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Table of Contents
Introduction
Technological advancement, rapid globalization, new product markets, innovation and diverse workforces are part of the modern organization and its environment. These factors have influenced companies to play a more active role in ensuring that their workforce capabilities are top-notch in order to gain a competitive edge over their competitors. Besides raw materials, human resources are now equally important in today’s knowledge-economy. Companies compete for both market share and technical talent. Hence, training and development has become an integral part of strategic human resource management. In the following sections, the importance of training as a tool to achieve organization excellence will be covered.
Training as Part of the Strategic Management Process
The first step to strategy formulation is to set the organization’s vision, mission, short- and long-term objectives. Internal and external analysis on the organization’s strengths, weaknesses, opportunities and threats (SWOT) is carried out. External analysis focuses on the economic and labour markets and competitors within the same industry. Internal analysis would focus on the organization’s core competencies, the quantity and quality of its financial, technological and human resources. Based on these findings, management decides on the organization’s strategic direction and alternatives to achieve its mission and objectives. Strategy formulation also depends on the following (non-exhaustive list of) factors: Composition of Management, changes in structure due to acquisitions, increased competition, change in target markets, changes in corporate/labour laws and changing technologies.
The organization’s next questions would be: “What organizational capabilities and resources must our organization have to gain and/or maintain a competitive advantage?”, “How do we create a HR strategy that is in line with the overall strategy and would help our
Introduction
Technological advancement, rapid globalization, new product markets, innovation and diverse workforces are part of the modern organization and its environment. These factors have influenced companies to play a more active role in ensuring that their workforce capabilities are top-notch in order to gain a competitive edge over their competitors. Besides raw materials, human resources are now equally important in today’s knowledge-economy. Companies compete for both market share and technical talent. Hence, training and development has become an integral part of strategic human resource management. In the following sections, the importance of training as a tool to achieve organization excellence will be covered.
Training as Part of the Strategic Management Process
The first step to strategy formulation is to set the organization’s vision, mission, short- and long-term objectives. Internal and external analysis on the organization’s strengths, weaknesses, opportunities and threats (SWOT) is carried out. External analysis focuses on the economic and labour markets and competitors within the same industry. Internal analysis would focus on the organization’s core competencies, the quantity and quality of its financial, technological and human resources. Based on these findings, management decides on the organization’s strategic direction and alternatives to achieve its mission and objectives. Strategy formulation also depends on the following (non-exhaustive list of) factors: Composition of Management, changes in structure due to acquisitions, increased competition, change in target markets, changes in corporate/labour laws and changing technologies.
The organization’s next questions would be: “What organizational capabilities and resources must our organization have to gain and/or maintain a competitive advantage?”, “How do we create a HR strategy that is in line with the overall strategy and would help our
References: Bratton, J. (2001). Strategic Human Resource Management. In J. Bratton, & J. Gold, Human Resource Management: Theory and Practice. Dess, G Heracleous, L., & Wirtz, J. (2009). Strategy and organization at Singapore Airlines: Achieving sustainable. Journal of Air Transport Management, 15, 274-279. Heracleous, L., Wirtz, J., & Pangarkar, N. (2006). Flying High in a Competitive Industry: Cost-Effective Service Excellence at Singapore Airlines. McGraw-Hill. Michelle Reynolds. (2013). Operational HR Management Vs. Strategic HR Management. Retrieved from The Houston Chronicle: http://smallbusiness.chron.com/operational-hr-management-vs-strategic-hr-management-62125.html Miranda, K Noe, R., Hollenback, J., Gerhart, B., & P.Wright. (2012). Human Resource Management: Gaining a Competitive Advantage. McGraw-Hill Irwin. Nomads. (2008). Retrieved from Nomads Manager 's Conference: http://www.slideshare.net/nomads/performance-management-training North Dakota State Government