HRD COMPETITION&
STRATEGY
By EP John
PhD (PT)NERIST
HRM is a process of bringing people and organizations together sothat the goals of each other are met . The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent.
The major purpose of HRM is to increase & improve the productive contribution of personnel to the organization in more ethical, social, and administratively responsible way.
GLOBALIZATIONGlobalization is about the
creation of a borderless global economy that allows unhindered movement of finance, products, services, information, and people.
DRIVERS OF GLOBALISATION
Technology and communications
Global competition
Changing customer and investor demands
Organizational structures
The supply chain
Ever-increasing product-market competition
ORGANIZATIONAL REQUIREMENTS
The development of global leadersAdaptable and flexible organizational
structuresManaging supplier chainsManaging a diverse workforceUpdating core competencies and skillsInnovationKnowledge management systems
HUMAN RESOURCE DEVELOPMENTHuman resource development (HRD) encompasses a range of organizational practices that focus on learning: training, learning and development; workplace learning; career development and lifelong learning; organization development; organizational knowledge and learning.
HRD
HRM
HRIS
Training & DevelopmentOrganisational DevelopmentCareer Development
HR WHEEL
Organisation/Job designHuman Resource PlanningPerformance Management systemSelection & Staffing
Compensation benefitsEmployee assistanceUnion/Labor relationsHR Research & Info sys
Learning – is about the acquisition of new knowledge and how this changes the individual in some way.
- Psychological – all learning takes place inside a person’s mind- Sociological – learning is
influencedby social context
Training – involves planned instruction in a particular skill or practice and is intended to result in changed behavior in the work place leading to improved performance.
- Explicit knowledge – ‘know-what’- Tacit knowledge – ‘know-how’
The goal of training is for employees to master the knowledge, skill and behaviors to apply them in day-to-day activities.Development – broader than training and has a longer term focus, is determined by both the Organisational and the individual needs.
Focus of
HRM – Creating & Maintaining
HRD - Improving
Change Learning Improved
Performance
Training & Developmen
t
Career Developmen
t
Organisation Developmen
t
COMPONENTS OF HRD
Training & development – should permit individual learners to grow and develop beyond the present needs of their job. They also learn communication skills, team building, strategic planning andparticipative management.
Career development – includes committed, systematic, professional advising, career planning &paths, developmental appraisalsystems and results tracking.
Organisation development – should permit individuals and their organisations to move towards more collaborative, development, flexible, delayed, customerfocused cultures. It should enhance communication, work structures and processes.
HRM practices help the organizations to achieve competitive advantage. According to the resource based view (RBV) of the firm (Penrose 1995; Barney 1991), Competitive Advantage can be developed and sustained by creating value in a way that is rare and difficult for competitors to imitate and the quality the human resource within is difficult to imitate.
“Strategic HRM is concerned with all those activities affecting the
behaviour of individuals in their effort to formulate the
strategic needs of the business.”
SHRM concerns with •the creation of a linkage between the overall strategic aims of business and the human resource strategy and implementation. •the role human resource management systems play in firm performance, particularly focusing on the alignment of human resources as a means of gaining competitive advantage.
SHRM may bring a number of benefits to the organization: Contributes to the goal accomplishment and the survival of the company, Supports and successfully implements business strategies of the company, Create and maintain a competitive advantage for the company, Improves the responsiveness and innovation potential of the company,
Increases the number of feasible strategic options available to the company, Participates in strategic planning and influences the strategic direction of the company as an equally entitled member of top management, Improves cooperation between the HRM department and line managers.
Market Strategies
Technology Organisation
Impact on structure
Impact on climate
Impact on HR
Globalisation
-Leaner structure-Work Groupexpansion-Joint decision making
-Synergy-Team work-Stress on continuous innovation-Cross cultural-Quick, vertical horizontal & diagonal communication
-High in knowledge-High on command-High on need toupgrade one’s skills
A strategy is a course of action planned to be undertaken to achieve desired goals.A strategy, whether it is an HR strategy or any other kind of management strategy must have two key elements: Strategic objectives - things the strategy is supposed to achieve, and Plan of action - the means by which it is proposed that the objectives will be met.
LONG TERM OBJECTIVES OF STRATEGY
ProfitabilityProductivityCompetitive positionEmployee developmentEmployee relationsTechnological leadershipPublic responsibility
HRD is typically defined as a set of measures and activities within the org, which are focused on adjustment of knowledge, capabilities and skills of employees to the future requirements of the enterprise's business operation, and activities, also by attitudes, motivation, values, interests and behaviour of the employees.
Development of employees is a continuous process that includes formal education, working experience, relationships with other people and personal and skill evaluation. This enables the employee to prepare for future jobs.
“Strategic HRD is when HRD strategy, policies, plans and
practices are vertically & horizontally aligned and learning is embedded in Organisation’s strategic
process”It indicates the desired course of action planned by an organization to achieve
HRD goals or HRD outcomes.
Internal Process ExternalBusiness goals
Resources Strategy Environment
OrganisationalSetting
Needs HRD Opportunities
Results
Strategy & Structure- Vision- Mission - Business objectives
HRM- Strategy- Policies- Plans- Practices
Culture- Values- Beliefs- Basic assumptions
INTERNAL FACTORS
HRD
Vision (Visualizing the future)
Mission (Goals & values)
Business Strategy
(plan & objectives that integrate vision and
mission)
HRD Strategy(including objectives)
HRD Policies, Plans & Practices
LINEAR STRATEGIC PROCESS
Vision (Visualizing the future)
Mission (Goals & values)
Business Strategy
(plan & objectives that integrate vision and
mission)
HRM Strategy(including objectives)
HRM policies, plans & practices
HRD Strategy(including objectives)
HRD policies, plans & practices
VerticalIntegration
HorizontalIntegration
HORIZONTAL INTEGRATION
Operational integration
Intellectual integration
Social integration
Emotional integration
Opportunity
Need
Mixed
Capability
HRD Approach
Open
Closed
HR central in Business strategy
HR distant in Business strategy
SHRD Practices
• Integration with Org missions & goals
• Top mgmt sp• Env Scan• Line mgr
commitment• Existence of
complimentary HRM practices
• Expanded trainer role
• Recognition of culture
• Emphasis on evaluation
Organisational learning
• Knowledge acquisition
• Knowledge distribution
• Interpretation• Organisational
memory
HRD outcomes
• Shaping Org missions & goals
• Top mgmt ldrshp• Env scanning by
HRD• HRD strategies,
policies & plans• Strategic ptnrshp
with line mgmt• Strategic ptnrshp
with HRM• Trainers as Org
change consultants
• Ability to influence corp culture
• Emphasis on indl productivity & participation
Inputs Process Output
Step 1 Analysis of external &
internal environment
s
Step 2 Identify
sources of competitive advantage
Step 3 Identify
HRD strategic choices
Step 4 Implement HRD strategy through
HRD policies, plans & practices
Step 5 Monitor &
evaluate the HRD strategy
STRATEGIC PROCESS FOR HRD
Vision (Visualizing the future)
Mission (Goals & values)
Business Strategy
(plan & objectives that integrate vision and
mission)
External Analysis- Economic forecast- Market trends- Technological changes- Labour market
Internal Analysis- Business processes- Labour market- Culture- Key stakeholders
Analysis of external & internal environment is used to corroborate existing sources of competitive advantage and to identify potential new ones, that includes,- Innovating new products & services (Intel)- Quality (Toyota)- Branding (Coke)- On-time delivery (FedEx)- Customer service (Virgin Atlantic)
FACTORS OF COMPETITIVE ADVANTAGE
Market shareProduct qualityProduct life cycleProduct replacement cycleCustomer loyaltyCompetition’s capacity utilization
Technological know-howVertical integration
SUSTAINABLE COMPETITIVE ADVANTAGE IS BASED ON
Assets and SkillsPeople and CultureProcesses and SystemsR&D capabilityManufacturing or Service capability
Source of competitive advantage
Innovation Customer service
Capabilities Creativity & problem solving
Empathy & interpersonal skills
Training, learning & development
R&D Sales, Customer service & care
Career development and lifelong learning
In-house trg Colleagues coaching
OD/ Organisational knowledge & learning
Informal learning, knowledge creation & sharing processes
Empowered learning & self-managed teamwork
HRD STRATEGY CHOICES
Devolved informal learningDeveloping awareness of learning opportunities
Empowered informal learningCreating a learning environment
Learning as socializationDelivering formal training, learning and development interventions
EngineeringCreating and controlling communities-of-practice and social networks
Indirectinterventions
Directinterventions
Human capital Social capital
HRD policy should communicate an
Organization's HRD philosophy to all employees so that informed decisions
can be made about HRD activities
EVALUATION OF HRD STRATEGIESFinancial techniques,- Cost benefit analysis- Return on investment
Non-financial techniques,-Balanced scorecard
In general,•Financial measures•Customer measures•Internal business process measures•Learning & growth measures
SHRD is important to an organization that is interested in :• Stabilising itself • Growing• Diversifying• Renewing itself to become more effective• Improving its systems and services• Change and becoming more dynamic• Playing leadership role
NATIONAL HRD
is intended to provide a coherent set of policies for the social and economic development of a country. It encompasses a wide range of concerns including: public health, environmental protection, diversity, education, and vocational training. The way in which national HRD is handled varies from country to country. Centralized Transitional Government initiated Decentralized/ free-market Small-nation
STRATEGIC HRD SYSTEM
Strategic HRD Practices:- also includes(a) Compensation:- Compensation levels determine employee’s life-style, status, self-worth & attitudes towards the organization.The main objective of compensation system include:-- Cost efficiency- Legal Compliance- Attraction & retention of employees- Motivating employee performance(b) Working condition & family welfare:- these are responsible for the performance of the job.
HRD Wheel
Hiring & Selection
On-boarding
Performance evaluation
Learning organisation
Career planning
Succession planning
Rewards & recognition
Organisation & roles
•Strategy
•Process
•Training
Hiring & selection
•Management trainee
On-boarding
•Process
•Trends
•Training
Performance evaluation
•Strategic planning
•Implementation
•Trainer considerations
Learning organisation
•Career path
•Design
•Support
Career planning
•Process for identifying future leader
Succession planning
•Align rewards with performance
Recognition & awards
•Job scope
•Implementation
•Experience
Organisation & roles
HRD Mechanism•Performance appraisal•Review discussions•Feedback/Counselling Session•Role Analysis•Training•Communication policies•Job Rotation•OD Exercises•Rewards•Job-enrichment programmes
HRD processes•Role Clarity•Awareness of Competencies required for Job-
performance•Proactive orientation•Collaboration &Team work•Value generation•Clarification of norms and standards•Increased communication•More objective rewards
HRD outcomes•More Competent People•Better Developed Roles•Higher Work-commitment •More Problem Solving•Higher Job-satisfaction•Better Organizational Health•More Team-work Synergy and Respect
for Each Other
Organisational effectiveness dimension•Higher Productivity•Growth and Diversification•Cost Reduction•More Profits•Better Image•Other factors
•Personnel Policies•Investments on HRD•Top Management’s Commitments•Environment•Technology•Resource Availability•Nature of Business etc.
THE IMPACT OF SHRD ON ORGANIZATIONAL PERFORMANCE
1. Attracting, developing andretaining high-qualitypeople
Matches people to the strategic and operational needs of the organization.
2. Talent management
Wins ‘war for talent’ by ensuring that the talented and well-motivated people required by the organization to meet present and future needs are available.
3. Working environment – core values, leadership, work– life balance, managing diversity, secure employment
Develops a clear vision and a set of integrated values. Makes the organization ‘agreat place to work’.
4. Job and work design
Provides individuals with stimulating, gives them the autonomy and flexibility to perform their jobs well, also enhances job satisfaction and flexibility that encourages high performance and productivity
5. Learning and development
Enlarges the skill base and develops the levels of competence, encourages discretionary learning, which happens when individuals actively seek to acquire the knowledge and skills that promote the organization’s objectives.
6. Managing knowledge andintellectual capital
Focuses on organizational and individual learning and on providing learning opportunities to share knowledge in a systematic way.
7. Increasing motivation,commitment and roleengagement
Encourages people to identify themselves with and act upon the core values of the organization and willingly to contribute to the achievement of organizational goals. Develops a climate of cooperation and trust, clarifying the psychologicalcontract.
8. High-performancemanagement
Develops a performance culture that encourages high performance in such areas as productivity, quality, levels of customer service, growth, profits and ultimately, the delivery of increased shareholder value.
9. Reward management
Develops motivation, commitment, jobengagement and discretionary behaviour by valuing and rewarding people in accordance with their contribution.
BARRIERS OF STRATEGIC HRD
Lack of incentives for Organisations to invest in HRD activities.Lack of incentives for individuals to invest in their own developmentLack of a well formulated business strategyContinued dominance of short term financial resultsLack of strategic understandingPrevailing Organisation culture
THANK YOU