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 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 Demand Organisational Strategy Environmental Context HR/HC Plan 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: (accessed 14 April 2011). – CIPD (2010). Strategic human resource management factsheet. London CIPD

Topic 2 – Strategic HRD Any Questions?