Human resource development (HRD) refers to an approach for managing the human resources of an organization that emphasizes the importance of developing the basic capabilities to the people employed by the organization, working as individuals as well as in groups. It can be contrasted with the alternate approach that is limited to selecting the people with required capabilities and motivating them so that they work and use their capabilities in the best interest of the company.
We can say that the acceptance and use of this approach to manpower management itself is a major management strategy. Other aspect of HRD strategy specify the overall approach adopted by the organization towards management of human resource. To qualify as an HRD strategy it must put substantial stress on training and internal development of its employees, rather than just evaluating their performance and capabilities and using such evaluations to take decisions on recruitment, placement, promotions, and remuneration.
HRD strategy also requires use of long term manpower planning function. This is essential to identify the future requirements of manpower quality and quantity, and to take manpower development action to meet such requirements. This also implies much greater reliance on internal promotion of people to fill vacancies at higher levels in the organization, rather than through external recruitment.