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Human Resources Development (HRD) as a theory is a framework

for the expansion of human capital within an organization through the


development of both the organization and the individual to achieve
performance improvement.[1] Adam Smith states, The capacities of
individuals depended on their access to education. [2] The same
statement applies to organizations themselves, but it requires a much
broader field to cover both areas.
Human Resource Development is the integrated use of training,
organization, and career development efforts to improve individual,
group and organizational effectiveness. HRD develops the key
competencies that enable individuals in organizations to perform
current and future jobs through planned learning activities. Groups
within organizations use HRD to initiate and manage change. Also,
HRD ensures a match between individual and organizational needs. [3]
== Resources ==understanding the foundations of HRD can be found
in "Brief Foundations of Human Resource Development" [4] by Richard
A. Swanson.
A detailed PowerPoint and HTML overview of Foundations of Human
Resource Development,[5] a textbook used in graduate courses, may
be found at http://textbookresources.net/.
Contents
[hide]

1 Process, Practice and Relation to Other


Fields
2 Discussion
3 As a Program of Study in Formal Education

4 Notes
5 References
6 External Links

[edit]Process,

Practice and Relation to Other

Fields
Notably, HRD is not only a field of study but also a profession. [6] HRD
practitioners and academia focus on HRD as a process. HRD as a
process occurs within organizations and encapsulates: 1) Training and
Development (TD), that is, the development of human expertise for
the purpose of improving performance, and 2) Organization
Development (OD), that is, empowering the organization to take
advantage of its human resource capital. [7] TD alone can leave an
organization unable to tap into the increase in human, knowledge or
talent capital. OD alone can result in an oppressed, under-realized
workforce. HRD practicitioners find the interstices of win/win solutions
that develop the employee and the organization in a mutually
beneficial manner. HRD does not occur without the organization, so
the practice of HRD within an organization is inhibited or promoted
upon the platform of the organization's mission, vision and values.
Other
typical
HRD
practices
include:
Executive
and
supervisory/management development, new employee orientation,
professional skills training, technical/job training, customer service
training, sales and marketing training, and health and safety training.
HRD positions in businesses, health care, non-profit, and other field
include: HRD manager, vice president of organizational effectiveness,
training manager or director, management development specialist,

blended learning designer, training needs analyst, chief learning


officer, and individual career development advisor.[8]
[edit]Discussion
Human Resources Development is not a defined object, but a series
of organized processes, with a specific learning objective. [9] Specific
interventions, areas of expertise and practice that fall within this
definition of HRD are recognized as performance improvement,
organizational learning, career management and leadership
development.[10] Human Resources Development as a structure allows
for individual development, potentially satisfying the organizations
goals. The development of the individual will benefit both the individual
and the organization. The Human Resources Development framework
views employees as an asset to the enterprise whose value will be
enhanced by development: Its primary focus is on growth and
employee development[] it emphasizes developing individual
potential and skills [11]
An apprentice will step through the development process to become a
tradesman in their field as will a white-collar trainee to become a
professional in their field. Training will allow the individual to complete
a task within their field today Gutteridge and Hutcheson maintain that,
Training provides, maintains and enhances skills to perform the
job.[12]
Education and training will develop the individual to become a
tradesman or a professional in the future. A successful Human
Resources Development program will prepare the individual to
undertake a higher level of work, organized learning over a given
period of time, to provide the possibility of performance change. [13]

Human Resources Development is the framework that focuses on the


organizations competencies at the first stage, training, and then
developing the employee, through education, to satisfy the
organizations long-term needs and the individuals career goals and
employee value to their present and future employers. Human
Resources Development can be defined simply as developing the
most important section of any business its human resource by,
attaining or upgrading the skills and attitudes of employees at all
levels in order to maximize the effectiveness of the enterprise. [14] The
people within an organization are its human resource.
Human Resources Development from a business perspective is not
entirely focused on the individuals growth and development,
Development occurs to enhance the organization's value, not solely
for individual improvement. Individual education and development is a
tool and a means to an end, not the end goal itself. [15]
Over a decade ago (as of 2011), a discussion in Human Resource
Development International's[16] "HRDI special issue: defining HRD" in
2001 made it plain that HRD has existed as a field of study.[17]
Compared to other disciplines within Business Economics, Human
Resource Professionals have over the years in practize had difficulties
in justifying HR investment, especially during recessions. This can in
many ways be argued as being based on Human Capital lacking
measurability, merely because the field has followed the measurement
similar to other disciplines within Business Economics. Systems have
arisen such as Learning Management Systems (LMS), Human
Resource Management Systems (HRMS) and Enterprise Resource
Planning (ERP). LMS has had focus on HRD, but not as an integrated
part of Business Economics.

Recent innovative studies and development shows that it is possible


to encompass HRD as a concept of Business Economics. The
concept is called HRD intelligence. HRD intelligence (HRDi) focuses
entirely on the behavior, attitudes, skills and knowledge - Human
Capital and processes and activities related hereto - which has an
influence on the performance and results of companies.
When used as a concept and a system HRD intelligence has the task
to collect, structure, provide, promote, pull and document
information/data with regard to the different target groups, within or
outside the control of the company, which all have the characteristics
to have an influence on the success of the strategies of the business,
and hereby support better business decision-making.
Thus HRD intelligence (HRDi) also can be called a decision support
system (DSS). Similar as Business Intelligence (BI). But HRD
intelligence both creates and makes relevant data accessible in real
time.
In practices it should and can interact with other systems such as
ERP, HRM and CRM systems to get data about individuals and
organizations. This information is the initial platform which is used to
structure projects, configure the system, promote knowledge and
collect data from and document knowledge about the individuals or
organizational units.
. COMPONENTS OF HRD CLIMATE The organizational climate consists of:-
Organisational Structure- An organizations structure is actually a snapshot of a work
process, frozen in time so that it can be viewed. The structure enables the peoples
energy to be focused towards process achievement and goal achievement. Employee
must have a clear definition of not only the work structure but also the role used to
organize the work. If the structure and the role is not clear, people will not know what
the work process is, who is responsible for what, whom to go for help and decision, and

who can Assist in solving problems that may arise. Organisational CultureOrganisational culture is the pattern of beliefs, knowledge, attitudes, and customs that
exists within an organisation. Organizational culture may result in part from senior
management beliefs or from the beliefs of employees.
Organizational culture can be supportive or unsupportive, positive or negative. It can
affect
the ability or willingness of employees to adapt or perform well within the organisation.
The most effective work culture is one that supports the organizations HR strategies by
aligning behaviors, processes and methods with the desired results. It is not just
achieving
results but the methods through which they are achieved that are critical to long-term
success.
Before any HR strategy is designed there must be a clear understanding of the
organisation, its current values, its structure, its people as well as its goals and vision for
the future.
HR ProcessesThe HR system of an organisation should be comprehensive enough to take care of
employees from the time they join till the time they leave HR. Their demands must not
beignored, but a feeling of belongingness be created. Process should be very clear and
impartial, so that employees faith in organisation. From recruitment to retirement whole
process should be according to employees expectation and ability of employer.
Importance of looking at the organisation climate are: Looking at the organizational
climate, which means taking a closer look at what is
happening in and around in the HR scenario of the various organization. It is essential
towork on because directly or indirectly this environment affects the organization and
the employee.
Importances are:
Environmental factors of HR are prime influencing elements of change in HR strategy.
It gives HR professionals time to anticipate opportunities in HR area and time to plan

optional responses to these opportunities. It helps HR professionals to develop an


early warning system to prevent threats emerging out from HR scenario, or to develop
strategies, which can turn a threat. It forms a basis of aligning the organisation
strengths to the changes in the environment. It enables the entry of the latest
national/international HR developments

Functions of HRD Professionals

The process of HRD consists of 4 basic functions:

Acquisition of human resources

Process of identifying and employing people


possessing required level of skills

Job Analysis

HRP

Recruitment

Selection

Development of human resources

Process of improving, moulding and changing the


skills, knowledge and ability of an employee

Employee Training

Management Development

Career Development

Motivation of human resources


Process of integrating people into a work
situation in a way that it encourages them to perform /
deliver to the best of their ability

Understanding needs

Designing motivators

Monitoring

Maintenance of human resources

Process of providing employees the working


conditions that help maintain their motivation and
commitment to the organisation

Satisfaction Levels

Retention

THE ROLE OF MANAGER OF HRD (human resource


development) consists of five separate but overlapping
components referred to as subroles. Each is vital to the
development of an efficient and properly managed HRD
department. They include: (1) evaluator of the HRD
program's impacts and effects on organizational efficiency,
(2) management of the organizational learning system, (3)
operational manager responsible for the planning,
organizing, staffing, controlling, and coordinating of the HRD
department, (4) strategist responsible for long-term planning
and integrating of HRD into the organization, and (5)

marketing specialist responsible for the advancement of


HRD within the organization through well defined and
effective networks.
HRD FRAMEWORK

HRD PROCESS

A STRATEGIC HUMAN RESOURCE DEVELOPMENT plan ensures that you can


achieve your training and employee development objectives. Employee training and
development is one of the critical HR responsibilities. Productivity improvement is one of
the main objectives. Training, determined by way of a Training Needs Analysis (TNA), is
required to equip employees with new skills and provide them with enhanced
knowledge having relevance to their jobs. These are in response to various changes
and new technological development and ways of doing things, among other reasons.
When we say "strategic" we are referring to the effectiveness of the training and
development programs in improving the ability of employees to perform their jobs well,
thus increasing productivity. The better they perform their jobs the higher the
organization's productivity. Continuous strategic human resource development involves
a continuous stream of necessary actions to maintain or enhance their skills. People
need to have their skills updated all the time. Determine how good your training
initiatives are by conducting training evaluation. Aim for the improvement of the
competencies of HR people, line managers and supervisors and other employees.
Competency profiling can help you in doing this.
New Employees
When newly-appointed employees report for duty, induct them into your organization.
This assists them to quickly identify with your organization, its structure, systems and
procedures, and the business that it carries out. This eases them to fit faster into your
work environment. Executive Development Program Strategic human resource
development also means identifying and preparing capable employees to take up more
responsible positions whether fairly soon or in the near future. Employees so identified
are provided with adequate training of the right type. One of the more effective ways

that is becoming more popular is to provide coaching sessions. This involves more than
just sending people for training.
Develop your executives to become effective leaders.
Manage the effectiveness of your training programs by ensuring the standard of your
training management is always up to expectation. The right leadership qualities of
corporate leaders ensure that the various matters relating to effective people
development are attended to without fail.
But What is Strategic Human Resource Development?
This means providing your people with training and development programs of various
types that are relevant to their respective role, duties and responsibilities.

The use of strategy in training and development requires that these are aligned to your
organizational needs in order to achieve its mission and objectives. For example, you
provide counter staff with communication and public relations skills. This is in addition to
training in the roles that they must play such as promoting products or services.
Organizational expansion requires employment of new employees. The same is true in
restructuring exercises which can result in the creation of new positions. If you have
plans to promote certain people to fill new executive positions, it is reasonable to
assume that you have an effective executive development program. This is an essential
part of succession planning. It is not enough that employees are required to attend
courses. Willingness and readiness to learn are important conditions for effective
learning and thus the effectiveness of training.
TASK ANALYSIS
Systematic identification of the fundamental elements of a job, and examination of
knowledge and skills required for the job's performance. This information is used in
human resource management for developing institutional objectives, training programs,
and evaluation tools. See also activity analysis, job analysis, and performance analysis.
DESIGNING EFFECTIVE HRD PROGRAM
Once the first phase of effective HRD processes i.e. the Needs Assessment phase is
completed, the organization has an access to data like: Where in the Organization
training is needed?
What kind of Training is needed?
Who needs to be trained?

What are the conditions under which the training should be provided?
In addition to having an access to these data, the management would also have
prioritized the needs so as to know which programs or issues need immediate attention.
Thus, starts the second phase of the HRD process i.e. designing effective HRD
Program. Now, this process involves six important activities: Setting Objectives
Selecting the Trainer/Vendor
Developing a lesson plan
Selecting program methods and techniques
Preparing materials
Scheduling the program
In addition to these six activities which are of prime importance, the other big picture
responsibilities are also described by Prof. RonaldSims. He argues that Training and
Development initiatives must emphasize employee competencies or KSAOs. What are
Objectives? Robert Mager defines objectives as a description of performance you want
learners to be able to exhibit before you consider them competent i.e. the training
program objectives describe the intent and the desired result of the HRD program.
Three important aspects of Objectives: Performance: An objective always says what a
learner is expected to be able to do and/or produces to be considered competent; the
objective sometimes describes the product or result of doing. Conditions: An objective
defines the important conditions (if any) under which the performance is to occur.
Criteria: Wherever possible, an objective identifies the criteria of acceptable
performance by describing how well the learner must perform in order to be considered
acceptable.

Why is it important to clarify objectives of training? y Objectives are the basis for
determining a training strategy y Objectives help to determine the necessary outputs
and contents of the training y Objectives provide a direction for all training activities y
Objectives help give a structure to the training y Objectives help trainers and
participants to stick to their common goal. TRAINING OBJECTIVE PLANNING MATRIX
Outputs: (the results which your training has to produce) Topics: (the problems which
must be addressed in order to have the desired effects) Contents: (the exact information
you want to provide during the training) Training Input: (the form in which you want to
transport the information) Helping questions: Which steps do you have to introduce to
the trainee? What does he have to know for that? Which details do you want to give
him? How do you provide this information? 1. 2. This model was first used by the

American Red Cross Society. It is now also followed at IBM. The Make versus Buy
Decision Once the training objectives are set, the organization has to make a series of
decisions as to whether they would develop the program in-house or purchase the
program (or parts of it) from an outside vendor or consultants. Factors to consider
before purchasing an HRD program Expertise: Whether the organization has the
desired expertise to develop and implement a program in-house. Timeliness: When it
is timelier to hire an outside agency to facilitate the process. Number of Trainees:
Generally, the larger the number of trainees, the greater the likelihood that the
organization would be willing to design the program itself. Subject Matter: If the subject
matter is sensitive or proprietary the HRD department would conduct the program inhouse.
Cost: The HRD department always considers the costs, but only in concert with other
factors. Size of HRD: The size is again an important factor. X-Factor: Some other
extraneous conditions that would make it preferable that an outside agency be used to
conduct the skills training. Other factors to be considered are: Vendors Credentials:
including the certificates, degrees, and other documents of the vendors expertise.
Background: Number of years in business and experience in the particular content area.
Experience: Vendors prior clients, success with them, references
Philosophy: Comparison of the vendors philosophy with that of the organization.
Delivery Method: Training methods and techniques used.
Still some other factors are: Content, Actual product, Results, Support, and Request for
Proposal
Human Resource Management (HRM), a relatively new term, that emerged during the
1930s. Many people used to refer it before by its traditional titles, such as Personnel
Administration or Personnel Management. But now, the trend is changing. It is now
termed as Human Resource Management (HRM). Human Resource Management is a
management function that helps an organization select, recruit, train and develops.

HUMAN RESOURCE MANAGEMENT

Human Resource Management is defined as the people who staff and manage
organization. It comprises of the functions and principles that are applied to retaining,
training, developing, and compensating the employees in organization. It is also
applicable to non-business organizations, such as education, healthcare etc. Human

Resource Management is defined as the set of activities, programs, and functions that
are designed to maximize both organizational as well as employee effectiveness

Scope of HRM without a doubt is vast. All the activities of employee, from the time of his
entry into an organization until he leaves, come under the horizon of HRM.
The divisions included in HRM are Recruitment, Payroll, Performance Management,
Training and Development, Retention, Industrial Relation, etc. Out of all these divisions,
one such important division is training and development.

TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that


randomness is reduced and learning or behavioral change takes place in structured
format.
TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT
Traditional Approach Most of the organizations before never used to believe in
training. They were holding the traditional view that managers are born and not made.
There were also some views that training is a very costly affair and not worth.
Organizations used to believe more in executive pinching. But now the scenario seems
to be changing.
The modern approach of training and development is that Indian Organizations have
realized the importance of corporate training. Training is now considered as more of
retention tool than a cost. The training system in Indian Industry has been changed to
create a smarter workforce and yield the best results

TRAINING AND DEVELOPMENT OBJECTIVES

The principal objective of training and development division is to make sure the
availability of a skilled and willing workforce to an organization. In addition to that, there
are four other objectives: Individual, Organizational, Functional, and Societal.
Individual Objectives help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organization.

Organizational Objectives assist the organization with its primary objective by bringing
individual effectiveness.

Functional Objectives maintain the departments contribution at a level suitable to the


organizations needs.

Societal Objectives ensure that an organization is ethically and socially responsible to


the needs and challenges of the society.

TRAINING VS DEVELOPMENT
Every organization needs to have well-adjusted, trained, and experienced people to
perform the activities that must be done. As jobs in todays dynamic organizations have
become more complex, the importance of employee education has increased. When
jobs were simple, easy to learn, and influenced to only a small degree by technological
changes, there was little need for employees to upgrade or alter their skills. But that
situation rarely exists today. Instead, rapid job changes are occuring, requiring
employee skills to be transfomed and frequently updated. In organizations, this takes
place through what we call employee training.

Training is a learning experience in that it seeks a relatively permanent change in an


individual that will improve the ability to perform on the job. We typically say training can
involve the changing of skills, knowledge, attitudes, or behavior. It may mean changing
what employees know, how they work, their attitudes toward their work, or their
interaction with their coworkers or supervisor.

Although employee training and employee development are similar in the methods
used to affect learning, their time frames differ. Training is more present-day oriented; its
focus is on individuals current jobs, enhancing those specific skills and abilities to
immediately perform their jobs.

Employee development, on the other hand, generally focuses on future jobs in the
organization. As your job and career progress, new skills and abilities will be required.
As you are groomed for positions of greater responsibility, employee development
efforts can help prepare you for that day.

Irrespective of whether we are involved in employee training or employee development,


the same outcome is requirewd. That is, we are attempting to help individuals learn.
Learning is critical to everyones success, and its something that will be with us
throughout our working lives. But learning for learnings sake does not happen in a
vacuum. Rather, it is a function of several events that occur, with the responsibility for
learning being a shared experience between the teacher and the learner.

Career planning

Career development

The potential appraisal refers to the appraisal i.e. identification of


the hidden talents and skills of a person. The person might or might
not be aware of them. Potential appraisal is a future oriented
appraisal whose main objective is to identify and evaluate the
potential of the

employees

to assume

higher

positions

and

responsibilities in the organizational hierarchy. Many organisations


consider and use potential appraisal as a part of the performance
appraisal processes.

Potential appraisal can serve the following purposes:


To advise employees about their overall career development and
future prospects
Help the organisation to chalk out succession plans

Motivate the employees to further develop their skills and

competencies.
To

identify

the

training

needs.

Techniques of potential appraisal:

Self appraisals

Peer appraisals

Superior appraisals

MBO

Psychological and psychometric tests

Management games like role playing

Leadership exercises etc.

Potential appraisal helps to identify what can happen in future so


that it can be guided and directed towards the achievement of
individual and organizational growth and goals. Therefore, potential
should

be included

as a part of

the Performance appraisal in

organisations.

EMPLOYEE EMPOWERMENT
Many managers are reluctant to fully accept and apply employee empowerment as they
feel they have to" let go" of their power. Empowerment is not about "letting go, it's about
sharing your power with the ones below you. However, employee empowerment will
change processes and their impacts: as decision making, problem solving etc.
Empowerment is a further step from participation; it's about action and autonomous
decisions and analysis.Employees have full authority to not only participate in decision
making processes but to make decisions based on their own findings and expertise.
Successful empowerment involves trust, respect and openness.

In your role as manager it's imperative to believe in your team's ability to operate and
make decisions autonomously. At the same time it is also important to be there as a a
facilitator and a coach. The best approach to start the empowerment process is to
discuss with your team and design a plan that makes empowerment a practice without
overwhelming them. And as Guy Kawasaki writes in his wonderful book Enchantment " Want to change the world? Change caterpillers into butterflies? This takes more than
run-of-the-mill relationships. You need to convince people to dream the same dream
that you do. That's a big goal, but one that's possible for all of us.
Where to start?
Start with yourself: Embrace PARTICIPATORY Management and the empowering
process as a natural outcome. The most important principle guiding Participatory
Management is the utilization of skills at different levels and in different ways. When
staff are involved in the process that leads to generate ideas, share skills, take active
lead, the likelihood increases that they will also embrace the share of power.
PARTICIPATORY MANAGEMENT taps into the creative potential and the knowledge of
people and further builds their capacity to direct their own development.
Prepare and Train for empowerment: Explain to your team the meaning and benefits of
empowerment. Take the time to describe the change in their roles " from decisioncarriers to decision -makers" .Train them in techniques that generate ideas as
brainstorming and other participatory methods.

Create opportunities for crosslearning: Have members of a team who has gone through
the empowering process to share their experience. Your team will not only have a
chance to learn about the benefits and challenges, but to also know that the real
empowerment exists and it works.
One step at a time: In the beginning chose assignments and projects they easily led
themselves to participatory efforts. Gradually tackle to the point which team members
tackle all projects collaborately.
What are the benefits?
Employee empowerment is a process that benefits individuals, managers and the
overall productivity of companies. Employees become more involved, feel valued and
stimulated to overdeliver.
People who work on a job develop their skills daily. They know exactly what works
efficiently and what doesn't. They also have very creative ideas on improving situations
and solving problems. They become experts without the power of exercising their

expertise. Empowerment makes it possible and takes it a step further by


opportunities to gain experience, learn new skills and generate knowledge.

creating

When people are given the authority to plan and implement a project it gives them
"ownership" and it makes them more committed to make it successful.
Indicators of Employee Empowerment:
Empowerment is hard to measure. There are no statistics and number to determine
percentages or amount of empowerment. t is important to identify qualitative criteria to
measure the positive impact of empowerment without forgetting that the change does
not happen overnight.
Indicators to success are:
Open management - team members participate actively in meetings, diagnose issues,
analyze and identify solutions. Managers believe in their capacity and have less or no
control in processes that involve finding of solutions, decision making etc.
Team spirit - high morale, enthusiasm
Decentralized control: each team member functions relatively autonomously: interlinking
job descriptions; clarity on individual roles.

The Quality of Worklife department implements programs and practices that encourage
a positive and productive work experience at Penn. QOWL services address the key
areas of Work-Life Balance, Health Promotion and Wellness, and Staff Appreciation and
Recognition. More information on the history of QOWL programs at Penn is available
here.

Worklife Balance Manage the competing demands of home and work.


Adoption Assistance allows eligible faculty and staff to be reimbursed for qualified
adoption expenses.
Backup Care provides opportunities for alternative care arrangements for your
dependents so you can go to work.
New child benefits give you access to a wealth of resources when you bring home a
new child.

Penn's Nursing Mothers Program can help you make a smoother transition back to work
when you're nursing your newborn.
Flexible Work Options offer creative solutions to help you balance work and family
demands.
Snow Day Child Care is available when Philadelphia public schools close due to
inclement weather (pre-enrollment required).
Worklife Resources is an important tool for finding child care, school-age care, and/or
elder care services to meet your familys needs and preferences. Youll also find
information to address a wide range of dependent care challenges, such as learning
issues, applying for college, preparing a parent for group care and more.
School Strike Guidance provides resources to help parents in the event of a school
strike.
Health Promotion and Wellness Improve your physical and emotional health and
wellbeing.
Penn's Employee Assistance Program provides free, 24/7 resources for you and your
family, including counseling, referrals and information about personal or professional
concerns.
Annual Health Fairs held each year in April feature free health screenings and a wealth
of information.
Flu shots are available to faculty and staff every fall.
Wellness workshops explore nutrition, lifestyle, exercise and other health-related topics.
Penn's Recreation Department provides group exercise classes, personal training, gym
membership and more at attractive rates.
The Penn Walking Program makes walking, jogging or running a part of your routine by
tracking your progress and keeping you motivated.
Weight Watchers helps members shed excess pounds with on-campus meetings.
Maintain, Don't Gain gives you the support you need to avoid gaining weight during the
holiday season.
Quit smoking resources can help you kick the habit.
Staff Recognition and Appreciation Enjoy Penn's recognition and appreciation of your
contributions to Penn's mission.

Length of Service Awards reward long-standing commitment to Penn.


Models of Excellence Awards honor achievements by individuals or teams who go
above and beyond the call of duty.
Penn Family Day is an annual celebration of the Penn community, featuring food, fun
and football.
Take Our Daughters and Sons to Work Day gives girls and boys 9-15 years old an up
close and personal look at their parent/sponsor's workplace.
Quality of Worklife programs are constantly evolving. If you have a suggestion for a new
program, or feedback on existing programs, please contact Marilyn Kraut, Human
Resources Director, Quality of Worklife Programs, at kraut@upenn.edu or 215-8980380.

STATEGIC HRD

A strategic human resource planning model


There is no single approach to developing a Human Resources Strategy. The specific
approach will vary from one organisation to another. Even so, an excellent approach
towards an HR Strategic Management System is evident in the model presented below.
This approach identifies six specific steps in developing an HR Strategy:1. Setting the strategic direction
2. Designing the Human Resource Management System
3. Planning the total workforce
4. Generating the required human resources
5. Investing in human resource development and performance
6. Assessing and sustaining organisational competence and performance

Source: A Strategic Human Resource Management System for the 21st Century. Naval
Personnel Task Force, September 2000

The six broad interconnected components of this system consist of three planning steps
and three execution steps.
The top three components represent the need for planning. Organizations must
determine their strategic direction and the outcomes they seek. This is usually
accomplished with some form of strategic planning. Classic strategic planning is a
formal, top-down, staff-driven process. When done well, it is workable at a time when
external change occurs at a more measured pace.
However as the pace and magnitude of change increases, the approach to strategic
planning changes substantially:

First, the planning process is more agile; changes in plans are much more
frequent and are often driven by events rather than made on a predetermined
time schedule.
Second, the planning process is more proactive. Successful organizations no
longer simply respond to changes in their environment, they proactively shape
their environment to maximize their own effectiveness.

Third, the planning process is no longer exclusively top-down; input into the
process comes from many different organizational levels and segments. This
creates more employee ownership of the plan and capitalises on the fact that
often the most valuable business intelligence can come from employees who are
at the bottom of the organizational hierarchy.

Lastly, the strategic planning process less reactive and more driven by line
leadership.

Once strategic planning is under way, a process must be undertaken by the


organization to design and align its HRM policies and practices to provide for
organizational success. The remaining step in planning is to determine the quality and
quantity of human resources the organization needs for its total force.
The rest of the HR strategic system exists for and is guided by these plans, policies,
and practices. These execution components contain mechanisms that generate the
correct skill sets, invest in staff development and performance, and productively employ
them in the organisation. The last component provides a means to assess and sustain
the competence and performance of the organization and the people in it with regard to
outcomes that the organization seeks.
_____________

Strengthen HRD Role:


The human problems associated with the takeovers require humane handling. A
smoothtransition means that people perceive the change as desirable, and not as
threatening. Thechanges which follow a M&A, for example, create career dilemmas for
people, change the rolealignment between people and departments, make demands for
adjustments to new routines andculture. Helping people to cope with these changes
necessitates strengthening the role of HRD inM&A planning and implementation.There
are many ways in which HRD interventions can make people comfortable with
thesechanges.- Career counseling,-stress reduction workshops,-inter-role negotiations,training for developing new skills and-competencies,etc.
HRD ACTIVITIES IN MERGERS AND AQUISITIONS
Designing teams Creating new structure Retain key employees Motivating
employees Managing the change process Deciding HR policiesThe implications for
the HRD manager in this stage are many but one of the most important oneis to decide
who will stay and who will be leaving. The HRD department should be veryselective in
their task, because the selection of the employees is one of the critical issues at thetime
of any merger. Many other actions should also be performed by the HRD department.
Selecting the appropriate candidate Creating new teams
Communicating is essential Establishing the new culture and structure Solidify
leadership and staffing Assessing new culture Assessing new strategies and
structures Assessing new employees cultureSome of the actions and implications of
the HR department under this stage are as follow. Creating and evaluating new
structure is important Molding the 2 new cultures into each other The concern of the
stakeholder should be taken under consideration.There are numerous conclusions that
can be made while talking about the HR issues andactivities in mergers and
acquisitions. Some conclusions are as follow. HR issues should not be neglected while
having any merger or acquisition because Humanresources are the real assets of any
organization. Many organizations failed due to negligence of HR issues while their
mergers. Keep track of the Human issues in all the 3 phases of the M&A, so that no
issue remainsunfocused. Employee communications, retention of key employees and
cultural integration are the mostimportant activities in the HR area for successful M&A
integration.Here are some recommendations for those companies which are looking to
have any sort of merger and acquisitions keeping in mind the human issues.
Companies should put their best people in charge while implementing M&A HR

department should be included in all decision making right from the start to the end
The integration manager should be selected very carefully Retain your key personnel
CHALLENGES AND ISSUES OF HRD Changing workforce demographics
The workforces nature and compositions has undergone significant changes in terms
of employee qualification, skills and other personal characteristics. With increased
spread of education, on one hand, more and more young people with higher
qualification and skills arejoining the ever increasing workforce. They have higher
aspirations and are highly career minded and want to achieve excellence in short span
of time. And on the other hand ,increasing number of women employees is making up
significant proposition of theworkforce.
Competing in global economy
Globalization has transformed the way organization used to do business earlier.
Highlycomplex, complicated and competitive environment has made the organization to
focus ontheir last reliable source of competitive advantage i.e. human resources. Newer
andinnovative human resource development programmes, strategies and processes
are requiredto continuously develop human competencies and enable people to adapt
to a uncertain andcomplex business environment in order ensure the competitiveness
and survival of theorganization.
Eliminating the skills gap
Increasing customer orientation, fast changing technology, increased competition, etc.
hasresulted in fast obsceneness of skills of the employees. Organizations in their bid to
stayafloat have to continuously develop and upgrade skills of their employees through
humanresource development programmes.
Need for lifelong learning
Organizational learning has become a vital to continuously develop employee skills
andcompetencies for value addition to the organization. Employees themselves have to
takecharge of their learning themselves. Self directed learning is more effective,
meaningful andgoal oriented. Learning provides knowledge, knowledge provides
wisdom and wisdomprovides direction.

Need for organizational learning


Every organization intending to say competitive and agile needs to become a
learningorganization, where all employees are learners. Organizational learning is
necessary to sayprovide the tool to employees to adapt to fast changes in internal and

external environment of the organization such as competitor strategies, customer


expectations etc.
HRD SCENARIO IN INDIAN ORGANIZATION: ITS PROBLEMS ANDPROSPECTS
The company introduced a system of work plan and review for all the class I officers of
theorganization at all levels in all its offices. Through the instrument of WPR, an attempt
wasmade to integrate the individual growth and the organizational growth through a
process of SWOT Analysis, role scanning, job survey and periodic review of result areas
andmonitoring of performances as per work plan drawn by each individual officer for
aparticular financial year.
HRD Function needs to focus on:
1.Mangers should fulfill a key role in changing HRD practices but it has been foundthat
it is sometimes difficult to get them to fulfill this active role, either because of their
workload, lack of affinity with HRD tasks or a lack of skills in this field.Therefore in the
short run, it is necessary to find strategies to involve managers inHRD, by changing
their views on learning and increasing their motivation to supportlearning. In the long
run, consideration should be given to incorporating HRD skillsin all management
training programmes.2.
HRD functions should be more precisely defined and recognized by top managementas
a major part of the global development strategy of the organization and seen as
aninvestment rather than a cost.3.
Professional associations from different organizations and countries should
organizeevents where HRD professionals can reach a common terminology, exchange
ideasand collectively try to solve difficult challenges.4.
There is a need to change the view that learning is just a classroom, teacherbasedactivity.
5
.Organizations should seek cooperation with institutions for vocational education
andwith universities in order to assist in the creation of an infrastructure for
lifelonglearning.The human resource development refers to a range of actions that can
be taken by theorganization to strengthen the contributions of all the employees to the
success of theorganization.It essentially refers to:
y
The work and career development of all employees.

Increasing productivity, annual sales turnover and profits.

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