HRD competition & strategy


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HRD competition & strategy

  1. 1. HRM is a process of bringing people and organizations together so that 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.
  2. 2. GLOBALIZATION Globalization is about the creation of a borderless global economy that allows unhindered movement of finance, products, services, informatio n, and people.
  3. 3. DRIVERS OF GLOBALISATION Technology and communications Global competition Changing customer and investor demands Organizational structures The supply chain Ever-increasing product-market competition
  4. 4. ORGANIZATIONAL REQUIREMENTS The development of global leaders Adaptable and flexible organizational structures Managing supplier chains Managing a diverse workforce Updating core competencies and skills Innovation Knowledge management systems
  5. 5. HUMAN RESOURCE DEVELOPMENT Human 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.
  6. 6. HRD HRM HRIS Training & Development Organisational Development Career Development Organisation/Job design Human Resource Planning Performance Management system Selection & Staffing Compensation benefits Employee assistance Union/Labor relations HR Research & Info sys
  7. 7. 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 influenced by 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.
  8. 8. - 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.
  9. 9. HRM Creating & Maintaining HRD Improving
  10. 10. Change Learning Improved Performance Training & Development Career Development Organisation Development COMPONENTS OF HRD
  11. 11. 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 and participative management. Career development – includes committed, systematic, professional advising, career planning &paths, developmental appraisal systems and results tracking.
  12. 12. Organisation development – should permit individuals and their organisations to move towards more collaborative, development, flexible, delayed, customer focused cultures. It should enhance communication, work structures and processes.
  13. 13. 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.
  14. 14. “Strategic HRM is concerned with all those activities affecting the behaviour of individuals in their effort to formulate the strategic needs of the business.”
  15. 15. 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.
  16. 16. 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,
  17. 17. 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.
  18. 18. Market Strategies Technology Organisation Impact on structure Impact on climate Impact on HR Globalisation -Leaner structure -Work Group expansion -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 to upgrade one’s skills
  19. 19. 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.
  20. 20. LONG TERM OBJECTIVES OF STRATEGY Profitability Productivity Competitive position Employee development Employee relations Technological leadership Public responsibility
  21. 21. 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.
  22. 22. “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.
  23. 23. Internal Process External Business goals Resources Strategy Environment Organisational Setting Needs HRD Opportunities Results
  24. 24. Strategy & Structure - Vision - Mission - Business objectives HRM - Strategy - Policies - Plans - Practices Culture - Values - Beliefs - Basic assumptions INTERNAL FACTORS HRD
  25. 25. 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
  26. 26. 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 Vertical Integration Horizontal Integration
  27. 27. HORIZONTAL INTEGRATION Operational integration Intellectual integration Social integration Emotional integration
  28. 28. Opportunity Need Mixed Capability HRD Approach Open Closed HR central in Business strategy HR distant in Business strategy
  29. 29. 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
  30. 30. Step 1 Analysis of external & internal environments 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
  31. 31. 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
  32. 32. 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)
  33. 33. FACTORS OF COMPETITIVE ADVANTAGE Market share Product quality Product life cycle Product replacement cycle Customer loyalty Competition’s capacity utilization Technological know-how Vertical integration
  34. 34. SUSTAINABLE COMPETITIVE ADVANTAGE IS BASED ON Assets and Skills People and Culture Processes and Systems R&D capability Manufacturing or Service capability
  35. 35. 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
  36. 36. HRD STRATEGY CHOICES Devolved informal learning Developing awareness of learning opportunities Empowered informal learning Creating a learning environment Learning as socialization Delivering formal training, learning and development interventions Engineering Creating and controlling communities-of- practice and social networks Indirect interventions Direct interventions Human capital Social capital
  37. 37. EVALUATION OF HRD STRATEGIES Financial 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
  38. 38. 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
  39. 39. 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
  40. 40. 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.
  41. 41. HRD Wheel Hiring & Selection On-boarding Performance evaluation Learning organisation Career planning Succession planning Rewards & recognition Organisation & roles
  42. 42. • Strategy • Process • Training Hiring & selection • Management traineeOn-boarding • Process • Trends • Training Performance evaluation • Strategic planning • Implementation • Trainer considerations Learning organisation
  43. 43. • 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
  44. 44. 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
  45. 45. 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.
  46. 46. THE IMPACT OF SHRD ON ORGANIZATIONAL PERFORMANCE 1. Attracting, developing and retaining high- quality people 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.
  47. 47. 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 „a great 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
  48. 48. 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 and intellectual capital Focuses on organizational and individual learning and on providing learning opportunities to share knowledge in a systematic way.
  49. 49. 7. Increasing motivation, commitment and role engagement 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 psychological contract. 8. High- performance management 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.
  50. 50. 9. Reward management Develops motivation, commitment, job engagement and discretionary behaviour by valuing and rewarding people in accordance with their contribution.
  51. 51. BARRIERS OF STRATEGIC HRD Lack of incentives for Organisations to invest in HRD activities. Lack of incentives for individuals to invest in their own development Lack of a well formulated business strategy Continued dominance of short term financial results Lack of strategic understanding Prevailing Organisation culture