AnalysisStrategyPerformanceStrategyFormulationcStrategyImplementationd Goal SettingaAnalysisbEvaluatione2�2: Strategic Human Resource DevelopmentThe term ‘Human Resource Development’ was first defined by Nadler and Nadler in 1970 due to the increasing interest in the HRD field among practitioners. The recognition resulted in the explosion of definitions of HRD from various perspectives of development, learning, theory of change, and improved individual and organizational performance. Simply, HRD encompasses activities and processes that are intended to have an impact on organizational and individual learning (Stewart and McGoldrick, 1996). Chalofsky (1992) defined HRD as the study and practice of increasing the learning capacity of individuals, groups, collectives, and organizations through the development and application of learning-based interventions for the purpose of optimizing human organizational growth and effectiveness. Both definitions will be used as guidance in understanding the strategy to develop human resources in this paper.life expectancy, and level of literacy.Despite the considerable evidence linking the provision of education and training to the economic well-being of a country, there remains paucity in the evidence of direct causal links (Keep and Meyhew, 1999), between skill formation and economic performance (Ashton and Green, 1996). Factors such as weak infrastructure, poor design, and short-term requirements of returns on the investment were found to have significant effects on the success or otherwise of an economy. Hence, regardless of the irrefutable evidence on the link between education and training and national performance, education and training constitute the single greatest long-term leverage point available to all levels of government in upgrading industry (Porter, 1990). Over the years the role of HRD has gradually changed ever since management and decision-makers acknowledge the critical role that this function plays in developing strategy and long-term planning for human resources development, hence this is called strategic HRD. Strategic HRD is an essential function of an organization’s planning process in anticipation of growth, change, or planned or unplanned events whereby the competencies and skills of the people play a critical role in successful and productive implementation and bring about desired results.The Strategic HRD framework is the process for HRD that follows four stages that are needs assessment, design, implementation, and evaluation, in order to help an organization identify the training and development needs of their employees and to design and implement programs to meet those needs. At the needs assessment stage or analysis, learning or training needs analysis is required to assess what knowledge, skills, behaviors, and competencies are necessary to perform effectively in a job role. The analysis will help to find gaps in performance, as aligned with business needs, and map those gaps to the right training. Gaps in the competencies are identified and initiatives are proposed to fill up the gaps. This is the design or strategy formulation stage. At the implementation stage, initiatives are implemented to improve human resource capability and finally post-training is done in order to identify the impact of training. This is the evaluation stage. The framework can be seen in Figure 1 (b, c, d and e).28Figure 1: Strategic Management Process and Strategic HRD
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