hrd competition & strategy

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



Business Strategy


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



Business Strategy


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