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Strategic HR Development: Maximizing Organizational Potential

Explore the importance of HR development in increasing productivity and building core competence. Understand the shift from viewing employee development as a cost to an investment. Discover the role of strategic integration and the impact of HR development on wider HR strategies.

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Strategic HR Development: Maximizing Organizational Potential

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  1. Part 4 Development

  2. Slide 16.1 Views on HR Development • Increases productivity but by how much? • Difficult to show causal link between HR development and organisational performance • Means of building core competence over the longer term

  3. Slide 16.2 Cost or Investment Traditionally employee development seen as a cost This is changing in some organisations Some argue that UK companies give little support to training and development compared to European companies

  4. Slide 16.3 National Training Framework • Is voluntarist - employers make their own choices about level of training conducted • Government’s role is encouraging training not interventionist • Training spend is unevenly distributed

  5. Slide 16.4 HR Development Strategies Needs driven approach Opportunistic approach Organisational capability approach

  6. Slide 16.5 Organisational & HR Development Strategies To be effective training and development needs to be linked with and influence business strategy However Many organisations do not consider development issues as part of competitive strategy formulation (McClelland, 1994)

  7. Slide 16.6 Linking Management Development to Strategic Situations (1 of 4) Table 16.1  Linking management development to strategic situations Source: P. Miller (1991) ‘A strategic look at management development’, Personnel Management, August, p. 47. Reproduced with permission of the author.

  8. Slide 16.7 Linking Management Development to Strategic Situations (2 of 4) Table 16.1  Linking management development to strategic situations Source: P. Miller (1991) ‘A strategic look at management development’, Personnel Management, August, p. 47. Reproduced with permission of the author.

  9. Slide 16.8 Linking Management Development to Strategic Situations (3 of 4) Table 16.1  Linking management development to strategic situations Source: P. Miller (1991) ‘A strategic look at management development’, Personnel Management, August, p. 47. Reproduced with permission of the author.

  10. Slide 16.9 Linking Management Development to Strategic Situations (4 of 4) Table 16.1  Linking management development to strategic situations Source: P. Miller (1991) ‘A strategic look at management development’, Personnel Management, August, p. 47. Reproduced with permission of the author.

  11. Slide 16.10 Strategic Approach to HR Development(1 of 3) • HR development shapes the organisation’s mission and goals • Top management are leaders rather than just supporters • Senior management and HR development professionals are involved in environmental scanning (Garavan,1991)

  12. Slide 16.11 Strategic Approach to HR Development(2 of 3) • Development strategies, policies and plans developed relate to present and future organisational direction • Line managers are committed and involved in HR development as strategic partners • There is strategic integration with other HRM aspects • Trainers lead as well as facilitate change (Garavan,1991)

  13. Slide 16.12 Strategic Approach to HR Development(3 of 3) • HRD professionals influence organisational culture • Emphasis on future oriented cost effectiveness and results (Garavan,1991)

  14. Slide 16.13 HR Development Strategy Impact with Wider HR Strategy • Recruitment • Organisational development • Reward • Performance management

  15. Slide 16.14 External Labour Market • Availability of people with right skills and competencies in the market place impact employee development strategy • Plentiful supply in external market – extent internal development takes place • Short supply in external market – internal development becomes a priority

  16. Slide 16.15 Development Activity as a Driver • Motivation • Commitment

  17. Slide 16.16 Stakeholders in Strategic Training & Development • Sponsors • Clients • Line managers • Participants • Facilitators • Providers

  18. Slide 16.17 Ownership of T&D Strategy • Should not be owned by HR/HRD function • Owned and worked by whole organisation

  19. Slide 16.18 Role of Top Management • Introducing and promoting strategic developments to staff • Show commitment

  20. Slide 16.19 Role of Line Managers • Trainers • Assessors • Advisors • Delivering strategy

  21. Slide 16.20 Role of External Consultants • Be used at any time • Add to strategy development • Provide outside perspective

  22. Slide 16.21 Summary • Currently a voluntarist approach to T&D • HR development strategy should focus on organisation’s strategy and objectives • HR development strategy may be opportunistic and proactive • HR development strategy should be reinforced by and reinforce other HR strategy • HR/HRD function does not own HR development strategy

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