STRATEGIC HUMAN RESOURCE

DEVELOPMENT

Lecture 2

Presenter;
ISMATULLAH BUTT
PhD (S)
 HRM and HRD
2

Lecture Plan:
 Strategic HRD versus HRD Strategies.

 HRM versus Personnel Management and its

Implications for HRD.

 Distinction between HRM and HRD in Pakistani

Organizations.
 Firm’s Capitals
 Human Capital
 Knowledge, skills, abilities of individuals
 Social Capital
 Relationships in social networks
 Structural, cognitive, relational dimensions

 Intellectual capital
 Knowledge and knowing capability of social collectivities
 Procedural/declarative; tacit/explicit; individual/social

 Value and Uniqueness of capitals

3
Definition of HRD
 A set of systematic and planned activities designed
by an organization to provide its members with the
necessary skills to meet current and future job
demands.

4
 Emergence of HRD
 Employee needs extend beyond the training
classroom
 Includes coaching, group work, and problem solving

 Need for basic employee development

 Need for structured career development

Relationship between HRM and HRD:

 Human resource management (HRM) encompasses
many functions
 Human resource development (HRD) is just one of the
functions within HRM
5
 HRD Concepts: Three Dimensions
6

 Macro- economic dimension

 Socio- economic dimension

 Vocational training
 Life skills

 Organizational dimension
 Macro-Economic Dimension
7

 Long term objective: national economic growth

 Immediate objective: improved efficiency,

productivity and discipline of the labour force

 Strategy: market oriented education and training,

policy for labour demand, formalisation of the
informal sector

 Association of concepts: human capital formation,

formal education and training, structural adjustment
 Socio-Economic Dimension
(Vocational Training)
8

 Long term objective: raising of standard of living at

community level

 Immediate objective: income generation, improve

technical skills, improve planning capacity for
production

 Strategy: (self) employment creation, skills training,

small scale business management

 Association of concepts: appropriate technology,

individual entrepreneurships, informal
education/training, income generation
 Socio-economic Dimension
(Life Skills)
9

 Long term objective: raising of general life quality

 Immediate objective: general empowerment, improve

organizing and learning capacity

 Strategy: community development, social awareness

raising, social mobilization, literacy campaigns

 Association of concepts: development by people,

transformation for change, popular participation
 Organisational Dimension
10

 Long term objective: improved organisational

performance in relation to mission, strategy and
resources

 Immediate objective: improved professional capacity

to perform, receptivity towards organisational mission

 Strategy: team building and individual training of

staff and managers

 Association of concepts: organisational development,

institutional sustainability
 Organizational HRD: Interpretations
11

 Total institutional capacity development including:

 Interventions focusing on improving total

institutional capacity (leadership and governance,
structure, human and other core resources,
programme and process management and external
linkages)

 Too broader perspective – risk of dilution of

primary focus (HR capacity development)
 Organizational HRD: Interpretations
12

• Individual capacity development including:

– Learning activities focused on developing

individuals’ capacity

– Too narrow perspective – ignores the fact that HR

capacity is capacity to perform, not merely the
capacity of performer
 Organizational HRD: Interpretations
13

 Integrated process including:

 Developing competencies of individuals as well as

organization teams.

 Improving organizational systems and environments

that create and sustain opportunities to utilize and
further develop competencies for effective
performance
 HRD Concepts
14

HRD is a set of organised learning activities as well as

work systems and environment improvement programs
arranged for enhancing potentials and competencies of
individuals and making utilisation of those abilities to
attain effective performance and growth at the job,
individual, and organisational levels in relation to the
Mission, strategies and resources of the organisation.
 HRD Concepts
15

 HRD is a process and a function by which people in an

organisation are helped, in a continuous and planned way, to

 acquire and sharpen capabilities required to perform

present and future jobs.

 develop general capabilities and use potentials for personal

and professional development, and

 develop an organizational culture and systems for

maximum utilization of enhance competencies and
potentials.
 HRD Concepts
Focus and Level of HRD Actions Outcomes of HRD Actions
16
Development of potentials
and careers of employees for
future performance

individual goal achievement

Increased performance
Enhance HR capacity

Organisational and
Development of job
HRD actions

competencies and personal

abilities of employees for
present performance

Development of work culture,

environment and systems for
organisational performance
HRD Functions
 Training and development (T&D)
 Organizational development
 Career development

17
Training and Development (T&D)
 Training – improving the knowledge, skills and attitudes
of employees for the short-term, particular to a specific
job or task – e.g.,
 Employee orientation
 Skills & technical training
 Coaching
 Counseling
 Development – preparing for future responsibilities,
while increasing the capacity to perform at a current
job.
 Management training
 Supervisor development

18
Organizational Development
 The process of improving an organization’s effectiveness
and member’s well-being through the application of
behavioral science concepts
 Focuses on both macro- and micro-levels

 HRD plays the role of a change agent

Career Development:
 Ongoing process by which individuals progress through
series of changes until they achieve their personal level
of maximum achievement.
 Career planning
 Career management
19
Learning & Performance

20
 Human Resource Development
21

Human Resource Development (HRD) is the framework

for helping employees develop their personal and
organizational skills, knowledge and abilities.

A set of systematic and planned activities designed

by an organization or HR department to provide its
members with the necessary skills to meet current and
future job demands.
Strategic Management & HRD
 Strategic management aims to ensure
organizational effectiveness for the foreseeable
future – e.g., maximizing profits in the next 3 to 5
years.

 HRD aims to get managers and workers ready for

new products, procedures, and materials.

22
HR’s Strategic Role
 Employees as organization’s assets
 Driving business strategy
 Spanning organizational functions
 HRD Deliverables:
 Performance
 Capacity Building
 Problem solving/consulting
 Org. change and development

23
Strategic HRD
 Integration of HRD with strategy formulation and
implementation.
 Long-term view of HR policy.
 Horizontal integration among HR functions.
 Vertical integration with corporate strategy.
 SHR as core competitive advantage.

24
 Horizontal & Vertical Integration
25

 Horizontal Integration make use of Internal Human Resources

activities to tailor specific Human Resource strategies.
 In vertical integration HR leadership implements the Human
Resource strategy within the business strategy.
 The concept of vertical and horizontal integration demonstrate
three important strategic tasks for HRM:
1. demonstrates the abilities of HR to tailor specific HR strategies
that contribute to achieving business strategic goals;
2. demonstrates a direct alignment of HR strategic activities to
business strategic goals; and
3. identifies specific HR metrics that measure the strategic
contribution of HRM.
 HRD Strategies-Defined
26

HRD Strategies are a plan that defines

how the human resources would be
utilized through the use of an integrated
array of training, organizational
development and career development
efforts to achieve individual and
organizational objectives.
 Major HRD Strategies
27

Communications Strategy:
In today’s changing scenario, it is essential to educate and
train employees about the change

Accountability And Ownership Strategy:

Employee’s accountability and ownership leads to higher
productivity and customer acceleration.

Quality Strategy:
Quality needs to be fostered in the employees through
training and development.
 Major HRD Strategies
28

 Cost Reduction Strategy:

Every employee’s contribution in savings is crucial as small contributions from
each employee can be pooled by organizations to save substantial savings
at the end of a given period and enhance its competitive strategy.
 Intrapreneurship Strategy:
Every employee needs to be an independent entrepreneur, who can
generate ideas and bring them to reality by using the existing resources and
support of the org to create innovative and creative products and services.
 Culture Building strategy:
Organization’s valuing its employees have a sustainable competitive edge
over competitors because employees are highly charged, motivated and
commitment to the organization.
Primary Functions of HRM
 Human resource planning
 Equal employment opportunity
 Staffing (recruitment and selection)
 Compensation and benefits
 Employee and labor relations
 Health, safety, and security
 Human resource development

29
Secondary HRM Functions
 Organization and job design
 Performance management/ performance appraisal
systems
 Research and information systems

30
 HRM And PERSONNEL MANAGEMENT
31

 Personnel management can be defined as obtaining, using and maintaining

a satisfied workforce. It is a significant part of management concerned with
employees at work and with their relationship within the organization.
 According to Flippo, “Personnel management is the planning,
organizing, compensation, integration and maintenance of
people for the purpose of contributing to organizational,
individual and societal goals.”
 According to Brech, “Personnel Management is that part which is primarily
concerned with human resource of organization.”
 When a difference between personnel management and human
resources is recognized, human resources is described as much
broader in scope than personnel management.
 HRM and PERSONNEL MANAGEMENT
32

 Human resources is said to incorporate and develop personnel management

tasks, while seeking to create and develop teams of workers for the benefit of
the organization. A primary goal of human resources is to enable employees
to work to a maximum level of efficiency.
 Personnel management can include administrative tasks that are both
traditional and routine. It can be described as reactive, providing a response
to demands and concerns as they are presented. By contrast,
 Human resources involves ongoing strategies to manage and develop an
organization's workforce. It is proactive, as it involves the continuous
development of functions and policies for the purposes of improving a
company's workforce
 Personnel management is often considered an independent function of an
organization.
 Human resource management, on the other hand, tends to be an integral part
of overall company function.
Challenges for HRD
 Changing workforce demographics
 Competing in global economy
 Eliminating the skills gap
 Need for lifelong learning
 Need for organizational learning

33
 HRM and HRD- Difference
34

 HRM refers to the application of principles of management to

manage the people working in the organization. HRD means a
continuous development function that intends to improve the
performance of people working in the organization.
 HRM is a function of management. Conversely, HRD falls under
the umbrella of HRM.
 HRM is a reactive function as it attempts to fulfill the demands
that arise while HRD is a proactive function, that meets the
changing demands of the human resource in the organization
and anticipates it.
 HRM is a routine process and a function of administration. On
the other hand, HRD is an ongoing process.
 HRM and HRD- Difference
35

 The basic objective of HRM is to improve the efficiency

of employees. In contrast to HRD, which aims at
developing the skill, knowledge and competency of
workers and the entire organization.
 HRD is an organizationally oriented process; that is a
subsystem of a big system. As opposed to HRM where
there are separate roles to play, which makes it an
independent function.
 Human Resource Management is concerned with people
only. Whereas HRD focuses on the development.
 Strategic Human Resource Development
36

Questions and Answers

ALLAH HAFIZ
 HRD (8709)
37

SUPPLEMENTARY SLIDES
 HRM v/s Personnel Management
38

1. Human Resource Management is more concerned with how

people (employees) should be managed to attain the
organization's goals, not only limited to certain specific duties.
In contrast, PM focuses more on administrative discipline,
obligations and compliance from the employees.
2. Organic form is Human Resource Management's preferred
structure. It is flexible, adaptable and individual in a flat
structure with only one or two levels of management.
Quote “PM's preferred form of organization is bureaucratic or
mechanistic emphasize on formalization and characterized by
rational, goal-directed hierarchy, impersonal decision-making,
subdivision into managerial positions and labor specialization"
(Minh, D., 2007).
 HRM v/s Personnel Management
39

3. Human Resource Management outlooks the organization as a whole and

put the central point in forming a positive and active environment.
Focus only on administering people, the range of PM is relatively narrow
compare to the range of HRM.
4. An HR manager should be able to anticipate and identify the potential
problems that might arise in the producing and planning process,
encourage high employee involvement in decisions in order to rapidly
respond to changes in the business environment and the customers' needs.
H/she focuses on conformity and looks for commitment instead of
compliance and control.
PM is generally reactive by only providing the necessary responses once
problems come up. It does not work with specific strategic plans to prevent
the problems from arising. By so doing, PM results in creating confusion,
frustration for the employees and as a consequence, an invisible hurdle
between employees and management team.
 HRM v/s Personnel Management
40

5. The human resource manager is considered as catalyst by creating the

environment that can motivate the employees by recognition and
challenging.
By contrast, PM is perceived as putting a brake on employees' innovations
and creativity because it motivates the employees with reward, job
simplification and so on (Tripathi, P. C., 2002).
6. HRM aims to maximize as much as possible the utilization of employees and
their full potential. In PM, the evaluation criterion is to minimize your cost
and expenses.
7. HRM is taken into account as a built-in part. PM duties are the only territory
of Personnel Department. Nevertheless, HRM involves all the key managers
(senior) with different activities to develop the capabilities of all line
managers to carry out the personnel functions. Personnel Management is
considered not to be influenced by the organization, in other word it is run
as an independent part from organization function.