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Human Resource development strategies

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					Strategic Human Resource
       Development
                           Outline
• Strategic HRD
   – Context, models, and definition
• Applications
   – Human Capital Formation, Organizational Learning,
     and Implications for Life-long Learning Policies
• Case Examples
                The “New” HRD
•   Employees as org. assets
•   Driving business strategy
•   Spanning organizational functions
•   HRD Deliverables:
    –   Performance
    –   Capacity Building
    –   Problem solving/consulting
    –   Org. change and development
                The “New” HRD
•   Employees as org. assets
•   Driving business strategy
•   Spanning organizational functions
•   HRD Deliverables:
    –   Performance
    –   Capacity Building
    –   Problem solving/consulting
    –   Org. change and development
             Strategic HRD
• Integration of HRD with strategy formulation and
  implementation
• Long-term view of HR policy
• Horizontal integration among HR functions
• Vertical integration with corporate strategy
• SHR as core competitive advantage
                    Firm Capitals
• Human Capital
   – Knowledge, skills, abilities of individuals
• Social Capital
   – Relationships in social networks
      • Structural, cognitive, relational dimensions
• Intellectual capital
   – Knowledge and knowing capability of social
     collectivities
      • Procedural/declarative; tacit/explicit; individual/social
• Value and Uniqueness of capitals
 Multiple Roles for HR (Ulrich,
             1997)

               Future/Strategic Focus

            Mgmt of SHR        Mgmt of Trans-
                               Formation/Change
Processes                                   People
             Mgmt of Firm     Mgmt of Employee
             Infrastructure   Contributions

             Day-to-day/Operational Focus
                   Definition of HR Roles

    Role/Cell        Deliverable/       Metaphor          Core Activity
                      Outcome

Mgmt of SHR       Executing corp.   Strategic Partner   Aligning HR and
                  strategy                              bus. Strategy

Mgmt of Firm      Building an       Administrative      Reengineering org.
Infrastructure    efficient         Expert              Processes
                  infrastructure

Mgmt of           Increasing        Employee            Providing
Employee          employee          Champion            resources to
Contributions     commitment and                        employees
                  capability

Mgmt of           Organizational    Change Agent        Managing
Transformation/Ch renewal                               transformation and
ange                                                    change,
        Universal/Best Practice Models


• TQM
   – Corporate culture, communications, voice/involvement, job design,
     training, performance measurement/evaluation, rewards,
     health/safety, selection/promotion, career development
• Peters and Waterman “In search of excellence”
   – Org. culture, leadership, customer focus, core competency
• High involvement management (Lawler)
   – Developing skills and knowledge, pay for performance, investment
     in HR, flexible operations, self-designing work systems,
     autonomous work-teams
            Universal HR Models
• Pfeffer (1998)
   –   Employment security
   –   Selective hiring
   –   Self-managed teams/decentralization of decision-making
   –   Comparatively high pay linked to firm performance
   –   Extensive training
   –   Reduction of status differentials
   –   Shared information
• Quality Awards (M. Baldrige, State Awards, etc.)
   – HR Focus (work systems, education/training, well-being and
     satisfaction)
                             Human Capital Architecture

                            Uniqueness of HC: High

                    Quadrant 4:                Quadrant 1:
                    Empl’t Mode: Alliance      Empl’t Mode: Internal development




                                                                                   HC Value: High
HC Value: Low




                    Empl’t Rel.: Partnership   Empl’t Rel.: Organization focused
                    HR Configuration:          HR Configuration: Commitment
                    Collaborative

                Quadrant 3:                      Quadrant 2:
                Empl’t Mode: Contracting         Empl’t Mode: Acquisition
                Empl’t Rel.: Transactional       Empl’t Rel.: Symbiotic
                HR Configuration: Compliance     HR Configuration: Market-based


                             Uniqueness of HC: Low
                       Architecture of Intellectual Capital

                            Uniqueness of IC: High

                    Idiosyncratic        Core Knowledge
                    Knowledge




                                                                  IC Value: High
IC Value: Low




                Ancillary Knowledge        Compulsory Knowledge




                             Uniqueness of IC: Low
Contingent HRD (Kuchinke, 2004)
• Propositions
  – HRD Structure and Staffing Industry Specific
  – HRD Investments conservative (System
    Maintenance vs. change)
  – HRD Core Processes Determined based on
    Perceived Utility
       Strategic HRD Roles
• Swanson/Toracco (1995):

• Helping implement strategy
• Helping determine strategy
• Setting strategy
     Human Capital Formation
• Acceleration in changing organizational forms,
  roles, and processes
  – External:
     •   Globalization
     •   Technology
     •   Demography
     •   Competition
  – Internal:
     • Cycle time
     • Product innovation and introduction
     • Process innovation and improvement
• Change as constant; „permanent white water‟ (P.
  Vaill)
• Shortened half-life of knowledge
                    Nature of Work
• Robert Reich: The work of nations (1991)
   – Routine production
   – Personal Service
   – Symbolic Analyst
• Normative and rational models of management (Barley & Kunda,
  1992)
   –   Industrial betterment (1870 - 1900)
   –   Scientific management (- 1923)
   –   Welfare capitalism/human relations (- 1955)
   –   Systems rationalism (- 1980)
   –   Organizational culture (- present)
   –   Correlates with economic expansion/contraction, environmental and
       technical certainty/uncertainty: Kondratieff longwaves)
                   HR Capitals
• Human Capital
   – Individual level store of knowledge, skills, abilities
     (e.g., Becker)
• Social Capital
   – Group level, network characteristics, density,
     centrality, marginality (e.g., Adler and Kwon, 2002)
• Intellectual Capital
   – Firm-level, formal (e.g., patents), informal (e.g.,
     process knowledge (e.g., Nahapiet & Ghoshal, 1999)
     Organizational Learning
• Information processing perspective
  – Environmental scanning, information
    acquisition, interpretation (Daft and Weick,
    1984)
  – Information acquisition, storage,
    dissemination, interpretation (Huber, 1991)
  – Tacit -- explicit knowledge (Polyani, 1967)
  – Org. Knowledge creation spiral (Nonaka,
    1995)
           Learning Organization
• Senge (1991)
   –   Systems thinking
   –   Personal mastery
   –   Mental models
   –   Building shared vision
   –   Team learning
• Marsick and Watkins (1998)
   –   Continuous learning at individual, group, and system levels
   –   Knowledge generation, sharing, and evaluation
   –   Systems thinking capacity
   –   Employee participation and accountability
   –   Supportive culture and structure
      Human Capital Formation
• Firm-level
  –   Corporate classrooms (Eurich, 1984)
  –   US: $65 b/2006 direct cost, $220b total
  –   45% of firms provide formal training
  –   90+ hours per year
  –   External training
  –   Corporate universities
  –   Non-US examples
  –   Informal training, on-the-job training, action learning
  OECD Human Capital Research
• OECD (1999)
  – Formal education,
  – Non-formal/enterprise-based training and labor
    market initiatives
  – Experiential learning
  – Learning in informal environments
• HC Measurement:
  – Educational attainment, i. e.: years of schooling etc.
  – Adult skills (i.e.: reading, math)
  OECD Human Capital Research
• Measures of investment
   – Expenditures on education and training
   – Time investment
• Returns on investment
   –   Employment patterns
   –   Earnings
   –   Firm-level outcomes
   –   National level outcomes
   –   Social benefits
   –   Health outcomes
   –   Crime, teen pregnancy
  OECD Human Capital Research
• Policy issues
  –   Adequate levels of HC investment
  –   Appropriate sharing of investment costs
  –   Optimal allocation of scarce resources
  –   Equitable distribution of investments
  –   Monitoring, measuring, and accounting
       Firm-level HC formation
•   Accountability and measurement
•   Business/education partnerships
•   Life-long learning
•   Burden-sharing
•   Technology and innovative learning
    strategies
   Johnson Diversey Case
Current vs. Future State of HR
   Strategic Partner        Change Agent



           35
                                20




                                25
          40



   Administrative Expert   Employee Advocate
Current vs. Future State of HR
    Strategic Partner        Change Agent



            35
                                 20




                                 25
           40



    Administrative Expert   Employee Advocate
 OD Responsibility

    Level & Process Owner


  Global - OD Team


Regional - Head HRBP


Client - HRBP Manager
    Organization Development
     Roles & Responsibilities
• The OD COE has a dual responsibility
  o Global implementation of strategic interventions
        Cultural assessment and alignment
        Performance Management
        Succession Planning
        Leadership Bench strength
  o Support to HRBPs on regional and client
    interventions
      Process improvement tools
      Intervention design
      Knowledge transfer of OD skills
 Global OD Model

            Leadership Team

Business                       Measures
Strategy                           Of
                              Effectiveness


               HR/OD

                              Emerging
Solutions
                               Needs/
                              Feedback

      HR Business Partners
           Global OD Services
• Program Management of global initiatives -
  –   Core Employee Development
  –   ES&D
  –   Performance Management
  –   Leadership Development
  –   Consultation with senior leaders regarding -
  –   Customized interventions
  –   Assessment tools
• Services contracted with HRBPs (based on
  the capacity of the OD COE) -
  – Regional OD intervention design
          HRD in Practice
3M Company: Industrial Markets Initiative
  (IMI)
• 3M: 75,000 employees in 60 countries
• Sales: US$ 15 Billion, 303rd on Fortune
  500 list
• IMI: Cross-Business Cooperative
  Strategic Effort with 6 divisions
  – Gap Analysis
          HRD in Practice
East Central Minnesota Human Resource
  Development Partnership
• 5 family-owned businesses/rural MN
• Total workforce: 300, range 12 - 123
• Pine Technical College
• WorkKeys assessment and training
  – Problems Solving; Interpersonal Skills,
    Communication Skills
         HRD in Practice
Lucent Technologies
• Global Fortune 50 Telecommunication
  Co, 140,000 employees, US$28 Billion
  Revenue
• Leadership and Culture Audit for 2 US
  and 1 German production sites
          HRD in Practice
Parkland College, Champaign, Illinois
• Publicly funded community college in
  East Central IL
• 17,000 Annual Students, 50% in
  Occupational programs
• Business Training Center
• Workforce Preparation Center
                    HRD in Practice
HRD responds to
• Global Challenge
• Quality Challenge
• Social Challenge
• High Performance Work Systems
  Challenge
Source: R. A. Noe (1999): Employee Training and Development
          HRD Definitions
HRD is…
“the integrated use of training and
  development, organization development,
  and career development to improve
  individual, group, and organizational
  effectiveness.” (McLagan, 1989)
         HRD Definitions
HRD is…
“a process of developing and/or
  unleashing human expertise through
  organization development and
  personnel training and development for
  the purpose of improving performance.”
  (Swanson, 1995)
                 HRD Careers
• Classic Roles (McLagan, 1996)
  –   HR Strategic Advisor
  –   HR systems designer
  –   Org. Change Consultant
  –   Org. Design Consultant
  –   Learning Program Specialist
  –   Instructor/Facilitator
  –   Individual development and career consultant
  –   Performance Consultant
  –   Researcher
   Roles and Job Titles in HRD
• Advertised as
  –   Instructional designer
  –   Trainer
  –   Training and development specialist
  –   HR specialist
  –   Learning systems architect
  –   Chief learning officer
  –   Education specialist
  –   …..
Example: HRD Consulting Firm
• Process Mgmt International
   – Focus: Quality Management, ISO 9000, Org. Change
   – Products: Seminars, consulting, assessments, books
   – Size: 50 employees
      • Instructional Design (5), Trainers (10), Consultants (25), Admin (10)
   – Strategic Alliances in Europe
   – Revenue (2005): $5,000,000
   – Clients: Chevron, IRS, Zytec, Medtech, Graton Beverages
          HRD in Practice
East Central Minnesota Human Resource
  Development Partnership
• 5 family-owned businesses/rural MN
• Total workforce: 300, range 12 - 123
• Pine Technical College
• WorkKeys assessment and training
  – Problems Solving; Interpersonal Skills,
    Communication Skills
         HRD in Practice
Lucent Technologies
• Global Fortune 50 Telecommunication
  Co, 140,000 employees, US$28 Billion
  Revenue
• Leadership and Culture Audit for 2 US
  and 1 German production sites
          HRD in Practice
Parkland College, Champaign, Illinois
• Publicly funded community college in
  East Central IL
• 17,000 Annual Students, 50% in
  Occupational programs
• Business Training Center
• Workforce Preparation Center
        Example: Multinational Corporation

• Abbott Laboratories
• 60,000+ employees in 120 countries
• Five divisions
• Corporate and division level HRD
• Director of Training and Organizational Development, Ph.D. HRD
• Staff of 15 (instructional designers, trainers, OD consultants)
• Performance Management, Leadership Development, Quality
  Management, Expatriate Training, New employee orientation,
  regulatory/mandated training
• Diversity Initiatives
• Clients: Everybody!
• Divisional and corporate roles (committees, councils, strategic
  planning)
          HRD in Practice
3M Company: Industrial Markets Initiative
  (IMI)
• 3M: 75,000 employees in 60 countries
• Sales: US$ 15 Billion, 303rd on Fortune
  500 list
• IMI: Cross-Business Cooperative
  Strategic Effort with 6 divisions
  – Gap Analysis
                   Careers in HRD
• Faster than average growth (DOL) through 2014
  www.bls.gov/oco/ocos021.htm
• Over 800,000 people employed in HR/HRD jobs (2005)
• About 600,000 people engaged in learning activities, organizational
  HRD
• Trends:
   –   Better preparation of HRD professionals
   –   Focus on Strategic HR
   –   Technology, International, Diversity
   –   Broader career options and career paths
   –   Competition for good jobs
   –   Strong employment opportunities outside of US
    Trends in Professional HRD Work
• Higher Visibility
• Higher Accountability
• Greater Cross-Functional Involvement
• Higher Performance Demands
• Multiple Projects
• Greater need for comprehensive business
  knowledge
• Need for solid research and theory know-how