STRATEGIC HUMAN

RESOURCE DEVELOPMENT

Lecture 2

Presenter;
ISMATULLAH BUTT
PhD (S)
 HRM and HRD
2

Lecture Plan:
 Strategic HRD versus HRD Strategies.

 HRM versus Personnel Management and

its Implications for HRD.

 Distinction between HRM and HRD in

Pakistani Organizations.
 Firm’s Capitals
3

 Human Capital
 Knowledge, skills, abilities of individuals
 Social Capital
 Relationships in social networks
 Structural, cognitive, relational dimensions

 Intellectual capital
 Knowledge and knowing capability of social
collectivities
 Procedural/declarative; tacit/explicit;
individual/social
 Value and Uniqueness of capitals
 Definition of HRD
4

 A set of systematic and planned

activities designed by an organization to
provide its members with the necessary
skills to meet current and future job
demands.
 Emergence of HRD
5

 Employee needs extend beyond the training

classroom
 Includes coaching, group work, and problem

solving
 Need for basic employee development

 Need for structured career development

Relationship between HRM and HRD:

 Human resource management (HRM)

encompasses many functions

 Human resource development (HRD) is just

one of the functions within HRM

 HRD Concepts: Three Dimensions
6

 Macro- economic dimension

 Socio- economic dimension

 Vocational training
 Life skills

 Organizational dimension
 Macro-Economic Dimension
7

 Long term objective: national economic growth

 Immediate objective: improved efficiency,

productivity and discipline of the labour force

 Strategy: market oriented education and training,

policy for labour demand, formalisation of the
informal sector

 Association of concepts: human capital formation,

formal education and training, structural adjustment
 Socio-Economic Dimension
(Vocational Training)
8

 Long term objective: raising of standard of living at

community level

 Immediate objective: income generation, improve

technical skills, improve planning capacity for production

 Strategy: (self) employment creation, skills training,

small scale business management

 Association of concepts: appropriate technology,

individual entrepreneurships, informal
education/training, income generation
 Socio-economic Dimension
(Life Skills)
9

 Long term objective: raising of general life quality

 Immediate objective: general empowerment, improve

organizing and learning capacity

 Strategy: community development, social awareness

raising, social mobilization, literacy campaigns

 Association of concepts: development by people,

transformation for change, popular participation
 Organisational Dimension
10

 Long term objective: improved organisational

performance in relation to mission, strategy and
resources

 Immediate objective: improved professional capacity

to perform, receptivity towards organisational mission

 Strategy: team building and individual training of

staff and managers

 Association of concepts: organisational development,

institutional sustainability
 Organizational HRD: Interpretations
11

 Total institutional capacity development including:

 Interventions focusing on improving total

institutional capacity (leadership and governance,
structure, human and other core resources,
programme and process management and external
linkages)

 Too broader perspective – risk of dilution of

primary focus (HR capacity development)
 Organizational HRD: Interpretations
12

• Individual capacity development including:

– Learning activities focused on developing

individuals’ capacity

– Too narrow perspective – ignores the fact that HR

capacity is capacity to perform, not merely the
capacity of performer
 Organizational HRD: Interpretations
13

 Integrated process including:

 Developing competencies of individuals as well as

organization teams.

 Improving organizational systems and environments

that create and sustain opportunities to utilize and
further develop competencies for effective
performance
 HRD Concepts
14

HRD is a set of organised learning activities as well as

work systems and environment improvement programs
arranged for enhancing potentials and competencies of
individuals and making utilisation of those abilities to
attain effective performance and growth at the job,
individual, and organisational levels in relation to the
Mission, strategies and resources of the organisation.
 HRD Concepts
15

 HRD is a process and a function by which people in an

organisation are helped, in a continuous and planned way, to

 acquire and sharpen capabilities required to perform

present and future jobs.

 develop general capabilities and use potentials for personal

and professional development, and

 develop an organizational culture and systems for maximum

utilization of enhance competencies and potentials.
 HRD Concepts
Focus and Level of HRD Outcomes of HRD
16
Actions Actions
Development of
potentials and careers
of employees for future

Enhance HR capacity
performance

Organisational and
individual goal
achievement
performance
HRD actions

Development of job

Increased
competencies and
personal abilities of
employees for present
performance

Development of work
culture, environment
and systems for
organisational
performance
 HRD Functions
17

 Training and development (T&D)

 Organizational development
 Career development
 Training and Development
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(T&D)
 Training – improving the knowledge, skills and
attitudes of employees for the short-term,
particular to a specific job or task – e.g.,
 Employee orientation
 Skills & technical training
 Coaching
 Counseling
 Development – preparing for future responsibilities,
while increasing the capacity to perform at a
current job.
 Management training
 Supervisor development
 Organizational
19
Development
 The process of improving an organization’s
effectiveness and member’s well-being through
the application of behavioral science concepts
 Focuses on both macro- and micro-levels

 HRD plays the role of a change agent

Career Development:
 Ongoing process by which individuals progress

through series of changes until they achieve

their personal level of maximum achievement.
 Career planning
 Career management
 Learning & Performance
20
 Human Resource
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Development
 Human Resource Development (HRD) is
the framework for helping employees
develop their personal and organizational
skills, knowledge and abilities.

 A set of systematic and planned activities

designed by an organization or HR
department to provide its members with
the necessary skills to meet current and
future job demands.
 Strategic Management &
22
HRD
 Strategic management aims to ensure
organizational effectiveness for the
foreseeable future – e.g., maximizing
profits in the next 3 to 5 years.

 HRD aims to get managers and workers

ready for new products, procedures, and
materials.
 HR’s Strategic Role
23

 Employees as organization’s assets

 Driving business strategy
 Spanning organizational functions
 HRD Deliverables:
 Performance
 Capacity Building
 Problem solving/consulting
 Org. change and development
 Strategic HRD
24

 Integration of HRD with strategy

formulation and implementation.
 Long-term view of HR policy.
 Horizontal integration among HR
functions.
 Vertical integration with corporate
strategy.
 SHR as core competitive advantage.
 Horizontal & Vertical Integration
25

 Horizontal Integration make use of Internal Human Resources

activities to tailor specific Human Resource strategies. 
 In vertical integration HR leadership implements the Human

Resource strategy within the business strategy.

 The concept of vertical and horizontal integration

demonstrate three important strategic tasks for HRM:

1. demonstrates the abilities of HR to tailor specific HR
strategies that contribute to achieving business strategic
goals;  
2. demonstrates a direct alignment of HR strategic activities to
business strategic goals;  and
3. identifies specific HR metrics that measure the strategic
contribution of HRM.
 HRD Strategies-
26
Defined
HRD Strategies are a plan
that defines how the human
resources would be utilized
through the use of an
integrated array of training,
organizational development
and career development
efforts to achieve individual
and organizational
objectives.
 Major HRD Strategies
27

Communications Strategy:
In today’s changing scenario, it is essential to
educate and train employees about the change

Accountability And Ownership Strategy:

Employee’s accountability and ownership
leads to higher productivity and customer
acceleration.

Quality Strategy:
Quality needs to be fostered in the employees
through training and development.
 Major HRD Strategies

28

 Cost Reduction Strategy:

Every employee’s contribution in savings is crucial as small
contributions from each employee can be pooled by
organizations to save substantial savings at the end of a
given period and enhance its competitive strategy.
 Intrapreneurship Strategy:
Every employee needs to be an independent entrepreneur,
who can generate ideas and bring them to reality by using
the existing resources and support of the org to create
innovative and creative products and services.
 Culture Building strategy:
Organization’s valuing its employees have a sustainable
competitive edge over competitors because employees are
highly charged, motivated and commitment to the
organization.
 Primary Functions of
29
HRM
 Human resource planning
 Equal employment opportunity
 Staffing (recruitment and selection)
 Compensation and benefits
 Employee and labor relations
 Health, safety, and security
 Human resource development
 Secondary HRM
30
Functions
 Organization and job design
 Performance management/ performance
appraisal systems
 Research and information systems
 HRM And PERSONNEL
MANAGEMENT
31

 Personnel management can be defined as obtaining, using

and maintaining a satisfied workforce. It is a significant part
of management concerned with employees at work and
with their relationship within the organization.
 According to Flippo, “Personnel management is
the planning, organizing, compensation,
integration and maintenance of people for the
purpose of contributing to organizational,
individual and societal goals.”
 According to Brech, “Personnel Management is that part
which is primarily concerned with human resource of
organization.”
 When a difference between personnel
management and human resources is
 HRM and PERSONNEL MANAGEMENT

32

 Human resources is said to incorporate and develop

personnel management tasks, while seeking to create and
develop teams of workers for the benefit of the
organization. A primary goal of human resources is to
enable employees to work to a maximum level of
efficiency.
 Personnel management can include administrative tasks
that are both traditional and routine. It can be described as
reactive, providing a response to demands and concerns as
they are presented. By contrast,
 Human resources involves ongoing strategies to manage
and develop an organization's workforce. It is proactive, as
it involves the continuous development of functions and
policies for the purposes of improving a company's
workforce
 Personnel management is often considered an independent
 Challenges for HRD
33

 Changing workforce demographics

 Competing in global economy
 Eliminating the skills gap
 Need for lifelong learning
 Need for organizational learning
 HRM and HRD-
34
Difference
 HRM refers to the application of principles of
management to manage the people working in
the organization. HRD means a continuous
development function that intends to improve the
performance of people working in the
organization.
 HRM is a function of management. Conversely,
HRD falls under the umbrella of HRM.
 HRM is a reactive function as it attempts to fulfill
the demands that arise while HRD is a proactive
function, that meets the changing demands of
the human resource in the organization and
anticipates it.
 HRM and HRD-
35
Difference
 The basic objective of HRM is to improve the
efficiency of employees. In contrast to HRD, which
aims at developing the skill, knowledge and
competency of workers and the entire organization.
 HRD is an organizationally oriented process; that is
a subsystem of a big system. As opposed to HRM
where there are separate roles to play, which
makes it an independent function.
 Human Resource Management is concerned with
people only. Whereas HRD focuses on the
development.
 Strategic Human Resource
Development
36

Questions and Answers

ALLAH HAFIZ
 HRD (8709)
37

SUPPLEMENTARY SLIDES
 HRM v/s Personnel Management
38

1. Human Resource Management is more concerned

with how people (employees) should be managed
to attain the organization's goals, not only limited
to certain specific duties.
In contrast, PM focuses more on administrative
discipline, obligations and compliance from the
employees.
2. Organic form is Human Resource Management's
preferred structure. It is flexible, adaptable and
individual in a flat structure with only one or two
levels of management.
Quote “PM's preferred form of organization is
bureaucratic or mechanistic emphasize on
 HRM v/s Personnel
39
Management
3. Human Resource Management outlooks the organization
as a whole and
put the central point in forming a positive and active
environment.
Focus only on administering people, the range of PM is
relatively narrow
compare to the range of HRM.
4. An HR manager should be able to anticipate and identify
the potential problems that might arise in the producing
and planning process, encourage high employee
involvement in decisions in order to rapidly respond to
changes in the business environment and the customers'
needs. H/she focuses on conformity and looks for
commitment instead of compliance and control.
PM is generally reactive by only providing the necessary
responses once problems come up. It does not work with
 HRM v/s Personnel
40
Management
5. The human resource manager is considered as catalyst by
creating the environment that can motivate the employees
by recognition and challenging.
By contrast, PM is perceived as putting a brake on
employees' innovations and creativity because it motivates
the employees with reward, job simplification and so on
(Tripathi, P. C., 2002).
6. HRM aims to maximize as much as possible the utilization
of employees and their full potential. In PM, the evaluation
criterion is to minimize your cost and expenses.
7. HRM is taken into account as a built-in part. PM duties are
the only territory of Personnel Department. Nevertheless,
HRM involves all the key managers (senior) with different
activities to develop the capabilities of all line managers to
carry out the personnel functions. Personnel Management
is considered not to be influenced by the organization, in