CHAPTER 5

Strategic HRD

Learning Objectives
On completion of this chapter you should be able to:

● Define basic concepts of strategic HRD.

● Apply models of strategic HRD.
● Explain performance as a critical function of strategic HRD.
● Recognize leadership competencies for managing change.
● Discuss the role of strategic HRD in talent management and career
planning.

The role of human resource development has gradually changed over the
years as management and decision-makers are seeing the critical role that this
function plays in developing strategy. This chapter discusses strategic human
resource development (SHRD) as an essential function of an organization’s
planning process in anticipation of growth, change, or planned or unplanned
events and whereby the competencies and skills of the people—the human
resources—play a critical role in successful and productive implementation
and bring about desired results. SHRD will be defined from its conceptual
stages to current discussions from practical as well as scholarly discourse.
SHRD from a performance-based perspective will be highlighted. Leadership
in managing strategic change will be highlighted as will the role of SHRD in
career planning.

Defining Strategic Human Resources Concepts

In order to conceptualize the function of SHRD, it is necessary to under-
stand what is meant by strategic planning. Strategic planning is a process
whereby leadership and management think critically about future conditions

C. Hughes and M. Y. Byrd, Managing Human Resource Development Programs

© Claretha Hughes and Marilyn Y. Byrd 2015
76 ● Managing Human Resource Development Programs

and how those conditions influence decision-making (Rothwell and Kazanas

1989, 2003). Strategic planning helps decision-makers learn from past
actions, avoid problems, recognize trends, and seek opportunities for growth.
In essence, strategic planning is based on “adapting to and anticipating
external environmental change” (237). Strategic planning is not an exclusive
human resource function. Strategic planning brings together decision-makers
from all functional areas of an organization (Sikora and Ferris 2014). HRD
practitioners are responsible for implementing; therefore, strategic HRD can
be regarded as linking strategy with practice.
Defining strategic HRD can be just as obscure as defining the core dis-
cipline of HRD. Perhaps it will be helpful to explain why HRD should be
involved in strategic planning. Garavan (2007) offers an explanation to that
regard:

Human resource development (HRD) is best achieved through a strategic

approach, a position consistent with resource-based and theories. Strategic
human resource development (SHRD) contributes to the creation of firm-
specific knowledge and skill when it is aligned with the strategic goals of the
organization. (11)

Human resource development has traditionally emphasized competencies

as unique skills and capabilities that contribute to superior performance, a
values-added approach to an organization’s overall performance and provid-
ing a competitive advantage (Clardy 2007).
In a like manner, SHRD builds upon this understanding by emphasizing
and claiming a spot for HRD at the planning table.
Strategic HRD differs from traditional HRD in that strategic efforts mean
thinking about learning and performance and associated activities as a set
of organizational practices (Garavan and Carbery 2012). Moreover, it may
be necessary to forego training and development activities that do not add
value in favor of developing specific competencies that match strategic roles.
This means that HRD practitioners “assume the role of strategic partners,
strategic players and players in the business rather than simply reacting to
the events in the business” (24). This represents a shift from traditional
learning and performance roles toward involvement in strategic competitive
efforts.
Strategic HRD emphasizes core competencies as unique skills and capa-
bilities that provide a sustained competitive advantage. Organizations can
achieve and sustain a competitive advantage by integrating different types of
internal and external knowledge bases (Davenport, Prusak, and Wilson 2003;
Garavan 2007; Pfeffer 1994).