Employees and organizations will experience inevitable change. Human resource development (HRD) enhances employee competence in their jobs by increasing knowledge, abilities, and skills. Pro-active career management and self-reliance will be the key to success in the 21st century. In this environment, the employee will be primarily responsible for career development but the company will also have responsibilities that include clearly stating the company's corporate strategy and providing information about its business.
The business strategy must be linked with the human resource strategy. It is essential to consider the differing characteristics of people when setting a plan for an organization to follow. The stage of development - embryonic, high-growth, mature, or aging - that the company is in will determine the HRD goals.
Companies that are just starting out are interested in strong managers. The next stage is characterized by high growth. While vying for a place for their product in the market, they are also spending a lot of time developing their intellectual capital, i.e., their people. When at the mature stage, companies begin to put more limits on employee actions. Good managers at this stage can assemble employees to be able to perform tasks in the best way possible. Companies that are aging will be very concerned with economic survival and will need a staff that can revitalize it.
Organizational culture will be strongest when the company is at the mature stage. "Culture is the pattern of basic assumptions a given group has... developed in learning to adapt to both its external environment and its internal environment." Corporate commitment must exist for establishing and clearly communicating organizational culture. Managers who have well-developed human resource skills will recognize the value in a strong culture. They will be better suited and committed to aiding their staff in personal career development. There can be varying cultures across organizations. People who choose jobs that are in line with their own values and culture are likely to be more productive and well suited to work together. Successful human resource managers must tie human resources to business strategy goals.
HRD can assist managers in adopting strategic thinking and can facilitate the implementation of business strategies. The role of human resource staff is changing all the time. Their responsibility in the future is to staff projects with people committed to fulfilling business strategy. Human resource functions such as compensation, benefits and recruiting can be out-sourced. The judgment, knowledge, and foresight needed to staff effectively and efficiently will be the most important role of the human resource manager.
Developing the skills of this carefully chosen staff is essential to achieving business strategy. Continual education for employees is one of the most vital organizational strategic goals. When the right people are hired and their skills are developed on an on-going basis, the human resource manager is insuring the staffing needs for future projects and goals. It only makes sense to keep good quality people and develop their skills to be exactly what you need. Their ability to adapt and change for newer projects will be a reflection of the development preparation that they have received.
Employees need to have good people skills in every organization. This certainly helps them to relate to customers. It also aids the organization by having a staff that can work well together. The development of human-relation skills can help to improve communication, which decreases conflict in the long-run.
Better understanding and effective communication abilities will no doubt increase productivity amongst staff. This creates a more positive work environment that motivates employees. Human-relation skill development means improved performance, which is a main business strategy goal.
Part of development includes realizing the skills and abilities that employees already have. Even the most well trained employees will perform poorly if they are not assessed properly. Reinforcing previously covered information, teaching new concepts, and introducing new ideas are development aspects that must be measured and assessed. Employees need to know what is expected of them. Acceptable performance can only be known if the employees are assessed and if the assessment information is communicated to them. Then, the measurement of what people have learned after training will be more accurate. Feedback from managers to subordinates and vice versa is essential to the development function.
Research conducted over the past 70 years indicates tests to evaluate intellectual ability, the ability to draw conclusions from verbal or numerical information, and an individual's interests can help in selecting successful managers. An employee needs to be assessed for readiness to accept management responsibilities. Assessment centers can focus on business simulations as well as formal assessments. These programs allow the employee to develop his/her skills in a structured and focused process. This kind of development encourages promotion and increases job satisfaction. Weaknesses are identified and the employee is empowered to tailor development to fit his or her future career plans.
These centers use multiple assessment techniques, such as situational tests, tests of mental abilities, and interest inventories. They also use standardized methods to make inferences from these techniques as well as pooled judgments from multiple assessors to rate each candidate's behavior. The assessment center prediction doesn't help very much if you are only trying to predict performance in management such as the clarification and evaluation of the promotion system in an organization. They are, however, helpful in capturing the promotion policy of the organization.
Both job and person analyses need to be included in assessment of the trainee.
Personality, motivation and the actual task can affect self-efficacy. This trait plays a big part in eventual performance on the job. Development aimed at improving skills should increase self-efficacy.
It is important to remember that no one predictor of performance is perfectly valid and some mistakes in selection are inevitable. Conscious selection of managers and lower-level employees based on their fit with demonstrated job requirements, the strategic direction of a business, and organizational culture will minimize mistakes and enable you to make optimum choices.
Post development evaluation criteria and processes are essential. People-management and management of change issues are the key future training and development needs for both multinational and indigenous organizations. Garavan, Heraty, and Morley discuss the differing interest groups' perceptions on evaluation of HRD programs. Senior and line managers use quantitative measures such as optimal utilization of human resources, increased productivity and enhanced employee flexibility to evaluate HRD success. HRD specialists and individual learners place more emphasis on qualitative criteria such as the number of training days, how many and who participated, and improved performance and career options. Individual learners were primarily concerned about their enhanced employability resulting from certification, the range of competencies developed and the financial investment in their training.
By retaining employees, the value of their development increases. They will increase productivity and contribute to the over-all success of the organization. Their expanded knowledge makes them valuable assets for the company. Over time, this added value will more than cover the costs of their development.
This reflects a pay-back model with an emphasis on quantitative and tangible results. However, senior managers, education providers, and HR and HRD specialists believe in the pay-forward model, i.e., results should accrue in the longer term primarily as cultural change and increased incorporation of corporate goals by individual employees. The pay-forward model "… is more in tune with the contribution…" HRD specialists believe they can make.
The responsibility for managing new technological advances has fallen on the human resource manager. Proper development of technical skills from understanding how to use a computer to interfacing with networks is increasingly difficult. If technical goals and strategies are expanded, the job of developing employees will be more focused.
Technological changes will alter the face of communication and also the way in which employees learn. People should be encouraged to develop their abilities individually especially with the ease of delivery of information through the Internet. Sharing knowledge, exchanging resources and learning can be improved within an organization. Interactive forums and tutorials allow learning to be done from even the most remote area. Real-time conferencing allows employees to be students in virtual classrooms.
All levels of business functions need technological development. HRD should focus on competent trainers. These will be the people with initial responsibility for working on technical skills. Then, as programs are further developed, people will welcome the technological change as it works its way into the organizational culture. For example, if the accounting department is up and running with new systems, why isn't the administrative level? Employees will welcome chances to develop their technical skills to keep the internal competitive climate more equal.
Changes in organizational structure will enable management to develop technical skills. They should allow an organization to restructure by enabling employees to learn, make contacts, and develop more efficiently. This can be done with effective strategic goals that allow development to take place. An example would be to have development designed internally, but the actual training would be out-sourced.
Electronic performance support systems (EPSS) are the latest wave in the training and development arena. These systems use computers to gain access to information, save it, and distribute it throughout an organization. This helps development because employees can gain a lot of information in a short period of time on an individual and basis staff support is minimal. HRD managers must know this system and how it relates to the work procedures of the organization.
Preparation for technology is the key. Seeking out instruction from people with technological backgrounds is a first step. Check out on-line tutorials with commercial services. Seminars, conferences and training programs are the best places to get the most up to date technological development information for yourself as well as for subordinates. Many academic programs offer technological expertise. Books, magazines, and journals on technology are readily available. They also give information about the Internet, EPSS and other on-line services. There are thousands of on-line sites that deal directly with technology and its impact on human resource development.
HRD needs to consider the multiple interests, expectations and perceptions of HRD constituents. These "actors" include senior/top managers, HRD managers/specialists, line managers, trade union representatives, professional HRD consultants, individual learners/employees, national training agencies, external training providers, and educational establishments. Each constituent has a varying degree of power and/or influence. See Table 1 for a listing of HRD issues/philosophies supported by each constituent.
It is important for the organization to carefully select the highest-caliber managers and lower-level employees who will profit from development programs because innovative and motivated performers don't evolve from marginal performers. Every employee has the right to feel valued and needs career development rewards. A promotion is an obvious motivator. However, career development is not that simple. Managers need to foster the skills and abilities of people. By helping employees to develop their skills, they risk losing the employee to an advanced position in another organization. Nonetheless, the manager must contribute to career development to establish loyalty. It is ironic, but the most loyal employees in an organization are the ones most likely to leave and pursue other employment options if not properly rewarded.
People go through many changes in life. Marriage, children, divorce, relocation, and aging are examples. Personal backgrounds and experiences will shape the way in which development can occur. Managers need to focus on the development tasks that employees have to handle in the early, middle, and late stages of their careers. There are specific groups that need special emphasis on development.
Companies wanting to have a competitive edge in the workforce area also want to establish development programs for women and minorities. The number of women and minorities in the workforce is increasing rapidly and they will continue to be promoted into top positions, start their own businesses and be prominent leaders in the business community. Organizations will be wise to acquire women and minorities who will commit themselves to strategic positions.
The value of human resources must be maximized. What better way to boost value than to invest in HRD skills? By recruiting more women and minorities, organizations are leveling the playing field that has been dominated by white men. Developing their skills and abilities will help the organization to outplay the competition.
Mentoring can lead to development, growth, and learning. It can also maximize our natural capacity to form attachments. Specialized leadership programs are an excellent mentoring tool that can be utilized. By following examples, women and minorities can develop strong leadership styles, confidence, and boost self-esteem. Communication skills can be improved so that innovative ideas can be seen as more effective when delivered in the right way.
Women and minorities will network in the business world through leadership programs. The more open the development of their skills, the more willing women and minorities will be to speak freely. Good ideas will not be lost and the organization is sure to gain. This networking is an opportunity for self-advancement and promotion beyond the scope of their job.
Keep in mind that good leadership skills are not gender specific. Women and minorities need to be able to handle all kinds of business people. The opportunities for open and desirable work places need to be there for all employees. In this way, the development of women and minorities will encourage them to advance to leadership positions.
Career transitions sweeping the world generate macroeconomic developments that emphasize cross-cultural and cross-national differences which will impact how people are managed and developed. Improved understanding may also come with diversity training. The increase of minorities and women in the workforce can shape organizational practices and create cultural differences amongst staff. A workforce of minorities and women will be better able to work and to feel that they belong when the employees are trained in diversity awareness issues.
The work force is aging. People are healthier and living longer. They face reduced retirement funds and must continue to work. Managers can capitalize on the knowledge and experience that older workers have. Older workers have the potential to learn and be devoted to developing their work skills.
Age and performance have been shown to be unrelated. Therefore, aging and the loss of ability to function that accompanies it are not factors with older workers. Aging only affects performance when it is linked to the stability and growth of the individual.
Older workers can enhance communication in an organization. This is because they can act as mentors or responsible examples. To attract this kind of worker, managers need to make jobs, benefits and development opportunities better than the option of retirement. By retaining would-be retirees as consultants or in full- or part-time positions, companies are eliminating the need to find replacements for people who already know and are committed to their jobs.
Employers need to identify necessary work skills and to hire and train young people. This kind of development sets the foundation for the workforce in a positive way. Paradoxically, the United States has both the highest levels of degree achievement and the highest levels of educational underachievement. Local governments, business associations, and employers need to aid in education expansion, training, and employment opportunities for young people who are given needed opportunities for jobs. Adult mentors can build confidence as well as help youth take responsibility for their behavior. They can help the student learn technical skills and develop realistic goals and expectations. Eventually employers will get mature and responsible adults to work in their organizations.
Schools, communities, parents, employers and youth should create partnerships for the assessment and planning of resources. The assessment would help to plan the actions for providing for the needs of young workers. Planning reasonable part-time work schedules, providing education, and assisting in various physical and learning disabilities are examples of how these needs can be met.
With contingent workers, it is important to remember budget limitations. Training the contingent worker is often necessary so that they are able to improve their performance and to produce the best results. Contingent workers are hired to complete specific tasks. It might be assumed that they already have the exact skills that you are looking for to get the job done in the best way. Otherwise, you would have trained a permanent employee to do the job. If contingent workers will not be a permanent part of an organization, training/development dollars should be committed to existing and/or future permanent workers.
Executive development programs should enhance an executive's leadership abilities in terms of profits and reducing costs. Leadership models help to define actions required by managers. This leadership emphasis is reinforced in the organization through effective and responsible managerial staff.
Senior level executives are a resource that will be targeted by job recruiters and headhunters. If development has been productive and thorough, excluding huge salary raises and sign-on bonuses, the executive will choose to stay. The level of individual interest in employee development should be strong enough to encourage loyalty.
HRD managers spend so much time developing their employees' careers that they overlook their own. They too need to understand that they are responsible for themselves. They can not get too focused on budgeting and time constraints, otherwise they will be overwhelmed and not able to tend to their own career development needs.
These managers need to make strategic decisions for themselves as well as for their organization. They should view themselves as part of the teams, not just the function that supports the team. Senior management wants human resource technicians as well as open thinkers. It is difficult to have both in the same people. A varied mix will help to balance the needs of the managers, their employees and the organization as a whole.
The human resource generalist role is becoming obsolete and HR professionals are now expected to provide support, service, consulting and leadership. Expanding current job descriptions for themselves involves increased responsibility. Risks will have to be taken in order to expose the human resource manager to other areas of an organization. They may find that they are pleased where they are. Or, they may choose to move into an entirely different discipline, say accounting, for the sake of broadening abilities, knowledge, and skills.
Training in the Nineties has become an absolute necessity. Organizations are spending increasing amounts of money to make sure that they have employees that are well qualified. "Training consists of planned programs designed to improve performance at the individual, group, and/or organizational levels."
By centralizing course development and delivery, training efforts can be expanded without increasing cost. This happens when different business cultures are combined into cohesive units that focus on the customer. Training is not a cure for what is broken with a company and its staff.
In order to provide meaningful development opportunities, the material must be appropriate and substantial [Moore]. Also, practice and feedback are essential. Businesses (with government help) need to concentrate on 70% of non-college graduates who enter the U.S. workforce. Also, schools and employers must develop closer ties.
As a result of increased demands for readiness and flexibility and ongoing changes in the business environment, organizations need to shift from static fit to dynamic adjustment by their workforce. They "… need to devote additional attention to non-task-specific competences and their significance for efficiency, competitiveness, and career mobility". These competences include firm-specific, non technology-related tasks. Under the current neoclassical human-capital theory, the development of firm-specific knowledge and skills is paid for by the employer but the development of general competence is financed by the individual, although these skills are transferable across employers. Nordhaug lists six competence categories:
- Meta-competences are predominantly interpersonal and conceptual skills related to people management as well as analytical problem-solving skills. Technical skills are largely ignored.
- General industry competences - are top-level managers able to be shifted from one industry to another with ease or are there industry- and firm-specific conditions like technology, culture and traditions that prevent transferability?
- Intraorganizational competences focus on internal networking capabilities, and knowledge of firm-specific information and culure.
- Standard technical competences include knowledge about processes, techniques, tools, etc., related to the business.
- Technical trade competences are related to knowledge and skills limited to one industry or public sector generated through vocational education, on-the-job training, apprenticeships, etc.
- Idiosyncratic technical competences are the narrow range of knowledge and skills that generate congruence and do not facilitate change within the organization.
Table 1 lists some dominant issues/philosophies on HRD as described by Garavan, Heraty, and Morley. Where the learning needs are individual in focus, HR specialists, senior managers and education providers believe the primary responsibility for financial, motivation and commitment falls on the individual learner. Also, the U.S. has the highest mobility rate, which is sometimes used as an excuse for U.S. employers' not investing in training and development.
Table 1
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Issue/philosophy
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Description
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Espoused by
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Instrumental
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Views HRD in terms of formal courses with a focus on subject matter and plenty of trainers
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HRD specialists, line managers, trade unions and national training advisors
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Existentialist
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Preference for one-on-one learning situations, self-managed learning, facilitation rather than information transfer, and self-evaluation
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Senior managers, individual learners, HRD specialists and education providers
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Interventionism
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The organization has primary responsibility to develop and educate its human resources
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Trade unions, HRD specialists, individual learners, and HRD consultants
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Centralism
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The training and development activity is controlled by central department
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HRD and training consultants
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Decentralization
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Training and development should not be disseminated from a central point
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Line specialists, trade unions, and individual learners
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Traditionalism
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Most important investment in HRD should occur at the beginning, i.e., front-loading, because it assumes low levels of skill obsolescence and low rates of technological development over the career
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Individual learners and trade unions
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Continuous development
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Where learning is ongoing, varied and subject to individual learner priorities
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Management education providers and HRD consultants
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Humanism
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Emphasizes the priorities of the learner and the longer-term contribution to the HRD investment
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Individual learners, trade unions and HRD specialists
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Utilitarianism
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Development should have immediate value to the organization
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Senior managers, line managers and HRD specialists
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Maintenance orientation
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Reinforces the status quo with no change in current practices and values
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Individual learners, trade unions and line specialists
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Change orientation
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Concentrates on individual, team and organizational change that includes facilitation of structural change, innovation, teamwork and improved performance
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HRD specialists, senior managers, HR specialists and education providers
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Structural-functional perspective
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Believe the role of HRD is to repair skill gaps and other deficiencies
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Individual learners, national training advisers and trade-unions
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Mechanistic learning process
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Structured, one-time process aimed at large groups
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Trade unions, individual learners and line managers
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Flexible learning process
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Flexible and focused on the learner
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Senior managers, HRD specialists, and educational HRD providers
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Priority
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Organizational vs. individual learning needs
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Most espoused organizational priority with trade unions and individual learners placing a higher priority on individual needs
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HRD as change-agent and consultant
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HRD is responsible for flexibility and suggesting innovations
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Senior management, HR managers, HRD specialists
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HRD as diagnostic function
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HRD is responsible to identify, coordinate and provide learning activities to cost-effectively repair skill gaps
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Trade unions, external training providers and individual learners
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See Table 2 for some a list of flaws with suggested improvements in the current system for developing managers.
Table 2
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Flaw
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Suggested improvements
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The current process takes too long.
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Hire search firms to identify new board members who can step in as CEO if necessary.
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The current system produces leaders who are too insular and therefore need to rely on their internal authority.
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Broaden the experience of would-be CEOs enough to give them visibility outside the organization.
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Methods tie executives too closely to tradition.
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Focus more on the ability to adapt to change than on a specific skill during development.
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People may be trained in skills they already possess.
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Research the individual's work history and tailor the program to meet his/her specific needs. Pay careful attention to reliability and validity of the knowledge to be imparted.
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The development budget may be wasted on "rest and recuperation" sessions.
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Ensure that the program does not merely entertain and that job skills or job knowledge is imparted.
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The budget may be spent on fancy hardware that meets the training director's needs but not the organization's.
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Specify the kinds of competencies that are necessary and ensure that development goals are clear.
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According to Garavan, Heraty and Morley, ownership and control of HRD activities is subject to actor perceptions, which make it difficult to determine accountability. Line specialist groups feel they should control and that HRD's role is to provide effective service. Individual learners and external training providers prefer shared ownership and collaboration. Trade unions, senior managers and HR specialists believe line specialists and individual learners should own HRD while control is the responsibility of HRD. There has been a shift in responsibility for HRD investment to the individual learner. This probably reflects today's reduced job security and the utilization of development to build commitment and increase the employee's future employment as well as his/her competencies. It is generally believed that it is senior management's role to provide financial and psychological support and demonstrate commitment to investment.
High-flyer programs, i.e., fast-track career-development programs for designated high-potential managers, were common in the 1960s and 1970s in large, bureaucratic and stable organizations. This all changed in the 1980s when companies needed to downsize and did not require as many fast-track trainees. These programs are also used to enhance corporate-image for external recruiting. However, fast-tracking by-passes the talents of the subordinates of program participants causing discontent and jealousy while putting tremendous pressure on the selected few. Larsen, London, Weinstein and Raghuram discuss the human-capital theory (concentrates on the actual competence level of the individual) and the organizational-structure approach (argues that career opportunities are determined by internal activities such as organizational changes, redesigning of jobs, the competition for specific vacancies when they arise, etc.). They believe that high-flyer programs may continue to be of use for large, mature organizations but companies with more project- or network-based organizations may find them disadvantageous. They also suggest that virtual organizations will have short life expectancies due to the nature of the work and will require external career development programs.
Why provide development opportunities?
With effective recruitment selection systems created through the HRD function, organizations are encouraging retention. The philosophy is that recruitment needs to initially select those employees with the rights skills who are likely to have good job performance. Use available screening and selection procedures to determine reliability, job-relatedness, and validity of proposed development programs.
Designing and implementing development activities is a difficult challenge for human resource managers. Employee retention is a measurable part of development practices. Other areas of development such as helping employees to be and feel productive are intangibles. Retention will happen if employees are motivated to perform. Developmental techniques to enhance learning and growth may be the key to this necessary motivation.
Job involvement and organizational commitment are ways to predict job turnover. A lack of development opportunities leads to reduced retention rates. By performing a job well, employees increase their self-confidence and add to their feeling of being needed. This increases their job involvement and their attitude is positive. The commitment on the part of the organization is to help employees meet their basic living needs such as good pay, benefits, and promotions. This leads to an increased commitment to the organization.
Increasing an individual's employability outside the company increases his/her job security. It enhances their desire to be loyal to their current employer who has taken the time to ensure the future of the employee. Development provides learning opportunities for both the employee and the organization. For the employee, it creates an interesting and challenging work environment. For the organization, it gives them the opportunity to provide feedback to the employee about job performance. Keeping people growing and learning is what keeps them interested.
Research indicates that an individual employee's vocational qualifications and the existence of a policy statement, i.e., company buy-in, are the most important factors. Also, the absence of a company policy leads to reduced training and development programs.
A new perspective that promotes HRD as a function that enhances performance, multiple skill development and job advancement rather than simply a mechanism for developing core skills is evolving. This perspective emphasizes development of individuals that will result in boundaryless career opportunities, enhanced employability and continuous personal development.
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