HRD- A Strategic Perspective In the absence of HR Strategy clearly linked with business strategy, HRM programs may easily lack direction, clarity, coherence and critical marks to add value. (Tony Grundy)Roots of HRM © Go as far back as 1950s when Drucker and McGregor stressed the need for visionary goal directed leadership and management of integration. 5 Then in 1960 Behavioral Science Moment headed by Maslow, Argyris and Herzberg. 5 The origin of HRM as defined school of thought in back 1970 with the development of Human Resource Accounting Theory (Flamholtz, 1974)Significance of HRD Changes in Business Environment have created a sudden shift in focus of HR function. These changes include: = Raising Cost, Increasing competition ® Rapid Technological Changes, increase in demand for new skills through resourcing and re-training. = Changing demographics = Increasing multinational collaboration, multilateral relationshipHR for Competitive Advantage 5 Resource Based View Suggests that the HR system can contribute to sustained competitive advantage through facilitating the development of competencies that are firm specific and generate implicit organizational knowledge. = The firm is viewed as an excess of resources and capabilities which are not freely bought and sold in the spot market. ® Porter (1985)-Human Resource Management can help a firm attain competitive advantage by lowering the cost, by increasing sources of product and service differentiation or by both. All these activities should be managed from strategic perspective.HR for Competitive Advantage 1 Dunlop (1989) economic growth and improvement in productivity depend on the investment in human resource development. 5 Behavioral Psychology Perspective Schuler and Jackson (1987) HRM practices can contribute to competitive advantage insofar as they bring and reinforce the set of role behaviors that result in lowering costs or enhancing product differentiation or both. © MacDuffie and Kochan (1991), Snell and Dean (1992) contended that investment in firm specific human capital can generate competitive advantage.HR for Competitive Advantage 5 Greer and Ireland (1992) A firm which is able to accumulate HR during periods of economic siump for use in future is likely to achieve competitive advantage over the competitors who indulge in hire and fire practice. © Wright and Snell (1991) proper staffing practices could result in firm to build and sustain competitive advantage. © Sparrow et al., (1994) . Five major groupings of HRM policies and practices that are connected to competitive advantage are Culture, Organization Structure, Performance Management, Resourcing, Communications and Corporate Responsibility. 5 Pfeffer, (1984) how we think about workforce and employment relationship. Seeing the workforce as a source of strategic advantage, not just as a cost to be minimized or avoidedBusiness Strategy and HRD Three models to link Business Strategy and HRM. © Reactive Model of HRM Strategy derives HRM policy. 5 Proactive Model In which HR planning is involved in the strategy formulation stage itself © Match Model Simultaneous action for design and implementation of business strategy and HR strategy.Linking HRD with Strategic Business Planning ‘HTHRD and Life Cycle of Organization O Baird and Mesholaum (1992) argues that organizations undergo five stages of development with different HRM needs in each stage and one programme or approach does not work everywhere. OGrundy (1997) argues that SHRD and planning involves linking business strategy with organization strategy to the current and emerging pool of management skills, thus identifying key shifts and gaps and areas for intervention.‘Strategic human resource planning and development, organisation and strategy.Hotes C1987) Keefe 1983) Bartel 1989) Ichniowski C1907 Pieter (1994) Arthur 994) Sliscd Ge fewer mricvarces: And lower abeenteci#m> Increased product quality, Strikes have a substantial negative effect on Shareholder equity. Found = positive association bermwreen the firms HK management practice: and organisational procdcatwicy- Found = significant corretation bervesn nigh commitneant work practices such as empicyns Security. high wagon, cmgekoywe ownership, infor Sation’s portocmance. Empirically identified the mills with comunitment systens which had hagher productivity oat Lower employe: turnover than thoss with control Systems