10 Module 10: Human resource development Introduction Human resource development (HRD) integrates training, development, organisational development, career development, and learning of both employees and the organisation (Stone 2005). This integration, and alignment leads to effective HRD. HRD is about the creation of a competent and skilled labour market within the organisation, therefore, it must be integrated with the other HRM activities, linked to the organisation’s structure and be a part of its strategic management. The module emphasises the importance of developing an integrated and aligned HRD system to the benefits of the organisation and its individual employees. It discusses related topics such as the determination of requirements and the evaluation of training, the link between the organisation’s long-term needs and the importance of providing relevant developmental programs. The contribution of career management to HRD will be explained, and the concept of organisational learning and knowledge management examined. You should note that some definitions used in the module writing are different from those used in De Cieri et al. (2008). Likewise, you will find differences in definitions between articles and other writings you may read. Whilst some authors articulate definitions relevant to their writings, others may not. Therefore, interpretations of these writings should be limited to within the boundaries of known definitions. Objectives On completion of this module you should be able to:  examine the concept of human resource development as an integrated and aligned system  explain the principles by which training and development requirements are determined  identify the factors that impact on the success of training and development  discuss ways by which training programs can be evaluated  explain the link between the organisation’s long-term needs and employee development programs  discuss the factors that impact on employee development  examine the methods used for employee development  describe the concept of organisational learning  explain the importance of knowledge management for the organisation’s future performance  define career management  explain how training, development, career management, and organisational learning are integrated. Textbook Kramar et al. 2014 Ch. 11 & 12Activity 10–1 Select a training and/or development situation you have experienced recently. It can be an in-house program or a convention. Alternatively, you may prefer to select a university program or subject you have studied. Conduct an assessment of its value. In your assessment you should examine:  The stated objectives and how well these were met.  The training methods, and the degree to which they were effective for you and why.  The outcomes, making links to the needs of your organisation, your job and your personal needs as you perceive them. You should consider:  any recent or anticipated changes in job demands and how these may affect the requirements of knowledge, skills and abilities  goals—organisational and individual  available resources and  foreseeable opportunities both for you and the organisation.  How closely aligned the outcomes were to your needs as stipulated in your previous performance appraisal (or feedback from your manager)? Training and development The competitive demands of the market place and the rapidly changing environment has forced organisations to realise that to survive, their staff must be capable of not only responding to that environment but influencing it too. Think about: Organisations of today tend to have a prime focus on employee commitment and customer responsiveness. However, do organisations have a reciprocal commitment to their employees and responsiveness to the employee’s needs as an internal customer? If it is assumed that the quality of product or service ultimately depends on the quality of the employee and management, product and service quality reflect the underpinning organisational commitment to the development of the necessary skills, knowledge and abilities (Mello 2002). Then, how committed should the organisation be to its employee training and development so as to achieve the organisational objectives? Gollan (1997) found in his survey that, over the long-term, there is a direct correlation between increased training budgets and profits and productivity. Therefore, organisations in a rational sense, should increase their training budgets in order to gain profits and enhance productivity even in times of economic downturn. But it has been found that the opposite tends to occur. Training becomes more fragmented and spasmodic, coupled with a preference for poaching skills as and when they are required (Sisson & Storey 1993, pp. 171–172). The irony is that the firm behaviour tends to be in line with most government economic strategy which focuses on cut-backs and low labour costs to improve productivity. However, it is noted that organisations competing on cost leadership tend to turn inward with short-term thinking, while organisations competing on quality and innovation tend to look outward with long term plan (Porter 1985; Bartlett & Ghoshal 2002).The extent to which an organisation invests in the learning and development of its staff is a powerful signal of its intentions. Unfortunately, Australia’s investment in training and development ‘seems to be dangerously behind the rest of the world’ (Smith 2003, p. 232). For Australia to become globally competitive, the attitude on training and development must change. This requires more of the ‘soft’ approach to manage employees, and organisations need to develop a more strategic, measurable, long-term approach to their HR planning and development, with a worldwide business-outcome focus (Drury 1998). Furthermore, employers in Australia and most developed countries anticipate a rise in the skills requirements across most jobs in the era of developing knowledge economy. In addition, the skills being sought are changing, and employers are placing a greater value on generic abilities and transferable skills such as teamwork, communication, problem solving and leadership (Smith 2003). However, employee training and development of abilities and skills must be tailored to fit and support the organisation’s strategy and structure. For example, an organisation that has a strategy of providing exceptional quality of service will aim to develop a committed, long-service cadre of highly qualified staff. These employees will require comparatively complex training and career development systems. Alternatively, the organisation that competes on the basis of simple, low-cost services is more likely to have transient, unskilled employees. This is the age of network organisations, alliances, outsourcing, and long-term relationships with just-in-time suppliers, in which the link between the organisation’s strategic goals and training and development is difficult to ensure. Thus some organisations may even provide training for people other than their own employees, to assure the quality of critical inputs and processes. For an organisation to achieve its strategic goals it requires adequate appropriate staff in the right place at the right time. Training and development are integral to HRM achieving this objective, by assuring that its staff have the knowledge, skills and abilities to perform to expectation and exception. Training is not the solution to every performance problem The goal of training is to enhance performance. But is training always the answer? Training is not necessarily the most suitable solution to all performance deficiencies. And if training is only one component of the overall solution, the other parts must be addressed too. If they are not, the training outcomes are unlikely to be achieved. Furthermore, the type of training selected and its design must suit the purpose. Symptoms and problems can be confused, thus attempting to resolve symptoms will not solve the problems. Other symptoms will remain and new ones will develop as the problem deepens. It is most important that the problem is correctly factored into its proper components and relationships. Only on this basis can training that will solve the performance problem be designed. Training and/or developing? During your reading on employee training and development you may note that these concepts often get integrated, yet there is a distinct difference between them. By having an understanding of these differences you can better Textbook Kramar et al. 2014 Ch. 11appreciate the characteristics of each, their processes, and the ways in which they impact on the short- and long-term success of the organisation. When defining the difference, exactly where the distinction lies is not important, as long as there is a clear distinction. The purpose of training is to help people learn and develop skills. For the purpose of this discussion, training or employee learning is ‘A planned effort to facilitate the learning of job-related knowledge, skills and behaviour by employees’ (De Cieri et al. 2008, p. 735). Employees need some training, to meet expectations, contribute to the achievement of the organisation’s goals, and experience success. Training must be tied to performance, it must result in a change of behaviour, such as the use of a new skill, otherwise, it is a waste of organisational investment. Development is defined by Kramar et al. (2014) as: The acquisition of knowledge, skills and behaviours that improve an employee’s ability to meet changes in job requirements and in client and customer demands. Development refers to formal education, job experiences, relationships and assessment of personality and abilities that help employees prepare for the future (Stone 2005). Development tends to have a long-term focus, it looks beyond immediate needs. Training, on the other hand, is short-term. Unlike training, development does not occur during class, it occurs during, after, and beyond. Unfortunately, training and development are often considered to be one and the same. Clearly, they are not. They should be planned in different ways, for quite different outcomes. They can be, and are often, combined. However, such a plan should be designed consciously, with clear differentiation between the training and development strategies and outcomes in mind. It is therefore logical to have two separate chapters on employee learning/training and employee development in your textbook. Whilst recruitment and selection strategies select the best available applicants, gaps between the organisation’s requirements and staff’s knowledge, skills and abilities remain. The purpose of training and development programs is to close this gap, assisted by other HRM activities such as reward programs. Activity 10–2 Read ‘Blended Learning’ in De Cieri et al. (2008, pp. 424–425), and discuss the possible advantages and disadvantages of e-learning and how e-learning might contribute to organisational success and sustainability. You may like to access the site for more insight into this initiative: http://flexiblelearning.net.au/. Training and learning The aim of training is to enhance people’s specific knowledge and skills, to assist them to do their present jobs and tasks better. This appears to be straightforward, however the notion of learning is complex, and the successful matching of knowledge and skills needs, and learning styles, to suitable training programs must accommodate a range of variables. In addition, there Textbook Kramar et al. 2014 Ch. 11are a number of factors that impact on learning and the translation of that learning into performance in the work place. Not only must training programs accommodate all these factors, they must be effective, efficient, and costeffective. Factors that impact on learning Training is only successful if learning takes place. There are several factors that impact on how well training translates into learning and behaviour change. Behaviour itself cannot be taught, as it is the outcome of knowledge, skills, abilities, personality, motivation, values and attitudes. Therefore, behaviour change will occur with changes to these factors. Learning styles Everything, men, animals, trees, stars, we are all one substance involved in the same terrible struggle. What struggle? … Turning matter into spirit. Zorba scratched his head [and said] ‘I’ve got a think skull boss, I don’t grasp these things easily. Ah, if only you could dance all that you’ve just said, then I’d understand … Or if you could tell me all that in a story, boss.’ (Kazantzakis 1952) The quote above suggests that people like Zorba could have different learning styles. Schools have been very slow to grasp that the traditional dominant system of ‘telling what and how’ fails to meet the needs of many students. The persistence with this system continues to waste much potential in our youth. Research has found that there are several learning styles (Baird, Griffin & Henderson 2004; Dunn & Dunn 1978; McShane & Von Glinow 2000). To realise an individual’s potential, the training method must align with the individual learning style. For example, rather than the traditional method of attending lectures and reading, some people learn better by visual (seeing), others by doing physical activities and manipulating objects. There are several ways by which these learning styles can be categorised. What title is placed on an individual’s best style is not important, as what matters is to obtain the closest possible alignment between the individual style and the training methodology. Other individual differences In addition to the person’s individual learning style, a number of other factors affect how a training program should be designed. Some of these factors are:  prior learning  age and level of maturity  vocational aspirations and ambitions  special talents  mechanical dexterity  ability to work under the conditions that are relevant to the training and job  motivation, expectations, and interest. The expectation to succeed significantly affects learning outcomes. If learners expect to succeed, they would work hard but will become angry, frustrated, resentful if they are not as successful as they expected. The learner who does not expect to succeed is unlikely to work hard, but may respond well if some success follows some effort. As it is natural to avoid negative experiences andbe attracted to positive ones, it is important that learners set demanding yet realistic goals for themselves. Another factor is the perception of the expectations of other people who are important to the learner. If ones believe that their supervisor expects them to succeed, they are more likely to do so. Linked to preferred learning style, expectation and motivation is the level of interest the learner has in the subject to be learned, and in the learning process itself (Smith 1982). Ethnic minority learners Some learners may be from ethnic cultures with backgrounds and behaviours that are quite different from the majority of learners and the trainers. Language is only one aspect to consider. Cultural, social, and prior learning difference may impact on aspects of training such as the expectation to take responsibility for individualised work, or to engage in creative activities. And the perception of the authority of the trainer may affect the degree to which the learner is comfortable and able to respond to discussion and to ask questions. Learners with disabilities Any disabilities, physical and intellectual, must be accommodated in the design of training programs. Each disability has unique limitations which require consideration. Special training may be required. Training may need modification, in which case specialists in such training can be a valuable asset. Environment The physical environment impacts on how well people learn. For some, strong light can make them quite uncomfortable and distract from learning, while for others the strong light can be an energiser. Individuals differ in the amount and type of sound that can be tolerated or blocked out when trying to learn, and sound can be a stimulant or distraction to learning. Individuals differ in their levels of concentration during the day. Some people concentrate better early in the day, while others concentrate better later in the day or evening. People differ in the extent to which they prefer an informal and supportive climate, or a more formal and impersonal one. Some training environments are warm and friendly, with a high degree of expressed interpersonal concern. Feedback is positive and supportive, and the participants are encouraged to help one another. The alternative is a more aloof environment. Instructors are more distant, feedback focuses on errors, and participants are expected to be competitive. Adult learners Of significance in the organisational setting is the distinct differences between how adults learn compared with children (Cross 1981; Delahaye 2004; Grabowski 1980; Knowles 1984). These differences include:  Adults tend to be more goals oriented, therefore appreciate a program that is structured systematically, with elements clearly specified.  Adults come with extensive background experience from both their personal and working lives. This can be a major resource for the instructor as a base on which the participants can relate the new learning. Adults may be less flexible than their younger counterparts. Habits and methods of operation have been established, and change causes discomfort. Therefore, they must see the advantage of making any change.  Adults want to be treated as adults. They do not like being patronised.  Most mature adults are self-directed and independent. They prefer to actively engage in their learning, using the instructor as an informal facilitator to guide and assist.  Some adults have disengaged from education because of negative school experiences. These participants may lack confidence and need reassurance of their ability to learn. They may lack motivation. Often they lack the strategies for acquiring and remembering information, and for transferring that information to real situation on the job. For training to be successful, it must accommodate the needs of the individual participant, as well as those of the organisation. Evaluation of training With the rapid rate of change there is an ever increasing need for training and retraining. As training is expensive and the costs are forever rising, organisations must know that the training programs they conduct, or for which they contract, achieve definitive and measurable outcomes. Activity 10–3 List a number of training methods discussed in De Cieri et al. (2008, pp. 422-430). Which training methods do you personally prefer? Discuss your answer with your classmate, or your family member/friend or colleague and see whether your preference is different from theirs. Evaluate the impact of these differences on designing an organisation’s training programs. Development For an organisation to survive in the long-term, its staff must be able to meet new challenges, and not only react to change, but to create it. This requires employee commitment, adaptability and quality performance. To achieve this, development of core capabilities of employees who are able to provide leading-edge value to a company and its customers via ‘expanding intelligence, creativity and innovation, and building integrity in relationships’ (Miller 1998, p. 9) is essential. Employee development, by definition, is more long-term oriented, and more focused on education than job-specific training. The purpose of development is to educate the person to think and understand, that is, to understand causeand-effect relationships, to synthesise from experience, to visualise relationships, and to think logically. These processes involve analytical, human, conceptual, and specialised skills (Eller 1995). Historically, development was reserved for managers. However, it is critical to develop and educate all levels of employees, as organisations increase their dependence on work teams, reduce supervisory positions, encourage employees to set the goals of their jobs, and focus on quality and customers. Textbook Kramar et al. 2014 Ch. 12Evaluation of development programs As development management aims to meet long-term organisational needs, and it incorporates the changing of characteristics that are difficult to quantifiably measure, evaluation of programs is difficult. Also, the purpose of evaluation is to gauge effectiveness, efficiency, cost, attitudes and reactions, and long-term benefits. The results are used to make decisions in further program selection and design. The ultimate test is the long-term result, when those who have undertaken a program are in positions to influence the organisation’s direction. Is the organisation achieving its vision, is the strategic plan being successfully implemented, and the organisation experiencing growth and development? But by the time such questions can be answered, the responses are no longer timely for development program decisions. However, some factors can be qualitatively assessed in the shorter-term. These are based on expression of behaviours that are considered expedient for the organisation’s future development. They include:  alignment of personal and organisation goals and vision  individual values common with those of the organisation  good alliance between individual behaviours and the idealised organisational culture  competence in those skills and knowledge required for the future organisation  superior levels of commitment, adaptability and high quality of performance  increasing evidence of expanding intelligence, creativity and innovation, and integrity in relationships (Miller 1998, p. 9). Activity 10–4 Think about a number of ways organisations can use to evaluate the effectiveness of various training and development programs. Read ‘Ongoing ROI Struggles of L&D’ (De Cieri et al. 2008, p. 434) and discusses the ongoing challenges of measuring learning and development initiatives within organisations. Career management How well organisational goals become a reality is determined by the effectiveness of its people. Organisational commitment is determined by how well the organisation’s vision is translated and aligned to the visions and goals of employees. Only when the organisation’s vision has personal impact and importance can it be meaningful, rather than idealistic and irrelevant, and be influential for the organisation. In part, good performance management articulates and evaluates employee:  performance  personal goals and aspirations  balance and integration between their work and home life. When people have determined their personal visions, their career planning can Textbook Kramar et al. 2014 Ch. 12accommodate new learning and skills development. By the use of career management, and training and development, the organisation can help managers and employees:  develop a program that translates personal goals and aspirations to a reality that is satisfying and fulfilling  align individual and organisational visions by clarifying and prioritising individual goals, activities and motivations  better balance and integrate their work and home life. Career management and employee and manager development are closely intertwined. A number of employee and manager development techniques have impact on career management (see Kramar et al. 2014,Chapter 12). For example, mentoring relationships are likely to include career counselling. As explained, a well designed individual development program will result in a balanced integration of satisfied needs. Career management is integral to employee development. The learning organisation and workplace learning An effective organisation is conscious of the influence of technology, global markets, customer expectations, and competition. Learning is the only weapon by which organisations can cope and drive change, and their collective learning and effective knowledge management can lead to competitive advantage (Baird & Henderson 2001). However, there is a distinction between learning, and learning how to learn. Learning is limited if only to detect deviations from the norm and select action that will correct the deviation without an appropriate examination of current learning behaviours. This is known as single loop learning. Double loop, or generative learning, examines the whole situation. When the deviation is detected, it is not assumed that the strategy of taking action to correct the deviation is the most appropriate approach. The norms themselves are also questioned. This questioning allows for the norms to be manipulated and the whole system to be reorganised. There is continuous experimentation and feedback in an ongoing examination of the way in which the organisation goes about defining and solving problems. The organisation using a double-loop learning approach is learning how to learn, it is continually reinventing the learning process, and itself (Joergensen 1999). An effective organisation is able to scan its environment, and set its objectives and goals within that environment. The organisation constantly monitors its performance, and makes the appropriate adjustments to keep ‘on track’ to achieve its goal. Think about: Is an effective organisation necessarily a competitive one? Is effectiveness a reflection of competitiveness? The answer may be ‘NO’. Why? Effectiveness is gauged by the achievement of goals, not by whether these goals are the ones that will place the organisation in a competitive position and prepare it to meet future challenges. Therefore, an organisation can be undertaking a process of learning, but this does not make it a learning organisation. A learning organisation is an evolving one, continually questioning its own existence, as well as questioningits identity, and reinventing itself to maximise the opportunity via a process of double-loop learning (Kamoche 1997). Double loop learning can only be undertaken in an environment that supports and encourages employees to aspire for commitment, quality and flexibility (Guest 1997), and in an organisational culture that can reinforce continuous generative learning. Learning and knowledge management of employees) must be valued above all other assets. This philosophy must be considered in the design of the organisation’s training programs, and it must be the prime objective of the organisation’s development and career management program. The concepts of adaptive versus generative learning, learning organisations, and knowledge management are areas of complex study. We encourage you to explore these topics further, should these areas become one of your interests either in your current or future pursuing of a career specialising in learning and development. Human resource development (HRD) HRD integrates training, development, organisational development, career development, and learning of both employees and the organisation (Stone 2005). The integration, and alignment of all these HRM function forms an effective HRD program for organisation. Unfortunately, in practice, many organisations fail to appreciated the value of human resource development and do not take a holistic approach to investment in human capital. This is mainly because organisations tend to be short-term focused, employing staff that would closely meet their short-term performance requirements, and providing minimum training to accommodate their immediate needs. Today’s organisations have gradually realised that investing in human capital creates competitiveness for short term and at the same time, has long term values, that is continuously feeding into the pool of available and quality human resources that are crucial to meet organisations’ future needs. Summary This module has briefly explained the concept of human resource development. HRD is an integrated and aligned system which contributes to the achievement of organisational goals through organisational learning. Training and development needs were discussed, and the relevant factors that impact on learning were explained. Different approaches to training and development were mentioned. It is important for organisation to take a doubleloop learning process to continuously generate new learning and new knowledge that will be beneficial for future organisational performance.Review questions Review question 10–1 Why is training important? Review question 10–2 What are some of the factors that impact on employee learning? Review question 10–3 What is a learning organisation? Review question 10–4 What work environment characteristics influence transfer of training? Review question 10–5 Define the difference between training and development. Review question 10–6 What are the characteristics of successful mentoring programs? Review question 10–7 What is succession planning? References Baird, L, Griffin, D & Henderson, J. 2004, ‘Time and space: reframing the training and development agenda’, Human Resource Management vol. 42, no. 1, pp. 39–52. Baird, L & Henderson, J 2001, The knowledge engine, Berrett-Koehler, San Francisco. Cross, P 1981, Adults as learners: increasing participation and facilitating learning, Jossey-Boss, San Francisco. Delahaye, BL 2004, Human resource development: adult learning and knowledge, 2nd edn, John Wiley & Sons, Milton.. Drury, N 1998, ‘Raising the bottom line’, Management Today (AIM), October. Dunn, R.& Dunn, K 1978, Teaching students through their individual learning styles: a practical approach, Prentice-Hall, VA. Eller, D 1995, ‘Motorola trains VPs to become growth leaders’, HR Magazine, June, pp. 82–87. Gollan, P 1997, ‘Costing HR—training reveals its bottom value’, HR Monthly, May, pp. 11–15 Grabowski, SM 1980, ‘What instructors need to know about adult learners’,NSPI Journal, vol. 14, July, pp. 15–16. Guest, D 1997, ‘Human resource management and performance: a review and research agenda’, The International Journal of Human Resource Management, vol. 8, no. 3, pp. 263–276. Joergensen. K 1999, ‘Managing organizational learning—from rhetoric to reality’, Organization Studies, pp. 703–712. Kazantzakis, N 1952, Zorba the Greek, Simon and Schuster Inc. Kamoche, K. 1997, ‘Knowledge creation and learning in international HRM’, The International Journal of Human Resource Management, vol. 8, no. 2, pp. 213–225. Knowles, M 1984, Andragogy in action: applying modern principles of adult learning, Jossey-Bass, San Francisco. Kramar, R, Bartram, T, Ceiri, HD, Noe, RA, Heooenbeck, JR, Gerhart, B & Wright, RM 2014, Human Resources Management, McGraw-Hill, Sydney, NSW. McShane SL & Von Glinow, M 2000, Organizational behavior, emerging realities for the workplace revolution, McGraw Hill, Boston. Mello, JA 2002, Strategic human resource management, South-Western, Cincinnati, OH Miller, WC 1998, ‘Fostering intellectual capital’, HR Focus, vol. 75, no. 1, pp. 9–10. Sisson, K & Story, J 1993, Managing human resources and industrial relations, Open University Press, Milton Keys. Smith, A 2003, ‘Recent trends in Australian training and development’, Asia Pacific Journal of Human Resources, vol. 41, no. 2, pp. 231–244. Smith, RM 1982, Learning how to learn, Follett, Milton Keyes. Stone, RJ 2005, Human resource management, 5th edn, John Wiley & Sons, Brisbane. Glossary Human resource development (HRD)—integrates training, development, organisational development, career development, and learning of both employees and the organisation (Stone 2005). Learning organisation is an evolving one, continually questioning organisational own identity and place, and reinventing the organisation to maximise its opportunities by the process of double-loop learning (Kamoche 1997). Performance management—incorporates job design, recruitment and selection, training and development, career planning and compensation and benefits, in addition to performance appraisal (Stone 2005). Further readings Asplund, R & Salverda, W 2004, ‘Company training and services with a focuson low skills’, International Journal of Manpower, vol. 25, no. 1, pp. 8–16. Baird, L, Griffin, D & Henderson, J. 2003, ‘Time and space: reframing the training and development agenda’, Human Resource Management, vol. 42, no. 1, pp. 39–52. Ehrich, LC & Hansford, B 1999, ‘Mentoring: pros and cons for HRM’, Asia Pacific Journal of Human Resources, vol. 37, no. 3, pp. 92–107. Hearn, G, Close, A, Smith, B & Southey, G 1996, ‘Defining generic professional competencies in Australia: toward a framework for professional development’, Asia Pacific Journal of Human Resources, vol. 34, no. 1, pp. 44–62. Ruona, WEA & Lynham, SA 2004, ‘A philosophical framework for thought and practice in human resource development’ Human Resource Development International, vol. 7, no. 2, pp. 151–164.