Strategic Human Resource Development
Strategic Human Resource Development
Strategic Human Resource Development
Outline
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HRD, SHRM, SHRD Defined SHRD aims HRD Philosophy Elements of HRD What not is HRD? HRD in Transition Gaps in the Literature Past approaches The Duet, Trio, Quartet & Orchestra Leadership dimension Summary
HRD Defined
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Human resource development is a series of organized activities, conducted within a specialized time and designed to produce behavioral changes (Nadler, 1969; 1986). HRD is a set of systematic and planned activities designed by an organization to impart its members necessary skills to meet current and future job demands. HRD activities begin when an employee joins an organization and continue throughout his/her career, regardless of the employees status (Desimone, Werner, & Harris, 2002).
HRD
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HRD interventions are aimed at employee development. Employee development through skills training and development programs initiated by organizations recognize the need to keep employees abreast of technological and social changes to sustain a competent and productive workforce (Jinabhai, 2005). HRD plans and measures for training employees from disadvantaged groups (Horwitz, 1999).
Why HRD?
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An organization is only as good as its people. An important and effective part of its organizational strategy is to compete with the challenges presented by a fast-paced, highly dynamic and increasingly global economy. To achieve this end, organizations of all types and sizes must employ competent and motivated workers. Their organizational strategy must include training and development (T&D) and employee education (Desimone et al., 2002).
Strategic HRM is concerned with seeing the people of the organization as a strategic resource for the achievement of competitive advantage (Hendry & Pettigrew, 1986). SHRM is a process that involves the use of holistic approaches to the development of HR strategies, which are integrated vertically with the business strategy and horizontally with one another. These strategies define intentions and plans related to overall organizational considerations, such as organizational effectiveness, and to more specific aspects of people management, such as resourcing, learning and development, reward and employee relations.
SHRM
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Strategic HRM defines the organizations intentions and plans on how its business goals should be achieved through people. It is based on three propositions: First, that human capital is a major source of competitive advantage; Second, that it is people who implement the strategic plan; and, Third, that a systematic approach should be adopted to defining where the organization wants to go and how it should get there.
Walton (1999) defines SHRD as follows: Strategic human resource development involves introducing, eliminating, modifying, directing, and guiding processes in such a way that all individuals and teams are equipped with the skills, knowledge and competences they require to undertake current and future tasks required by the organization. SHRD provides the capacity to enhance individual abilities and competencies as a necessary requirement for effective performance.
SHRD
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Strategic HRD is development that arises from a clear vision about peoples abilities and potential and operates within the overall strategic framework of the business (Harrison, 2000). SHRD takes a broad and long-term view about how HRD policies and practices can support the achievement of business strategies.
SHRD
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SHRD is business led, and the learning and development strategies that are established as part of the overall SHRD approach flow from business strategies, although they have a positive role in helping to ensure that the business attains its goals. Bergenhenegouwen, Mooijman and Tilleman (1992) describe SHRD as training members of an organization in such a way that they have the knowledge and skills needed within the context of the (changing) objectives of an organization.
SHRD aims
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SHRD aims to produce a coherent and comprehensive framework for developing people through the creation of a learning culture and the formulation of organizational and individual learning strategies. Its objective is to enhance resource capability in accordance with the belief that a firms human resources are a major source of competitive advantage. It is therefore about developing the intellectual capital required by the organization as well as ensuring that the right quality of people are available to meet present and future needs.
SHRD aims
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The main thrust is to provide an environment in which people are encouraged to learn and develop. Although SHRD is business led, its specific strategies have to take into account individual aspirations and needs. SHRD envisages the importance of increasing employability outside as well as within the organization
Strategic HRD policies are closely associated with that aspect of strategic HRM that is concerned with investing in people and developing the organizations human capital. SHRM is aligning people with the strategy of the organization. As Keep (1989) says: One of the primary objectives of HRM is the creation of conditions whereby the latent potential of employees will be realized and their commitment to the causes of the organization secured. This latent potential is taken to include, not merely the capacity to acquire and utilize new skills and knowledge, but also a hitherto untapped wealth of ideas about how the organizations operations might be better ordered.
HRD philosophy
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The philosophy underpinning HRD is as follows: HRD makes a major contribution to the successful attainment of the organizations objectives, and investment in it benefits all the stakeholders of the organization. HRD plans and programs should be integrated with and support the achievement of business and human resource strategies. HRD should always be performance related designed to achieve specified improvements in corporate, functional, team and individual performance and make a major contribution to bottom-line results.
HRD philosophy
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Everyone in the organization should be encouraged and given the opportunity to learn to develop their skills and knowledge to the maximum of their capacity. The framework for individual learning is provided by personal development plans that focus on self-managed learning and are supported by coaching, mentoring and formal training. The organization needs to invest in learning and development by providing appropriate learning opportunities and facilities, but the prime responsibility for learning and development rests with individuals, who will be given the guidance and support of their managers and, as necessary, members of the HR department.
HRD philosophy
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Everyone in the organization should be encouraged and given the opportunity to learn to develop their skills and knowledge to the maximum of their capacity. The framework for individual learning is provided by personal development plans that focus on self-managed learning and are supported by coaching, mentoring and formal training. The organization needs to invest in learning and development by providing appropriate learning opportunities and facilities, but the prime responsibility for learning and development rests with individuals, who will be given the guidance and support of their managers and, as necessary, members of the HR department.
Elements of HRD
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The key elements of HRD are: Learning defined by Bass and Vaughan (1966) as a relatively permanent change in behavior that occurs as a result of practice or experience. As Kolb (1984) describes it, Learning is the major process of human adaptation. Training the planned and systematic modification of behavior through learning events, programs and instruction that enable individuals to achieve the levels of knowledge, skills and competence needed to carry out their work effectively.
Elements of HRD
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Development the growth or realization of a persons ability and potential through the provision of learning and educational experiences. Education the development of the knowledge, values and understanding required in all aspects of life rather than the knowledge and skills relating to particular areas of activity.
Learning should be distinguished from training. Learning is the process by which a person constructs new knowledge, skills and capabilities, whereas training is one of several responses an organization can undertake to promote learning (Reynolds et al., 2002).
SHRD redefined
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SHRD is a method in terms of which learning or the performing of knowledge processes ( creation, sharing and use of knowledge) relating to the emergent strategic orientation of companies is made possible. It focuses on the development of the skills that executives, managers and employees may require/need in future and is proactive in nature.
HRD is often defined as being merely the training and development aspect of human resource management and this form of definition is commonly associated with hard forms of HRD which focus on the practical and strategic or structured elements of organizational functioning. Horwitz, Bowmaker-Falconer & Searll (1996) maintain that a difficulty with HRD lies not only with the lack of equality of opportunity for acquiring technical and managerial skills but also with the individual need for obtaining life skills and increased self-confidence. However, it is change, and especially the rate at which change occurs, that largely influences the HRD hybrid that any organization adopts.
HRD in Transition
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Some researchers have traced HRD through four key phases: the Duet, the Trio, the Quartet, and concluding with the Orchestra and a holistic definition of HRD. HRD is a combination of structured and unstructured learning and performance-based activities which develop individual and organizational competency, capability and capacity to cope with and successfully manage change. The future of HRD now lies squarely in the need for the profession to consider and embrace the inextricably interrelated paradigms of movement (where people have developed from); change (and especially the rate of change); dynamism (provided from leadership); harmony and unity (resulting from cohesive partnerships) the Orchestra.
There has been limited critical review and development of Human Resource Development (HRD) theory in the past two decades. We need to see in it sequentially to find chronological development. However contemporary HRD involves a holistic approach involving both hard and soft elements an Orchestra. There has been limited critical review and development of HRD theory in the past two decades. In particular, since the inception of the term HRD, there has been a dichotomous approach developed to HRD.
Gaps
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The British have pursued a learning and development paradigm which focused on enhanced training and development genres (Garavan et al., 1999). While the Americans pursued a performance outcomes paradigm which focused on developing individuals to enhance organizational performance outcomes (Swanson & Holton, 2001). Much of the American approach emerged through organizational development theory and there has been an emphasis on coaching, mentoring and leadership development (Desimone et al., 2002). The dichotomous approach to HRD was further obscured by the evolution of Strategic HRM and Strategic HRD (Walton, 1999) and attempts to clarify the space that HRD occupies in the overall riddle of what is HRM? (Stewart and McGoldrick, 1996; Sofo, 1999).
Gaps
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It is change, and especially the rate at which change occurs, that largely influences the HRD hybrid that any organization adopts. We need to see that HRD is a combination of structured and unstructured learning and performance based activities which develop individual and organizational competency, capability and capacity to cope with and successfully manage change. HRD now lies squarely in the need for the profession to embrace fully the inextricably interrelated paradigms of movement, change, dynamism, harmony and unity.
Past approaches
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In the past, HRD was often polarized by authors as being focused primarily on either performance or learning. For example, whilst investigating an innovative scheme of tandem management (know-how transfer) to develop Czech managers by their German counterparts, Gutmann (1995) identified a joint learning process in what she termed the steps towards integration. In tandem management, key positions are filled by an expatriate German manager and a local Czech manager for a limited period of time, usually three years.
Past approaches
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During this period, the German managers task is to develop the professional and managerial skills of their local partner and thus enable them to manage their department independently. They act, therefore, as a coach and a knowledge mediator (Gutmann, 1995).
Tandem management
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Past approaches
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Outside of Europe, Yang (1994) analyzed the relationship between production systems in the US and Japan and the corresponding HRM system and practices and asserted that HRM practices are functions of the prevailing production system. In the US case, for instance, the widespread scientific management principles, together with Taylorist production systems, tend to create a highly functional and job-oriented HRM system. Yang (1994) claims that a job-focused personnel system prevents US firms from achieving success in improving product quality at source.
Past approaches
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By comparison, the flexible production model in large Japanese plants tends to be highly integrated with teambased HRM principles. Yang (1994) concludes by illustrating how Japanese-owned plants operating in the USA have integrated the processbased quality programs with team-oriented HRM policies and practice. These flexible HRM systems, based on kaizen principles, contribute to the Japanese success in assuring product quality throughout the production process. Team-oriented HRM practices are a precondition for success of a process-based total quality management approach.
Past approaches
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Past approaches
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Dodds and Verest (2002) provide a practical case illustration of the development and implementation of Webbased induction training in an international financial services company founded in The Netherlands. In the context of continuing growth and change, helping new employees to swiftly integrate into the company is seen as being critically important. They show how the power and capabilities of the company intranet are applied to support the induction process. The design of the induction training is examined from the perspective of the Lancaster learning model.
Past approaches
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Dodds and Verest (2002) comment: Reg Revans, in his Action Learning gospel, stated that the rate of learning should be equal to or greater than the rate of change in an organization. If technology is influencing and increasing the rate of change in organizations, then it may need to become an essential component of training and development, to ensure that the rate of learning keeps pace with change and that the organizations flourish and compete effectively.
Past approaches
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Providing a further European perspective, Buyens et al. (2001) stress the learning-related aspects of HRD:
The
new role of an HRD practitioner will be that of a strategic learning facilitator, performance consultant or even change agent . . . The way in which management supports staff in learning could also become an issue in performance appraisals and management career planning.
Past approaches
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Buyens et al. (2001) adopt the earlier approach of Sambrook and Stewart (2000) to depict the way in which the development towards a learning organization has an impact on the relationship between work and learning. Whereas learning used to be synonymous with training, it has now become associated with learning from experience and self-directed learning. This is necessary in order to cope with changing demands in the organizational environment.
Past approaches
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Similarly, learning is no longer regarded solely as a classroom activity. This changing view of learning has farreaching consequences for line managers, who are expected to manage the workplace as a place fit for learning. In addition, this move has an impact upon employees who are now expected to take greater responsibility for their own learning. Finally, it greatly affects the role and tasks of HRD professionals, who are involved in planning and designing learning activities for the whole organization.
Past approaches
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Coulson-Thomas (2000) surveyed the corporate learning plans and priorities of 69 organizations in Belgium, Britain, Germany and Greece. He found that many courses were excessively general in nature, and that they failed to address specific requirements. He discovered that opportunities for collaboration were being missed. In many companies, training and development was seen as a cost, although they could provide the basis for generating new income streams, and become a significant profit centre in their own right.
Past approaches
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Coulson-Thomas (2003) later asserted that successful and unsuccessful companies adopt very different ways of managing change. He considered that learning, T&D activities should address the root causes of unsuccessful methods and focus upon more profitable approaches. He claims that accomplishment in training and learning is directly related to the number of critical success factors that are put in place.
Past approaches
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Garavan (2002) and his colleagues in Ireland identified a paradigm shift from formalized, intermittent and discontinuous learning to increasingly informal, experiential, asynchronous and real-time situated learning. They highlighted three contemporary themes in both the workplace learning and HRD literatures, namely:
knowledge,
expertise, competence and capability; organizational learning; and employability and career issues.
Past approaches
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Smith (2004b) concludes by showing that the contribution of HRD to achieving effective organizational change falls into three broad areas:
1. 2. 3.
creating an organizational environment that is supportive of learning and development; developing and sustaining in employees an individual orientation towards learning and skills growth; and providing staff with the direct skills and knowledge required for working in the changed environment.
It can be seen that the dichotomous pairs of learning/ performance and structured/unstructured are ineffective in their extreme forms but will work well together as a combination, the formula of this combination varying from organization to organization.
The Duet
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The Trio
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The Trio
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The relationship between HRD and change is developed further, once the integral nature of work to both performance and learning is recognized. As Clyde (2003) points out, recruiting new talent would not result in lasting and significant change. She asserts that it is effective continuing professional development that is most likely to be an agent for change.
The Trio
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At the micro level, the integration of work, learning and performance is highlighted by King (2003) who illustrates the point by looking at the outcomes of secondment as a learning strategy. At the macro level, Tosey and Robinson (2002) offer a useful typology of change and organizational transformation. Significantly, they point to the importance of spiritual development as being central to both the process and product of workplace change at both the individual and organizational levels.
The Quartet
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The Quartet
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A significant addition to the exploration of learning at work came when authors tackled the apex of quality. Large-scale programs such as total quality management, business process re-engineering, six sigma, and others seem characterized by a need to be more competitive or more efficient; a focus on changing behavior; and a highly programmed, usually expert-led, method leading towards transformation as a product (Tosey and Robinson, 2002). An innovative tandem training approach between Volkswagen and Skoda, illustrated by Gutmann (1995), was embedded in an integrated management qualification program.
Quality concerns
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Meanwhile in the UK, quality function deployment aims to represent the voice of the customer during design and production of products and services, while customer satisfaction surveys provide measures of conformity to performance standards in service delivery, which should be set by the customers themselves (Varey, 1995). In Japan, Yang (1994) argues that the process-based total quality mechanism is inseparable from its team-based human resource management practices, whereas in the US, the absence of modifying the highly specialized and job-focused employment system means it is difficult to carry out successfully a process-based quality control program at the plant level.
Interdisciplinary linkages
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Varey (1995) highlights a number of writers who have anticipated a convergence of HRM, organizational development, marketing and quality management in describing internal marketing in terms traditionally associated with the domain of the human resources specialist, including training, recruitment, motivation, and reward.
The Orchestra
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As the following analogy with an orchestra demonstrates, so too with learning: As members of the Orpheus Chamber Orchestra (London, 2002) arrive for rehearsal, you would not think anything out of the ordinary. The usual numbers of musicians are gathering, and there is the usual banter as they take their places and start to tune up. It is only when the practice begins that you notice what is missing there is no conductor. Instead, representatives from each section of the group are selected who collectively decide upon interpretation, phrasing, and all the other minute musical aspects that make a symphony more than just a bunch of notes on a manuscript. Every member contributes to ideas during rehearsals and any unresolved matters are put to the vote . . . While the rehearsal gets going, you may be wondering what has this got to do with management? Quite a lot, according to numerous corporations (including MBA classes) who regularly attend rehearsals and workshops in order to observe this process. Why? Self-managed teams are no longer a novelty, however successful self-managed teams are much harder to find. The Orpheus Chamber Orchestra seems to have overcome the obstacles normally associated with such an entity. It has won four Grammy awards and has been performing for over 30 years. What is more, in a profession notorious for low morale and discontent, members appear to be happy the average tenure is a staggering 20 years.
Critique of teaming
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Robbins and Finley (1995) think the main problem is lack of vision rather than a clash of personalities. Senior managers have got where they are today through the very opposite means of team working and are not practiced in sharing their thoughts and aims. Finley (2002) believes that CEOs generally do not have the time for teams because they are not instantly good at them. Teaming is a skill that must be learned, yet few CEOs have the time (or the inclination) to do this. But senior management must know what being in a team really means, not just what it is like to promote the value of teamwork to other employees.
Leadership dimension
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Manning and Robertson (2002) describe the background behind the development of a new leadership self-assessment tool, the dynamic leader inventory, and how the authors were able to confirm much current thinking on visionary leadership. They found leadership situations were enormously variable - what was appropriate behavior in terms of visionary leadership varied from one situation to another, particularly with respect to the leaders influence over others, and their influence over change. This led to the development of a new model of leadership, the dynamic leader, which builds on, but goes beyond, the visionary model.
Leadership dimension
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Manning and Robertson (2002) also suggest there are five facets of visionary leadership: 1. Communicating a compelling vision; 2. Kaleidoscope thinking, based upon being tuned into the wider environment, the source of the vision; 3. Macro issues: networking, team-working and promoting a culture of excellence; 4. Interpersonal issues: two-way communication, people orientation, participative style and high visibility; and 5. Personal traits, including positive self-regard, persistence, perseverance and consistency.
Leadership dimension
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Leadership dimension
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Meanwhile, in America, Noel and Dennehy (1991) contend that many companies are making significant strategic and organizational changes designed to make them more competitive in an increasingly global economy. They see this as an exciting time, in which HRD can make a significant contribution. HRD has been seen having a partnership role with senior management in change. HRD professionals must work with top management, focusing on the organizations strategic initiatives and to seek ways to leverage the development of employees to achieve these objectives in creative and impactful approaches.
Summary
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HRD hybrid (that is, a duet, a trio or a quartet) that any organization adopts. It is apparent, after considering these discussions, that HRD is a combination of structured and unstructured learning and performance based activities which develop individual and organizational competency, capability and capacity to cope with and successfully manage change. The future of HRD now lies squarely in the need for the profession to consider and embrace the inextricably interrelated paradigms of movement (where people have developed from); change (and especially the rate of change); dynamism (provided from leadership); harmony and unity (resulting from cohesive partnerships) the orchestra.
References
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Avery, C. (1999). Challenges for management development in the German-speaking nations for the twenty-first century. Journal of Management Development, 18 (1), pp. 18-31. Binsted, D. (1989). Learning to cope with change in the 80s. Management Decision, 27(4). Coulson-Thomas, C. (2000). Individuals and enterprise, winning business in the new millennium. Industrial and Commercial Training. 32(1), pp. 4-8. Desimone, R. L., Werner, J. M., & Harris, D. M. (2002). Human resource development (3rd ed.). USA: Harcourt College.
References
Garavan, T.N., Gunnigle, P. & Morley, M. (2000). Contemporary HRD research: a triarchy of theoretical perspectives and their prescriptions for HRD. Journal of European Industrial Training. 24(2-4), pp. 65-93. Jinabhai, D. C. (2005). New challenges for South African development and training linkages to empirical research. Public Personnel Management, 34 (1), 85. McGoldrick, J. & Stewart, J. (1996). The HRM-HRD nexus in McGoldrick, J. and Stewart, J. (Eds), Human Resource Development: Perspectives, Strategies and Practice, Pitman Publishing, London, pp. 9-27.
Simmonds, D. & Pedersen, C. (2006). HRD: the shapes and things to come. Journal of Workplace Learning, 18(2 ), pp. 122-135.
Storey, J. (1992). New Perspectives in Human Resource Management of Human Resources. Blackwell, Oxford.
To do list
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Forming of groups (2-3 members) for class assignment (10 Marks) and its presentation
Take a Research Paper on SHRD and critically analyze, submit draft (soft copy) and present Mid-term Exam (30 Marks)
Book Chapter - group presentation (10 marks) Final Exam (45 Marks)
The argument for SHRD Organization Development (OD) Early 20th Century management and social science approaches Scientific management, Fordism and the elimination of certainty The problem of control and compliance Organizational analysis as critique SHRD as a critical theory
Why SHRD?
The human resources of companies must be developed in terms of the current and the emergent strategic orientation of the company.
The method according to which executives, managers and employees are equipped in terms of the current strategic orientation is known as traditional HRD. Whilst SHRD equips executives, managers and employees in terms of the emergent strategic orientation of the company. Naturally, the nature and purpose of these two methods of HRD differ from one another, as do the processes used to give effect to these methods.
The argument
Therefore SHRD is a future-oriented method, is proactive in nature, and employs strategic training process to equip executives, managers and employees to deal with the changing nature of performance arising from the emergent strategic orientation of the company.
The strategic orientation of companies arises from the grand strategy of the company. The grand strategy of the company contains a statement of the activities in which the company is currently involved in and will in future possibly become involved in to ensure its continued competitiveness. The strategic orientation of the company contains an indication of the manner in which the companys grand strategy is to be accomplished.
Defining strategy
The word strategy originates from the Greek word strategia meaning generalship and is related to the science and art of warfare. Todays organizational competition somehow qualifies to be called as warfare. Strategy according to Johnson & Scholes (1993) is concerned with a number of dimensions:
The range of an organizations activities; The matching of organizations activities to the environment; The matching of organizations activities to available resources.
Defining strategy
Johnson & Scholes (1993) state that: Strategy is the direction and scope of an organization over the long term: ideally which matches its resources to the changing environment, and in particular its markets, customers or clients so as to meet stakeholder expectations.
Strategy
Some more definitions of the concept strategy are: Strategy refers to the long-term plans developed by top management, usually for periods of two to ten years or even longer. These plans are used to evaluate and seize opportunities as well as to relocate resources. Strategy includes plans to create new products, to purchase other organizations, to sell unprofitable sections of the business, to make shares available, and to enter international markets (Nel et al., 2001:556).
Strategy
Strategy in commercial terms is often associated with deployment of resources, outflanking the competition, establishing beachheads in the global marketplace, and creating strategic alliances (Walton, 1999:14).
Strategy
It is a declaration of intent that defines means to achieve ends, and is concerned with the long-term allocation of significant company resources and with matching those resources and capabilities to the external environment (Armstrong, 2000:30).
Strategy
Armstrong (2000:112) is of the opinion that the strategy of the company gives an indication of three aspects, namely domain, structures and systems as well as performance standards.
In the definition by Armstrong (2000:112) the domain, structures and systems as well as performance standards have the following context:
Domain
Domain refers to the type of industry, market, competitors, suppliers and, more generally, the limitations and constraints facing their organization.
Domain
Structures and systems refer to the choices made about how centralized, standardized and specialized an organizations activities will be.
Domain
Performance standards which partly determine the extent of flexibility an organization has within its economic environment.
Strategy
Thus, the strategy of a company and also the action plans to achieve the strategy, known as the strategic orientation of a company, should focus on the factors which are present in the strategic environment of companies currently as well as in the future. Furthermore, the Cynefin framework for organizational sense- making indicates that these factors are divided amongst the known, knowable, complex and chaos domains in the strategic environment of companies.
Strategy
Each of the sense-making domains differs in terms of its characteristics and nature and thus influence the current and emergent strategic orientation of the company in a unique manner. The manner in which the factors in each of the four domains influence the current and emergent strategic orientation of the company give rise to a variety of training needs by employees but more specifically executives and managers involved in strategic processes.
SHRD Enables
The organization to respond to challenges and opportunities through the identification and delivery of HRD interventions. Individuals, supervisors, line managers and top managers to be more informed of their roles and participate in HRD delivery. Management to have operational guidelines which explain the reason for investment in HRD. Information to be disseminated which explains the training, education and development and learning opportunities for employees. A policy statement to explicitly describe the relationship between the objectives of the organization and the HRD functions.
SHRD Enables
A positive public relations awareness for new potential employees to know that skills deficiencies will be provided for. The continuous assessment of L&D opportunities for its employees and thereby enabling them to advance their careers and support organizational growth. Clearly specified objectives and targets that enable the HRD function to be evaluated against strategic requirements. Policies which relate the HRD function to the other operating functions Training, education, development and learning opportunities to have a coordinated role within a systematic process.
SHRD applications
Although SHRD applies to all employees in the company, it is a process that is of fundamental importance to executives and managers involved in formulating and implementing the strategic orientation of the company. As expected, the executives and managers must ensure that the current, but especially the future strategic orientation of the company is translated in terms of skills which employees will need to ensure their effective performance in future. The strategic training of employees commences with executives and managers communicating the emergent strategic orientation of the company to employees.
SHRD roots
SHRD has emerged as the logical development of the OD tradition. SHRD promotes a more enlightened, ethical and skills focused change management that puts HR back where they belong at the forefront of the change agenda. SHRD combines three things: An awareness of the complexities of change management A desire to rescue the concept of HRD from a mundane existence in the depths of training programs. A new perspective which provides direction for the 21st century.
SHRD roots
The objective is to develop pragmatic and proactive approach of the managers and the organizations members and to help them manage change, and contribute to the continual transformation of the organizations products and services. The 21st century management needs to place learning at the forefront.
st 21
Human resources are the strategic assets rather than the cost.
Birth of the discipline dates back in the late 1950s. OD technology in the1960s. Theory of practice in the 70s (Harrison, 1970) through intervention strategies and team development. Proliferation of training approaches to personal growth and empowerment through self-directed learning (Harrison, 1972). Visioning emerged in the1980s along with organizational culture, systems thinking and quality management.
OD
It was through the articulation of the change agents values designed to facilitate visioning, organizational learning and problem-solving in the interests of a collaborative management of the organizations culture. The greening of organizations with an idea of valuedriven approaches and organization learning (Senge, 1990; Pedler et al., 1991). Downsizing and BPR in the 1990s.
OD
Over the years, only psychological/behavioral and health perspective on OD has emerged. Beckhard (1969: 9-10) defines OD as a: planned change effort involving systematic diagnosis of the total organization that is managed from the top to increase the organizational effectiveness and health of the overall system. The definition reflects the functionalist thinking of the time. OD has gone away from the social engineering approaches, practiced largely by psychologists to enhance the technomanagerial imperative of the Fordist period to managing and developing organizations through empowerment (French & Bell, 1995: 28).
OD
The second world war and the consequent production processes are believed to have caused a marked shift from positivist thinking to more of humanistic approach that uses action research as a mode of inquiry. The approach assumes an altruistic concern for people in organizations. This gave birth to human relations approach with a focus on mans social needs and ways of meeting them to increase motivation and organization productivity.
OD
Teamwork originated from downsizing and restructuring. Employees were to develop skills like decision-making, problem-solving, personal skills like listening, conflict resolution, negotiation and leadership. The role of HRD professional was required to develop critical facilitation skills. Merging relationship focused more on cross functionality aided with new technologies in the pursuit of new knowledge. This new development has transformed HRD by minimizing the role of training department and refocusing on learningthus personal development and management development.
OD
Another trend was learning and knowledge management to manage the growing complexity of performance and its standards, customers and clients at the center-stage, whereby employees need to be acquainted with the concepts of quality, benchmarking and continuous improvement. Therefore HRD professional will be increasingly challenged by the need to develop skills of facilitation, action-learning, analysis and critical thinking.
OD
It is therefore the changing nature of work and the political, economic and social pressures upon organizations that are forcing them to:
Develop and communicate new corporate strategies; Upwardly develop new HR strategies and policies; Involve employees at all levels in the change process; Determine the most effective and efficient work processes; Build teams with the capacity to learn and become selfmanaged; and Develop individuals and encourage management development.
Point to ponder!!
There still is a need to encourage and develop ethical organizations in the pursuit of a better future.
Organism
Man as machine
Homo economicus
Functionalistic sociology
Emile Durkheim (1858-1917) View of an organization as an organism in which the analogy with biological systems provided a useful vehicle for assessing the needs of the organization. Functionalism was developed to explain social and organizational behavior. Cultural lag between the technological system and the behavioral system.
Functionalistic paradigm
Assumptions: The organization has a life of its own, above and beyond the sum of its members The organization is best analyzed as a system of functionally inter-related parts All organizations have needs which must be met The act of organizing is based on a consensus about values and goals That consensus itself emerges as a result of common interests
Morgan (1986)
Self actualization Ego needs Social needs
Encouragement of complete commitment The job becomes a major expressive dimension of life
Creation of jobs with sense of achievement and autonomy Work-related sense of identity Feedback and recognition for good performance
Organization of work that permits interaction with colleagues Social and sports facilities Office or factory parties or outings
Pensions and health care plans Job tenure Carrier paths in organizations
A new way of organizing the world through a new type of control over supervision Standardized products which were machined to a T Every product or service was produced under the same philosophy Both Ford and Taylor were followers of Greek rationalism reinvigorated by Descartes. Rationalists believed that the human mind could discover the laws that governed the universe. It was believed that discovery of such laws could lead to limitless material progress
Taylor assumed that once a law had been discovered, it was possible to write a rule for it. This task eliminated uncertainty. To him management should be a science with fixed principles. The interests of the employer and the employees were inseparable Workers feared greater output-fewer jobs. Bad management resulted in workers going slow to protect themselves Traditional ways of doing jobs were inefficient.
4.
The development of a true science of work Scientific selection and training Bringing together a science of work and the trained man The constant and intimate cooperation of management and men
Consequences
separation of brainwork from manual work The system controlled the man
Modernism
The central guiding principle was rationality (Max Weber, 1864-1920) Modernity- a machine culture The increasingly complex organizations under the monopoly capitalism of the 20th century required sophisticated administrative controls. Military thinking and concepts added (planning, coordinating and controlling) infused with appropriate language (chain of command, lines of communication, leadership, strategic management and strategic planning, authority, delegation, management by objectives, operations management, and mission statement).
Modernism
The managers were officers corps and the workers were troops. Modernity was characterized by bureaucratic structures, supervisory controls, the separation of ownership and management, national state regulation, a predominant manufacturing base, and hierarchical knowledge communicated by a downward flow of information. Mass production for mass market of undifferentiated consumers The emergence of organizational behavior and development as a discipline has its roots firmly in the soil of modernity as a logical explanations of rationalism.
The modern 1900-1935 Monopoly capitalism 1935-1970 Socio-psychological concerns with alienation and anomie
Post modern 1970-2000 Quality management BPR Empowerment Learning organization Corporate governance
Technological determination
Application of scientific method to management Emergence of Fordism Scientific management and the classical school of management
Hawthorne experiments
Discovery of group behaviors Research into leadership, motivation and job design
Key characteristics
Control Characterizing features
Bureaucratic structure Control is external Separation of ownership and management National state regulation Manufacturing base Hierarchical knowledge Constant linear industrial progress through well-defined strategies Undifferentiated consumers Industrial relations as trench warfare Differentiated consumers Industrial relations based on inner compliance
Empowerment
Characterizing features Organic structure Control internalized Downsizing and teamwork- the global economy Post-industrial service economy Information technology Recognition of limits to progress creates focus on quality
A model for redesigning and repositioning HRD as a key driver of corporate strategy
The What The How The Goal
Seven keys to successful organizational change: 1 Provide strong, highly visible and personal leadership. 2 Institute employee involvement, early and at all levels.
Org. Learning
Org. Change
3 Build a clearly articulated and shared vision. 4 Provide frequent, consistent and open communication. 5 Leverage talented and trusted employees as co-change agents. 6 Set measureable, operational and behavioral goals. 7 Celebrate success and redress shortcomings.
Org. Performance
Summary
SHRD looks after the promotion of humanistic values However there is a growing tension between humanistic objectives and organizational needs resulting in value dilemmas and value conflicts. SHRD deals with the resistance to change and recognizes that resistance is natural and legitimate human process and needs to be understood and worked with in order to develop ongoing learning experiences with in organizations. The above is a challenge and an opportunity.
Academy of human resource development www.ahrd.org American society of training & development www.astd.org
Garavan, T.N. (1991) Strategic human resource development, Journal of European Industrial Training, 15(1): 1730. Walton, J. (1999) Strategic Human Resource Development, London: Financial Times/ Prentice Hall Garavan, T.N., Costine, P. and Heraty, N. (1995) The emergence of strategic human resource development, Journal of European Industrial Training, 19(10): 410.
Organizational culture
Level: MSMS Discussion 4 08-10-2012
Dr. Sajid Hussain Awan, Program Manager MSMS
Remember!
110
Strategy is an incremental process, is iterative and strongly influenced by an organizations culture, history structure and stage of life cycle. Culture is the glue that holds everyone together.
Approaches to analyzing culture Functional analysis The interpretive approach: culture as negotiated meaning The analysis of cultural codes Analyzing discourse: speech acts, metaphors and organizational culture Developing organizational cultures Conclusion
Background
112
Our understanding of the management of change in the 21st century relies heavily on the 20th century intervention strategies that also contained ideologies for managing change in the organization, such as:
Organizational
design, innovation and enterprise, empowerment, strategic downsizing, TQM and BPR, and teamwork.
Background
113
Each type of intervention strategy was essentially prescriptive for two reasons.
First,
it sought to change the structure of an organization in some way in order to make it more effective. Second, each requires an expert, sometimes with guru status, to design the plans, recipes and formulas for the organization to follow.
Background
114
However, out of these, certain change strategies were more political than others and offered a formula for success, each contained internal contradictions that limited the success of the change.
All change contains its own contradictions and that the wise thinker or skilful change agent must strive for the goal of enlightenment.
Background
115
All the above mentioned change strategies involve the manipulation of an organizations culture in some way.
Most strategies sought to radically transform an organization with a new formula for change. Most, therefore, required the organization to reinvent itself with a new ideology of meaning and purpose reinforced by tools and techniques.
Background
116
But a new approach, such as the adoption of a new technology, requires a careful diagnosis of the organizations culture.
The failure to recognize an organizations culture places the change agents in a precarious position because they land in a difficult situation for managing change.
Background
117
Playing tactics rarely transform the hearts and minds of employees. So, the change agent needs to answer the following questions:
How
does one engage the willing cooperation of employees? How does the vision get successfully transformed into the mission and critical success factors in such a way that it becomes a valued activity for all?
Background
118
The change agent must engage with a process of continual learning and discovery: The analysis of organizations capability through its culture.
Organizational diagnosis: An examination of the organizations culture is the key to this diagnostic process. The change agent assesses how well the culture of the organization fits its purpose.
For example, in the private sector, the purpose will be defined by market trends and the ability to exploit opportunities in the face of competition. In the public sector, the purpose will be defined by political policies that demand effectiveness, efficiency and accountability for the public good.
Approaches to
120
Organizational culture is said to be the expression of rituals, stories, sagas and myths. Such expressions of culture provided a way forward for organizational improvement and Western salvation by inviting a cultural analysis of organizational life (Hickman & Silva, 1987).
Approaches to
121
The popular discovery of ritual accomplishments and stories of success promoted culture management as the vehicle for enhanced performance (Peters & Waterman, 1986; Deal & Kennedy, 1988). Consequently, the concerns of the organization studies avant-garde became redefined from systems and structures to culture and symbolism (Jeffcutt, 1994).
Approaches to
122
legitimacy of culture management; and The effectiveness of culture on bottom-line performance (Lim, 1995).
Approaches to
123
Management rhetoric has placed more focus on organizational restructuring and post-bureaucratic transformations from the perspective of managing chaos, disorganization, disaggregation, delayering etc. Much of the rhetoric adopted a democratized, topdown concern with culture change and culture management: defined by the employer rather than the employee.
Approaches to
124
Organizational culture, as a conceptual tool for managers, gained popularity following the Excellence Movement by Peters and Waterman (1982). They influenced the thinking of managers by suggesting that corporate success required a strong culture. As a result, organizational culture became the route to competitive advantage.
Approaches to
125
Writers on Japanese methods of work, such as Ouchi and Jaeger (1978) influenced the Japanization of Western organizations by arguing that Japans economic success and brilliant economic development resulted from their strong corporate cultures. Stability in the midst of mobility.
Approaches to
126
The reasons for the development of the concept of organizational culture appear to be twofold.
First,
there was a shift from the classical quantitative and scientific approaches that were thought to be no longer as appropriate as they had been thought to be earlier in the century. Second, is the realization that the worlds first industrial nation, Britain, and the worlds most successful and prolific nation during the twentieth century, the USA, were being overtaken by Japan.
Approaches to
127
Therefore, Hickman and Silva (1987) saw this as the replacement of Fordism, with its emphasis on systems and control to complexity management which emphasizes:
(a)
shared perspectives between different stakeholders; (b) creativity; and (c) social relationships.
Approaches to
128
The culture concept became infused with sound-bite clichs such as strong, empowered, power, task, role, the way we do business around here that promised more than they could deliver.
Approaches to
129
These similes of gross oversimplification are intended to portray the layers of complexity that characterize the corporate culture. For example, one is almost tempted to say that the recipe becomes: if you want to manage the corporate culture think of it like an onion. The study of organizational culture provides this penetrating analysis.
Approaches to
130
The earliest and most concise is the anthropological definition of culture by Edward Tylor in 1891: That complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society.
Approaches to
131
Organizational culture may be defined, therefore, as the sum total of the learned behavior traits, beliefs and characteristics of the members of a particular organization. The key word learned distinguishes culture from behavior that result from biological inheritance.
Approaches to
132
Consequently, learned behavior is the one factor that distinguishes humans from other animals. This requires the ability to communicate at a highly sophisticated level. The human faculty for symbolic communication facilitates the acquisition of culture and makes it possible for humans to transmit culture between generations.
Communication
133
1.
2.
3.
4.
Communication is what makes culture. Humans communicate with symbols in four basic ways: Spoken language, patterns of sounds with meanings attached to each. Spoken language facilitates learning and communication. Written language, the graphic recording of spoken language which facilitates the preservation of learning and the legacy of culture. Body language which denotes the exchange of meanings through gestures and body postures. Humans communicate through artefacts. The study of this is known as semiotic communication.
SHRD aims to produce a coherent and comprehensive framework for developing people through the creation of a learning culture and the formulation of organizational and individual learning strategies. The main thrust of SHRD is to provide an environment in which people are encouraged to learn and develop.
A learning culture is one in which learning is recognized by top management, line managers and employees generally as an essential organizational process to which they are committed and in which they engage continuously.
The steps required to create a learning culture as proposed by Reynolds (2004) are:
Develop and share the vision. Empower employees. Provide employees with a supportive learning environment e.g. peer networks, supportive policies and systems, and protected time for learning. Use coaching techniques to draw out the talents of others by encouraging employees to identify options and seek their own solutions to problems. Guide employees through their work challenges and provide them with time, resources and, crucially, the feedback. Recognize the importance of managers acting as role models. Encourage networks communities of practice. Align systems to vision get rid of bureaucratic systems that produce problems rather than facilitate work.
Organizations can be described as continuous learning systems, and organizational learning has been defined by Marsick (1994) as a process of Coordinated systems change, with mechanisms built in for individuals and groups to access, build and use organizational memory, structure and culture to develop long-term organizational capacity.
3. Within the framework of vision and goals, frequent dialogue, communication and conversations are major facilitators of organizational learning. 4. It is essential continuously to challenge people to re-examine what they take for granted. 5. It is essential to develop a conducive learning and innovation climate.
Argyris (1992) suggests that organizational learning occurs under two conditions: first, when an organization achieves what is intended and, second, when a mismatch between intentions and outcomes is identified and corrected. Argyris distinguishes between single-loop and double-loop learning. Single-loop learning organizations define the governing variables, i.e. what they expect to achieve in terms of targets and standards. They then monitor and review achievements, and take corrective action as necessary, thus completing the loop.
Double-loop Learning
143
Double-loop learning occurs when the monitoring process initiates action to redefine the governing variables to meet the new situation, which may be imposed by the external environment. The organization has learnt something new about what has to be achieved in the light of changed circumstances and can then decide how this should be achieved.
The process of organizational learning is related to the concept of a learning organization, which Senge (1990) describes as an organization that is continually expanding to create its future.
Garvin (1993) suggests that learning organizations are good at doing five things:
1.
2.
3.
Systematic problem solving which rests heavily on the philosophy and methods of the quality movement. Experimentation this activity involves the systematic search for and testing of new knowledge. Continuous improvement programs (kaizen) are an important feature in a learning organization. Learning from past experience learning organizations review their successes and failures, assess them systematically and record the lessons learnt in a way that employees find open and accessible. This process has been called the Santayana principle, quoting the philosopher George Santayana (1863 1952), who coined the phrase Those who do not remember the past are condemned to repeat it.
4. Learning
from others sometimes the most powerful insights come from looking outside ones immediate environment to gain a new perspective. This process has been called SIS for steal ideas shamelessly. 5. Transferring knowledge quickly and efficiently throughout the organization by seconding people with new expertise, or by education and training programs, as long as the latter are linked explicitly with implementation.
The individual learning strategies of an organization are driven by its human resource requirements, the latter being expressed in terms of the sort of skills and behaviors that will be required to achieve business goals. The learning strategy should cover: How learning needs will be identified? The role of personal development planning and self-managed learning; The support for individual learning: guidance, coaching, learning resource centers, mentoring, external courses designed to meet the particular needs of individuals, internal or external training programs and courses designed to meet the needs of groups of employees.
Rothwell and Kazanas (1994) are of the opinion that strategic organizational development results in the prevailing norms of groups in the company and the organizational culture being such that they make provision for changes that may take place in future. They are of the opinion that the process of strategic organizational development enables existing group norms and organizational culture to adapt to changes that might occur in future. Albert (cited in Rothwell & Kazanas, 1994) captures the uncertain nature of strategic organizational development as follows: It is hard to identify present norms and culture, it is even harder to envision what they should be in the future.
Learning culture as described by Reynolds (2004) is a growth medium that will encourage employees to commit to a range of positive discretionary behaviors, including learning and that has the following characteristics:
empowerment
not supervision, self-managed learning not instruction, and long-term capacity building not short-term fixes.
Discretionary learning happens when individuals actively seek to acquire the knowledge and skills that promote the organizations objectives (Sloman,2003). To create a learning culture that acts as a growth medium it is necessary to develop organizational practices that raise commitment amongst employees and give employees a sense of purpose in the workplace, grant employees opportunities to act upon their commitment, and offer practical support to learning (Reynolds, 2004).
Low-Context Culture
Communication is direct, structured, and specific. Shared background is not assumed. A higher value is placed on the words spoken than on the nonverbal communication. Behavior and beliefs are spelled out explicitly.
High-Context Culture
Communication is less clear because of common understandings and a shared culture. Meanings are derived from nonverbal communication. Face-saving and tact are balanced with the need to communicate fully and frankly.
Organizational culture
153
Shape behavior
Organization culture
154
Organization culture
155
Culture can:
Impact behavior, productivity, expectations; and Provide a benchmark for standards of performance
Organization culture. Labor-market changes and discrimination. Adapting to demographic changes. Cross-Cultural training programs. Human resource development programs. Other human resource management programs.
The whole is greater than the sum of the parts. Managing or valuing diversity encompasses a range of activities aimed at: Making managers more aware that women and members of other cultures or subgroups, may espouse different values and assumptions which can affect the way they cooperate, compete, communicate, plan, organize and are motivated (Langer, 1989).
Cross-national diversity refers to managing the interface between people of two countries. International diversity refers to managing an increasingly diverse workforce in a given country.
South African, Malaysian and American societies, for example, are diverse, and the workforce is multi-cultural. Managing such diversity requires skilful, informed and extensive training in interpersonal skills, appropriate systems and an understanding of both ethnic and corporate cultures. Valuing diversity extends beyond understanding and co-operation and should, as an end goal, seek to improve managerial and organizational effectiveness.
It should aim to build capacity.
These can be differentiated from traditional approaches. Key features of SHRD practices include:
Integration into a human resource strategy, which in turn is aligned with an organizational or corporate strategy; Competency based HRD derived from structural, systemic, technological and work re-organization needs; This in contrast to menu offerings by centralized training departments in large organizations; Line management responsibility for developing people is a key performance area in the appraisal and reward of a manage; Partnership between HRD specialists and line managers in developing employee competencies required to achieve organizational performance goals; and Creating an organizational culture of continuous learning and transfer of learning between units.
The continued competitiveness of the company. It should also influence the culture of the company and enable knowledge processes to be performed in terms of the emergent strategic orientation of the company. Cost-effectiveness of the training process. It does not take place in isolation from the culture of the company and influences its culture.
Researcher on culture
161
Garavan (1991) explains Culture must be viewed as a central factor in the overall process of SHRD. McCracken and Wallace (2000b) explain Culture is seen as an important variable in deciding how SHRD should be delivered and evaluated. A process of SHRD is characterized by taking into consideration the culture of the company, but at the same time also influencing the manner in which it manifests in SHRD is therefore characterized by the fact that it does not take place in isolation from the culture of the company.
The leader has to create a cohesive, excited organization, and so he has a tremendous opportunity to be very successful. A leader really has to define a compelling business strategy and drill down and understand all of the components of the business and understand the capacity of the organization and to create a culture where there is real commitment and enthusiasm for the future of the company.
163
To be continued
SEMINARS ON SHRD
Employee Learning & Development Discussion 05 11-10-2012
Outline
165
need grows further Strategy & tactics Strategic intent (SI) The strategically focused organization Strategic positioning and HRD L&D for everyone
SHRD focus
166
The focus of HRD practice has persistently evolved from class room training to performance improvement. SHRD is the extension and sophisticated from of HRD. The development of HRD theory grew parallel to management theory and HRM theory. The growing interest in the strategic management led to SHRD. This shift in focus was due to increased belief that people with their blend of knowledge and abilities are themselves a resource of strategic importance. Learning is generally involved at three levels of strategy, tactics & operational execution for organizational performance.
SHRD focus
167
identification of needed skills and active management of employees learning in relation to corporate strategies. ones own standards against those of industry
Benchmarking
Comparing
leaders
Employee Development
The
SHRD focus
168
SHRD seeks to envisage activities and conditions necessary for the promotion of HRD and the possible benefits to an organization pursuing such activities. HRD policy formulation and planning processes to develop capabilities of organizational members that can be a source of distinct competitive advantage not easily duplicated by competitors. Critical issues which must be focused upon by organizations wishing to develop a strategic focus in their HRD activities.
The process
169
Organization learning itself constitutes an important element of corporate strategy. Hence the focus of SHRD primarily remains the learning programs that impact and improve performance. SHRD is thus strategic repositioning of HRD within organizations, and becomes an integral part of the strategic and tactical activities of the business and their successful implementation. The effectiveness and ultimate success of HRD in an organization depends on making a pervasive case for linkages between L&D in the particular organizational context.
The process
170
It then requires aligning HRD efforts with the strategic intent of the organization. Effective HRD efforts are also to be linked with the other HRMdriven changes like staffing, compensation, and performance management. Together, these promote learning skillfully within the political economy of an organization's internal power structure and external strategic niche. Confidence, mutual trust, leadership linked with the facilitating initiatives produce conducive environment to let this all happen. Such a shift in focus becomes a potential force for leveraging individual and organizational performance.
Organizational Learning (OL), as the underpinning process for SHRD has not yet reached a sufficient degree of maturity. This is partly due to an OL literature base that is generally rich in rhetoric but is empirically doubtful. Associated with this is the predominance of research that has tended to underplay the importance of social context, preferring instead to address issues of personal cognition. Studies that do offer empirical findings tend to limit investigation to learning difficulties related to personal characteristics such as learning styles and techniques of facilitation and training interventions.
Critical Issues
172
Managers should be capable of diagnosing organizational context not simply for learning capability but for organizational constraints that limit the actions of individuals and groups to learn effectively. In order to redress this problem, greater attention needs to be paid to the structural, cognitive and social barriers to OL. The research proves that enhanced performance can only occur when participants clearly diagnose the nature of the problems and resolve them through Action Research.
Strategic HRM planning leads to: Growth, Profits, and Survival Planning also:
Learning is central to SHRD, whether explicitly mentioned, or implicitly assumed. Learning remains in line with the strategic orientation in the relevant context. Whether one focuses on training, or system-level interventions, on individual , team, or organizational level activities, on strategic or job level performance, (S)HRD is centered on fostering learning. The guiding principle of HRM remains positioning of the right people to achieve the highest possible performance in order to meet strategic goals and HRD helps in facilitating such decisions.
Performance improvement
175
The guiding principle of HRD remains preparing and continually developing people and learning systems to achieve the highest possible performance in order to meet strategic goals. Long term strategic performance improvement requires an educative focus on developing executive talent, fostering spiritual critical debate about an organizations direction and the opportunities that may be presenting themselves, and connecting to strategy- nascent trends in society as well working on system improvements. However, we do not forget immediate performance improvement through ensuring that organizational members have access to resources for developing their capabilities for performance and for making meaning of their experience in the context of the organizations strategic needs and the requirements of their jobs.
HRD in transition
176
Class room training- performance improvementbuilding strategic capability It is aligning behavioral and social sciences with the management perspectives.
Strategic level
(identifying the strategic pattern) (developing strategy) (Developing strategic leaders)
Tactical Level
(Learning from experience)
Operational level
(Operational improvement methods) (Management development) (basic skill and competency training))
Learning at the strategic level involves identifying the strategic pattern of events, including trends in the external environment, the consequences of the existing strategic initiatives and the emergent strategy of the organization.
Learning at the tactical Level involves experience, drawing lessons especially from initiatives
after-action reviews Trainings in sales, process improvement methods (TQM, six sigma), basic management development and job skills training throughout the organization.
Six Sigma
179
Data-driven methodology for eliminating defects. A process must not produce more than 3.4 defects per million opportunities. Six Sigma employees (Green Belts) and project leaders (Black Belts) are overseen by quality leaders (Master Black Belts). Widely used by GE and Motorola.
Strategic thinking
180
set of needs or objectives that are considered important and are potentially contested by others; These others can be conceptualized as opponents who are either competitors for scarce resources or wish to achieve objectives different from and contrary to ones own objectives; and These opponents typically have their own strategy and are also going to react to the perceived strategy and tactics that one puts into play to achieve ones objectives.
OD Intervention Process
3-181
Evaluator
2. Develop an action plan.
OD Interventions
3-182
Interpersonal
Work relationships between employees
Technological
Structural
Process analysis Span of control Job design Reporting Specialization relationships Work flow analysis
Examples: Team building, diversity, flexible work and staffing, and quality initiatives
Systems Theory
3-183
Applied in organizational development interventions. Essential to the quality movement and leads to process improvement. Based on understanding the relationship between three key components:
Inputs Process Outputs
Focuses on real world issues, Applies to their jobs, Meets their goals and expectations, Allows for debate and challenge of ideas, Encourages an exchange of ideas and opinions, Allows them to be resources to each other, and Meets a current need.
Blooms taxonomy
3-185
McClellands theory
186
High achievers: Set moderately difficult but potentially achievable goals. Prefer to work on a problem rather than leave the outcome to chance. Seem to be more concerned with personal achievement than with the rewards of success. Seek situations in which they get concrete feedback on how well they are doing with regard to their work.
Assessment
Design
Development
Evaluation
Implementation
Systematic development process used to create employee learning that aligns with strategic goals.
Need assessment
3-188
Identify needs
Purpose of Assessment
Organizational
Task
Individual
1. Gather data
5. Implement
4. Calculate cost
3. Propose solutions
Learning design
191
Decisions are made regarding: Goals and objectives. Target audience (aptitude, prior knowledge, and attitudes). Selection of an instructional designer.
Measurable
Action-oriented Realistic Timely
Content development
3-192
Development trends include: Use of learning objects (LOs) or reusable learning objects (RLOs).
Saves development time by reusing content in a variety of contexts in the organization. Object may be a graphic, an animation, or an entire learning module.
A dedicated learning management system (LMS) to hold course content and track employee activities.
Development types
193
Skills development
Remedial Sales
exposure to the organization Expansion of orientation and assimilation into the organization
Other types
Executive Wellness Harassment
prevention
Talent management
194
Development and integration of HR processes that attract, develop, engage, and retain the knowledge, skills, and abilities that will meet current and future needs
Strategic approach to human capital management Increases workplace productivity and ability to compete
Staffing challenges
Reliance on contingent workers Retirement of baby boomers and likely labor shortage Shortage of knowledge workers Diversity of workforce Economic conditions Global and domestic competition
Conclusion
197
Hence the L&D strategy of an organization must focus on the need to anticipate learning requirements in the present environment to cater to what is needed now and in the future. L&D is action and not reaction.
SEMINARS ON SHRD
Strategy making as learning
Discussion 6 18-10-2012
Outline
199
Foundational strategic concepts, tools and learning: The analytical strategic positioning approach Strategic core competencies: Recognizing the strategic value of collective tacit know-how Emergent strategy: The focal point of strategic learning
Strategic learning Strategy making as learning conversations Working at the top of the HRD pyramid Designing and facilitating strategic conversations
200
The role of strategy for HRD practice is increasingly emphasized in the HRD literature. Same is the case with the concept of learning that became more explicit with the development of experience curve originally called the learning curve coined by the Boston Consulting Group in the 1970s. Experience curve is an influential concept compatible with a more formal and analytical view of strategic learning.
Foundational strategic concepts, tools and learning: The analytical strategic positioning approach
201
BCG introduced learning as a core strategy. Bruce Henderson (1970s) in BCG developed a model based on research that demonstrated a predictable and exponential inverse relationship between cost and companys experience of producing a particular product. Economy of experience provides significant competitive advantage to any company with a new product line that can establish itself as early market leader because of the superior ability to control pricing and margins based on experience. Analytical view of strategic learning underlies the BCG growth share matrix, with its emphasis on success being linked to the highest market share. This matrix also popularized the portfolio-analysis approach to corporate strategy, treating the various businesses of a diversified company as a portfolio of business units.
202
Based on an assessment of each in the organization portfolio, businesses are placed in one of four cells:
Stars: Market leaders that are at the peak of their product life cycle and are able to generate sufficient cash to sustain their position. When their market growth rate slows, starts turn into cash cows. Cash cows: Businesses that bring in more money then they need to maintain their share of the market. Cash cows generate resources for the question marks. Question marks: New products with potential for turning into stars. Their future is still a risk that must be funded with money from more mature products, typically cash cows. Dogs: Cash cows that are in declining market, or business with low market share. Either these businesses should be divested, or their cash flow carefully managed.
High 22 20 18 16 14 12 10 86420Business growth rate (Percent)/ industry attractiveness High Low Stars
Low
Question mark
Cash cows
Dogs
1.5x
10X
0.1x-
4X
2x
1x
Too simple Focuses only on comparison with one competitor the market share leader Uses a simple dichotomy of high and low
The most influential analytical tool for strategic thinking is Porters five forces model of strategic positioning:
Industry
competitors, Suppliers, Buyers, Potential new competitive entrants, and Substitute product.
INDUSTRY COMPETITORS
BUYERS
Rivalry among existing firms Threat of substitute products or services SUBSTITUTES Forces driving industry competitions
Strategic core competencies: Recognizing the strategic value of collective tacit know-how
207
The source of competitiveness lies in an organizations core competencies (Prahalad & Hamel, 1993). Core competencies are the collective learning embedded in the organizations culture, knowing how to coordinate diverse sets of skills, blend technologies into new streams for product innovation, and organize work. For example, Casios putting a radio on a computer chip and the art and science of miniaturization
collective know-how
208
To develop and practice core competencies, marketing, engineering and technical specialists must forge a deep understanding of technological possibilities and that how they fit together with potential customers needs and wants. Such competence cannot be easily imitated; rather it must be developed over time. Core competencies are tacit organizational knowledge, the kind of organizational learning that is only visible in its execution; however, this cannot be stored in the organizational database.
The meanings and understandings attached to alignment and the extent to which they are affected by contextual factors such as organizational size and sector or the professional location of the employee. Research indicates that experiences of HRD alignment are complex, ambiguous and contextually orientated. Alignment is depicted as an iterative process involving dialogue and bartering; involvement in different organizational and business planning processes, and the use of benchmarks and other organizational metrics. There is a range of tensions and challenges associated with the pursuit of alignment highlight approaches to organizing HRD that suggest passive rather than actively aligned practices.
alignment in SHRD
210
The link between HRD and the long-term priorities of the organization is a key feature of the strategic HRD literature (Clardy, 2008; Francis & Keegan, 2006; McCracken & Wallace, 2000). Indeed Garavan (2007, 25) defines strategic HRD as a coherent, vertically aligned and horizontally integrated set of learning and development activities which contribute to the achievement of strategic goals.
alignment in SHRD
211
work with senior managers to devise and implement workplace learning policies and practices that fit with other organizational systems and contribute value through the development of the human capital assets of the organization (Zula & Chermack, 2007).
Although alignment is a key feature of the strategic HRD literature, there is little empirical evidence of its achievement in practice.
alignment in SHRD
212
HRD is a broad and continuously evolving area of interest embracing a range of traditions and a multi-disciplinary knowledge base (Walton 1999; Weinberger,1998) At the same time, it lacks clear consensus about its status, identity and territory (Garavan, McGuire, & ODonnell, 2004; Gold, Rogers, & Smith, 2003, 437). McGoldrick, Stewart, and Watson (2001, 351) use the metaphor of a hologram to communicate the complex and changing conceptual, empirical and theoretical features of HRD, highlighting the importance of human social action and perception as a basis for understanding HRD as simultaneously multi-dimensional, multi-causal, mutuallydependant and constantly changing.
alignment in SHRD
213
The performative aspirations of strategic HRD have been contested (Fenwick, 2005; Callahan, 2007). But the proponents seeks SHRD to:
Enhance the core capabilities of the organization (Clardy 2008; Garavan, McGuire, & ODonnell, 2004; Weinberger 1998; Walton 1999) and Effectively managing performance (Garavan, 2007; Purcell et al., 2003; Semler ,1997). Learning and Resource Maximization, and Productivity enhancement and the leveraging of learning and development.
alignment in SHRD
214
Thus alignment is seen as a way by which the HRD function can interact vertically with other stakeholders to:
inform
strategic processes and identify, describe and protect core people competencies, achieving a return on investment and contributing to the achievement of competitive advantage (Clardy, 2008; Zula & Chermack, 2007; Ulrich & Brockbank, 2005).
alignment in SHRD
215
Alignment, therefore, is portrayed as providing the opportunity for senior managers and HRD executives to share strategic knowledge and information, and for HRD activities and processes to be integrated horizontally to encourage, support and direct appropriate action (Kim and Cervero 2007; Garavan 2007; Burrow and Berardinelli 2003; Gubbins et al. 2006; Wognum 2001).
alignment in SHRD
216
Although the strategic HRD literature presents alignment as a key issue, it offers scant discussion of it conceptually or empirically (Wognum, 2001). Over more than a decade, in the general strategic management literature alignment has been variously referred to as: Integration, Fit, Linkage, Bridge, and Congruence (Bowen & Ostroff, 2004; Weill & Broadbent, 1998; Ciborra 1997; Porter 1996; Henderson & Venkatraman, 1992).
alignment in SHRD
217
Firstly, the need to achieve a dynamic fit between the external competitive environment and the choices and decisions made about the strategic direction of organizations (vertical integration). Secondly, the imperative of achieving internal alignment of different functional parts of the organization (horizontal alignment) is indicated.
alignment in SHRD
218
Alignment is problematic, however, both conceptually and practically. Theoretically, alignment should be achieved at both strategic and operational levels (Wognum, 2001), and this involves reconciling tensions between long-term strategic aspirations of the organization and shorter-term imperatives. Internal or horizontal alignment is also predicated on the existence of a clearly communicated strategy with which HRD processes can be linked; something which can be problematic (Francis & Keegan, 2006; Boselie, Dietz, & Boon, 2005, Wognum & Lam, 2000).
Equally, it is possible that alignment might be too tight and so reduces future strategic capability (Avison et al., 2004).
Beer et al. (2005) advocate that organizations should develop both fit (as initial strategic alignment) and also fitness (as dynamic organizational design) to provide the capacity for organizational members to learn and change in order to adapt to new circumstances.
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A review of the literature also suggests that alignment is something of a dual concept, viewed as both an outcome and a process. Alignment can be treated as an outcome or as a measurable result (Smaczny, 2001; Weill & Broadbent ,1998).
This approach focuses attention on strategic planning methods, structures and measures.
Wognum (2001) highlights the importance of ensuring the alignment of initial HRD investment processes suggesting that alignment involves three-stages: The identification of organizational strategies, problems and developments; The examination of the HRD implications of these; and The strategic choices about HRD investment to meet the identified priorities.
1. 2. 3.
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Alignment can also be characterized as a dynamic process (see, for example, Avison et al., 2004; Wognum & Lam, 2000; Edwards, 2000) involving interactions between organizational actors, networks and values, as well as communication and understanding processes. Here the importance of monitoring and managing ongoing alignment processes is stressed.
Empirical evidence
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Although there is an implicit assumption in the strategic HRD literature about the importance of alignment, academic and practitioner research spanning more than 10 years and incorporating a range of methodologies casts doubt on the extent to which the strategic alignment of HRD is or has been achieved in organizations in Europe and North America.
Empirical evidence
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Academic enquiry into perceptions about HRD in Ireland, for example, have indicated a lack of consensus between different groups of organizational actors about the meaning, values and purposes of HRD (Garavan, Heraty & Morley, 1998). Survey-based research amongst Dutch companies found only limited evidence of a broad alignment process, particularly at the strategic level (Wognum 2001; Wognum & Lam, 2000). Case study research by Kuchinke also highlighted that in US organizations an inclusive, strategic and comprehensive form of HRD seemed to be the exception rather than the rule (Kuchinke, 2003, 306).
Empirical evidence
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In addition, the practitioner-orientated literature is unclear about the extent to which alignment is achieved. Practitioner-orientated survey data from the US (Accenture, 2004) has indicated that less than 20% of Chief Executive Officers (CEOs) are very satisfied with the level of alignment of learning, training and development with business goals. Interview-based research with senior HRD executives and CEOs in the US also found significant opportunities for the HRD function to align more closely with executive-level expectations and aspirations, to make learning more strategic and central to the ongoing success of the enterprise (ODriscoll, Sugrue, & Vona 2005, 70). Data from the IBM 2008 Global Human Capital Study (IBM Global Business Services, 2007) found that, whilst HRM/D contributes to business strategy in some organizations, it does not provide input to strategic issues in many others.
Empirical evidence
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Survey data from the UK also suggest that the alignment of HRD to organizational strategy remains problematic. Firstly, UK survey data from the Chartered Institute of Personnel and Development (CIPD, 2007) indicate that only one-third of UK learning and training managers feel that learning and development implications are taken into account when overall organizational strategy is formulated The survey also indicates that the HRD function is not a key stakeholder for organizational strategy in almost one half of organizations (CIPD, 2007).
Other HR practitioner survey data from 2007 (Wolff, 2007) also suggest that UK HRD managers see their greatest challenge as achieving greater support from their organizations leaders and the necessity of aligning learning, training and development (LTD) with forthcoming or current organizational change.
Empirical evidence
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an outcome focusing on HRD investment decision-making and evaluation, and a process involving the management of the ongoing interaction between the HRD function and other organizational stakeholders.
The quest or doctrine of alignment as depicted in the strategic HRD literature, therefore, involves interactions at executive level to ensure information sharing, formalization and strategic HRD decision-making as part of a strategic partnership between HRD and other stakeholders (Wognum & Lam, 2000).
However, the literature indicates a range of conceptual and practical difficulties associated with this level of integration are apparent, and the extent to which non-HRD executives accept and enact HRD theories of what alignment should or might be is also unclear.
Alignment in practice
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Important questions
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We always ask that question whenever we go back and look at the strategy:
Are we doing the right thing? Is it having the right effect? Should we carry on with this? Should we drop that one? Do we do more of this and less of that one? Which has the most effect?
Its not always easy to determine that because time is involved and you have to give these things more time.
Its in the review process and the results, of course, if you can tie some of the results back to some of these softer issues then it gives us some indication of whether we are doing the right thing and doing it well.
The research indicates that some of the senior manager participants were not sure how the HRD function ensured its alignment to organizational priorities. Many of the interviewees reflected on the effects of the devolution of responsibility for learning, training and development to line managers in making alignment a somewhat ambiguous issue (Whittaker & Marchington, 2003; Gibb, 2002; McGovern et al., 1997).
The chief learning officer ensures that the learning needs of the organization are identified and met. He defines the link between a particular organizations strategy and its performance requirements.
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Learnings role is emphasized in strategy-making process. The core competencies of an organization are embedded through learning. Whether or not the devolution of responsibility of learning and development to line managers represents evidence of alignment or a lack of alignment, it might be expected that performance management processes would be described as an avenue of alignment, as it is an established process within the experience and remit of both HRD executives and senior managers in many organizations (Garavan, 2007; Semler, 1997). Strategy leads to learning and together these lead to performance. However learning is dependent to economic realities that confront the organization
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To
be continued