with the other departments add to the cost saving process of the company. The HRMS succeeded in reducing cost and improving efficiency and speed of human resource management. It is also the task of HRD to discover new areas of development with lower cost of living to improve company profitability.

Maintenance of a good relationship between the entity and the society, government, employees and the trade unions is necessary to reduce strain in relationships. In India, trade unions are capable of even leading to a company to its winding up. So understanding the needs, and providing better comfort level than asked for, can help to earn the respect of its environment.

The rise in the human resource responsibilities saw the need for an academy to impart necessary skills to the HRD to cater to the needs of the changing environment. Academy of Human Resources Development was set up with the intention of training the HRD to be more competent, talented, potent and well organised. Ensuring survival of an entity in a competitive market is thus a major mission of the HRD.

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