Strategic HR Development

Transcription

1 Strategic HR Development Lecture slides for Chapter 10 Strategic HRM: Pulak Das 1

2 Objectives Objectives of this lecture are to understand the difference between a conventional HR development and a strategic HR development and how a strategic Hr development could be embedded in a development process consisting of choice of employee, setting of development goal, use of developmental infrastructure and administration of a developmental programme. Strategic HRM: Pulak Das 2

3 Sources of competitive advantage Heterogeneity in organizational competencies across organizations; This can be built through Strategic acquisition of critical employee resources that others cannot do; Development of additional competencies through a process that is unique to one s own organization; By linking developmental activities with HR outcomes in other areas of HR functions. This linkage process could be unique to one s own. Strategic HRM: Pulak Das 3

4 Macro Plan for Strategic Development Labor market competition Regulation Business policy Organization HR Strategy Social forces Technology Of employment contract Internal HR Environment Strategic HRM: Pulak Das 4

5 HR strategy and Macro developmental plan Developing competency of select group of employees: Example: In 1990 s Govt. went for managerial training of middle level scientists in many national laboratories because there was the feeling that lack of business knowledge was affecting their interaction with industry and consequent development of technology from research outputs. Increasing organizational stock of human capital Example: Many companies while going for increasing outsourcing may implement ERP system for managing their supply chain. This may require major training of all officers even though all of them may not use the ERP system Setting guideline for Creating HR based competitive advantage: This is done by linking actions in various areas of HR. Structure, recruitment, performance management, reward and compensation system, work system. Strategic HRM: Pulak Das 5

6 Imbedding HR development plan within HR system Recruitment plan Developmental plan Structure Performance management Compensation Work system Strategic HRM: Pulak Das 6

7 Vignette 1: Unrelated Diversification in Banking Industry In the seventies and eighties many nationalized banks went for creating a separate staff training department. They were expanding in new areas and acquiring manpower at a first pace. In the nineties the same banks tried to turn their staff training centre into a full fledged management institute. Example: Union Bank of India, Canara bank. Why? In mid-eighties and early nineties many banks went for manpower reduction through VRS. As a result, their manpower demography became very skewed. They were trying to acquire skilled manpower from open market but were quite worried that they may not get adequate number of officers with prior exposure in new areas e.g. technology, computerization and new way of doing banking. Strategic HRM: Pulak Das 7

8 HR developmental process The factors that contribute to development; Employees; Choice of developmental goal; Developmental infrastructure or tools; Programme administration Strategic HRM: Pulak Das 8

9 Choice of employee for This can be done development By knowing employee career goals; By knowing employee current job profile and performance; By knowing future requirements of the organizations. Strategic HRM: Pulak Das 9

10 Contents of a Developmental Plan Technical expertise or functional skill: How jobs in different functional areas are executed; Relational skill or human skill: Recognizing importance of human element in working in an organization Team orientation: Sharing role, responsibility and credit with others; Leadership skill: diagnostic, problem solving, and administrative skills, Interpersonal empathy and influence, general management skill, network building capability, personal integrity, self-motivation, stress tolerance. Innovativeness: Ability to recognize commercial potential of new idea and willingness to take the risk of going for it. Flexible career goal: Willingness to accept any job irrespective of its technical or managerial complexities and risks. Organizational value: With new strategy the value system may change. This may require extensive developmental programme to educate key managers on new value. Example: Bank nationalization and new value of the banking industries. Human Resource Expertise: Right HR system is essential for HR based competitive advantage. But this cannot happen if the managers show no interest in learning the basics of HR system Strategic HRM: Pulak Das 10

11 Developmental Tools or infrastructure Job Types; Learning methods; Organizational actions; Developer or mentor; Off the job developmental resources. Strategic HRM: Pulak Das 11

12 Tools of Development: Job Types Identify jobs and positions to be used for development; Positions that deals mainly with machines and objects; Positions that deals with other human beings; Positions that deals with information. Strategic HRM: Pulak Das 12

13 Tools for Development: Learning methods Cognitive tools or Learning through acquisition of knowledge: Technical education, Reading books, job manual, Orientation training, Company career information Behavioral tools or Learning through action: On job training, apprentice, Role playing, behavioral modeling, Socialization, Career counseling. Environmental tools or learning by meeting demand from others: Job Challenge, job feedback, job autonomy, peer interaction, Team building, task force, project team, Matrix management, quality circle; Strategic HRM: Pulak Das 13

14 Tools of Development: Organizational action Job assignment in right sequence: Job Rotation Departmental transfer from structured to unstructured areas; Team assignment in right sequence: Stage based assignment Stage-1: Passive learning from observation of others actions Stage 2: Active learning through group based actions Stage-3: Active learning through self-action Strategic HRM: Pulak Das 14

15 Sequences of job rotation From structured to unstructured: Structured functions: Accounting, finance, production and operation, systems, material and stores management; Unstructured functions: Human resource management, general administration, communication, strategy, customer relations, marketing, purchase, contract management. Technology management, quality management Strategic HRM: Pulak Das 15

16 Tools of Development: Developer or mentor Identify the managers who have been very successful in developing others. Based on career of managers in the past you may be able to spot such managers. Strategic HRM: Pulak Das 16

17 Tools of Development: Using Off the job resources Off the job learning opportunities could work as a complementary factor in employee learning. Two sources of learning: Learning through analysis: Problem transfer from work place to learning place. Building models to facilitate analysis; Learning through synthesis: Acquiring generalized concepts built from the experience of others; Strategic HRM: Pulak Das 17

18 Maximizing benefits of Off the job learning Use multiple learners with similar work backgrounds: A shared learning provide scope for enhancement. Use post learning work to consolidate learning benefits: Without practice off the job acquired information may not register. Follow active learning pedagogy: Bring action during learning. Combine learning with career planning and preferences of learners: Without right alignment between career goals of the learners and the goals of the programme there may not be any learning Strategic HRM: Pulak Das 18

19 Limitation of Internal hr Development Strategy Limitation due to major change in external environment of an industry: A declining industry will have great difficulty to motivating their employees to acquire new expertise. Limitation due to organizational size: Small organization cannot have the required job variety for hr development; Limitation due to organizational life cycle: An organization in its declining stage of life cycle may have limited resources for development; Limitation due to national culture: High power distance oriented culture place heavy limitation on internal career development. Strategic HRM: Pulak Das 19

20 Overcoming limitation: Stretching the boundary Strategic alliance with academic and training institutes for creating proprietary human capital; Daimler Chrysler alliance with Pune Polytechnique; Strategic alliance with other company for overcoming market size limitations; Wipro alliance with Nissan, Loreal, Schneider Electric and Alcan for management dev. program Internal process change to minimize cultural effects: Use positional power only in inter-organizational negotiation and less in internal transactions. Strategic HRM: Pulak Das 20

21 Programme administration Learning stage: New knowledge is acquired either through action or through a formal learning programme. Action stage: A learner should get an opportunity to act according to new learning. Measurement stage: Gain from the programme should be assed. Performance, attitude, adaptability, satisfaction; Feedback stage for reinforcement: Feedback both to the learners as well as to the trainers to be given. Strategic HRM: Pulak Das 21

22 Key Learning Strategic development of human resource requires long term oriented plan; Human resource could be developed using three kinds of tools viz. cognitive, behavioral and environmental. Strategic hr development is more effective when other hr functions are considered simultaneously. While planning for internal development of hr one must factor certain limitation posed by organizational size, company life cycle, industry choice and national cultural orientation and its effects on employee career plan. Strategic HRM: Pulak Das 22