impact of hrd on organizational performance

Topics: Human resource management, Organizational studies and human resource management, Human resources Pages: 28 (5243 words) Published: January 27, 2014
The current issue and full text archive of this journal is available at

Human resource development and
organizational values

HRD and

Arif Hassan
Department of Business Administration,
International Islamic University Malaysia, Kuala Lumpur, Malaysia Abstract

Received 20 December 2006
Revised 26 March 2007
Accepted 10 April 2007

Purpose – Organizations create mission statements and emphasize core values. Inculcating those values depends on the way employees are treated and nurtured. Therefore, there seems to be a strong relationship between human resource development (HRD) practices and organizational values. The paper aims to empirically examine this relationship.

Design/methodology/approach – The study measured employees’ rather than management perspective. A sample of 239 employees from eight organizations responded to a questionnaire which measured the effectiveness of employee development practices and cherished organizational values. Findings – HRD practices like potential appraisal and promotion, learning/training, performance guidance and development were positively related to organizational values of collaboration, creativity, quality, delegation, and humane treatment. However, performance appraisal system, career planning, and contextual analysis variables were negatively associated with values such as trust and creativity. Research limitations/implications – The study was exploratory in nature. Further studies are needed on a larger sample to examine why some HRD practices like performance appraisal, career planning and contextual analysis contributed negatively to organizational values such as trust and creativity.

Practical implications – The result of the study can be useful in designing effective employee development programs that promote cherished organizational values. Originality/value – Little empirical knowledge exists on HRD and organizational values linkages in the context of transitional economies like Malaysia. The paper makes a modest attempt to fill the gap. Keywords Organizational culture, Human resource development, Career development, Training Paper type Research paper

Most, if not all, organizations develop vision statements with a view to generating excitement and commitment to organizational goals and objectives. Unfortunately, as Williams (2002) observes these “grand statements” remain a myth when organizations confront the reality of achieving performance objectives, budget targets and organizational change efforts. This results into more cynicism than optimism (Ghosal and Bartlett, 1997). Studies have indicated that achieving the ambitious goals inherent in the organizational vision pronouncements requires a serious thinking on human resource management issues as well as an articulation of the role of organizational values at all levels (Torraco and Swanson, 1995; Lawler and Mohrman, 1996). Unfortunately, large majority of organizations have yet to recognize the strategic importance of HR and HR people have yet be recognized as partners in the strategic planning process (Sikula, 2001). While in the new economy human capital is the foundation of values creation, this most important asset is poorly understood and poorly managed (Norton, 2001).

Journal of European Industrial
Vol. 31 No. 6, 2007
pp. 435-448
q Emerald Group Publishing Limited
DOI 10.1108/03090590710772631



Human resource development
Human resource development is a process of developing and/or unleashing expertise through organization development (OD) and personnel training and development for the purpose of improving performance (Swanson, 2001). HRD is based on the beliefs that organizations are human-made entities that rely on human expertise in order to establish and achieve their goals and that HRD professionals are advocates of individual and group, work processes and organizational...

References: Ahmad, K.Z. and Raida, A.B. (2003), “The association between training and organizational
commitment among white-collar workers in Malaysia”, International Journal of Training
Allen, T.D., Freeman, D.M., Russell, J., Reizenstein, R.C. and Rentz, J.O. (2001), “Survivor
reactions to organizational downsizing: does time ease the pain?”, Journal of Occupational
Becker, B.E., Huslid, M.A. and Ulrich, D. (2001), The HR Scorecard, Harvard Business School
Press, Boston, MA.
Connel, J., Ferres, N. and Travaglione, T. (2003), “Engendering trust in manager-subordinate
relationships: predictors and outcomes”, Personnel Review, Vol
Currie, L. (1998), “Managing international assignments – trends and issues”, paper presented to
IPD International Forum Networking Meeting, London, February 6.
Dearlove, D. and Coomber, S. (1999), Heart and Soul and Millennial Values, Blessing/White,
Skillman, NJ.
DeGeus, A. (1997), “The living company”, Harvard Business Review, March-April, pp. 51-9.
Denison, D.R. (1990), Corporate Culture and Organizational Effectiveness, Wiley, New York, NY.
Driscoll, D.M. and Hoffman, W.M. (1999), “Gaining the ethical edge: procedures for delivering
values-driven management”, Long Range Planning, Vol
Edgar, F. (2003), “Employee-centred human resource management practices”, New Zealand
Journal of Industrial Relations, Vol
Edgar, F. and Geare, A. (2005), “HRM practices and employee attitudes: different
measures-different results”, Personnel Review, Vol
Eisenberger, R., Fasolo, P. and Davis-LaMastro, V. (1990), “Perceived organizational support and
employee diligence, commitment, and innovation”, Journal of Applied Psychology, Vol
Finegan, J.E. (2000), “The impact of person and organizational values on organizational
commitment”, Journal of Occupational and Organizational Psychology, Vol
Fisher, C. (2005), “HRD attitude: or the roles and ethical stances of human resource developers”,
Human Resource Development International, Vol
Ghosal, S. and Bartlett, A.C. (1997), The Individualized Comparison, HarperCollins, New York,
Guest, D.E. (1999), “Human resource management – the workers verdict”, Human Resource
Management Journal, Vol
Hatch, M.J. (1993), “The dynamics of organizational culture”, Academy of Management Review,
Huang, H.J. and Dastmalchian, A. (2006), “Implications of trust and distrust for organizations:
role of customer orientation in a four-nation study”, Personnel Review, Vol
Iles, P.A., Mabey, C. and Robertson, L. (1990), “HRM practices and employee commitment
possibilities, pitfall and paradoxes”, British Journal of Management, Vol
Kane, B., Crawford, J. and Grant, D. (1999), “Barriers to effective HRM”, International Journal of
Manpower, Vol
Law, K.S., Tse, D.K. and Zhou, N. (2003), “Does human resource management matter in a
transitional economy? China as an example”, Journal of International Business Studies,
Lawler, E.E. III and Mohrman, S.A. (1996), “nions and new management”, in Ferris, G.R. and
Buckley, M.R
Legge, K. (1998), “The morality of HRM”, in Mabey, C., Skinner, D. and Clark, T. (Eds),
Experiencing Human Resource Management, Sage, London.
McCune, J. (1998), “The elusive thing called trust”, Management Review, Vol. 87 No. 7, pp. 11-16.
Mirabile, R.J. (1996), “Translating company values into performance outcomes”, Human
Resource Professional, Vol
Neal, C. (1999), “A conscious change in the workplace”, Journal for Quality & Participation,
Norton, D. (2001), “Foreword”, in Becker, B.E., Huslid, M.A. and Ulrich, D. (Eds), The HR
Scorecard, Harvard Business School Press, Boston, MA.
Othman, R., Rohayu, A.G. and Arshad, R. (2001), “CEOs’ perception of the performance gap of
the HRM function in the Malaysian manufacturing sector”, Personnel Review, Vol
Rao, T.V. (1997), “HRD audit questionnaire”, in Udai Pareek (Ed.), Evaluating Human Resource
Development, Jaipur HRD Foundations, Jaipur.
Rao, T.V. (2000), HRD Audit: Evaluating Human Resource Development Functions for Business
Improvement, Sage, New Delhi.
Rao, T.V. (2007), “Is it time to replace HRD managers by knowledge and learning managers?”
available at: http// Faculty Column /FC525/fc525.html (accessed 23 March
selection procedures on candidates”, Human Relations, Vol. 44, pp. 1963-82.
Rokeach, M. (1973), The Nature of Human Values, The Free Press, New York, NY.
Sandberg, J. (2000), “Understanding human competence at work: an interpretive approach”,
Academy of Management Journal, Vol
Schein, E.H. (1985), Organizational Culture and Leadership, Jossey-Bass, San Fransisco, CA.
Schroder, H.M. (1989), Managerial Competencies: The Key to Excellence, Kendall-Hunt, Dubuque,
Senge, P.M., Kleinner, A., Roberts, C., Ross, R.B. and Smith, B.J. (1994), The Fifth Discipline Field
Book, Doubleday, New York, NY.
Sikula, S.A. (2001), “The five biggest HRM lies”, Public Personnel Management, Vol. 30 No. 3,
Sinha, J.B.P. (1995), The Cultural Context of Leadership and Power, Sage International, New
Sullivan, W., Sullivan, R. and Buffton, B. (2002), “Aligning individual and organizational values
to support change”, Journal of Change Management, Vol
Swanson, R.A. (2001), “Human resource development and its underlying theory”, Human
Resource Development International, Vol
Tan, H. and Tan, C.S. (2000), “Toward the differentiation of trust in supervisor and trust in
organization”, Genetic, Social, and General Psychology Monographs, Vol
Torraco, R.J. and Swanson, R.A. (1995), “The strategic role of human resource development”, HR
Planning, Vol
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • The Impact of Organizational Culture on Performance Essay
  • Impact of Globalization on organizational behavior Essay
  • Essay on Impact of Employee Training on Organizational Performance
  • the link between motivation and organizational performance. Essay
  • Organizational Performance Essay
  • MotEffects of Employees’ Motivation on Organizational Performance Essay
  • Impact of Bpr on Organizational Performance Essay
  • organizational culture and performance Essay

Become a StudyMode Member

Sign Up - It's Free