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Strategic Human Resource Development

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Greater customer satisfaction. Improved job performance and ... 437 Australian managers and engineers were surveyed concerning training and development. ... – PowerPoint PPT presentation

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Transcript and Presenter's Notes Title: Strategic Human Resource Development 1Lecture 3

• Strategic Human Resource Development

2Lecture outline

• The growing importance of SHRD
• Definition of SHRD
• Characteristics of SHRD
• Benefits of SHRD
• The role of the legitimate and shadow systems
• Examples of SHRD
• Empirical evidence of SHRD

3The growing importance of SHRD

• The competitive and volatile environment within which businesses operate is prompting senior management to take a greater interest in the development of the organisations human resources.
• A number of possible specific triggers -
• Difficulties in recruiting skilled employees
• Need to develop a more flexible and adaptable skill base
• The need to align the potential of employees with business objectives
• Greater emphasis on performance evaluation
• The need for HRP and succession planning

4Definition of SHRD

• HRD is best seen as the strategic management of training, development and of management/professional education interventions, so as to achieve the objectives of the organisation while at the same time ensuring the full utilisation of the knowledge and skills of individual employees.
• It is concerned with the management of employee learning for the long term keeping in mind the explicit corporate and business strategies.

5Characteristics of SHRD

• Integration with organisational missions and goals
• Top management support
• Environmental scanning
• HRD plans and Policies
• Line management commitment and involvement
• Existence of complementary HRM activities

6Characteristics of SHRD cont.

• Expanded Trainer role
• Recognition of Culture
• Emphasis on evaluation

7Integration with organisational missions and goals

• Integration of training and development into wider business planning.
• Move from activities that are fragmented to a situation where TD is more systematically linked to such goals or is so systematically integrated with organisational needs that it is seen as a necessity for organisational survival.
• Effective HRD must be aware of mission, goals and needs of the organisation.
• Zenger (1985) micro and macro view

8Top management support

• SHRD must command the support and participation of top management.
• HRD higher profile.
• Reality is that in many cases top management is not committed to TD - due to not being systematically trained themselves, time constraints, HRD seen as long-term investment, benefits of TD intangible, HRD must improve quality and market their function, management training is considered towards the bottom end of the management hierarchy.

9Environmental scanning

• SHRD function must have continuous knowledge of its external environment.
• SHRD function must have the capacity to analyse the external environment in terms of the opportunities and threats which it presents in the context of both the business and HRD strategy.
• The environment can also be a threat to the HRD function - competition if not tackled effectively can reduce profit margins and therefore HRD budget.
• Characteristics of a firms environment shapes HRD activities - major triggers for HRD - technological and product market changes.

10HRD plans and policies

• Formulation of basic plans and policies.
• Hales (1986) sets out a number propositions on the development of HRD plans -
• strategic business plans must exist before SHRD plan can be developed - long term focused.
• Top management sanction and involvement.
• If firm is dominated by short-term considerations HRD plan will also reflect this deprivation.
• HRD plans are devised from both strategic plans and an analysis of internal and external environment.
• HRD plan provides a link between business activities and HRD activities.

11HRD plans and policies cont

• Policies are an essential component of the implementation phase.
• Reasons why a strategic HRD function should engage in policy formulation -
• Ensures that supervisors, line managers and top managers are all equally aware of their HRD responsibilities and participate in HRD activities.
• It provides operational guidelines for management - why it is important to invest in HRD.
• Sets out for employees the different types of education, learning/ development that is important for career progression.

12HRD plans and policies cont

• A clear policy statement helps to define the relationship that exists between the organisations objectives and its commitment to HRD.
• Enhance public relations with new recruits - can see benefits on offer to them.
• HRD policy can facilitate the establishment of employee career development opportunities.
• Provides a guideline against which HRD activities can be evaluated.
• Allows function to be placed in context.

13Line manager commitment and involvement

• Line managers conducting training sessions
• Consultation with line managers concerning areas of improvement they would like to see in employees.
• Line managers becoming involved in coaching and counselling of subordinates.
• Line managers learning skills being updated.
• Active involvement in HRD policy and planning process.
• Line managers being made responsible for the identification of HRD needs within their department.

14Line manager commitment and involvement cont.

• The competence of the line manager is vital to a successful implementation of SHRD.
• Number of problems with the relationship between the HRD function and line manager -
• Ownership of HRD
• Competence
• Role definition

15Existence of complementary HRM activities

• Effective HRD must be a coherent package of complementary measures aimed at servicing various aspects of the employment relationship.
• Some of these measures are -
• HRP
• Upgrading the quality of employees being recruited
• Forging closer links educational institutions
• Greater formalisation of PA and training needs procedures
• A range of career development systems both individually and organisationally focused.

16Expanded trainer role

• Number of deficiencies of trainers -
• Many training specialists dont view their activities as cutting edge - low status of TD function.
• HRD function a number of role conflicts.
• HRD specialists are poor at marketing their services.
• HRD specialists limited perceptions of their role - maintenance of status quo.
• SHRD requires a considerable role change - marketing benefits of HRD, proactivity, HRD as central to the achievement of organisational objectives and developing a more strategic role rather than being simply learning specialists.

17Recognition of Culture

• The need to match corporate strategy and culture - very little literature concerning the link to HRD.
• Ogbonna and Wilkinson (1988) HRD function has a key role in maintaining and changing corporate culture.
• Peters and Waterman (1982) HRD function cannot ignore the the prevailing and desired culture.
• Culture must be viewed as central to the function of HRD.
• The transmission of culture is important part of HRD.
• See Table 1

18Emphasis on evaluation

• Criteria of suitability - measure how far HRD activities fit the situation identified in the strategic analysis.
• Criteria of feasibility - how feasible HRD plans and policies are in practice?
• Criteria of acceptability -whether the consequences of the proceeding strategy are acceptable.

19Benefits of SHRD

• Greater extrinsic and intrinsic job satisfaction
• Fewer accidents, lower labour turnover and less absenteeism
• Greater customer satisfaction
• Improved job performance and enhancement of career opportunities
• Shorter learning times and more effective use of resource and less wastage of materials
• The creation of a learning organisation that is flexible

20The role of the legitimate and shadow systems

• Conventional strategic planning is critical in short term planning and operationalism.
• The identification of the organisations mission and strategies allows the legitimate system to keep the organisation moving in the right direction for immediate future.
• Auditing the ideas emanating from the shadow system.
• The legitimate system is responsible for the intended or deliberate strategy of the organisation whilst the shadow system searches and tries to have implemented the emergent strategy.

21Shadow system

• Staff in the shadow system come from various levels throughout the firm - they must be involved, committed and motivated by the specific strategy issues at hand.
• The shadow system is all about learning - individual and organisational learning.
• The creation of an organisational culture that promotes trust and loyalty to provide a safe and caring culture in which the delicate organism can grow.
• Learning process linked to strategic planning - knowledge generation, emancipatory learning, increasing the knowledge capital of the organisation and organisational culture.

22SHRP

• Entrepreneurial strategy
• Dynamic growth strategy
• Analyser strategy
• Defender strategy
• Rationalisation, liquidation and turnaround strategies

23Empirical HRD (Garavan 1991)

• Sample of 90 high technology companies.
• 81 reported written HRD policy statement.
• 95 established a HRD function.
• Most important factor contributing to the shape of HRD function was the mission, goals of the firm - 90.
• How is the HRD policy formulated? Typically drawn up by HRD specialist and approved by the HRM director and then by other members of the management team. Policy was communicated to staff through the medium of a policy manual.

24Empirical HRD (Garavan 1991)

• Implementation of HRD policies - key issues to be considered -
• Publicity
• Procedures and plan
• Monitoring and modification
• Existence and scope of HRD - 74 of respondents had written HRD plans covering a financial year
• See Table 3.
• See Table 4.

25Kane, Abraham and Crawford (1994).

• Purpose of investigation - the purpose of TD, extent to which TD consistent with strategy and environment, TD methods are consistent with each.
• Sample characteristics - 53 out of largest 500 firms in Australia responded to the survey, resulting in an overall response rate of 10.6.
• 32 per cent of the sample reported a considerable degree of formal HRM/HRD input to the organisational goals. Only scattered and inconsistent links were found between training and development and organisational strategy. Training and development is treated in splendid isolation, as it is not linked to organisational strategy and driven in many cases by training and development programs themselves.

26Drost, Frayne, Lowe and Geringer 2002

• 437 Australian managers and engineers were surveyed concerning training and development.
• Results TD to -
• Reward employees 2.25
• Improve technical abilities 4.01
• Improve interpersonal skills 3.23
• Remedy poor performance 2.90
• Prepare for future job 3.07
• Build teamwork 3.01
• Help understand business 3.10
• Provide skills for different jobs 2.87
• Teach employees about values 2.89

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