strategic human resource development
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International Journal of ManpowerStrategic Human Resource DevelopmentThomas N. Garavan
Article information:To cite this document:Thomas N. Garavan, (1991),"Strategic Human Resource Development", International Journal of Manpower, Vol. 12 Iss 6 pp.21 - 34Permanent link to this document:http://dx.doi.org/10.1108/EUM0000000000889
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Users who downloaded this article also downloaded:Thomas N. Garavan, Pat Costine, Noreen Heraty, (1995),"The emergence of strategic human resource development",Journal of European Industrial Training, Vol. 19 Iss 10 pp. 4-10 http://dx.doi.org/10.1108/03090599510095816Thomas N. Garavan, (1991),"Strategic Human Resource Development", Journal of European Industrial Training, Vol. 15 Iss1 pp. - http://dx.doi.org/10.1108/EUM0000000000219Rosemary Hill, Jim Stewart, (2000),"Human resource development in small organizations", Journal of European IndustrialTraining, Vol. 24 Iss 2/3/4 pp. 105-117 http://dx.doi.org/10.1108/03090590010321070
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STRATEGIC HUMAN RESOURCE DEVELOPMENT 21
T he characteristics, conditions and benefits of successful HRD are set out; if this is to have a strategic focus, a narrow set of
critical issues must also be considered.
Strategic Human Resource Development
Thomas N. Garavan
International Journal of Manpower, Vol. 12 No. 6, 1991, pp. 21-34 © MCB University Press. 0143-7720
People are vital for the success of any business and ultimately for national economic performance. Recent years have witnessed fundamental and far-reaching changes in the business sector and this process is by no means complete. The competitive and volatile environment within which many businesses operate is prompting senior management to take a greater interest in the development of the organisation's human resources. It is possible to point to a number of specific triggers which have helped to generate this interest. These include:
• difficulties in recruiting skilled managers; • the need to develop a more flexible and adaptable
skill base; • the need to align the potential of employees with
business objectives; • a greater emphasis on performance evaluation and
management; • the need for human resource and succession
planning.
These forces are promoting the emergence of strategic human resource development (HRD) in many organisations. Senior management is beginning to look at the HRD function to provide solutions to many of its business problems. There is some disquiet amongst certain sections of the training profession about the use of the term HRD to describe their activities. However, this concern is based on certain misconceptions about the nature of strategic HRD. 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 in detail 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. This article considers the characteristics of strategic HRD, the conditions necessary for its promotion, the advantages of such activities, their contribution to a wider HRM effort and finally it focuses on the HRD policy formulation and planning processes of a number of Irish organisations.
Characteristics of Strategic HRD There is growing literature on the characteristics of strategic HRD activities[1-5] and it is therefore possible to identify a number of key characteristics.
Integration with Organisational Missions and Goals A central feature of strategic HRD emerging from all the literature is the integration of training and development into wider business planning. Human resources in this context are seen as a vital factor in business planning and training and development are viewed as making an effective contribution to business goals. Barham et al.[6] point out that strategic HRD involves a move from activities that are fragmented to a situation where training and development is either more systematically linked to such goals (referred to as the formalised approach) or else is so systematically integrated with organisational needs that it is seen as a necessity for organisational survival (labelled the focused approach). Burgoyne[7], writing in the context of management development, proposes a six-level model, level six of which constitutes a strategic development of the management of corporate policy. Burgoyne notes, however, that there is considerable progress to be made before marry companies reach something akin to level six. Zenger and Blitzer[8] and Zenger[4] characterise the effective HRD function as one that keeps riveted to its organisation's goals. It is aware constantly of the mission, goals and the genuine needs of the organisation. This awareness can be achieved in formal, highly structured and sometimes informal ways. Zenger perceives an integrated function as systems-oriented, capable of seeing the macro picture and possessing the ability to develop a master plan of training and development that interlocks with the corporate master plan and overall tactical objectives. This article was first published in Journal of European Industrial
Training, Vol. 15 No. 1, 1991.
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22 INTERNATIONAL JOURNAL OF MANPOWER 12,6
Top Management Support Allied to the previously stated characteristic, strategic HRD must command the support and participation of top management (see, for example, [9-12]). The essential message emerging from this literature is that when management at board level treat HRD as making an important contribution, the HRD function wields a higher profile.
in many cases top management is not committed to training and
development activities D
The reality however, is that in many cases top management is not committed to training and development activities. A number of reasons can be cited for this lack of top management support:
(1) Previous and present generations of top managers were not always systematically trained or developed as managers. They tend to devalue training and development and, in fact, may perceive it as either irrelevant, or indeed as a threat to their position.
(2) Top managers are often too busy to consider the benefits of HRD or identify what resources and facilities are available.
(3) When organisational survival is the priority, the long-term fruits of investment in HRD are seen as something of a luxury.
(4) King[13] points out that, in many organisations, expenditure on training does not reflect investment in a financial sense but is instead perceived as a cost. This manifests itself in the lack of budgets, secrecy about the amount spent on HRD and the total reliance on external grant assistance. The Challenge to Complacency Report[14] supports this view on expenditure on HRD and concludes that the implicit link between training and profitability is often not recognised, or indeed understood.
(5) The training profession itself must also accept some of the responsibility for the lack of support from top management. Training specialists have not invested sufficiently in the marketing and quality of their services. This hinders their ability to convince top managers of the need to invest in HRD and of its contribution to improved organisational performance.
(6) Brown et al.[1] illustrate from their research that when management training is considered it is concentrated towards the bottom end of the
management hierarchy. Senior level managers were often not included in training strategies. Reasons cited for this lack of training included senior management reluctance, the difficulty of providing the right sort of developmental activities, and doubts about the costs and benefits of such training. Senior managers are often not very concerned about their own development which may inhibit their ability to act as role models in a management development context.
However, despite this dismal picture, there is no doubt that increased investment in HRD requires the active participation of top management.
Environmental Scanning The strategically oriented HRD function must have continuous knowledge of its external environment. A strategic HRD function must, according to Higgs[2] 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 external environment can act as a double-edged sword for the HRD function. On the one hand a competitive environment presents major opportunities since it highlights the role of human resources as a key component of business success. This in turn will present the opportunity to discuss HRD strategies at the highest level and ensure that the first characteristic discussed, that of integration, is achieved. The environment can also act as a threat to the HRD function. Stiff competition, if not tackled effectively, can reduce profit margins and consequently lead to a reduction in training budgets. This situation clearly points to the need for HRD strategy to be well positioned in the overall business context. 01son[15] illustrates how the characteristics of the organisation's environment shapes the type of HRD activities it engages in:
• Large companies spend heavily on training mainly because they have outgrown their ability to meet their skill needs with workers trained externally.
• High technology companies, because of their short product life cycles, invest heavily in HRD because it is viewed as a necessary weapon in their capacity to develop new products and adapt to market trends.
• Firms operating in highly competitive industries such as the automobile industry, the electronics industry and the financial services sector, view training as a strategic tool which allows them to deal effectively with skill shortages.
• Other service-intensive industries view HRD as a means of ensuring the success of their automated service and customer interaction systems.
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STRATEGIC HUMAN RESOURCE DEVELOPMENT 23
Invariably employees with the highest levels of environmental interaction tend to receive the most intensive training.
Pettigrew et al. [16] have modelled these and other factors and specified driving forces which help explain an organisation's inclination and capacity for generating HRD activities. Two environmental factors, namely technological and product-market changes were perceived as a major trigger for training. Their effect is greatest when they impact on the whole organisation and change the skill profile required. While these environmental forces may trigger training, the authors point out that a range of supporting factors and conditions are necessary if the HRD function is to respond accordingly.
HRD Plans and Polities An essential feature of the corporate planning process is the formulation of business plans and policies. For HRD to be strategic in its focus, it must undertake similar activities. Hales[3] sets out a number of propositions on the development of HRD plans:
• A strategic business plan must exist before a strategic HRD plan can be developed. An HRD plan developed separately from the business plan will remain short-term and operational in focus.
• Strategic HRD plans require top management sanction and involvement. A lack of involvement may result in HRD plans that are not in line with the organisation's mission. Furthermore this lack of involvement may result in reduced commitment at lower levels.
• If the organisation is dominated by short-term considerations in its planning the HRD plan will reflect similar characteristics.
• HRD plans are derived from both strategic business plans and an analysis of the internal and external environment. The internal and external analysis forms a critical base from which decisions are made concerning the HRD plan.
• The HRD plan provides the link between business activities and HRD activities.
Hendry and Pettigrew[17] also recognise that HRD planning only becomes strategic when it includes monitoring of environmental trends and the modelling of alternative scenarios. When the implications of this kind of monitoring are fed into the business planning process on an ongoing and long-term basis, the opportunity may be presented for HRD planning to influence business planning rather than simply reacting to it. They also see the status of HRD planning improving, as it would no longer be perceived as a numbers exercise and a mere consideration of skill deficiencies.
Policies are an essential component of the implementation phase. Policy formulation has in the past been ignored in the training and development literature. However, in more recent times, there is a growing recognition of its importance within the HRD context[18-23]. From this literature it is possible to cite a number of reasons why a strategic HRD function should engage in policy formulation. These may be summarised as follows:
• It aids management in identifying and implementing appropriate HRD activities for resolving organisation problems and exploiting new business opportunities.
• It helps to ensure that supervisors, line managers, and top managers are all equally aware of their HRD responsibilities and participate in HRD activities on a regular basis.
• It provides operational guidelines for management, i.e. a clear framework outlining the reason why the organisation is investing in HRD and the resources that the organisation are allocating for employee development.
• It acts not only as a source of information for all managers, but also clearly sets out for employees the different types of education, learning and/or development activities that they can undertake to help develop their skills and knowledge and therefore it complements career development activities.
• A clear policy statement helps to define the relationship that exists between the organisations objectives and its commitment to the HRD function.
• It may enhance public relations in so far as new employees to the firm can see one of the key benefits on offer to them and that any skills or inadequacies that they have coming into the firm will be overcome by engaging in appropriate training and development activities.
• An HRD policy can facilitate the establishment of employee career development opportunities. Employees will be able to identify their individual career paths. An effective HRD policy continually assesses the learning needs required for releasing both the employee's and the organisation's growth potential.
• It provides a guideline or framework against which HRD activities can be evaluated. Such a framework can indicate weaknesses or successes in various training or development activities and thus provides it with a strategic orientation.
• Furthermore it allows the HRD function to be placed in a particular context in relation to the other activities that occur in the organisation.
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line Manager Commitment and Involvement Zenger[4] points out that strategically-focused HRD functions have generated an enthusiastic involvement of line managers. Such involvement can manifest itself in a number of ways, not least among them the following:
• line managers conducting training sessions; • consultation with line managers on changes they
wish to witness in their subordinate's performance; • line managers becoming involved in the coaching
and counselling of subordinates; • line managers learning skills being updated; • active involvement in the HRD policy and planning
processes; • line managers being made responsible for the
identification of HRD needs within their department.
Gunnigle and Flood[23] see responsibility for continuous employee development resting with the immediate manager or supervisor. The reasons cited for this belief include the following: the line manager is best placed to assess, on an ongoing basis, the training and development needs of subordinates, and can facilitate in identifying development routes for subordinates and is ideally placed to provide advice, direction and counselling to subordinates. Mumford[24] classifies the line manager as a key helper in the management development process and Garavan[25] has focused on the types of skills that line managers require to be effective participants in the HRD process. Three dimensions of the line managers's role, namely facilitating learning, specific coaching and counselling skills, and the ability to adopt a participative and shared learning methodology, were systematically identified.
The competence of the line manager is vital to a
successful implementation of strategic HRD
The relationship between line managers and the HRD function can somehow be a problematic one. Research and commentary by Ashton[26], Mumford[24] and Garavan[25] identify a number of issues which need to be considered by a strategically-oriented HRD function:
• A key issue identified by many commentators is that of ownership of HRD activities. Key questions cited include: Who are the key parties in the HRD system? Is there a need for an explicit learning contract? How are HRD activities to be shared? What is the policy/operations boundary?
• The competence of the line manager is vital to a successful implementation of strategic HRD and is cited by many commentators as a particularly difficult issue. Competency difficulties most often cited include: inability to appraise performance, lack of counselling skills, inability to identify skill gaps, poor listening skills, inability to empathise with subordinates. Allied to these competency deficiencies may be a motivational one. Many areas of HRD are long-term in focus thus leading to the perception on the part of line managers that little impact on current performance may accrue from their involvement in the development of subordinates. Many line managers are also slow to acknowledge their deficient learning skills.
• Another crucial issue is that of role definition. Ashton[26] argues persuasively that different HRD activities require different degrees of involvement from line managers. Performance appraisal for example requires high line manager involvement as does coaching, counselling, etc. Formal training programmes and self-development activities require considerably less involvement. This suggests that some form of role clarification is necessary as a basis for developing a strategically-oriented HRD function.
One may conclude that strategically-oriented HRD functions must be precise/clear with line management about the support they desire and expect. They must have the ability to sell to line managers the need for their involvement and furthermore issues of ownership and control must be clarified.
Existente of Complementary HRM Attivities Keep[5] illustrates that for effective HRD there must be a coherent package of complementary measures aimed at servicing various aspects of the employment relationship. Some of these measures are:
• improvements in the area of corporate manpower planning and forecasting[27];
• a focus on upgrading the quality of employees being recruited[28,29];
• the forging of closer links with educational institutions at all levels in the educational system[10,29];
• a greater formalisation of performance appraisal and training needs procedures,[1,17];
• a range of career development systems both individually and organisationally focused[30].
Buckley and Caple[31] rightly point out that in the past HRD has adopted a closed system mode of thinking. This
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STRATEGIC HUMAN RESOURCE DEVELOPMENT 25
has had the consequence of making it unresponsive to organisational needs, unaware of how its activities link in with HRM activities and lack of any significant evaluation. HRD must view itself as one strategy available to an organisation wishing to retain, develop and motivate its human resources. Indeed Keep[5] argues very persuasively that strategic training and development activities are central to the reality of anything that can meaningfully be described as human resource management. This will be considered in more detail later when discussing the possible contribution of strategic HRD.
many training specialists do not view their activities as being at the
cutting edge D One may conclude from the literature that not only does strategic HRD provide an impetus for a more integrated HRM approach, but it is also necessary to have a close integration between HRD and other HRM activities.
Expanded Trainer Role There is much commentary on the present deficiencies that beset the role of the trainer in many organisations. Some of these deficiencies are worth considering:
• There is evidence to suggest that many training specialists do not view their activities as being at the cutting edge. This is promoting a situation where the HRD department has a relatively low status in the organisation, and furthermore there is little perceived need to be productive in what they do. The Challenge to Complacency Report suggests that this lack of internal status has led many HRD professionals into networking and contact with fellow professionals in other companies.
• Bennett[32] rightly observed that the HRD role is burdened with many role conflicts. Three types of conflict in particular, namely the trainer's internal conflicts, managing conflicting priorities between the HRD function and the wider organisation, and managing conflicts between line departments, were highlighted. These conflicts place high demands on the skills and credibility of the HRD specialist and the probability of failure in the role is high.
• There is some evidence to suggest that HRD specialists are poor at marketing their services. King[13], Spitzer[33] and GalvinfLO], among others,
argue that an effective HRD specialist must be able to educate top management and line specialists on the potential contribution of HRD. Trainers have some difficulties in doing this. A number of reasons can be cited: lack of clarity concerning the HRD specialist's role; lack of skills and knowledge; the organisation does not make its expectations clear; the trainer perceives the role as one of maintaining the status quo.
• There is considerable evidence to suggest that the HRD specialists have limited perceptions of their roles. Handy[34] and Leduchowicz[35], for example, comment on the HRD specialist's tendency to confine duties to classroom and other administrative activities. Such a role perception would not be very effective within a strategic HRD perspective. This maintenance role perception manifests itself in other ways also. King[13] argues that there is a reluctance on the part of HRD specialists to implement new ideas or keep themselves up-to-date on new developments. They may also perceive the role as a temporary one in their career path and as a consequence do not wish to make errors or upset the status quo. There is considerable evidence available to substantiate the "stepping stone" argument and while such a situation exists HRD specialists will find themselves in a vicious circle unable to command support from organisational leaders and unable to exert their influence over the organisation's HRD activities.
Suffice it to say that a strategic focus requires a considerable role change for the HRD specialist. Dimensions along which change is required include:
• from being passive and maintenance-oriented to being more active in marketing the benefits of training;
• from adopting a reactive response to taking on a more proactive role;
• from perceiving themselves as peripheral and powerless to perceiving the HRD function as central to the achievement of organisational objectives;
• from being simply learning specialists to developing a more strategic role. Such a role involves giving direction to the HRD function and ensuring appropriate policy and planning initiatives.
A strategic HRD function requires a specialist who can in Bennett's[36] terms be a combination of trainer, provider, consultant, innovator and manager. The consultative and innovator modes are more conducive to a higher profile within the organisation and a greater strategic focus for HRD.
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Recognition of Culture There is a growing literature on the need to match corporate strategy and culture[37-39], however in relation to HRD there is as yet a fairly sparse literature[40,41,42] on its importance within the context of implementing HRD strategies.
A strategic HRD function must also be aware of and take account of this match. A possible approach to ascertaining how culture may influence the activities of the HRD department can be found in an examination of the life cycle of the company. Table I presents a summary of the link between the life cycle stage, key cultural/strategic features and the implications for HRD activities. This is an adaptation of Schein's model[43]. An examination of these various perspectives is necessary if a strategically-focused HRD function is to establish options, policies and plans that fit the strategic logic and cultural web found in the organisation. Ogbanna and Wilkinson[37] perceive the HRD function as having a key role in maintaining and changing corporate culture. Peters and Waterman[44] and Smith[40] argue that HRD efforts cannot ignore the prevailing and desired culture of an organisation. Culture must be viewed as a central factor in the overall process of HRD. Wright[45] suggests that a useful first step in this process of cultural recognition and alignment is the undertaking of a cultural profile/audit. Such an audit could examine both the present and the desired cultural profiles.
HRD activities could be focused strategically on making the transition from present to desired.
There is some research (see, for example, [30,40,46-50] which indicates the type of cultural characteristics that are conducive to a learning organisation and a comprehensive approach to HRD.
Burgoyne[49] sees the test of learning culture as the way the organisation deals with mistakes and how the learning opportunities from such mistakes are used. Other characteristics include:
• systems for regular, positive feedback; • the allowance of mistakes and their analysis for
learning opportunities; • the recognition and use of role models; • encouragement of intense and open
communications; • the structuring of mentoring relationships; • a management style which promotes visibility,
accessibility, informality and participation. This list is only a sample of cultural characteristics conducive to HRD but the fact remains that culture is often the ignored variable when the HRD department is considering its activities and how they should be delivered and evaluated.
Table I. Life Cycle Stage, Culture/Strategy and Implications for HRD Activities
Life cycle stage
1. Embryonic
2. Growth
3. Maturity
4. Decline
Key culture/strategic features
High levels of cohesion Dominant role of founder Outside help not valued Lack of procedures and planning systems Politics play an important role
Large variety of culture changes Levels of cohesion decline Emergence of middle management Tensions/conflict may arise in organisations Trying to get people to accept new ways of thinking
Diversification of business activities Line/staff differences Institutionalisation of values and beliefs Evolutionary rather than revolutionary changes
Inertia may emerge in organisation Strategic logic may be rejected Culture may act as a defence against a hostile environment
Major decisions may have to be taken Readjustment necessary
Implications for strategic HRD
Owner may not perceive need for HRD Limited management expertise and succession problems
Changes may be unplanned/ad hoc HRD may have to market its services aggressively
Initiation of career development activities Inducting new recruits Management development activities Development of high performing teams Involvement in the management of change Reinforcement and maintenance of cultural values and briefs
Dealing with ambiguity and uncertainty HRD function should be well established Maintenance HRD activities may be more appropriate
Lack of career opportunities may required novel HRD approaches
Management of change Focus on changing the culture Reassure employees that problems are being tackled
Organising problem centred/project/task activities
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STRATEGIC HUMAN RESOURCE DEVELOPMENT 27
Emphasis on Evaluation A key component of the strategic management process is that of strategy evaluation. If the HRD function wishes to have a strategic focus then it must evaluate its activities. Johnson and Scholes[51] provide a useful evaluation framework which has ready application to the HRD field. They specify three categories of criteria:
(1) Criteria of suitability. These attempt to measure how far HRD activities fit the situation identified in the strategic analysis. Key questions include: Does the strategy of the HRD department fit in with the organisation's objectives? How much has training contributed towards problems encountered in the organisation?
(2) Criteria of feasibility. These assess how feasible HRD plans and policies are in practice. Examples of questions asked here include the following: Are they achievable in resource terms? Is the HRD function capable of performing at the required level?
(3) Criteria of acceptability. This assesses whether the consequences of proceeding with a strategy are acceptable. Questions to be considered include the following: Are the HRD activities acceptable in the organisation's environment? Do the proposed HRD activites fit existing systems or will they require major changes? Will the proposed activities be acceptable to the general expectations within the organisation?
Zenger and Hurgis[52] point out that strategically-oriented HRD functions spend time evaluating their activities and they use measures that seem most relevant to the management of their own organisation.
Contribution of Strategic HRD Activities to Organisational Effectiveness Implementation of Strategy Strategic HRD can make a significant contribution in the area of business strategy implementation. Johnson and Scholes[51] observe that one of the most difficult aspects of implementing strategic change is ensuring that the organisation's human resources are capable of undertaking the tasks which that change requires. The literature on strategic change [53,54,55] illustrates that it poses a number of particular problems which can be summarised as follows:
• Strategic change usually requires that the individual cope with considerable uncertainty.
• It will most likely require employees to accept new ways of thinking about their roles.
• Strategic change may be considerably inhibited by what Johnson and Scholes term the organisation's culture net and established recipe.
• Strategic decisions are usually concerned with the whole organisation and their ability to affect the long term direction of the organisation.
Hussey[56] identifies a number of specific implementation problems which may occur in the strategy area. Table II presents these problems as well as a consideration of the possible contribution of HRD activities. The table illustrates that HRD can offer a wide range of interventions to deal with specific implementation problems which have a HRD solution. Hussey claims that HRD can be used to forge a common will within the organisation and help to establish a change culture that contributes to the successful implementation of strategy. Johnson and Scholes [51] maintain that a precursor to the design of any HRD interventions is a reassessment of the roles and responsibilities of people within the organisation. Huczynski[57] shows that the approaches used by HRD will vary according to the extent of the changes and the capability of individuals and groups concerned with and affected by the various interventions. It may be hypothesised that the greater the degree of strategic change the more likely it is that HRD involvement will focus on providing a basis for understanding and internalising change and experiencing the results of change.
Contribution to Human Resource Management Efforts Keep[5] argues very persuasively that a strategic approach to HRD is fundamental to the adoption of a comprehensive HRM approach in the organisation. He cites a number of reasons for this view.
First, the words "human", "resource" and "management" have certain connotations. The word "human" in some way implies a focus on present and future employees in the organisation. The term "resource" implies the need for investment in such resources and "management" implies the existence of a series of co-ordinated and systematic strategies in areas such as motivation, development and deployment. HRD activities are a vital link in this formula and organisations which view the situation otherwise cannot be perceived as practising human resource management.
A second rationale put forward by Keep is that HRD may act as a trigger for wider human resource management policies and activities. There is considerable logic in this argument because if an organisation invests heavily in training its employees it makes sense also to put in place strategies that will help to motivate and retain such employees and enable the maximum return to be achieved from this initial investment.
Third, the act of training and developing employees may be motivational of and by itself and may act as a signalling
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Table II. Strategy Implementation Problems and the Role of HRD Solutions (N=93)
Problem
Implementation taking more time than originally allocated
Major problems surfaced during implementation which were not identified beforehand
Co-ordination of implementation activities not effective enough
Completing activities and crises distracted management from implementing the key decisions
Capabilities of employees involved not sufficient
Training and instructions given to lower level employees not sufficient
Leadership and direction provided by departmental managers was not adequate
Source: Adapted from[56].
Percentage of firms
76
74
66
63
63
62
59
Possible causes and HRD solutions
Employees may not have adequate training Lack of management expertise Resistance to change could be managed through HRD interventions
If people-related problems HRD could be more involved at formulation stage
Quality of management teams may be deficient; team building could help
Mismatch between people and activities; HRD could help to achieve greater fit
Roles of departments and individuals not clearly defined; HRD involvement may help
Structure and strategy may not match; advisory role for HRD/HRM
Communications; Communications training: deal with line/staff problems
Deficient organising skills; remedial type interventions Lack of ability to prioritise and plan; management training type intervention
Lack of task groups or change committees Recruitment and training activities not aligned; greater integration required
Insufficient analysis of employees needs; organisational training needs analysis
Individual role ambiguity and lack of self-confidence; facilitation-type HRD intervention
HRD activities did not reach the management levels required; more emphasis on senior management development
This is a direct HRD problem due perhaps to inadequate analysis of needs
Goals of functional flexibility not clarified; more systematic multiskilling
Experienced worker standard not clarified for new tasks; more systematic on-the-job training
Inadequately trained instructors; better training instructor development
Managers may not be aware of the expectations; greater role definition required
Managers may lack the necessary management skills. systematic analysis of needs and appropriate management training intervention
Lack of team cohesion; team building interventions
device which helps to show that the organisation is committed to its employees and that they are viewed as a vital component of overall corporate success. Investing in HRD activities is a very overt way for management to display its commitment and it may help to develop positive attitudes on the part of employees.
Allied to Keep's arguments is the view that synergy may
accrue from a well co-ordinated set of strategies in the whole spectrum of employee management. Investment in HRD activities will most likely produce a minimum return if there is not an appropriate set of complementary strategies in the other spheres of the psychological contract. Likewise endeavours in the other areas of HRM may not be maximised unless a systematic strategy exists in relation to HRD. Appropriate integrated initiatives in
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STRATEGIC HUMAN RESOURCE DEVELOPMENT 2 9
both areas may help to produce outcomes over and above those anticipated.
Other Cited Benefits of Strategic HRD Attivities In addition to the aforementioned key areas, the literature cites numerous other benefits that may be gained by individuals and organisations who pursue strategic and well-planned HRD efforts[18,21,31,58]. These benefits are numerous but the most frequently cited and substantiated reasons include:
• greater extrinsic and intrinsic job satisfaction; • fewer accidents, lower labour turnover and less
absenteeism; • greater customer and client satisfaction; • improved job performance and the enhancement
of career and promotion prospects both within and outside the organisation;
• shorter learning times and more effective use of resource and less wastage of materials;
• the creation of a learning organisation that is flexible and responsible in coping with present and future demands.
Some of these benefits are difficult to isolate and measure systematically but there is much anecdotal support for their existence.
Strategic HRD Policy and Planning Process: Some Empirical Evidence The formulation of HRD plans and policies is an essential component of a strategic HRD function, however there is little empirical evidence on the methods by which such processes are initiated. This study focused on high technology companies both indigenous and multinational. Ninety companies responded to a postal questionnaire (sample size 150). Some of the main findings of this research are now presented.
Nature of the HRD Polity Of responding organisations 81 per cent had a written HRD policy statement and 95 per cent of respondents had an established HRD function. This in some way accounts for the high incidence of written policy statements. A wide range of factors were cited as contributing to the final shape of the HRD policy statement. The most important factor cited was the organisation's mission, goals and strategies. This is cited as the key factor by over 90 per cent of organisations. Other factors cited in order of importance include the following.
(1) the prevailing organisational culture; (2) the nature of the training needs identified;
(3) methods by which the policy will be communicated to staff;
(4) current state of the organisation's technology; (5) the views of top management; (6) the nature of the external influences; (7) the present structure of the organisation; (8) equality of opportunity; (9) government incentives and schemes.
How the HRD Policy is Formulated As has been shown a written policy statement was the most common. It was typically drawn up by the HRD specialist and approved by the Personnel Director and then by other members of the management team. The policy was typically communicated to staff through the medium of a policy manual or may be incorporated as part of an employee handbook. A number of organisations also presented the information in the form of a special brochure. A written policy statement was perceived as having a number of specific advantages:
• It makes the content of the statement explicit and, in theory at least, known to all employees.
• It is in a form that can be effectively used by line managers when making HRD type decisions. It therefore helps to achieve a central characteristic of strategic HRD.
• It is more likely to lead to consistencies, equality of treatment, and misunderstandings or misperceptions are less likely to occur.
• It helps to reduce dependency on particular individuals. A well-written and properly communicated statement makes line managers less dependent on the knowledge and judgement of a few individuals, and in particular the HRD specialist. The HRD specialist is thus freed to engage in more strategically-oriented activities.
• A written statement helps to eliminate the situation where line managers rely on precedent — which can often be inconsistent and vague.
• Written policies are perceived as being more internally consistent and less likely to conflict with other functional or corporate goals.
• It facilitates the Human Resource Planning process.
Implementation of HRD Polities Respondents identified a number of issues to be considered when implementing the HRD policy. These can be conveniently grouped into three areas.
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30 INTERNATIONAL JOURNAL OF MANPOWER 12,6
(1) Publicity: This was perceived as a key issue by HRD specialists. For the HRD policy to work it had to be known, understood and accepted by those implementing it and affected by it. This publicity was generally achieved by utilising a number of mechanisms: Briefing session for line managers Inclusion in induction programmes and company handbooks
Departmental meetings Company-wide meetings.
(2) Procedures/plans: Procedures were perceived as a key mechanism for implementing HRD policy. Procedures were seen as a vehicle for driving policy through the organisation. For a procedure to be effective it has to be simple and clear to all those affected by it and not administratively cumbersome. Yearly training plans were seen as another important mechanism for implementing HRD policy. The situation relating to plans will be discussed later.
(3) Monitoring/modification: Many respondents point out that HRD policy statements will drift from their original intentions unless carefully monitored. Monitoring fulfils a number of functions. It: • collects information on how the policy is being
implemented; • helps to identify problems and have them dealt
with effectively; • helps to throw up situations where managers
are avoiding the policy; • facilitates the modification process and helps
to ensure close alignment between HRD policy and corporate strategy.
Numerous mechanisms were reported for monitoring the policy implementation process. These included discussion with line managers, counsellors/task groups, informal walkabouts, talks with employees, etc. Many HRD specialists pointed out that there is often a tendency to view the HRD policy statement as a static document and there is furthermore a reluctance to alter the policy statement because it was perceived as criticising the original policy statement in some way. If the policy is to reflect the business mission and goals, then respondents feel that an ongoing monitoring and modification of policy was necessary. HRD policies should be perceived as flexible and open to change.
Existente and Stope of HRD Plans Of the respondents 74 per cent had written HRD plans usually covering a financial or calendar year. Organisations which did not produce a plan tended to perceive that
Table III. Priorities within HRD Plan: Indigenous and Foreign-Owned Companies
HRD Area
Technical/technology training Management
training/development Quality Managing change Personal development/
professional development Sales training
Ranking Indigenous
1 2
3 4
6 5
Foreign owned
1 2
5 4
3 7
commitment from top management for HRD was poor, there was less likely to be an established HRD function and the corporate planning HRD interface integration was poor. Table III presents an analysis of the emphasis which indigenous and high technology firms placed on different types of training in their HRD plans.
The HRD plans of indigenous high technology organisations tended to place considerable emphasis on technical training, management development, quality and the management of change. There is a clear organisational focus in their HRD priorities. Multinational organisations, on the other hand, gave greater prominence to personal development and professional development activities. This difference may be explained in part by the history of HRD within the organisation and the actual sophisitication of the HRD mechanisms. Multinational companies were more likely to have their organisation-centred HRD needs met and could therefore focus more on personal/ professional development activities.
Support and Feeding Mechanisms for the HRD Plans Eighty five per cent of respondents had a formalised system for the identification of HRD needs. This was usually done on an annual basis and fed directly into the HRD plan for that year. A range of mechanisms were cited including the following: performance reviews, questionnaires, discussions with managers and employees, task groups and corporate assessments by the management team. Respondents also indicated the types of criteria they used to prioritise these training and development needs. The key criteria cited by respondents in order of importance were:
• feasibility within the context of the yearly HRD budget;
• conformance with the HRD policy statement and/or corporate objectives;
• immediacy of the need;
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STRATEGIC HUMAN RESOURCE DEVELOPMENT 31
• scope of the need and its appearance in the organisation hierarchy;
• existence of appropriate non financial resources to satisfy the need;
• expertise of the HRD specialists within the organisation;
• availability of external resources/assistance. Ninety-five per cent of responding organisations had training budgets to support their plan. Fifty four per cent of these organisations had a centralised budget, 20 per cent a decentralised (departmental budget) and the remaining 20 per cent of respondents had a combination of a centralised and departmental budget. The budget size, in 80 per cent of organisations was between 0 and 5 per cent of annual turnover. Organisations which had larger budgets were predominantly multinational in ownership.
the human resource development function must align itself to
strategy and structure
A range of individuals was identified as being responsible for implementing the RD plan. Forty one per cent of respondents indicated that the HRD specialist was solely responsible for implementing the plan; 35 per cent indicated that it was the responsibility of the line manager and the HRD specialist; 8 per cent indicated it was the responsibility of the line manager only, and a surprising 16 per cent indicated that it was the responsibility of the human resource specialist. This is not the most satisfactory trend and conflicts with one of the key characteristics of a strategically oriented HRD function, namely that of the active involvement of the line manager in the training process. No respondent perceived the individual employee as being responsible for his/her own development and therefore did not see him/her having a key role to play in the HRD implementation process. There is, therefore, room for some movement before strategies of self-development can function effectively in high technology companies in Ireland.
Critical Elements of a Strategic Human Resource Development Function Galbraith and Nathanson[53] were among the first scholars to focus attention on the role of human resource management in strategy implementation. They emphasised the importance of various components of the human resource management process to the strategy and structure of the organisation. If, in the same manner, the
human resource development function is to be strategic in orientation, then it must align itself to these important variables, i.e. strategy and structure. Table IV presents a tentative representation of the possible relationships between strategy, structure, and human resource development strategies. This represents scenarios at various stages of a company's strategic development and is based on empirical evidence collected by the author.
A strategically oriented HRD function can make a significant
contribution to the success of an organisation
For HRD to achieve a corporate perspective, it must ask itself a number of critical questions, the answers to which will determine its effectiveness within the organisation. Included in these critical areas are:
• To what extent does the HRD specialist have regular contact with other key members of the organisation?
• Are there appropriate systems in place to allow the discussion of problems and the review of progress on specific projects?
• Does the HRD function have the expertise to diagnose organisational problems?
• Has the HRD function the appropriate expertise, required to implement solutions once key problems are diagnosed?
• Does the organisation have a formal corporate HRD mission statement and/or corporate HRD policies?
• Is there a top management group or individual who gets involved in the policies and activities of the HRD function?
• Are there mechanisms in place which allow the HRD specialist to participate in corporate strategy sessions with other key managers?
• Is there a clear definition of the roles, responsibilities and policies of the HRD function?
• Are there systems in place which allow for the periodic review and/or revision of the organisation's HRD mission statement and/or corporate HRD policies?
• Are the resources of the HRD function allocated on the basis of organisational priorities?
• To what extent are HRD needs identification processes future-oriented rather than crisis-oriented?
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32 INTERNATIONAL JOURNAL OF MANPOWER 12,6
Table IV. Human Resource Development Links to Organisation Strategy and Structure
Strategy
Single product
Single product (vertically integrated)
Growth by acquisition
Concentric (related) diversify internally
Conglomerate diversification (multiple products/ multiple consumers)
Structure
Functional
Functional
Strategic Business Unit (SBU)
Multidi visional-matrix
Global organisation
HRD systems
HRD perceived in maintenance terms
HRD specialist limited status/power
lack of strategic orientation in activities
Limited perspective of business needs
Functions of HRD more clearly defined
Problem-centred orientation toward activities
More conscious of business needs
Greater strategic focus
Emphasis on measurement of results
HRD specialist significant status/power
Production of HRD policies and plans
Usually medium term focus in plans/policies
Corporate perspective Explicit HRD
mission, policies and plans
Clear criteria for evaluating success
Specific mechanisms for achieving strategy/HRD link
Corporate HRD function
Standardisation of policies and planning mechanisms
Involved at strategy formulation and implementation stages
Corporate and divisional HRD staff
Strategy/structure/ HRD integration
Human resource development Management Professional/ development personal development
Focus on single function
Largely unsystematic and lack of clarity with respect to needs
Management development needs subjectively determined
Emphasis on job rotation
Greater emphasis on performance and productivity (measures still subjective)
Emphasis on developing management teams
Greater awareness of cross functional expertise
Production of developmental sequences
Greater use of structural MD approaches
Formal systems of development
A cross-functional/ divisional or corporate focus
Emphasis on conflict-handling, political and interpersonal skills development
Functional/ generalist orientation required of managers
Systems for goal setting, usually multiple goals
Interdepartmental/ team relationships important
Personal development not perceived as priority
Persona] development costs borne by individual
Perceived by top managers as a luxury
Organisation more aware of services of outside training and educational agencies
Organisation may bear some of the costs of personal development
Considerable investment in executive development
Managers encouraged to broaden knowledge/skills basis
Existence of financial assistance systems
Personal development seen as good in itself
Considerable investment in post-experience education
Perceived as an investment in employee
Greater use of MBA, etc., to develop potential managers who may now have a technical background
Focus on cross divisional, subsidiary, corporate executive development
Considerable financial investment
Professional development viewed as an upgrading and conversion mechanism
Job-related training
Unsystematic, largely on-the-job
Responsibility of supervisor, however unclear guidelines
No evaluation of results
Lack of clear standards
More systematic with greater involvement by supervisors
Some attempt at cross training/ multiskilling
Experienced worker standard established
Corss-functional training: systematic multiskilling
Exact measurement of skill levels attained
Recognition of motivational aspect
On-the-job training activities may utilise advanced training technology
Multiskilling Considerable specialist technical training
Emphasis on productivity and return on investment
Specific evaluation of learning
Systems for on-the-job training very advanced: CBT, IV tech. used
Advanced systems of cross-training/ multiskilling
Technical training specialists
Systematic evaluation of standards
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STRATEGIC HUMAN RESOURCE DEVELOPMENT 33
• What are the priorities when evaluating the results of the HRD function? What is the balance between behavioural issues and organisational results?
A strategically-oriented HRD function can make a significant contribution to the success of an organisation. This will manifest itself in the organisation's ability to innovate, the quality of its strategic decision making, individual performance and productivity, and how closely the skills of the organisation are aligned with its strategic mission and plans. The critical questions outlined represent a first step in bringing about this change in focus for the HRD function.
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