Human Resources Development

Topic 1a: Role of human resource development within

organisation

Scope and Coverage

This topic will cover:– HRD and organisational strategy– Optimising the performance of an organisation’s

Human Resources– The purposes, processes and limitations of HR

planning– High performance working– Preparing for the next topic

Learning Outcomes

By the end of this topic, students will be able to:– Discuss the relationship between HRM and an

organisation’s overall strategy– Explain how an organisation’s Human Resources

may be optimised– Outline the basic processes, and limitations of

Human Resource Planning– Explain the concept of ‘High Performance

Working’

Recap

– What were the key learning points from the last topic?

HRD and Organisational Strategy

The Organisation

The Organisation

Resourcing Learning and Development Reward Relations

HRD

Horizontal Integration

The Environment

Vertical Integration(Strategy)

INPUTS OUTPUTS

Pre-Work

– What are your definitions of ‘Strategic HRD’?

Defining Strategic HRD

– CIPD (2010), “a general approach to the strategic management of human resources in accordance with the intentions of the organisation and the future direction it wants to take.”

– It is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values commitment and matching resources to future need.”

Strategic HRD

– Implicit, explicit, or both;– Planned, emergent, or both;– Strategy, strategies, and operations;– 3 broad theoretical approaches

• ‘best fit’• ‘best practice’• ‘resource-based view’

Optimising HR Performance - 1 – What constitutes the value of an organisation?

• Tangible assets (e.g. land, buildings, machinery, money)• Less tangible assets (e.g. reputation, knowledge, people)

– Human capital• Intellectual capital;• Social capital;• Cultural capital.

Optimising HR Performance - 2 – Optimising capital = achieving the highest return on investment

(RoI)

– Ensuring a RoI requires• Measurement• Reporting

Measuring Human Capital– The value of people to organisational

performance (the outcomes)– No single measure or set of measures–Measurement might include data on:

• Demographics (‘diversity’);• Recruitment;• Retention;• Performance;• Learning and development;• Commitment.

‘Harder’ (More Tangible)

‘Softer’ (Less Tangible)

HR Planning– Demand for, and supply of, human capital

DemandOrganisational Strategy

Environmental Context

HR/HCPlan

Supply

InternalExternal

HRM Strategy

HR Planning – Limitations?

‘High Performance Working’ - 1– How to maximise the RoI in Human Resources/Capital?

– High Performance Work Practices

• “work practices which can be deliberately introduced in order to improve organisational performance” (Sung and Ashton, 2005:3).

‘High Performance Working’ - 2– Three broad areas or ‘bundles’:• High employee involvement practices• Human Resource practices• Reward and commitment practices.

– Research shows that more practices = higher organisational performance.

– Practices are complementary and can overlap areas• Consider – Mentoring – which area does it impact?

Preparing for the Tutorial and the Next Topic

– The tutorial will follow this lecture, ensure that you have completed all the necessary private study exercises.

– The next topic will be on HRM and the law

– Ensure that you complete the necessary private study exercises to prepare for the next topic

References

– Sung & Ashton (2005), High Performance Work Practices: linking strategy and skills to performance outcomes. London Department of Trade and Industry. Available at: http://www.bis.gov.uk/files/file9338.pdf (accessed 14 April 2011).

– CIPD (2010). Strategic human resource management factsheet. London CIPD

Topic 2 – Strategic HRD

Any Questions?