The Significance of Human Resource Development - Essay Example

The Significance of Human Resource Development Introduction Organizations today are characterized by continued emergence of strategic applications in their businesses which is mainly to cope with the changing market economy (Mesut, 2005). Hereunto, adoption of information technology is likewise a phenomenon to many industries and businesses. The mere concept of change and innovation is a gateway of opportunities to boost product’s image and services which is also congruent to increased profitability. Nonetheless, information technology per se is not capable of performing its supposed function on the economic part of the business without the presence of competent workers or employees to fully utilize and implement such working systems (Swanson, 1995). In this regard, organizations have recognized the importance of Human Resource Development as an important strategic partner in the development of its most valuable intangible asset - the human capital (Zula and Chermack, 2007). With the growing number of workers which is likewise intensified by diversity due to the burgeoning population of ‘baby-boomers’ (Waight, 2005), Human Resource Development (HRD) is critically required to address the diverse characteristics and provide a strategic human capital planning (Zula and Chermack, 2007). The following outlines the essence of human resource development being a strategic partner in business organizations. The changing role it portrays from traditional perspective of human resource function to a more decentralized functionality. Its significance in the learning and development of individuals and organizations as well as the emerging trends and future of human resource development is herein provided. Human Resource Development – a strategic perspective As organizations continue to struggle to address the demands of a changing economy and marketplace, whilst finding ways to improve performance of the workforce and in turn enhance financial profitability, HRD is perceived the best source and venue for these changes to take place as prime role of this division is manpower development. In Graham’s (1994) findings, he ascertained that successful health care organizations, despite different approaches and ways of achieving end result, all acknowledged and recognized the significance of human resource dimension. Through well-integrated human resource structure, specifically with the function of human resource development, employee’s skills and abilities are nevertheless extracted to provide utmost value for optimal business profitability. In this sense, the human resource development has emerged as a critical essential feature of a wider business perspective and strategic human resource management systems (Becker et al, 2006). Being the key strategic partner in the enhancement of human capital, it also needs to align itself toward the strategic objectives of the organizations to assure efficacy and success (Garavan, 2007). Concomitant to this perspective is the strategic role it plays to foster an environment of social capital which is enhanced and utilized for the maximum performance and productivity of the entire organization (Mesut, 2005). Human resources are a valued asset of any organizations. Their contribution is important to the bottom line through education and training acquired for the development of their skills and knowledge capacities regarding work (Zula and Chermack, 2007). As such, individual learning is the fundamental role of the human resource development practitioner (Koornneef et al, 2005). On the other hand, being part of the strategic team of the organization also entails that it needs to provide the company with not only short term but also long term effects in regards its performance. As stressed by Garavan (2007), a strategic human resource development is a multi-level concept which must strive to implement both exploitation and exploration activities. As such, exploitation refers to the short term processed that focus on the internal development of competencies. Nonetheless the exploration part adheres to the ability to adapt to inevitable change and growing demands and challenges which can only be achieved through changed-focus HRD strategies. According to Gunn (2001), strategic planning which HRD ought to advocate refers to the long-range goals and objectives which organizational mission and vision is further emphasized. Likewise, contribution of human resource development to the organizations encompasses not only the development of the human capital but also maximization of profit, enhance employee commitment and loyalty, aid in the organization’s sustainability and progression and provide alignment of overall business strategies with HRD strategies (Garavan, 2007). As previously mentioned, human capital is an important asset for the success of any organizations. A now recognized fact that even in the United States, human capital planning emerged as a key to strategic success in lieu of the economic changes. Higher skills in line with technology applications are required mostly in the US workforce. And with this demand, human capital planning is significant to gauge such skills and abilities for effectiveness (Zula and Chermack, 2007). In the study of Swanson (1995), he purportedly implied the role of Human resource development as not only engaged with competencies of employees to meet performance demands of the organizations. It also has the core function of helping to shape the overall business strategy. Therefore, aside from conducting strategic learning processes for the enhancement of employee’s performance, HRD practitioners ought to be responsible too in the formation of strategic planning that will provide further capability for the organization to cope with increasing challenges demands from the global market and help the employees easily adapt from these changes. Moreover, as the main facilitator of learning, HRD practitioners oversee the learning initiatives that currently exist in the organizations and could assess their efficacy toward attainment of strategic goals of the business. Consequently, human resource development may proactively involve in the initiation of new development processes that are more congruent to the organization’s system (Koornneef et al, 2005). Changing role of Human Resource Development Current orientation of Human Resource Development indicates an increased commission of its activities to line managers and the revolutionary trend toward decentralization. As such, human resource development professionals are now more engaged with the challenges taking place in the business by providing strategic direction and innovative solutions which ought to enhance organizational development. Likewise, enable line mangers that all these are in effect (Schuler and Jackson, 1992). The key role of the line managers is to empower employees through well-constructed and integrated Human Resource key activities and initiatives according to Graham (1994). This will subsequently lead the way in bringing out the value of each and every employee. Several researches asserted that engagement of line managers in human resource activities and initiatives may likely produce a positive effect in the employee commitment and business performance as well (Cunningham and Hyman, 1999; Thornhill and Saunders, 1998). In the study of self-efficacy by Tierney and Farmer (2002), the significance of line managers in the provision of training and experiential learning for employees has been emphasized as concomitant to development of skills mastery. This is one of the human resource activities that line managers is likely to be associated with (Papalexandris and Panayotopoulou, 2005). Despite the lack of shared understanding and ownership of human resource initiatives, still, line managers are able to accept the HRD roles particularly assigned to them based on the study of Watson and Maxwell (2007). In spite many challenges that have been overcome in relation to the changing role of HRD toward decentralization, still, there are issues that remain unsolved such as issues of workload, pressing time, and further training and learning for Line managers in support of their role in undertaking and implementing HR initiatives. According to Maxwell et al (2007), if these issues are addressed, such as improving line manager’s comprehension of their involvement in a wider spectrum such as that of the organization, this may likely reinforce their performance in relation to HR activities. Human Resource development and Learning According to McLagan (1989), Human Resource Development is the integrated utilization of training, career and organizational development to enhance both individual and organizational effectiveness. These three domains characterized the major areas of human resource development. To provide venue for learning is one of the key functions of HRD as it aims to develop and enhance the skills of the workforce which in turn will benefit the entire organization. Creativity is essential to promote innovativeness and learning potential for employees. In this regard, human resource development is likewise prompted to create a learning organization that is also integrated and paralleled to creativity With the diverse workforce, practitioners of human resource development are challenged to unfold and bring out creative outputs from the group so as to create great impact in the successful implementation of strategic human capital planning In this regard, apart from technology-based skills, creativity is also perceived as the individual’s capacity to perform his own job in a unique way which could make the task easier to do. Likewise, promote enhancement in the output of his performance and in effect the organization benefits (Waight, 2005). Bates and Phelan (2002) stressed that with the existence of current workplace that is portrayed by many tasks which are complicated, strategic and tactical in nature, including new knowledge assimilation, individual thinking, applications and problem-solving. Thus, Human resource development play a pivotal role that will assists the company in developing and managing these knowledge assets. Human resource development is key strategic partner of organization as it involves primarily in the learning enhancement process of individuals. For a fast-paced economy such as the present, human workforce needs to be also adept with the changes specifically with the integration of information technology. Likewise, comprehensive training and continued education to facilitate development of rightful skills and knowledge base of new technology work systems. In Swanson’s study (1995), he exemplified Motorola Company’s initiative to integrate new technology and develop employee’s expertise in response to a fast-paced communication market. From here, on and offs site classroom education and training has been conducted as well as laboratory training and structured training for employees at all levels. In support to its pursuit to attain success in its business objective, a number of its education and training initiative became a benchmark of best practice for which other organizations have adopted. Therefore, Motorola Company has provided an early and influencing example of how human resource development is best used as a strategic partner for business success. In connection, mentoring has been identified a vital tool for human resource development (Hazlett and Gibson, 2005). According to Noe et al (2002) and Russell and Adams (2007), mentoring refers to one-on-one relationship, in which a senior (mentor) provides assistance to the employee (protégée) to help him improve his performance professionally and personally. Mentoring has now become a popular trend in different organizations as part of the strategic tool to develop human capital. Yet, as stressed by Hazlett and Gibson (2005), mentoring as a tool by HRD should also consider not only the individual’s development and enhancement but it also should take a holistic approach such as making it an organizational development initiative. On the other hand, human resource development is also responsible in the unlearning process of old information and behavior previously acquired and integrated in the system. This is supposed to be part of the strategic activities that HRD ought to implement to achieve success of the organization (Becker et al, 2006). Unlearning is simply reshaping what has been learned and acquired and is currently in existence within the organization. This concept usually happens when assessment has been made that there is a need to develop and integrate new ideas and behavior that will dramatically cause change and innovation in the work atmosphere. This is part of the role that human resource practitioners portray in the strategic implementation of human capital planning. Likewise, in the participants from Australian study conducted by Becker et al (2006), most of the successful firms are those large firms and those with low turnover rate that are more considerate of implementing unlearning as essential in the infixing of new learning. Another concept relevant to HRD is that of Workom (2004), wherein he stressed that part of the critical role of a human resource development practitioner is to provide support to people in creating critical reflective work behavior. As such, learning is not only gained to enhance one’s knowledge and skills but also through critical reflection, the individual’s self-efficacy is improved making him more participative in the organization. Likewise, through this, human resource development is perceived to also build on individual’s insights and energies, to cater support and strategic direction (Kuchinke, 1998). By gaining reflection, the individual is asserted to have full understanding of his skills and potentials, as well as the role he portrays in the organization in accordance with the aims and objectives of the company. In this regard, self-efficacy is enhanced to further develop productivity. Emerging trends and future of Human Resource Development In the study of Ruona et al (2003), key driving forces which likely impact HRD in the future are as follows: First, the ability of the profession to keep up with the changing conditions of the organization and the global market; Second, Globalisation or the need to integrate intercultural practices; Third, changing organizations and workforce which is basically caused by increasing diversity; and lastly, Technology or the ability of HRD to apply and utilize technology whilst integrating it effectively with well-proven learning theories. The rapid changes in the economy and global market suggest that human resource development ought to be in the same pace to meet the demands and challenges associated with it. Likewise, the trend of adopting information technology as key potential for the advancement of the organization must also be utilized by human resource professionals in their implementation of strategic planning and initiatives. With the increasing diversity in the workforce, human resource development needs to bring out the value from each individual and make use of these differences in the integration of intercultural practices in order to enhance the organization’s standards and be globally ready in facing market challenges. The current position of HRD in the organization lies on its primary roles and competencies such as to provide learning (Waight, 2005; Hazlett and Gibson, 2005; Ruona et al, 2003; Zula and Chermack, 2007), change and organizational systems (Becker et al, 2006; Koornneef et al, 2005; Ruona et al, 2003; Swanson, 1995) and knowledge management or capital (Becker et al, 2006;Ruona et al, 2003). These themes also direct the human resource development in the future. As such, through learning, the role of providing impact ought not only to individuals but also to the entire group and the organizations. In lieu of rapid changes and challenges, HRD’s role is to help employees overcome change and better cope with these changes. Moreover, it also significant that HRD practitioner understands that his role is to create knowledge and manage this in order to prevent information overload. In anticipating the challenges of the future, the human resource development ought to be prepared in the impact of technology explosion. With the effect of global competition, HRD professionals are presented with more complex roles and challenges (Lock, 1999). Likewise, impact of technology is more inclined to influence HR activities such as training and development (i.e. E-learning; M-Learning) where information and computer technologies gradually replace instructor-led training (Galvin, 2003); utilization of handheld devices and adoption of wireless networks (Ellis, 2003) Conclusion In light of the aforementioned principles, human resource development is substantially proven an important and key aspect of strategic business planning. Without the functional ability of this division of human resource management systems, the organizations’ intangible and most valued asset – the workers are inevitably in the frail position to support the strategic objective of the organization. It is acknowledged that development of human resources is also needed to equip the organization with competent individuals who can assist in the optimal business profitability. Through provision of comprehensive, up-to-date training and development initiatives; supportive strategies that assists in coping with changes in the organization and unlearning activities; and provision of effective mentoring programmes and career development; the employees will become adequately equipped with skills and knowledge to help them be prepared to meet the challenges of a highly competitive market. Likewise, it is of value to consider that human resource professionals ought to be technology-adept also in their own rights. By utilizing the advantages of technology in relation to implementing human resource activities, this will also add to the strategic initiatives that human resource development is now more engaged in the strategic planning of the business Nevertheless, it is also concomitant that human resource development considers too the development of the entire organization as part of the strategy that total development is being adhered. 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