Professional Documents
Culture Documents
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Programs
Questions After Needs Assessment
Assess needs
Develop
lesson plan Determine
evaluation
design
Develop/acquire
materials
Conduct
Deliver the
evaluation
Select HRD program
trainer/leader of program
or intervention
or intervention
Select methods
and techniques Interpret
results
Schedule the
program/intervention
Seven Overarching HRD Professional
Responsibilities – 1
1. Identify the kinds and levels of KSAOs
that employees need to attain high levels
of performance and to achieve
organizational results
2. Develop and maintain organizational
structures, conditions, and climates that
are conducive to learning
Seven Overarching HRD Professional
Responsibilities – 2
3. Generate and provide the necessary
resources to conduct a program design
4. Identify and provide access to off-the-job
as well as on-the-job learning resources
5. Provide individual assistance and
feedback on various dimensions of
individual performance
Seven Overarching HRD Professional
Responsibilities – 3
6. Serve as role models and mentors to
trainees and the organization in the pursuit
of mastery of “pivotal” KSAOs
7. Develop efficient learning processes that
take into account individual learning styles,
abilities, and work and life circumstances
Defining the Objectives
• Objective
– “…description of a performance you want
learners to be able to exhibit before you
consider them competent.” (Robert Mager)
• Training program objectives describe the
desired result of the HRD program
• The basis for determining which methods
should be used
Three Critical Aspects of Objectives
• Training Competency
– knowledge and varied skills needed to design
and implement a training program
• Subject matter expertise
– mastery of the subject matter
• Training is most effective when trainers
possessed an advanced level of expertise
as instructors and facilitators
Helping Less Qualified Trainers
• Teaming skilled trainers with in-house subject
matter experts to form an instructional team
• Using a training technique that does not require
a human trainer, such as computer-aided or
online instruction programs
• Train-the-trainer programs, which involve
identifying in-house content experts who lack
training skills and training them to become
effective trainers
Train-the-Trainer Programs
• Provide subject matter experts (SMEs)
with the necessary instructional knowledge
and skills to design and implement training
program
• Available through
– local professional associations
– colleges
– consultants
Train-the-Trainer Programs
• Focus on
– Developing trainee objectives and lesson
plans
– Selecting and preparing training materials
– Selecting and using training aids (e.g.,
Microsoft® PowerPoint® slides, videos,
overhead projectors)
– Selecting and using different training methods
and techniques
Importance of a Good Trainer
• A bad trainer can cancel out an excellent
training effort
• An excellent trainer can make a bad
training effort a lot better
Preparing a Lesson Plan
• Lesson Plan
– trainer’s guide for the actual delivery of the
training content.
– determines in advance what is to be covered
and how much time is devoted to each part of
the session
Lesson Plan Contents
• Content to be covered
• Sequencing of activities
• Selection or design of training media
• Selection or development of experimental
exercises, or both
• Timing and planning of each activity
• Selection of the method of instruction to be used
• Number and type of evaluation items to be used
General Lesson Plan Template
Fig. 5-2 Program titl e:
1. Physical environment
3. Instructor
4. Trainee(s)
SOURCE: From Nadler, L., & Nadler, Z. (1994). Designing training p rograms: The crit ical events model (2nd ed., p. 145).
Houston, TX: Gulf Publishing.
Selecting Training Methods and Media
• Methods Percent
• Instructor-led Classroom Programs 62
• Self-Study, Web-based 15
• Virtual Classroom 14
Factors to Consider in Selection
• Objectives of the Programs
• Time and Money Available
– Who pays trainees during training?
• Availability of Other Resources
• Trainee Characteristics and Preferences
Preparing Training Materials
• Program Announcements
• Program Outlines or Syllabi
• Training Manuals
• Textbooks
Program Announcements
• Inform target audience about training
program
– Purpose of program
– When and where to be held
– How to participate in program
• Give sufficient lead time for trainee to
schedule
Transmission of Program
Announcements
• Sent through
– Supervisory channels
– Company newsletters
– Intranet
– Mail
– bulletin boards
– E-mail
Program Outlines
• Communicate the content, goals and
expectations of the program
• Include
– Course objectives
– Materials or tools needed
– Requirements of each trainee
– Tentative schedule
Training Manuals and Textbooks
• Textbooks
– Generally provide a broad treatment of
subject
• Training Manuals
– concise and hands-on
• Buy or Develop?
– Generally less expensive to purchase
• Copyright Laws
– Get permission and give attribution
Scheduling the HRD Program
• During working hours:
– Avoids outside conflicts
– Sends message that learning/training is
supported by management
• Day of the Week:
– Avoid Mondays and Fridays
– Avoid holiday weeks
Time of Day Issues
• Too early
– Tardy or tired participants
• Over lunch hour
– When do they eat
• Mid-afternoon
– Slow/Lazy
– Late in day
– Distractions and need to leave early
Other Working Hour Constraints
• Considerations
– Peak work hours
– Staff meeting times
– Travel requirements
• Consult with managers and supervisors
before scheduling
– Do it well in advance of scheduling
Scheduling After Working Hours
• Avoids organizational complaints
• Other problems
– Family obligations
– Tired trainees
– Reluctance to give up free time
• Inducements
– Overtime pay, promotion, holding at resort
with leisure activities
Registration and Enrollment
• It must be clear on
– How one should register
– Who is responsible for logistics
• Travel arrangements
• Accommodation
• Meals
– How to cancel or reschedule
• If available, use computerized system
such as RegOnline
E-Learning
• Quicker and more widespread access to
training materials
• Once in place, cheaper than classroom
• Can be 24/7
• Allows trainee to control pace and training
process to fit personal needs and abilities
Consultation process for
rural development
Rural Development
• A country's growth and development is fueled by various components
in its economy. Ultimately, sustainable growth and development
depends on the strengths and capabilities of its human resources.
Two-thirds of the population who live in rural areas rely on agriculture
as their primary livelihood.
Cont…
• The primary problem is not the lack of resources but rather the
underdevelopment of rural-based human capital. If the human capital
present in rural areas is built up and properly developed through
relevant alternative education, then this will prove to be a great
investment in agriculture and other agri-related industries. In order to
properly develop rural human resources, it is necessary to provide
comprehensive education in scientific methods of agricultural
production and other basic skills which are essential to the
development of rural industries.
Consultation Process
• The process of consultation is an extremely important concept in the
context of managing an organization. Consultation is an active process
in which organization management opens formal and informal
communication channels between the organization and its
stakeholders.
Cont…
These formal and informal communication channels might include:
• Open meetings e.g. participants are invited to come to an open meeting or
a series of meetings
• Surveys e.g. participants are invited to complete a survey (paper or online
type)
• Focus group e.g. a select cross-section of participants, small in number, are
invited to attend a meeting or series of meetings
• Invitation to send a written response e.g. participants are invited to submit
comments in writing on a proposal or plan
• Informal meetings e.g. organization management might socialize with
people at an event and see what response they get
Assessment of HRD needs of
Different Sectors of Rural
Ceremony
HRD
• Human resources development (HRD) refers to the vast field of
training and development provided by organizations to increase the
knowledge, skills, education, and abilities of their employees. In many
organizations, the human resources development process begins
upon the hiring of a new employee and continues throughout that
employee's tenure with the organization.
Need and Needs assessment
• A difference between expectations and performance is called need.
Assess needs
Develop
lesson plan Determine
evaluation
design
Develop/acquire
materials
Conduct
Deliver the
Select evaluation
HRD program
trainer/leader of program
or intervention
or intervention
Select methods
and techniques Interpret
results
Schedule the
program/intervention
Various Types of Needs
• Diagnostic
Factors that can prevent problems from occurring
• Analytic
Identify new or better ways to do things
• Compliance
Mandated by law or regulation
Why Strategic Assessment is Needed
• Ties HRD programs to corporate or organizational goals
• Strengthens the link between profit and HRD actions
• Strengthens corporate support for HRD
• Makes HRD more of a revenue generator
• Not a profit waster
Task Analysis
• The collection of data about a specific job or group of jobs
• What employee needs to know to perform a job or jobs
How to Collect Information For a Task Analysis
• Job descriptions
• Task analysis
• Performance standards
• Perform job
• Observe job
• Ask questions
• Analysis of problems
Rural Economy
• Rural areas are home to most of the poor. According to ILO
calculations, 88 per cent of the extreme poor live in rural areas,
where poverty rates are four times higher than in urban areas and
decent work deficits are typically severe. The rural/urban divide
becomes even more apparent when considering poverty rates for
people in employment. Nearly 20 per cent of people employed in
rural areas live in extreme poverty, compared with just over 4 per
cent in urban areas (WESO 2016 ).
Cont…
• Rural areas are characterized by governance gaps and informality.
• Gender inequalities in rural areas are persistent.
• Rural labor markets are often dysfunctional.
• Access to social protection is extremely limited.
Cont…
• Common challenges to unleashing the potential of rural areas include
low productivity; underinvestment in agriculture and non-farm rural
employment; lack of adequate infrastructure; poor occupational
safety and health and working conditions; and limited or no access to
services, including financial services. Additional pressures in rural
economies result from conflict, natural resource depletion and
climate change.
• Historically, agriculture has been crucial to Pakistan’s economic
growth and development and remains so even today. The sector
employs almost half of the country’s labor force, supplies key inputs
to the country’s manufacturing sector, generates a significant share of
export earnings, and nourishes a rapidly growing population. Further,
beyond agriculture is the wider rural economy, including nonfarm
economic activities such as small enterprises, transport services,
village retail shops, local schools, and clinics, all of which account for
an estimated 40 to 57 percent of total rural household income.
Relationship between rural economic development
and rural human resource development
• As rural development and progress, human resource plays a decisive
role for economic growth. Human resource can effectively develop
economy. Economic development can protect and support human
resource. The two mutually promote
• Rural human resource development provides talents for economic
• development
• . Rural economic construction needs wide-range human resource
development
• Rural human resource development can further develop rural
economy
Agriculture & Rural Development
• Despite significant increases in productivity, main challenges in
agriculture and rural development in developing countries resist.
Agricultural reform has not solved the social and economic problems
of the poor in developing countries and the sector remains a place of
uneven development and unsustainable use of natural resources with
a worsening impact on climate change. Globalisation presents a new
challenge in terms of ensuring the quality and safety of domestic and
exported food supplies. Moreover, women in rural areas continue to
struggle with low income, limited access to education, credit and
land, job insecurity, and deteriorating work conditions.
Rural unemployment
OTHER NAMES:
Inadequate employment opportunities in small rural communities
NATURE:
Substantial numbers of the population in rural communities are either unemployed or
underemployed: the lack of a diversified job market produces only seasonal employment and
a sporadic flow of income into a village; graduates who reside in a village may be unable to
find useful and productive jobs; and there are few opportunities for women to be gainfully
employed. This inadequate and irregular income-base seriously affects the ability of families
to send their children to school and also denies them domestic amenities, such as electricity,
which are otherwise available. It produces a hand-to-mouth existence which precludes vital
participation in long-range planning. Many rural communities in the developed world lack a
viable economic base.
Limited access to youth employment and low wages encourages young people to leave the
community, threatening its vitality. At the same time, increasing numbers of local people,
facing the prospects of seeking employment in deteriorating, problem-plagued urban
centres, are opting to work where they are rather than uproot families. Although there may be
many people with business and mechanical skills and training, they are faced with little
opportunity for local employment except farming. Wages are rarely higher than the minimum
and repetitive, monotonous work is the rule, with closed ended jobs and inadequate benefits.
Those who wish to live in these communities must often accept these jobs or commute great
distances to alternative work.
Large scale mechanization of agriculture in many small communities has put many people
out of work, while at the same time opportunities for other means of employment are
increasingly limited. The harvesting and growing of local crops are seasonal occupations and
provide only a fraction of the jobs they once supplied, and expansion is restricted as small
farm operators discover that most agricultural development assistance is focused on large
enterprises. Efforts to supplement family income are blocked for young mothers, for there are
often no day-care facilities available for children under three years of age; as a result, income
is less than adequate to meet expenses. Many small-town residents migrate to big cities to
find better opportunities; this migration affects the entire town. Failure to create
opportunities for gainful employment in small communities results in the economic fabric
being unable to support the needed development effort.
INCIDENCE:
Idle or partially idle people are the greatest waste of resources in developing countries. Low
productivity both causes and results from this situation; there are simply not enough jobs off
farms to employ all who are looking for them, or who would leave farming and take up other
work if it were available. Thus the farm population in the developing countries is over large;
the excess people on farms stay there because, in the absence of work in urban areas, they
are at least reasonably sure of some food, of housing, and of the protective care of the family,
which takes the place of a wide range of social services. Constant underemployment persists,
especially at certain times of the year. In overpopulated countries (such as Egypt or India) the
rural areas are also overcrowded, resulting in widespread underemployment and disguised
unemployment of human resources. Indeed, in many countries it is evident that total
agricultural output could be increased if fewer people were living on the land and the size of
agricultural units was increased. Thus, surplus labour in rural areas in most cases is not an
asset and in some cases is definitely a liability for increasing agricultural output.
In 1993, there were at least 100 million peasants (out of a total rural population of 900 million)
unemployed. One half of these are seeking jobs in the cities. Increasing areas of land are now
left fallow to avoid attracting taxation.
Rural Business Activities
Rural Business
• Business is an economic activity involving regular production or
purchase and distribution of goods and services with the object of
earning profit
• Rural businesses are those firms that are established and operate in
rural settings, far from the metropolitan areas that have traditionally
been the site of most non-agricultural business enterprises Rural
Business
Importance of Rural Business
• Utilize the idle capital
• Utilize the local resources
• Avoid migration of rural population
• Encourage rural youth
• Fair distribution of income
• Provide employment opportunities
• Balanced regional growth
Problems of Rural Business
FINANCIAL PROBLEMS
• Lack of funds
• Lack of infrastructural facilities
• Risk element
MARKETING PROBLEMS
• Competition
• Communication
• Middlemen Problems
Cont…
MANAGEMENT PROBLEMS
• Lack of knowledge of IT
• Poor quality of products
HUMAN RESOURCES PROBLEMS
Characteristics of Small Rural Businesses
• Despite the variety and size of small rural businesses which range from craftsmen and
small workshops to micro-agroindustrial businesses milling grain or making cheese they
have common characteristics:
• Small scale: they are usually family owned and operated; start up costs are covered
mostly through family savings and rely only rarely and marginally on a loan component.
• Labor intensive: production and service activities often rely on labor; equipment is
simple and a great deal of ingenuity goes into the respective processes.
• Local market orientation: most microenterprises find both their customers and suppliers
within a very localized area. Rarely does the scope of the activity extend beyond the
village and its surroundings.
• Resilience/flexibility: The preceding characteristics suggest that small business activity is
very resilient to change, whether for good or bad. In addition, it is well adapted to the
specific context and efficiently organizes the existing factors of production.
Rural business ideas/activities
• Production of organic produce
• Poultry farm
• Fishery
• Milk center
• Wholesale of Fertilizers
• Drinking water supply
• Retail shops
• Flour mill
• Threshing machine
• Oil mill
Rural & Small Town Business Ideas for 2021
• Horse walking service
• Local composting removal service
• internet infrastructure development company
• Online niche business
• Chicken coops setup company
• Everything – corner store
• Yard cleanup service
• Farm equipment maintenance
Cont…
• Rural ride-sharing service
• Rural marketing agency
• Last mile delivery service
• Tractor for hire business
• Local tech support service
Implementing HRD Programs
Implementing Training and HRD
• On-the-Job (OJT)
• Classroom approaches
• Self-paced or individualized approach
Training Methods and Techniques – 1
Table 6-1
Method Techniques
Method Techniques
Classroom Lecture
Conference/Discussion
Audiovisual static media (e.g.,
handouts, books) dynamic media
(e.g., DVD, video, film)
Telecommunication (e.g., satellite
transmission, Internet)
Training Methods and Techniques – 3
Table 6-1
Method Techniques
Classroom Experiential techniques
(Con’d) •case study
•business games
•role play
•behavioral modeling
•computer-based training (classroom-
based)
•networked computer labs/classrooms
Training Methods and Techniques – 4
Table 6-1
Method Techniques
Self-Paced Paper-based training workbooks
(e.g., programmed instruction)
Computer-based training (non-
classroom-based) computer-aided
instruction (e.g., multimedia CD-
ROM), Internet/intranet intelligent
computer-aided instruction
On-the-Job Training (OJT)
• Conducting training at a trainee’s regular
workstation
• Most employees receive at least some
training and coaching on the job
• Much on-the-job training is conducted
informally
– without formal structure, planning, or careful
thought
Structured OJT
• Generally conducted by an assigned
trainer who is
– Recognized
– Rewarded
– Trained to provide appropriate instructional
techniques
OJT Practices
• Supervisors, coworkers, and to a lesser
degree, HRD staff members conducted
most of the structured OJT programs
• A majority of organizations provided train-
the-trainer programs for these assigned
OJT trainers
• Top management generally expressed
support for structured OJT programs
Advantages of Formal OJT
• OJT facilitates the transfer of learning to
the job because the trainee has an
immediate opportunity to practice the work
tasks on the job.
– Transfer of learning is enhanced because the
learning environment is the same as the
performance environment
• OJT reduces training costs because no
training facilities are needed
Limitations of OJT – 1
• Job site may have physical constraints,
noise, and other distractions that could
inhibit learning
• Using expensive equipment for training
could result in costly damage
Limitations of OJT – 2
• Using OJT while customers are present
may inconvenience them and temporarily
reduce the quality of service
• OJT involving heavy equipment or
chemicals may threaten the safety of
others who are working in close proximity
Four OJT Techniques
• Job Instruction Training (JIT)
• Job Rotation
• Coaching
• Mentoring
Job Instruction Training (JIT)
• Defined as a sequence of instructional
procedures used by the trainer to train
employees while they work in their
assigned job
JIT: A Four Step Process
• Prepare the worker
• Present the task
• Practice
• Follow-up
Job Instruction Training – 1
Table 6-2
SOURCE: From Wexley, K. N., & Latham, G. P. (2002). Developing and training human resources in organizations, 3e. Reprinted with
permission of Pearson Education, Inc., Upper Saddle River, NJ.
Job Instruction Training – 2
Table 6-2
SOURCE: From Wexley, K. N., & Latham, G. P. (2002). Developing and training human resources in organizations, 3e. Reprinted with
permission of Pearson Education, Inc., Upper Saddle River, NJ.
Job Instruction Training – 3
• Step 3: Practice
– Have trainee perform the task(s)
– Have trainee explain the steps Give feedback on
performance
– Reinforce correct behavior
• Practice time is important for the trainee to
master a particular set of skills
Job Instruction Training – 4
• Step 4: Follow-up
• Have trainee perform on his or her own
• Encourage questioning
• Check performance periodically
• Trainer needs to conduct a follow-up as a way of
ensuring that the trainee is making progress
Job Rotation
• Trainee is generally expected to learn
more by observing and doing than by
receiving instruction
• Involves a series of assignments to
different positions or departments for a
specified period
• Often used for first-level management
training
Coaching
• Between employee and supervisor
– Focuses on examining employee
performance and taking actions to
• maintain effective performance
• correct performance problems
Mentoring
• Senior manager is paired with a more
junior employee for the purpose of
– giving support
– helping the employee learn the ropes
– preparing the employee for increasing
responsibility
Classroom Training
• Conducted outside of the normal work setting
• Advantages over OJT:
– Use of a variety of training techniques
– Minimize distractions and create a learning climate
– Can accommodate larger numbers of trainees
• Disadvantages
– Increased costs
– Dissimilarity to the job setting
Five Primary Categories
• Lecture
• Discussion
• Audiovisual media
• Experiential methods
• Computer-based training (classroom-
based)
The Lecture Approach
• Oral presentation of information by a
subject matter expert to a group of
listeners
• Advantage
– efficient way of transmitting factual
information to a large audience
• Disadvantages
– Lack of sharing info between learners
– One-way communication
Discussion Method
• Trainer has two-way communication with
trainees
• Trainees are in communication with each
other
Limitations to Discussion Method
• Skilled facilitator is needed
• Sufficient time must be available
• Trainees need to have a common
reference point
Audiovisual Methods
• Use of various media to illustrate or
demonstrate the training material
• Static media typically involve fixed
illustrations that use both words and
images
– Printed materials
– Slides
– Overheads
– Computer-generated slides, e.g. PowerPoint©
Dynamic Media
• Techniques that present dynamic
sequences of events
– CDs, DVDs, videotape, film, etc.
• Easily distributed to remote sites
• Effective dynamic media takes advantage
of the capabilities of the medium rather
than simply reproducing a printed or static
presentation
Guidelines for Visual Materials – 1
Preparation
1. Present one major idea or concept on each slide or
transparency.
2. Use a limited number of key words or phrases (e.g.,
fewer than six words per line and six lines per slide).
3. Make sure letters and graphics are large and legible
(can they read it in the back of the room?).
4. Are your slides well designed?
Guidelines for Visual Materials – 2
Preparation (Continued)
5. Are your slides interesting and appropriate for the
subject? Use color, different type styles, graphics, and
pictures (especially for visual learners).
6. Do your slides add to the presentation?
7. Do your presentation and slides together effectively
communicate your key points to the audience? Avoid
information overload, especially with your slides
Guidelines for Visual Materials – 3
Preparation (Continued)
8. Is current technology being appropriately utilized when
making and using the slides?
9. If using Microsoft® PowerPoint® (or similar software),
do the extras (sound, music, clip art, video clips, special
graphics) add or detract from the presentation?
10. Ensure that the audiovisual or computer equipment
is set up and used appropriately
Guidelines for Visual Materials – 4
Presentation
11. Have a clear outline
12. Look at the audience
13. Ensure all can see both the presenter and the
screen.
14. Emphasize information by pointing;
• do not point at the screen—
– point on the transparency
– use a mouse pointer on computer slides
Guidelines for Visual Materials – 5
Presentation (Continued)
15. Script what you plan to say
• avoid reading bullet points
16. Control the pace by progressive disclosure
17. Cover the projection (or make it blank) to emphasize
an important verbal point.
.
Guidelines for Visual Materials – 6
Presentation (Continued)
18. Use two projectors for increased effect (e.g., when
using multiple media)
19. Obtain group involvement by writing on a white
board, blank transparency, or flip chart
Telecommunications
• If the employee's competence does not know it, then this will make it
difficult for the company to be able to develop their competence. With the
help of this software you can analyze the competencies of each of your
employees and then develop them.
Efficient Recruitment
• HRD program in companies that is important to pay attention to is
efficient recruitment. Usually in the process of recruiting and
interviewing employees, you must be careful because you don't want
to recruit employees who are not in accordance with the company's
vision and mission. HRD must ensure that the employee is suitable for
working in the company so that he does not have to bother
constantly looking for new employees.
Good Communication System
• One of the things that causes turnover rates to be too high is a bad
communication system. By using the right system you can turn a bad
communication system into a more effective and efficient communication
system. Too busy with their respective jobs to make this turnover rate can
occur frequently in the company. Too many things are done to make the
team lazy to communicate and lead to not being able to work together.
■ The word strategy originates from the Greek word strategia meaning ‘generalship’
and is related to the science and art of warfare. Organizational competition does not
fully equate to warfare but when one comes across books with titles such as The
Management Secrets of Genghis Khan, it would appear that some people take the
subject very seriously indeed.
Strategy, according to Johnson and Scholes (1993), is concerned with a number of
dimensions:
■ the range of an organization’s activities;
■ the matching of the organization’s activities to the environment;
■ the matching of the organization’s activities to available resources.
Cont…
■ Strategies are broad statements that set a direction. Strategies are a specific,
measurable, obtainable set of plans carefully developed with involvement by an
institution's stakeholders. These action statements are linked to an individual or
individuals who are accountable and empowered to achieve the stated result in a
specific desired timeframe. They are patterns of action, decisions, and policies that
guide a group toward a vision or goals.
Strategic Planning
■ A strategic plan is the company’s plan for how it will match its internal strengths and
weaknesses with external opportunities and threats in order to maintain a
competitive advantage. The essence of strategic planning is to ask, Where are we
now as a business, where do we want to be, and how should we get there? The
manager then formulates specific (human resources and other) plans to take the
company from where it is now to where he or she wants it to be.
■ When Yahoo! tries to figure out whether to sell its search business to Microsoft, it’s
engaged in strategic planning. A strategy is a course of action. If Yahoo! decides it
must raise money and focus more on applications like Yahoo! Finance, one strategy
might be to sell Yahoo! Search. Strategic management is the process of identifying
and executing the organization s strategic plan, by matching the company’s
capabilities with the demands of its environment.
Strategic Human Resource
Management
■ SHRM or Strategic human resource management is a branch of Human resource management or
HRM. It is a fairly new field, which has emerged out of the parent discipline of human resource
management.
■ Strategic human resource management is designed to help companies best meet the needs of
their employees while promoting company goals. Human resource management deals with any
aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and
administration. Human resources may also provide work incentives, safety procedure information,
and sick or vacation days.
■ Strategic human resource management is the proactive management of people. It requires
thinking ahead, and planning ways for a company to better meet the needs of its employees, and
for the employees to better meet the needs of the company. This can affect the way things are done
at a business site, improving everything from hiring practices and employee training programs to
assessment techniques and discipline.
Definition of SHRM
■ Strategic HRM refers to HR that is co-ordinated and consistent with the overall
business objectives in order to improve business performance. According to Purcell
(1999), SHRM focuses on actions that differentiate the business from its
competitors.
■ “Strategic human resource management means formulating and executing human
resource policies and practices that produce the employee competencies and
behaviors that the company needs to achieve its strategic aims.”- Gary Dessler
■ “Strategic human resource management is an approach to making decisions on the
intentions and plans of the organization concerning the employment relationship
and the organization’s recruitment, training, development, performance
management, and the organization’s strategies, policies, and practices.” –
Armstrong
Cont…
■ Strategic Plan
The company s plan for how it will match its internal strengths and weaknesses with
external opportunities and threats in order to maintain a competitive advantage.
■ Strategy
A course of action the company can pursue to achieve its strategic aims.
■ Strategic Management
The process of identifying and executing the organization’s strategic plan, by matching
the company s capabilities with the demands of its environment.
Cont…
Figure 1 sums up the strategic management process. This process includes
(1) defining the business and developing a mission, (2) evaluating the firms internal and
external strengths, weaknesses, opportunities, and threats, (3) formulating a new
business direction, (4) translating the mission into strategic goals, and (5) formulating
strategies or courses of action. Step (6) and step (7) entail implementing and then
STEP 1: DEFINE THE CURRENT
BUSINESS
■ The logical place to start is by defining one’s current business. Specifically, what
products do we sell, where do we sell them, and how do our products or services
differ from our competitor s. For example, Rolex and Casio both sell watches.
However, Rolex sells a limited line of expensive watches. Casio sells a variety of
relatively inexpensive but innovative specialty watches with features like compasses
and altimeters.
STEP 2: PERFORM EXTERNAL AND
INTERNAL AUDITS
■ The next step is to ask, Are we heading in the right direction? No one is immune to
competitive pressures. Yahoo! s search tool predominated until Google. Amazon s
Kindle Reader forced even more bookstores to close. Prudent managers periodically
assess what s happening in their environments. Managers need to audit both the
firms environment, and the firms strengths and weaknesses.
■ The SWOT chart in Figure 2 is the of strategic planning; everyone uses it. Managers
use it to compile and organize the company strengths, weaknesses, opportunities,
and threats. The aim, of course, is to create a strategy that makes sense in terms of
the company s strengths, weaknesses, opportunities, and threats.
STEP 3: FORMULATE A NEW DIRECTION
■ The question now is, based on the environmental scan and SWOT analysis, what
should our new business be, in terms of what products we will sell, where we will sell
them, and how our products or services will differ from competitors products?
■ Managers sometimes formulate a vision statement to summarize how they see the
essence of their business down the road. The vision statement is a general
statement of the firms intended direction; it shows, in broad terms, what we want to
become. 2 Rupert Murdoch, chairman of News Corporation (which owns the Fox
network, and many newspapers and satellite TV businesses), built his company
around a vision of an integrated, global satellite-based news-gathering,
entertainment, and multimedia firm.
■ Whereas vision statements usually describe in broad terms what the business
should be, the company s mission statement summarizes what the company s main
tasks are now. Several years ago, Ford adapted what was for several years a
powerful mission for them making Quality Job One.
STEP 4: TRANSLATE THE MISSION INTO
STRATEGIC GOALS
■ Next, translate the mission into strategic objectives. The company and its managers
need strategic goals. At Ford, for example, what exactly did making Quality Job One
mean for each department in terms of how they would boost quality? The answer is
that its managers had to meet strict goals such as no more than 1 initial defect per
10,000 cars.
STEP 5: FORMULATE STRATEGIES TO
ACHIEVE THE STRATEGIC GOALS
■ Next, the manager chooses strategies courses of action that will enable the
company to achieve its strategic goals. For example, what strategies could Ford
pursue to hit its goal of no more than 1 initial defect per 10,000 cars? Perhaps open
two new high-tech plants, reduce the number of car lines to better focus on just a
few, and put in place new more rigorous employee selection, training, and
performance appraisal procedures.
STEP 6: IMPLEMENT THE STRATEGIES
■ Strategy execution means translating the strategies into action. The company’s
managers do this by actually hiring (or firing) people, building (or closing) plants, and
adding (or eliminating) products and product lines.
STEP 7: EVALUATE PERFORMANCE
■ Things don t always turn out as planned. For example, Ford bought Jaguar and Land
Rover as a way to reduce reliance on lower-profit cars. With auto competition brutal,
Ford announced in 2009 it was selling Jaguar and Land Rover (to Tata, a company in
India). Ford wants to focus its scarce resources on modernizing and turning around
its North American operations. Like all companies, Ford continually needs to assess
its strategic decisions.
Strategic HRD enables
■ the organization to respond to challenges and opportunities through the
identification and delivery of HRD interventions;
■ individuals, supervisors, line managers and top managers to be informed of their
roles and participate in HRD delivery;
■ management to have operational guidelines which explain the reasons for
investment in HRD;
■ information to be disseminated which explains the training, education, development
and learning opportunities available for employees;
■ a policy statement to explicitly describe the relationship between the objectives of
the organization and the HRD function
4 Components of Strategic Human
Resource Management
■ it focuses on an organization’s human resources (people) as the primary source of
competitive advantage of the organization.
■ The activities highlight the HR programs, policies, and practices as the means
through which the people of the organization can be deployed to gain competitive
advantage.
■ The pattern and plan imply that there is a fit between HR strategy and the
organization’s business strategy (vertical fit) and between all of the HR activities
(horizontal fit).
■ The people, practices, and planned patterns are all purposeful, that is, directed
towards the achievement of the goals of the organization.
Cont…
■ a positive public relations awareness for new and potential employees to know that
skills deficiencies will be provided for;
■ the continuous assessment of learning and development opportunities for its
employees and thereby enabling them to advance their careers and support
organizational growth;
■ clearly specified objectives and targets that enable the HRD function to be
evaluated against strategic requirements;
■ policies which relate the HRD function to the other operating functions;
■ training, education, development and learning opportunities to have a coordinated
role within a systematic process.
Principles of SHRM
Price (1997) mentioned ten principles of SHRM, which he claimed are measurable in
some way and can be used for ’benchmarking’. These are given below:
■ Principle of Comprehensiveness: HRM should be closely matched to business
objectives.
■ Principle of Coherence: Allocation and activities of HR integrated into a meaningful
whole.
■ Principle of Control: Effective organizations require a control system for cohesion
and direction.
■ Principle of Communication: Strategies understood and accepted by all employees,
open culture with no barriers.
Cont…
■ Principle of Credibility: Staffs trust top management and believe in their strategies.
■ Principle of Commitment: Employees motivated to achieve organizational goals.
■ Principle of Change: Continuous improvement and development essential for
survival.
■ Principle of Competence: Organizations competent in achieving their objectives-
dependent on individual competence.
■ Principle of Creativity: Competitive advantage comes from unique strategies.
■ Principle of Cost-effectiveness: Competitive, fair reward and promotion systems.
Essential Elements of SHRM
■ Transforming HR Staff
There exists a significant difference in the skills needed by HR staff in the traditional
and strategic orientations to HRM. In traditional HRM staff had to be specialized in
certain functional areas like interviewing, recruitment and training.
The strategic HRM role played by HR professionals is “change management”, involving
strategic planning, team building and having a global perspective.
Most HR units will face a significant transformation to manage human resources with a
new strategic view.
Cont…
■ Transforming the Organizational Structure
In transforming the HR structure from traditional to SHRM, it is common for the
organizational unit to restructure.
The major issue in designing a new strategic HRM unit is to determine whether to
centralize or decentralize HR function. The relevant structure for the HR function
depends on the nature of the firm’s business, the size of the firm and the firm’s overall
business strategy.
In some organizations, a centralized structure for the HR unit would be appropriate and
in some highly decentralized HRM may be necessary.
Regardless of which particular structure has used the key element in the successful
transformation from traditional HR function to SHRM is to find a structure that meets
the pressing needs of business strategy and allows the HR unit to provide services
designed to help the firm achieve strategic objectives.
Cont…
■ Identifying and analyzing external opportunities and threats that may be crucial to the company's
success.
■ Provides a clear business strategy and vision for the future.
■ To supply competitive intelligence that may be useful in the strategic planning process.
■ To recruit, retain and motivate people.
■ To develop and retain of highly competent people.
■ To ensure that people development issues are addressed systematically.
■ To supply information regarding the company's internal strengths and weaknesses.
■ To meet the expectations of the customers effectively.
■ To ensure high productivity.
■ To ensure business surplus thorough competency
Barriers of SHRM
■ Inducing the vision and mission of the change effort.
■ High resistance due to lack of cooperation from the bottom line.
■ Interdepartmental conflict.
■ The commitment of the entire senior management team.
■ Plans that integrate internal resource with external requirements.
■ Limited time, money and the resources.
■ The statusquo approach of employees.
■ Fear of incompetency of senior level managers to take up strategic steps.
■ Diverse work-force with competitive skill sets.
Cont…