Research into the perceived strategic impact and value of HRD practices

1. Measuring the Strategic Impact and Value of
Human Resources Development Practices: A
Cross-industry Analysis
CHARLES COTTER
7 SEPTEMBER 2011

2. PRESENTATION OVERVIEW
Defining Strategic Human Resources Management (SHRD)
The characteristics of SHRD
Research objectives
Research methods and process
Research findings
Research conclusion
Research recommendations

3. DEFINING SHRD
The process of changing an organization, stakeholders outside
it, groups inside it and people employed by it through planned
learning so that they possess the knowledge and skills needed
in the future. (Rothwell & Kazanas, 1994:16)
The creation of a learning culture, within which a range of
training, development and learning strategies both respond to
corporate strategy and also help shape and influence it.
(McCracken & Wallace, 2000:427)
The strategic management of training, development, and of
management or professional education interventions, so as to
achieve the objectives of the organisation while at the same
time ensuring the full utilisation of the knowledge and skills of
individual employees. (Garavan, 1991:19)

4. THE CHARACTERISTICS OF SHRD
Integration with and shaping of organizational missions
and goals
Top management support and leadership
Environmental scanning
HRD strategies, plans and policies
Line manager commitment and involvement (strategic
partnerships)

5. THE CHARACTERISTICS OF SHRD
Existence of complementary HRM activities (strategic
partnerships with HRM)
Expanded trainers’ role acting as change consultants
Recognition of and influencing of organizational culture
Emphasis on cost effectiveness evaluation
Strategic value proposition of HRD

6. RESEARCH OBJECTIVES
To measure the current strategic value and impact of
HRD practices
To determine whether a perceptual gap exists
between training and business/line managers
regarding the strategic value and impact of HRD
interventions
To determine whether the HRD function has adopted
a performance-based culture with regard to
implementing the characteristics of SHRD

7. RESEARCH METHODS AND PROCESS
Questionnaire (46 closed-ended questions using a 4-point
rating scale)
Cross-industry analysis (private and public sectors)
268 respondents
HRD and Training Managers; SDF’s; Line/Business
Managers and Academics/SME’s
Various descriptive and inferential statistical measures

8. RESEARCH FINDINGS
The overall mean score for the measurement of the
strategic value and impact of HRD for the group of
respondents is 2.69
The four (4) highest recording industries were:
Chemical, pharmaceutical and related: 3.03
Others: 2.91
Food, beverage and hospitality: 2.83
Banking and insurance: 2.78

9. RESEARCH FINDINGS
The three lowest recording industries were:
Education, training and development: 2.54
Government: 2.62
IT, telecommunications and related: 2.68
That HRM/D managers (2.84) and training
administrators (2.72) ratings are considerably higher
than line managers (2.61) and academics/SME’s (2.45)

10. RESEARCH FINDINGS
That small (2.76) to medium-sized organizations (2.73)
ratings are slightly higher than larger/national (2.71) and
larger/multi-national organizations (2.64).
That those employees with tenure of less than one year
(2.83); those who have been working for more than 10
years (2.74) and those with 1-3 years (2.73) rated the
strategic impact of HRD practices as the highest.
Employees with 7-10 years (2.69) and 3-5 years (2.61) of
employment scored the lowest two mean scores.

11. RESEARCH FINDINGS
That the four highest scoring characteristics were:
Top management support (2.78)
HRD plans and policies (2.76)
Line management commitment and involvement (2.75)
Integration with organizational mission and goals (2.75)
That the three lowest scoring characteristics are:
Strategic value proposition (2.56)
Expanded trainer roles (2.58)
Emphasis on evaluation (2.58)

12. RESEARCH CONCLUSION - Measuring the current
strategic value and impact of HRD practices
That the overall, cross-industry strategic impact of
HRD practices is unsatisfactory.
HRD practices are not strategic when measured
against the identified characteristics and sub-factors
of SHRD.

13. RESEARCH CONCLUSION - Implementing the characteristics of
SHRD
Companies have not adopted a performance-based culture in
which SHRD practices are effectively implemented and well
managed.
At an administrative and operational level, HRD practices are
sound. However, at a strategic level there is an apparent
shortcoming.
HRD practices still tend to be more administrative when
implementing the characteristics of HRD .
There is also a glaring shortcoming regarding the measurement
and evaluation of HRD activities and impact.

14. RESEARCH CONCLUSION - Perceptual gap between HRD and
business/line managers
A definite perceptual gap between HRD managers
and business managers regarding the strategic value
of HRD practices

15. RESEARCH RECOMMENDATIONS - The status quo of strategic HRD
practices
That all organizations take cognizance of the below-
average, perceived strategic impact and value of HRD
practices
Multiple stakeholders seriously rethink their current HRD
practices
Multiple stakeholders pool their vast resources and
intellectual capital to form a pool of expertise on how to
re-align, re-position and transform current HRD practices
Multiple stakeholders work together vigilantly and
conscientiously to improve the effectiveness and strategic
value of HRD practices

16. RESEARCH RECOMMENDATIONS - Implementing the
characteristics of SHRD
That organizations across all industries take cognizance of
the below-average perceived shortcomings of the various
characteristics of HRD.
Cognizance should be taken of the 3 lowest-rated
characteristics.
That companies utilize various interventions as a basis for
improving the strategic value and impact of HRD
practices.
Companies should pinpoint the other low-scoring
characteristics and implement HRD improvement
strategies and plans.

17. RESEARCH RECOMMENDATIONS - Perceptual gap between HRD
and business/line managers
Engage in more constructive communication in order
to identify the sources of the identified perceptual
gaps.
Collaborate and partner to ensure that HRD practices
are more strategically relevant.

18. RESEARCH RECOMMENDATIONS - General
That additional and follow-up research at doctoral level be
undertaken
Developing a conceptualized SHRD framework to enable
organizations to analyze, measure, monitor, manage,
implement and evaluate their HRD practices
Cognizance be taken of the findings of this research
project
Use these research findings as a base-line and/or
benchmark and as a means of improving the strategic
impact of the HRD practices

19. CONCLUSION
Summary
Questions
Thank you
Contact details: 084 562 9446 or
charlescot@polka.co.za