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 www.emeraldinsight.com/0309-0590.htm

Human resource development and
organizational values

HRD and
organizational
values

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

435
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
Training
Vol. 31 No. 6, 2007
pp. 435-448
q Emerald Group Publishing Limited
0309-0590
DOI 10.1108/03090590710772631

JEIT
31,6

436

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...

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