The Importance Of HRD For Organizational Performance: An Essay.

Human Resources Development (HRD)

Questions:

Post no.1

Introduction

Daft and Marcic (2009) defined management as the “the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources” (Daft and Marcic, 2009 pp 8). Therefore, planning form part of the management (essential) function mandate. In an era of rapid changing environment, and where human resources are at the (priority) forefront to accomplish organizational objectives; HR play a major role in ensuring that the organization is prepared to deal with inevitable changes. Couch (2009) indicated that one leading concerns of CEOs are the capacities and effectiveness of talent. Hence, one of the fundamental roles of HR is to ensure its human resources have the capabilities for competitive performance. Pilbeam and Corbridge (2010) prelude (in chapter 12) that organizations incorporating Human Resource Development (HRD) aim to ensure that the learning process develops both the employees and the organization as a whole.

Human Resources Development (HRD)

Pilbeam and Corbridge (2010) indicated that the aim is to understand; 1, the internal learning capacity; 2, the gap that may exist between the capacity and the capacity required; and then implement ‘systematic approach’ to impart the training necessary to get personnel to be at the level of competencies that they ought to be. Therefore, it is ultimately necessary to ‘identify and analyze the learning needs’ of the organization in order to meet its goals. Pilbeam and Corbridge (2010) highlighted three main stages into analyzing the capacity gap, namely through; data collection, capability and performance gap assessment, and finally making recommendations.

Kalyani and Sahoo (2011) like (Pilbeam and Corbridge, 2010) draw on the importance for this process to be linked with organization strategies and further indicated that for organizations to sustain competitive advantage through HR, resources “must be of value… difficult to imitate … organized … committed to deliver … responsive to market … [and] must be strategic” (Kalyani and Sahoo, 2011).

Management commitment to Learning and Development

Management that is committed to training and development serves as a basis of motivation and empowerment. There is a saying that goes that ‘knowledge is power’. And, it is very satisfying as individual when you are able to perform in accordance to the organization’s goals and expectations. Hence, a balance of HR activities should be balanced; providing a balance of both intrinsic and extrinsic motivation, and portraying equity in its reward systems, to avoid individuals from retaining information necessary for quality performance. As a result, organizations require having certain level of trust in the individuals.

Challenges

Pilbeam and Corbridge (2010) stated that knowledge is embedded in the individuals (explicit knowledge) and challenges are faced when individual is reluctant to share knowledge. At this point, it is crucial that HR management ensure that the imparted knowledge does not remain with them; and as a subsequence of egoism of gaining as much knowledge to gain bargaining power within the organization. Therefore, the reward system and HR activities should recognize information sharing and the importance that it is for the growth and sustainability of the organization. Pilbeam and Corbridge (2010) highlighted the four building blocks of (Lank and Windle, 2003) knowledge productive organization, namely to “make knowledge visible… increase knowledge intensity… create knowledge infrastructure … and develop a knowledge culture” (Pilbeam and Corbridge, 2010 pp 373).

Management commitment to Learning and Development

Conclusion

The human capital, within an organization, is core to obtain competitive advantage. However, the performance of each individual ought to be aligned with the overall objectives of the organization. Therefore, it is crucial for organizations to trust, develop training and development strategies, implement equitable reward systems, inter alia, to ensure that the organization is equipped with the organizational knowledge to adapt and deal with changes.

Post no.2

Population Ecology (Hannan and Freeman 1988) is based on the theory that the business environment can only support a limited number of organizations at a given time

In Darwinian terms this is known as the survival of the fittest.

According to this theory companies can be compared to species, which inhabit distinct ecological environments.

Those companies that are unable to adapt to changing conditions, like the dinosaurs, eventually  become extinct.

What causes companies to fail?

• Organizational structures and cultures that do not match the needs of a changing business environment. 

• Investment in specialist resources that are not transferable to a new business environment.

• Failing to define themselves correctly in terms of their competition.

• Becoming associated with a particular product or service that diminishes their capacity to move into another market.

Post no. 3

If organization wants to stay competitive in global environment it should continuously strive to change from its current state to desirable organizational state.  Change management is a process where organization plans the rout to desirable stage through assessing its cultures and people to identify organizational strategies, structures, processes which will impact the change. (Creasey, T., 2007)

From Human Resource Development (HRD) perspective organizations need to ensure that people and organization can improve performance through training, learning and development and thus adapt to changes. (Pilbeam, S and Corbridge, M. 2010, p. 350)

 Pilbeam, S and Corbridge, M. 2010, p. 350 described HRD as the activities organizing collective and individual learning opportunities which enables development of people and organization.  Harrison (2000, cited in Armstrong, M., 2006, p. 530), described strategic HRD as ‘development that arises from a clear vision about people’s abilities and potential and operates within the overall strategic framework of the business’.

Main purpose of strategic HRM is to improve capability of human resources according to organization’s belief of what human capital is that will be one of the biggest sources of competitive advantages. Thus, right people with right skills on the right positions are important to meet organization’s current and future needs.  (Armstrong, M., 2006, p. 534)

Pilbeam, S and Corbridge, M. (2010, p. 351) described effective HRD as a systematic process business-focused process with planning and implementing learning, training and development opportunities, rather than reacting on identified immediate skill shortages. Systematic approach is formed based on four aspects:

Identifying training needs through analysis.

Plan and design learning opportunities

Deliver learning and training in appropriate and suitable way

Evaluate the outcomes

As learning and development opportunities are developed according to specific needs and view of an organization of people skills and capabilities, it has a vital input in organizations competitive advantage.  

Role of HR in change management

We live in a dynamic world and if changes are not planned and managed correctly it can be an obstacle for HR to assist business in creating a competitive advantage.  HR professionals need to have required level of skills abilities and knowledge to adapt changes.  As HR responsibilities cover management and development of people within organization and they involved in strategy and policies implementation such as human resource planning, talent management, knowledge management learning and development etc., it should be able to identify when adaptation is required and need to know how to leverage successfully those opportunities. 

Challenges

This post supports the idea that the human resource plays an important role. This fact is very true as an organization not only requires human resources for running its daily operations but also to grow and develop in the present day competitive world.  Thus it becomes rather crucial to update the caliber and skills of the human resource in an organization so that they can achieve higher objectives and goals to bring in sustenance in business process. Training and development programs along with the reward systems help in better transfer of knowledge and skills to the employees (Adeniyi, 2005). To bring effectiveness in this change process the management need not be reluctant to share knowledge as this will result in becoming obstacle to achieve the desired outcome.  Therefore the commitment of the organization and its management as important for establishing an effective and efficient change through training and development process (Brunello et al., 2009).

This post has to the point and very useful outcomes that defines the cause of the companies failing to exist in the changing environment. It is very correctly said that those who do not change become extinct like dinosaurs. This is true and naturally been proved. Similar is the case with the organizations who do not change and becomes extinct sooner or later. The change is therefore an essential for development of every business organization. Every organization needs to bring change as per the changing circumstances. This is required so that the investment of the business can be turned towards higher return giving deals and arrangements (Gill, 2002). Also the change process initiated through the change in organization structure and culture can help the organizations in gaining economies of scale and achieve cutting edge advantage in the highly competitive markets of the present day world. Therefore for a company that adopts change and has the ability to move as per the changing environment can achieve sustenance in the business operation in the long term (Garnaut, 2008).

This post has rightly stated that the best outcome of effective HRD activities is that the best person is placed for the right position. Therefore the human resource planning and execution is an important process that helps in placing the best person for the best job so that the companies can easily obtain its desired output and returns from the business operation. Various HRD activities also gives support to the present employees to develop skills and abilities so that the objectives of the organization can be easily achieved. The systematic approach for identifying the training needs and establishing the required outcome is also discussed that could positively help in achieving various HRD objectives (Rowold, 2008).  Finally the change management is discussed which clearly states that the role of HR manager in successive application of HRD activities is important so that the right policy and programs are placed such that the desired outcome is achieved and wastage of time and money can be avoided (Reichwald, 2005).

References:

Adeniyi, O.I., 2005. Staff training and development in Ejiogu. Lagos: Maltho use press ltd.

Brunello, G., Garibaldi, P. & Wasmer, E., 2009. Education and Training in Europe. Oxford: Oxford University Press.

Garnaut, R., 2008. The Garnaut climate change review. Cambridge: Cambridge University Press.

Gill, R., 2002. Change management – or change leadership? Journal of Change Management, pp.3 (4), 307-318.

Reichwald, R., 2005. Leadership excellence, lessons form an exploratory study in large multinationals. Journal of European Industrial Training., 46(5), pp.743-60.

Rowold, J., 2008. Multiple effect of Human Resource Development interventions. Journal of European Industrial Training, pp.32-44.