HRD Interventions, Employee Competencies and Organizational Effectiveness: An Empirical Study

Purpose: The purpose of the study is to examine the impact of human resource development (HRD) interventions on organizational effectiveness by means of employee competencies which are built by some of the selected HRD interventions. Design/methodology/approach: An integrated research model has been developed by combining the principal factors from the existing literature. The HRD interventions chosen are training, performance management and career management (development). The validity of the model is tested by applying structural equation modeling (SEM) approach to the information collected from 290 executive and non-executive employees working in two medium size cement manufacturing companies. The reliability and validity of the dimensions are established through confirmatory factor analysis (CFA) and the related hypotheses are tested by using SEM. Findings: The result indicates that the selected HRD interventions have an impact on building of employee competencies, which in turn is instrumental in improving organizational effectiveness. Research limitations/implications: The research is undertaken in Indian cement manufacturing companies which cannot be generalized across a broader range of sectors and international environment. Practical implications: The findings of the study have potential to help decision makers of manufacturing companies to develop strategies which will enable them to improve employee competency, to formulate effective HRD interventions and to enhance the capability of the employees to achieve desired goals and objectives of the organization. Originality/value: The research is unique in its attempt to measure employee competencies for organizational effectiveness by combining the existing scales of individual competences. The article contributes to the HRD literature, integrating HRD interventions and employee competencies into a comprehensive research model that influence organizational effectiveness.