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Strategy and Human Resource Development

Chapter 16

Schools of Strategic Thinking

HRD, Expertise, and Strategy

The influence of HRD on strategic planning is moving from being exclusively in a role supportive of business strategy to becoming a major force in the shaping of business strategy.

Two factors that have influenced the evolution of HRD toward a more active role as a key determinant of business strategy are: (1) the centrality of information technology to business success and (2) the sustainable competitive advantage offered by workforce expertise.

HRD as a Shaper of Strategy

Strategic initiatives based on employee expertise are briefly illustrated in successful manufacturing and service organizations where they have become firmly established

The business planning and relocation strategies of multinational corporations are examined. These strategies are increasingly based on the availability of a competent workforce and reflect changing patterns of workforce skill development at the global level.

HRD as a Shaper of Strategy

HRD that is truly of strategic value to an organization has three important attributes:

It is rooted in needs and outcomes that are performance based

It has earned credibility and respect among key stakeholders by demonstrating its strategic capability

Its role as shaper of strategy arises as organizational leaders acknowledge the importance of strategy’s emergent properties, for only emergent strategy can be actively shaped by influential forces such as HRD.

Strategic Role 1: Performance-Based HRD

HRD must contribute directly to important business goals and must be based on key business performance requirements (Swanson 2009)

Strategic Role 2: Demonstrating the Strategic Capability of HRD

Must Demonstrate genuine strategic Capability

HRD demonstrates its strategic capability as it adds two important dimensions to the organization’s business-planning process:

1) HRD provides education and learning in the concepts and methods of strategic planning and systems thinking to those responsible for setting the strategic direction for the organization; and (2) the HRD function itself plays and active role in strategic planning through direct participation of HRD professionals in the business planning process.

Strategic Role 2: Demonstrating the Strategic Capability of HRD

Education and Training in Strategic Planning

Active Participation in Strategic Planning

Strategic Role 3: Emergent Strategy and HRD

Strategy is a dynamic phenomenon that necessarily unfolds over a period of time in a business environment that is inherently unstable (Swanson 2009)

The benefits of developing and using employee expertise to capitalize on evolving business opportunities can only be fully realized if strategy is treated as both a deliberate and emergent phenomenon.

Scenario Planning

“ a tool for ordering one’s perceptions about the future environments in which decisions might be played out” (Swanson 2009)

Interviews

Workshops

Creating the Scenario Stories

Using scenarios to Examine Strategy

Advanced Scenario Planning; Theory and Practice

Strategic Planning: Refers to the business planning and systems thinking required of those responsible for setting the strategic direction for the organization.

Contributions of HRD to Strategic Organizational Planning

The Strategic Agenda Facing the HRD Profession

Performance-Based

Strategic Capability

Emergent Strategy

Accountability in Human Resource Development

Chapter 17

The Four-Level Kirkpatrick Model

New Approaches to Program Evaluation

Performance Results:

System

Financial

Learning Results

Expertise

Knowledge

Perception Results

Stakeholders

Metrics Approach to Accountability

ASTD Approach

Financial Approach

Intellectual Capital Approach

Intellectual Capital

Five Key Development Metrics

Metrics

Development Quality

Capacity to meet needs

Customer Satisfaction

Formal Employee Development

Human Capital Development

Human Resource Development Policy and Planning

Chapter 18

HRD adds value in helping its host organization do its work through development efforts.

Policy Analysis and Planning For HRD

A Policy is a deliberate plan or course of action to guide decisions for achieving certain rational outcomes (Swanson 2009)

Policies have critical influence on strategies of any economic entity.

Comparative Framework

Understand and analyze any economic entity from a comparative view.

Workforce Planning Models

Blueprint Model for Workforce Planning

Reference:

Swanson, R. A., & Holton III, E. F. (2009). Foundations of human resource development (2nd ed.). San Francisco, CA: Berrett-Koehler Publishers, Inc.