Class #2: Strategic Design of HRD Programs BACKGROUND ISSUES Strategic Business Planning; Strategic Human Resource Development; Traditional Focus of HRD Lesson ObjectivesBackground issues, the HRD practitionersWhat is Strategic Human Resource Development (SHRD) & its focus?Model for Strategic Business Plan (SBP)Eight steps of Strategic Business PlanningFive key assumptions of SBPFour key assumptions of SHRD Background IssuesHRD practitioners defined as “Strategists”Develop long range plans for training and development. (Models of Excellence, 1983, p.91)Chief responsibility is to manage the HRD dept. strategicallyDept. planning is important BUT organizational planning for leaning is more important HRD dept strategy… should be related to the organizational strategy * Develop long range plans for what the training and dev. structure, organization & direction, policies, programs, services, & practices will be in order to accomplish the training and dev. mission (Models of Excellence, 1983, p.91) Chief resp: manage the HRD dept. strategically rather than lead efforts to formulate & implement a unified plan to guide the direction of learning in an organization Dept. planning is important BUT not as important as organizational planning for leaning The strategy of HRD dept. should be related to what the org should do to encourage planned learning that supports business and staffing plans Problem/Confusion/Dilemma?HRD practitioners often not included in top-level discussions about business plans..Problem for HR practitioners: Formulating their own plans when Strategic Business Plans are unclear, are not followed by top managers, are not expressed in ways that imply action in the HR dept * HRD practitioners often not included in top-level discussions about business plans, yet most amenable to supporting business plans…least used Problem for HR practitioners: Formulating their own plans when Strategic Business Plans are unclear, are not followed by top managers, are not expressed in ways that imply action in the HR action Strategic Human Resource Dev. (SHRD)The process of changing an organization, stakeholders outside it, groups inside it, & people employed through planned learning so that they possess the skills and knowledge needed in the future * Focus for SHRDSHRD focuses on HRD effortCoordinated learning activities undertaken by HRD practitioners, operating managers, & employees to support business & HR plans. SHRD results in Org. Strategy for HRDComprehensive, coordinated plan for major learning initiatives by which a firm’s managers intend to meet business & staffing objectives through organized learning. * SHRD focuses on HRD effort: Coordinated learning activities undertaken by HRD practitioners, operating managers, & employees to support business & HR plans. SHRD results in Organizational Strategy for HRD Comprehensive, coordinated plan for major learning initiatives by which a firm’s managers intend to meet bus ...

1. Class #2: Strategic Design of HRD Programs
BACKGROUND ISSUES
Strategic Business Planning;
Strategic Human Resource Development; Traditional Focus of
HRD
Lesson ObjectivesBackground issues, the HRD
practitionersWhat is Strategic Human Resource Development
(SHRD) & its focus?Model for Strategic Business Plan
(SBP)Eight steps of Strategic Business PlanningFive key
assumptions of SBPFour key assumptions of SHRD
Background IssuesHRD practitioners defined as
“Strategists”Develop long range plans for training and
development. (Models of Excellence, 1983, p.91)Chief
responsibility is to manage the HRD dept. strategicallyDept.
planning is important BUT organizational planning for leaning
is more important HRD dept strategy… should be related to the
organizational strategy
*
Develop long range plans for what the training and dev.
structure, organization & direction, policies, programs, services,

2. & practices will be in order to accomplish the training and dev.
mission (Models of Excellence, 1983, p.91)
Chief resp: manage the HRD dept. strategically rather than lead
efforts to formulate & implement a unified plan to guide the
direction of learning in an organization
Dept. planning is important BUT not as important as
organizational planning for leaning
The strategy of HRD dept. should be related to what the org
should do to encourage planned learning that supports business
and staffing plans
Problem/Confusion/Dilemma?HRD practitioners often not
included in top-level discussions about business plans..Problem
for HR practitioners: Formulating their own plans when
Strategic Business Plans are unclear, are not followed by top
managers, are not expressed in ways that imply action in the HR
dept
*
HRD practitioners often not included in top-level discussions
about business plans, yet most amenable to supporting business
plans…least used
Problem for HR practitioners:
Formulating their own plans when Strategic Business Plans are
unclear, are not followed by top managers, are not expressed in
ways that imply action in the HR action
Strategic Human Resource Dev. (SHRD)The process of
changing an organization, stakeholders outside it, groups inside
it, & people employed through planned learning so that they
possess the skills and knowledge needed in the future

3. *
Focus for SHRDSHRD focuses on HRD effortCoordinated
learning activities undertaken by HRD practitioners, operating
managers, & employees to support business & HR plans.
SHRD results in Org. Strategy for HRDComprehensive,
coordinated plan for major learning initiatives by which a firm’s
managers intend to meet business & staffing objectives through
organized learning.
*
SHRD focuses on HRD effort:
Coordinated learning activities undertaken by HRD
practitioners, operating managers, & employees to support
business & HR plans.
SHRD results in Organizational Strategy for HRD
Comprehensive, coordinated plan for major learning initiatives
by which a firm’s managers intend to meet business and staffing
objectives through organized learning.
What is Strategic Business Planning?Choosing how an
organization will compete (this is the main concern of top
executives)Requires consideration of an org.’s present & future
strengths, weaknesses & opportunities.Historically (1950’s)
business were more stable, restricted range of products &
served distinct customersManagers separated world outside the
business (external enviro) from the organization(internal)Long
range (first generation) planning was used to examine the

4. external environment. Assumption was the future would be like
the past. Planning concentrated on building from past successes
& on developing existing market for the firm’s product or
service
*
Choosing how an organization will compete (this is the main
concern of top executives)
Requires consideration of an org.’s present internal strengths &
weaknesses & future external threats or opportunities.
Historically (1950’s) business were more stable, restricted
range of products, & served distinct customers
Managers separated world outside the business (external enviro)
& from the whole world (internal enviro)
Long range (first generation) planning was used to examine the
external environment.
Assumption was the future would be like the past.
Planning concentrated on building from past successes & on
developing existing market for the firm’s product or service
Strategic planning (1960’s)Managers faced conditions unlike
the pastExternal environment grew increasingly
unpredictableGovt. passed laws, created regulations & handed
down court rulings that affected hiring, employee appraisal,
training , financial matters, health & safety etc.Experienced
shortages of raw materials since wartime Technological
innovation became more important, as the gap narrowed
between basic & applied researchOrg’s became larger & more
complex, businesses expanded into overseas markets, new
industries, & multiple product or service lines
*

5. …it became inappropriate to
Separate examination of external & internal enviros without
making greater efforts to integrate them,
Extend assumptions about a certain past into an uncertain future
Use identical polices to co-ordinate operations across
autonomous business in different industries operating under one
corporate banner
First generation (long-range) planning proved inadequate,
giving birth to second generation (strategic) planning
Strategic PlansSecond generation (strategic ) planning used by
managers in managing amidst growing complexity &
environmental turbulence…initially plans of this kind were
inflexible
Third generation (strategic) planning added consideration of
alternative plans in the events of possible changes in the
environmental as plan was implemented (scenario planning)
A Model of Strategic Business Plan
Eight step process in which decision-makers:
1. Clarify the purpose:What’s the purpose of the firm? What
should it be?
2. Select goals and objectives:What is the firm trying to
achieve? How can the achievement be measured?
3. Identify present strengths and weaknesses:What is the firm
doing well? not so well?
4. Analyze future threats & opportunitiesWhat opportunities
or threats will the external environment pose to the organization
in the future?

6. Model of Strategic Bus. Planning (cont’d)
5. Compare strength/weaknesses to threats/opportunities
How can the firm take advantage of future opportunities & avert
future threats posed by the enviro, considering its present
internal strength & weaknesses?
6. Decide on long term strategy.
What should be the long term direction (strategy) pursued by an
org. so that it can take advantage of opportunities & avert
environmental threats.
7. Implement strategy:
What changes are needed inside the organization so that its
chosen strategy can be pursued with greatest success?
8. Evaluate strategy: How well do the decision makers think
this strategy will work?How well is it or has it worked?
Clarifying the Org.’s PurposePurpose statement that clarifies
beliefs & assumptions: (rallying pt. & stimulant for action).
Also helps to create a vision of what the organization should be
like in the near future
The vision to be concrete & u/standable by others
The statement gives the economic rationale for the firm’s
existence!
*
Purpose statement that clarifies beliefs & assumptions: (rallying
point & stimulant for action).
Also helps to create a vision of what the organization should be
like in the near future
The vision to be concrete & understandable by others

7. The statement gives the economic rationale for the firm’s
existence!
Addressing the Purpose In what areas of business activity
should the firm operate?How much opportunity does a business
activity offer the company in terms of growth? flexibility?
ROI?What does it take to succeed in the business?What are the
firm’s capabilities?How well do the firm’s capabilities match
with what is needed to succeed in the business?
Addressing the Purpose (2)What is the firm’s likelihood of
success in the business activity?What methods of doing
business can be considered? How do these choices compare on
the basis of feasibility?How do these choices compare on the
basis of potential profitability?What business activities should
the firm enter in the future? What should be its purpose?
Discussion Question
Given the assumption that strategy-making begins with
clarification of organizational purpose, whose view should the
organization reflect, the owners, stakeholders, employees,
members of the general public or customers? Provide a rationale
for your answer.
Five Key Assumptions of SBP (1)Strategy-making begins with
clarification of org. purpose. Strategists should agree on
purpose. Important stakeholders include owners or shareholders,
consumers, employees, managers, members of the general

8. publicEach group has its own expectations about what the
organization is & should be
Five Key Assumptions of SBP(2)
Strategy-making based on identification of organizational
strength & weaknessesAre managers capable of identifying the
present status of the organization?Managers may have hard time
examining their orgs critically…they made the decision
initially!!Can the managers step back & attack their own logic
& results?How many orgs that have top management strategists
that are less aware of operational problems than line
employees?Do managers receive distorted information (from
people that report to them)?
Key Assumptions of SBP (3, 4 & 5)
3). Strategy-making is based on the examination of the future &
ext. environment
4). Strategy-making is about future implications of present
decisions, NOT future decisions
5). Strategy-making is a mental activity which requires holistic
thinking
*
Strategy-making is based on the examination of the future &
ext. environment
Assumes managers can identify important trends or events
likely to affect the org in future …& draw inferences
Do they posses all information to make accurate predictions?
Hopefully, major trends & events will be identified

9. Four Key Assumptions of SHRD
(1). Overall purpose statement of the corp. & the HRD effort
should be related to it
(2). Every major plan of the corp. to be weighed in terms of
human skills available to implement it & alternatives
(3). People @ all levels in the org. should share resp. &
accountability of HRD.
(4) Establish a formal, systematic, & holistic planning process
for the corporation, personnel dept, & HRD
*
(1). Overall purpose statement of the corp. & the HRD effort
should be related to it
Link business mission to that of planned learning sponsored by
the business. WHY?
(2). Every major plan of the corp. to be weighed in terms of
human skills available to implement it & alternative ways of
obtaining those skills
HRD is not the only way to obtain needed skills
Alternatives include: external recruitment or contracting of
talent; internal transfer (short/long term) basis; redesign jobs;
reliance on part-timers
Where & how to obtain these skills should be explicitly
considered
(3). People @ all levels in the org. should share responsibility
& accountability of HRD.
Planned learning is important to every supervisor & employee

10. Supervisors & employees to be evaluated on how well they
developed themselves & contribute to the development of others
(4) Establish a formal, systematic, & holistic planning process
for the corporation, personnel dept, & HRD
Difficult for HRD to support SBP if nothing is articulated
clearly
Formal planning is desirable
Formal planning specifies what should be done, when it should
be done, and who should be accountable for results
What is the traditional focus of HRD?
HRD focuses on change through learning
Three types of HRD activitiesTraining:Geared to immediate
change in job performance;Education:Geared to immediate
change in indiv. capabilities;Development: Geared to general
and long term improvement in the individual (Nadler,1979).
*
What strategic initiatives should the HRD dept. have to fit into
the overall organizational plan???