Analysis of the Strategic Orientation of HRD Practices and ...

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Analysis of the Strategic Orientation of HRD Practices and Managers’ Awareness

towards the Concepts of HRD in Ethiopia

Dr. Yuvaraj Sambasivam, Associate Professor, Department of Management,

College of Business and Economics, Debre Markos University, Ethiopia

Mr. Mulugeta Kebede, Vice-Dean, College of Business and Economics,

Debre Markos University, Ethiopia

ABSTRACT

The purpose of this study is to investigate the strategic orientation of HRD, managers’ awareness of

HRD concept, and the strategic role of HRD functions in Ethiopian organizations. The research

constructs a conceptual framework to put each constructs under consideration in the whole system.

The study results showed that HRD has a strategic nature and it is conclusively strategic oriented in the

organization and it showed a strong evidence for nearly all enhanced characteristics of HRD.

Managers of the organization have good awareness of HRD concepts since they have excellent

understanding of the components of HRD and they recognize that training and development,

organization development, career development, and performance appraisal are components of HRD

function. HRD is playing a strategic role both by shaping and supporting the overall objectives of the

organization. Moreover, HRD is given considerable emphasis by the organization, and it is considered

as the first and foremost among the six strategic issues of the organization.

Key Words: HRD, SHRD, Strategic Orientation, Training and Development, Career Development,

Organizational development, Performance Appraisal

Introduction

Every organization is made up of people, acquiring their service, developing their skills, motivating

them to high level of performance, and ensuring that they continue to maintain their commitment to

the organization which is essential to achieving organizational objectives. Once the individuals have

been recruited and selected for the organization the next important step is to help them on converting

their abilities into skills that contribute to the organization’s goals. In the present time, there is rapid

change in technology, which directly affects the job behavior. The old skills and knowledge will be

unproductive, less efficient, time consuming, irrelevant and out of fashion. To achieve the

organizational goals in the changing environment, a suitable HRD strategy must be in place as a part of

the company’s strategic plan. In addition to this, the HRD function of an organization shall play both a

support and shaping strategic role, if it is to be successful. Most countries and multilateral institutions

acknowledge the need to give systematic attention to the role of HRD in supporting and shaping

organizational growth and development programs.

The study focuses on the paramount issues of strategic orientation of HRD, its strategic role and

managers’ awareness toward HRD in the selected organization i.e. Ethiopian Revenue and Customs

Authority.

The Ethiopian Revenue and Custom Authority (ERCA) was established in 2008 (by proclamation

number 587/2008) through the merger of the former Ministry of Revenues, Federal Inland Revenue

Authority and the Ethiopian Customs Authority. The formation of ERCA signals the Ethiopian

Government’s commitment to establishing a modern tax and customs administration dedicated to

meeting the requirements of the business community, encouraging voluntary compliance, combating

and smuggling illegal activity and thereby contributing the economic and social development of

www.theinternationaljournal.org > RJSSM: Volume: 03, Number: 01, May-2013 Page 187

Ethiopia. In response to these requirements, ERCA has developed a Strategic plan which sets out how

it is planning to meet these challenges over the next five years. The company has thus prepared a HR

strategy to support and shape the successful delivery of the ERCA strategic plan. ERCA has put

human resource development and management function the first and for most strategic issue.

Statement of the Problem

Human Resource Development (HRD) is best achieved through a strategic approach, a position

consistent with resource-based and human capital theories. Strategic Human Resource Development

(SHRD) contributes to the creation of firm-specific knowledge and skill when it is aligned with the

strategic goals of the organization (Garavan, 2007). HRD ensures that organizational members have

access to resources for developing their capacity for performance and for making meaning of their

experience in the context of the organization’s strategic needs and the requirements of their jobs.

The strategic human resource management literatures suggest that any conceptualization of SHRD

must focus on evaluating the linkages among organizational strategies, HRD systems, and policies and

practices, incorporate the perspectives of multiple stakeholders, and focus on contributions at multiple

levels of analysis. Garavan (2007) articulates that SHRD must be sensitive to both emergent and

planned strategies. Whether strategy is planned or emergent has implications for the role of SHRD. He

also pointed out that the firm’s strategic orientation will influence the SHRD practices utilized and

their priority and importance.

Having these facts, when we come to in Sub-Saharan African countries’ context there are numerous

challenges in the development of skills and the ability to make use of the available human resources. It

can be argued that the Sub-Saharan African region needs to increase the skilled labor pool and to

develop communities. This involves the fusion of African philosophy and management styles with

human resource development (HRD) strategies and policies that will be suitable for the developing

economies in the region (Davies, 1998).

If human resource development is best achieved through a strategic approach, and if HRD programs

have to be aligned to the overall strategy of an organization in order to make a considerable

contribution to the creation of firm-specific knowledge and skill, and If HRD lacks any real strategic

focus in today’s environment, then more must be known about the strategic orientation and function of

HRD practices and basic understanding of managers about HRD concept in Ethiopia. So, the purpose

of this study is to investigate the strategic orientation of HRD, strategic role of HRD and conceptual

understanding of managers’ on HRD in Ethiopia in the case of the selected organization i.e. Ethiopian

Revenue and Custom Authority (ERCA).

Research Questions

The rationale behind this study revolves around the following questions.

What is the current level of strategic orientation of HRD practices in ERCA?

What is the status of managers’ awareness of HRD concept in ERCA?

Is there any significant difference among mangers based on their demographic

characteristics over awareness of HRD concepts in ERCA?

What strategic roles are currently played by HRD in shaping the overall strategy of ERCA?

What strategic roles are currently played by HRD in supporting the overall strategy of

ERCA?

Objectives of the Study

The general objective of this study is to investigate the strategic orientation of HRD, the managers’

awareness of HRD concept, and the strategic role of HRD functions in Ethiopian Revenue and Custom

Authority.


The specific objectives of the study include:-

To investigate the current level of strategic orientation of HRD in the organization.

To portray managers’ level of understanding of HRD concept in the organization.

To test the significant difference that exists among mangers based on their demographic detail

over awareness of HRD concepts

To explore the strategic roles currently played by HRD function in the organization.

Significance of the Study

Some of the importance of this study is outlined below from different beneficiaries’ point of view.

The primary implication of this paper is to assist policy formulating bodies and decision

making bodies of the organization to value HRD, strategize it, and devise policies and tools

that enhance HRD interventions so as to continuously improve employees’ expertise, and

enhance the existing practices of training and development, career development, performance

appraisal & management and organizational development components of HRD. It will also

help them to enhance & build up the support & shaping role of HRD to the overall strategy of

the organization.

The company may also employ it to consider some of the views implied in the study to carve

the problems existed in the Human resource development system, and will assist mangers to

increase their conceptual understanding of the real HRD concept which in turn improves its

practice.

The study will be helpful to different governmental and nongovernmental organizations

including interested donor and investment agencies as well as individuals who are working in

the broader field of human resource development.

In addition to this, the study will serve as a springboard/facilitator/ for other researchers to

conduct further studies in this area.

Scope and limitations of the Study

The main aim of this study is to describe the strategic orientation of HRD, managers awareness of

HRD concept, and the strategic roles perceived to be played by HRD function in Ethiopia, with the

specific case study of a gigantic organization which is found in Addis Ababa, i.e. Ethiopian Revenue

and Custom Authority.

Because of the scope of the study the paper didn’t cover explicitly all areas of HRD. Other

limitation is that the validity of the data collected from the respondents might not be such completely

perfect. Even though, the result represents the strategic orientation and strategic role of HRD as well as

the managers’ conceptual understanding of HRD in the selected organization, it cannot be confidently

extrapolated to the rest of the companies in Ethiopia. The study also encountered with certain

challenges in the course of collecting data from the study areas due to nonattendance of management

bodies in working hours due to sudden meetings. Moreover, respondent bias might present, due to

respondents’ reluctance and fear of responsibility not to disclose definite data about the real

happenings regarding the study area.

Review of literatures

Human Resource Development (HRD)

The practice of HRD is dominated by positive intentions for improving the expertise and

performance of individuals, work groups, work processes, and the overall organization. Most observers

suggest that HRD evokes common sense thinking and actions (Swanson, 2001). People need

competencies to perform tasks. Higher degree and quality of performance of tasks requires higher level

or degree or skills. Without continuous development of competencies in people an organization is not


likely to achieve its goals. Competent and motivated employees are essential for organizational

survival, growth and excellence. Over a period of time, an organization may achieve a saturations

point in terms of its growth. Even to maintain such a saturation level of growth employee

competencies need to be sharpened or developed as organizations operate in environments that keep

changing requiring the employees to have new competencies.

Human resource development is the practice which contributes to the development of the people who

are working in a certain organization. It’s usually the framework by which the employees develop their

skills, expertise and knowledge. Human resource development is a central feature of strategic human

resource management .The process of learning and development in the context of development of an

organization is having an essential role in strategic human resource outcome achievement (Edwards &

Wright, 2001).

Components of HRD

Human resource development is a continuous process, which matches organizational needs for human

resources and the individuals need for a career development. It enables the individual to gain their best

human potential by attaining a total all-round development. It promotes dignity of employment in an

organization and provides opportunities for teamwork and personal development. Hence a well-

planned HRD system must be a central part of human resource management in every organization.

Human Resource Development system has 4 major components, namely: Training and development,

Organizational development, career planning and development, and performance appraisal and

management (Jacobs, 1995).

Training and Development

Today we believe that an organization’s competitive success is achieved through people. It follows,

then, that the skills and performance of people are critical. Many organizations spend much money on

training, believing that training will improve their employees’ performance and the firm’s productivity

(Holton & Ruona, 1998). Recruiting, selecting, orienting and then placing employees in jobs do not

ensure success. In most cases, there may be gap between employee knowledge and skill and what the

job demand. The gap must be filled through training programs. Hence, personnel training and

development is one of the major ways that work organizations attempt to maintain the competency

levels of their human resources and increase their adaptability to changing organizational demands

(Abdullah, 2009).

Training can be provided internally and externally. Internal training can be on-the-job (at the

work station) or off-the-job (lectures, demonstrations, etc provided by the employer but away from the

work station). External training is provided by Universities, Colleges and by private training

organizations. Internal training may have the advantage of being cheaper and more directly relevant to

the job, but external trainers may have a range and depth of expertise that is lacking within the

organization (Gomez - Mejia, 2007).

Organization Development

Organization development is a long-term effort, led and supported by top management, to improve an

organization’s visioning, empowerment, learning, and problem-solving processes, through an ongoing,

collaborative management of organization culture-with special emphasis on the culture of intact work

teams and other team configurations-using the consultant-facilitator role and the theory and technology

of applied behavioral science, including action research (French and Bell, 1999). OD is a practice field

which is based on the discipline of organizational behavior, psychology and administrative science. If

developed as new behavioral science finding about employee motivation and organizations were

applied by managers to solve organizational problems like poor communication, in adequate


integration, low commitment and inadequate employee development. Because it is a field base on new

knowledge applied to solve old problems, OD has tended to be pro-active and prescriptive in nature.

Career Development

No human resource development function can be acceptable to the people of any organization, if it

fails to provide opportunities for individual employees to have bright career prospects. It is for the

purpose of human resource development integrating career planning and development with it. Proper

career planning also leads to career development. It develops the career of every individual executive,

which results in adequate growth of the career of every employee. Hence, successful planning is

closely linked with career planning and development (Van Dijk, 2004).

Upton & Egan (2003) described career development in terms of fit between organizational and

individual goals, noting that “Career development focuses on the alignment of individual subjective

career aspects and the more objective career aspects of the organization in order to achieve the best fit

between individual and organizational needs as well as personal characteristics and career roles”.

Career development and HRD share a common characteristic that goes beyond their focus on matching

individual and organizational needs. That is, both fields have the potential to influence the economic

health, the knowledge and skills of its workforce on a national scale. Career development can be seen

as a sub-system of HRD.

Performance Appraisal and Management

Performance appraisal is an indispensable aspect of human resource development, which enables

management to understand where their people stand, what is expected from them, what they actually

do, where they lack capacity, how they can be updated, and so on (Boswell, 2002).

A performance appraisal is a review and discussion of an employee's performance of assigned

duties and responsibilities. The appraisal is based on results obtained by the employee in his/her job,

not on the employee's personality characteristics. The appraisal measures skills and accomplishments

with reasonable accuracy and uniformity. It provides a way to help identify areas for performance

enhancement and to help promote professional growth (Grote, 1996).

Performance appraisal and management system is considered as a component of HRD since it

shows closer connection with the outcomes and objectives of HRD, and it systematically measures and

evaluates the weakness and strength of employees in the organization (Davies & Davies, 1998).

A Strategic Perspective on Human Resource Development

Human capital theory argues that firms should protect core competencies through investment in

training and development. Therefore, the value of employees to the firm is related to the uniqueness

and value of their capabilities and skills. Human resource development (HRD) is best achieved

through a strategic approach, a position consistent with resource-based and human capital theories.

SHRD enables an organization to combine different knowledge elements, connect prior and new

knowledge, and combine internal and external knowledge, to ensure sustained competitive advantage

(Lepak & Snell, 1999).

Research Methodology

The data to be used for the study is composed of primary sources. The primary data is collected

through questionnaire. The population of this study represents those 36 top level managers of ERCA.

The questionnaire was deployed to obtain the required information about the awareness of managers

about HRD, and the strategic role of HRD in ERCA. The questionnaire was distributed to 36 top level-


managers of the organization; only 33 are filled up and completed in all aspects. The statistical

analysis to be used for the results included: descriptive analysis of frequencies, mean and standard

deviation. The results will be presented mostly in tables

Data Analysis and Interpretation

Demographic Details of the Respondents

This part commences with an analyses of the demographical data gathered from the respondents. The

data analyzed are presented in the form of tables and graph. The valid number of respondents in this

study is taken as N=33.

Table 1 . Demographic detail of respondents

Source: Field survey, 2011

ITEMS FREQUENCY PERCENT

1 Sex

Male 29 87.9

Female 4 12.1

Total 33 100

2 Age

25 and below 0 0

26-35 4 12.1

36-45 17 51.5

46 and above 12 36.4

Total 33 100

3 Marital status

Single 6 18.2

Married 27 81.8

Total 33 100

4 Educational level

12 complete 0 0

College diploma 0 0

First degree 17 51.5

Masters 16 48.5

PhD 0 0

Total 33 100

5 Work experience with ERCA

1 year and below 3 9.1

2-5 years 10 30.3

6-10 years 12 36.4

11 years and above 8 24.2

Total 33 100

6 Current position

D/G/Director 3 9.1

Director 20 60.6

Team Coordinators 10 30.3

Total 33 100


From table 1, we can deduce the following facts. Overwhelming number of the management staff

respondents 29 (87.9%) were male and the rest 4 (12.1%) were female.

In addition, 51.5% of the respondents’ age between 36 years and 45 years which signify that

the organization has got mature and well experienced directors and the team of coordinators.

Moreover, 36.4% of the respondents were 46 and above and the rest 12.1% of the respondents fall

under the age category ranging from 26-35. Considering the respondent’s level of education, 51.5% of

them were first degree holders and the rest 48.5% were Masters or second degree holders. This

signifies ERCA’s capacity of having professional and well-qualified managers.

When we see the work experience, 36.4% of the respondents stayed from 6 to 10 years in the

organization. 30.3% of them have 2-5 years work experiences in ERCA, and the rest 24.2% have

longer service times above 11 years. Only 9.1% of the respondents were fairly new for the

organization with less than 1 year experience. We can conclude that most of the directors and

coordinators have good work experience which helped them contribute to both the quality of the

information they provided.

Measuring Managers’ Awareness of HRD Concepts in ERCA

Managers’ awareness of HRD concepts was measured based on the questionnaire provided to the

strategic managers about human resource development components which includes training and

development, organizational development, career planning and development, and performance

appraisal and management. We say managers are aware of HRD concepts if they recognize that all the

above sub-constructs are the part of HRD. Having this lead, the statistical review (mean and standard

deviation) of the results for all the above sub-constructs is presented in the following table.

Table 2. The statistical review of sub-constructs measuring managers’ awareness of HRD

concepts

Source: SPSS Output

The average rating of the study participants to Managers’ awareness of HRD from T&D standpoint, as

indicted in table 2 above, was 4.56 with a 0.78 standard deviation. This indicates that the respondents

have above average rating with a relatively high homogeneity in their response. We can conclude that

senior level managers of the organization are aware of training and development as a component of

human resource development, and they have good understanding of human resource development from

T & D point of view.

The mean value of the second sub-construct i.e. managers’ awareness of HRD from OD standpoint

was approximately 4.88 indicating the respondents’ agreement with the statements under this

construct. The sub-construct’s standard deviation is 0.63, which is fairly low indicating the relative

homogeneity of the responses. This implies that management bodies of the organization recognize OD

as a component of HRD. We can conclude that they have good understanding of HRD concept from

OD point of view. It is also indicated in table 2 above that the mean value of the third sub-construct,

i.e. managers’ awareness of HRD from career development viewpoint was 4.8 indicating the

respondents’ relative agreement with the Likert scale statements prepared to measure this construct.

Managers’

awareness of

HRD from T&D

stance

Managers’

awareness of

HRD from OD

view point

Managers’ awareness

of HRD from Career

development stance

Managers’ awareness

of HRD from

performance appraisal

stance

N Valid 33 33 33 33

Missing 0 0 0 0

Mean 4.5636 4.8788 4.8182 4.0960

Std.

Deviation

.78494 .63159 .75071 .92424


The sub-construct’s standard deviation is 0.75, which is fairly low indicating the relative homogeneity

of the responses. The results of the study proved that senior level managers of the organization are

aware of organization development as a component of human resource development. We can conclude

that they have good understanding of HRD concept from career development point of view.

Table 2 also reveals that the mean value for the fourth sub-construct measuring managers’ awareness

of HRD concepts from performance appraisal perspective was 4.09 with a standard deviation of 0.92,

which signifies that respondents have a relatively “agree” rating with a relatively high homogeneity in

their responses. The mean value of this sub-construct signifies that senior level managers of ERCA are

well equipped with the concept of performance appraisal and management as part of man power

development. Most managers of the organization understood that periodic evaluation of employees’

performance is carried out in their organization as part of HRD, even though some haven’t still

understood it well. High proportions of top level managers of the organization are able to relate the

performance appraisal system of the organization with the outcomes and objectives of HRD. With this

lead, we can conclude that top managers of the organization are aware of performance appraisal &

management as a component of human resource development.

Summarizing Results

Table 3.The statistical review of managers’ awareness of HRD concepts

Source: SPSS Output

As it is indicated in the above table 3, the mean values of the major construct i.e. managers’ awareness

of HRD concepts in ERCA was 4.5 which was the mean of each sub-constructs means. This mean

value unswervingly signifies that the top level management bodies of the organization are well

equipped with the concept of HRD from all of its components point of view i.e. training and

development, organization development, career development, and performance appraisal and

development. It’s because the mean is around where respondents agree with the statements given

under each sub-construct. The standard deviation of the construct was 0.613 as it is indicated in the

table above. The standard deviation shows how widely the data are dispersed around the mean. In this

case the standard deviation is relatively small indicating the relative homogeneity of the responses of

the study. Based on the data given we can conclude that managers of ERCA have good awareness of

HRD from its components perspective.

A sub-construct with highest mean i.e. Managers’ awareness of HRD from OD view point (M=4.88)

contributes a lot to strengthen the major construct which is managers awareness of HRD concepts in

general as compared to the least contributor i.e. Managers’ awareness of HRD from performance

appraisal view point and other two constructs stated above .

Influence of Respondents’ Characteristics on Awareness of HRD

The purpose of this part is to indicate whether the following independent variables had an effect on the

responses of the respondents over their conceptual understanding (awareness) of HRD concepts.

Where applicable a significance level of 5% was used throughout this part for statistical tests.

Therefore, a probability value of less than 5% indicates a statistically significant value.

Managers’ awareness of HRD concept

N Valid 33

Missing 0

Mean 4.59

Std. Deviation .61350


Independent samples t-test

An independent samples t-test was conducted to compare mean scores of the educational level of

respondents’ i.e. Bachelor degree holders and Master’s degree holders on the construct under

consideration.

Table 4 . Independent samples t-test for mean difference in educational status of respondents

Source: SPSS Output

It is evident from table 4 above that at 5% significant level or at 95% Confidence interval the t-statistic

(P=86%) for mean difference shows the existence of no statistically significant difference between the

Bachelor degree holders and Masters’ degree holders on their awareness of HRD concepts.

Analysis of Variance

Analysis of variance was used to determine whether statistically significant difference exists among

the understanding level of respondents based on their age, working experience, divisional classification

and current job position.

Table 5 . Analysis of variance for age group

Awareness Mean =4.59

Sum of

Squares

df Mean Square F Sig.

Between Groups .506 2 .253 .658 .525

Within Groups 11.539 30 .385

Total 12.044 32

Source: SPSS Output

Table 5 above shows that variable Age at F=0.658 (p=0.525) >α, or p>0.05 shows that there is no

significant difference over awareness of HRD concepts in age category of the respondents.

Levene's Test

for Equality

of Variances

t-test for Equality of Means

F Sig. t df Sig.

(2-

tailed)

Mean

D/ce

Std.

Error

D/ce

95% Confidence

Interval of the

Difference

Lower Upper

Awareness

Mean

=4.59

Equal

variances

assumed

1.151

.292

.182

31

.856

.03958

.21700

-.40298

.48215

Equal

variances

not

assumed

.181

27.80

.858

.03958

.21890

-.40894

.48811


Table 6 . Analysis of variance for work experience of employees

Source: SPSS Output

The above table 6 indicates that at 5% significant level or at 95% Confidence interval the t -test for

mean difference shows the non-existence of significant difference with the work experience of

respondents on their awareness of HRD concepts.

Table 7. Analysis of variance for divisional classification of respondents

Awareness Mean = 4.59

Sum of

Squares

df Mean

Square

F Sig.

Between Groups .075 5 .015 .034 .999


Total 12.044 32

Source: SPSS Output

Considering the work division the respondents are working at, the table 7 pointed out that at 5%

significant level or at 95% confidence interval the t -test for mean difference shows the non-existence

of significant difference. So we can conclude that no statistical difference in the awareness of

managers about HRD concepts is shown based on the division where they are working.

Table 8 . Analysis of variance for the current position of respondents

Source: SPSS Output

As we can infer from the table 8 that at F=2.658 (p=0.085) >α , or at 5% significant level or at 95%

Confidence interval the t -test for mean difference shows the existence of no significant difference

with the current job position of respondents on their awareness of HRD concepts.

In conclusion the t-test conducted for mean difference in the respondents’ demographic characteristics

revealed that there is no significant difference in their awareness level of HRD concepts. The reason

behind this result may be due to the truth that continuous training and development programs were

arranged and given to all members of the organization regarding HRD function for a long period of

time as it was indicated in the interview part.

Awareness Mean

=4.59

Sum of

Squares

df Mean Square F Sig.

Between Groups 1.729 3 .576 1.620 .206


Total 12.044 32

Awareness Mean =4.59

Sum of Squares Df Mean Square F Sig.

Between Groups 1.829 2 .914 2.685 .085


Total 12.044 32


Measuring the Strategic Role of HRD in ERCA

The strategic role of HRD can be measured from two angles: Its role in supporting organizational

strategies, and its role in shaping organizational strategies. As it was clearly stated in the literature

review part of the paper, HRD plays a vital role in supporting the business objectives by assuring the

competence of employees, and shaping it by influencing the overall strategies of the organization from

the commencement to take full advantage of emergent business strategies. So the two sub-constructs

taken in to consideration to measure the strategic role of HRD are from support and shaping points of

view. Having this lead, the statistical review (mean and standard deviation) of the results obtained

from the questionnaire intended to measure the sub-constructs under consideration is presented in the

following table 9.

Table 9 . The statistical review of sub-constructs measuring the strategic role of HRD

Source: Field Survey

As indicated in table 9 above the mean value of the first sub-construct i.e. the strategic role of HRD in

supporting the overall strategy of the organization was 5.06 indicating that the respondents of the

questionnaire are agreeable in an extent to the statements directed to measure this variable. The

standard deviation for this sub-construct i.e. 0.708, is relatively lower which indicates the relative

homogeneity of responses of the questionnaire (the responses are concentrated more around the mean).

From this result we can conclude that senior management bodies of the organization recognize that

HRD is playing a chief role by supporting the overall strategy of the organization. HRD is deemed to

have support role if it shows positive course to the Likert scale statements constructed to measure it

Table 9 also reveals that the average rating of respondents to the statements under the second construct

i.e. the strategic role of HRD in shaping the overall strategy of the organization was 5.12 signifying the

“above agree” rating of them for the sub-construct under consideration, and the standard deviation of

the sub-construct is 0.729, which is relatively low, being an evidence for the relative homogeneity of

the responses of the Likert scale statements all set to measure this construct. From this we can deduce

the close that HRD is playing prominent role in shaping the strategy of the organization. HRD is

deemed to have shaping role if it shows positive course to the statements underlying to the strategic

role of HRD in shaping the overall strategy of the organization.

From the above, we can exactly draw the detail that the mean value of both sub-constructs is relatively

higher which in turn indicates the respondents agreement to the statements developed under each sub-

construct to measure the strategic role of HRD in ERCA in the direction of both supporting and

shaping standpoints. Both sub-constructs contribute in nearly equal values to the major construct i.e.

the strategic role of HRD in ERCA, even though the mean value of the sub-construct “strategic role of

HRD in shaping the strategy of the organization” is a little bit higher (5.12) which makes it relatively

the chief role of HRD in ERCA. The statistical results discussed above are overall indications that

HRD is playing a prominent strategic role in ERCA both by supporting and shaping the overall

strategy of the organization.

The strategic role of HRD in supporting

the overall strategy of the organization

The strategic role of HRD in shaping the

overall strategy of the organization

N Valid 33 33

Missing 0 0

Mean 5.06 5.12

Std.

Deviation

.708 .729


Summarizing Results

Table10. The statistical review of the strategic role of HRD

Source: Field survey

As it is indicated in table 10 above the mean value of the other major construct “Managers’ awareness

of HRD concepts in ERCA” was relatively high i.e. 5.09, which represents the mean of each sub-

constructs means indicating that the HRD function is playing an imperative role in both shaping and

supporting the overall objectives of the organization. The standard deviation has been rounded as

0.689 which is fairly low signifying homogeneity i.e. the responses of participants for elements

measuring the above construct are concentrated more around the mean. In general, the statistical

results point toward the result that HRD is playing a crucial role in both shaping and supporting the

overall objectives of the organization.

Conclusions

The general objective of this study was to investigate the strategic orientation of HRD, managers’

awareness of HRD concept, and the strategic role of HRD functions in organizations. In doing so the

study tried to analyze the data that have been gathered from ERCA. The results of the study proved

that senior level managers of the organization were aware of career development as a component of

human resource development. So we can convincingly conclude that the concept of HRD is well

understood by the strategic mangers of the organization from career planning and development point

of view. The analysis signify that senior level managers of ERCA are well equipped with the concept

of performance appraisal and management as part of man power development even though the mean

average of this construct is relatively lower than other three sub-constructs designed to measure

managers’ awareness of HRD concepts. We can conclude that senior managers of the organization are

aware of performance appraisal & management as a part of HRD. The study indicates that HRD plays

a support strategic role in the organization. This signifies that HRD is contributing a lot in supporting

the overall strategy of the organization. The study also showed that HRD plays a strategic role in

shaping the overall strategy of the organization. The organization can improve the influence that

SHRD should have in changing corporate culture by redefining & resetting its values, beliefs and

customs.

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Strategic role of HRD

N Valid 33

Missing 0

Mean 5.09

Std. Deviation .6887


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