1. The importance of human resources (HR) within organisations
   1. CIPD (2015, p. 3)
      1. Suggests that this is essential since ‘organisations should manage people within a planned and coherent framework that reflects the business strategy.
      2. Helps ensure that the various aspects of people management work together to develop the performance and behaviours necessary for the delivery of organisational value’.
   2. Video 3.1 HRD strategy
      1. Features interviews in which a range of expert HRD practitioners, consultants, coaches and academics discuss how HRD strategy and being strategic is important to them.
      2. You heard about some of the challenges and opportunities for HRD to be connected to business strategy. Now let’s consider what developing business strategy entails.
   3. Developing a robust business strategy
      1. The following answers can both be influenced by, and influence, understandings of human resources.
      2. What business or businesses should we be in? Which products or services should we be selling, and in which markets?
      3. How can this organisation achieve necessary levels of economies of scale, or organisational learning, or technical innovation, which will enable us to match or exceed the performance levels of rival organisations?
      4. Which of the organisation’s resources and capabilities are likely to need to adapt over time in line with changes in the marketplace or in technology?
      5. How are we to build and manage complex resource clusters?
      6. How do we monitor and revise our strategies so as to identify and respond to environmental turbulence?
      7. How do we determine the shape, size and purpose of our organisation over time? What changes in organisational structure and processes might be necessary?
      8. Which activities should our organisation continue to perform internally, and which should we acquire from other organisations, via outsourcing or cooperative alliances?
   4. Grant (2010, p. 14) Commonality of questions
      1. They are all important
      2. They all involve significant resource commitments
      3. They are not easily reversible.
   5. (Focused) HRD strategy
      1. Build a big picture
      2. Provide a sense of direction of travel
      3. Be coherent and consistent
      4. Have mutually reinforcing elements
2. ‘Resource-based view’ (RBV). (Grant, 1991, p. 133)
   1. Audio 3.1: Rob Grant and Maureen Meadows on RBV
   2. HRD professionals can therefore play a critical role in both identifying and facilitating the development of these capabilities.
   3. The resources and capabilities of a firm are the central considerations in formulating its strategy: they are the primary constants upon which a firm can establish its identity and frame its strategy, and they are the primary sources of the firm’s profitability
3. Modes for HRD practitioners (adapted from Mayo, 2004, p. 7)
   1. Reactive, operational:
      1. This is about responding to managers’ requests for training of various kinds, both for their departments and as a result of appraisals for individuals. HRD sources solutions and suppliers and meets the requests.
   2. Reactive, strategic:
      1. In this mode, HRD helps managers with their longer-term needs, responds to their business plans with appropriate supporting programmes, and develops customised learning solutions for them.
   3. Proactive, operational:
      1. The difference here is that regular meetings occur with management, keeping in touch with progress on their business goals, suggesting ideas, challenging practices and working jointly on people-capability issues.
   4. Proactive, strategic:
      1. In this mode, the level of involvement is broader and longer term. It includes contributing to and challenging business strategies, working together with the management team on HRD and talent initiatives, and building long-term capabilities.
4. Developing HRD strategy
   1. HR strategy is about choices and the skill of the HR practitioner is in making appropriate choices
   2. Involves the essential processes of collecting and analysing information in order to inform these choices and their subsequent implementation.
   3. Analysis highlights critical success factors that can be applied to any type of strategic undertaking.
      1. Everyone knows what they are responsible for.
      2. Important information gets to leaders quickly.
      3. Once made, decisions are not second-guessed.
      4. Information flows freely across boundaries.
      5. Employees usually have the information they need to understand the bottom-line impact of their day-to-day choices.
   4. Neilson et al. (2008) Highlight that this stage of implementation is too often forgotten.
5. (CIPD, 2014a).
   1. ‘How can we enable our people to help us in achieving sustainable growth, and how do we know it’s working?’