Strategic HRD takes a broad and long-term view about how HRD policies and practices can support the achievement of business strategies. It is businessled and the learning and development strategies that are established as part of the overall SHRD approach flow from business strategies, although they have a positive role in helping to ensure that the business attains its goals.
Strategic HRD aims
Strategic HRD aims to produce a coherent and comprehensive framework for developing people through the creation of a learning culture and the formulation of organizational and individual learning strategies. Its objective is to enhance resource capability in accordance with the belief that a firm’s human resources are a major source of competitive advantage. It is therefore about developing the intellectual capital required by the organization, as well as ensuring that the right quality of people are available to meet present and future needs. The main thrust of SHRD is to provide an environment in which people are encouraged to learn and develop. Although SHRD is business-led, its specific strategies have to take into account individual aspirations and needs. The importance of increasing employability outside as well as within the organization should be one of its concerns.
Strategic HRD policies are closely associated with that aspect of strategic HRM that is concerned with investing in people and developing the organization’s human capital. As Keep (1989: 112) says: ‘One of the primary objectives of HRM is the creation of conditions whereby the latent potential of employees will be realized and their commitment to the causes of the organization secured. This latent potential is taken to include, not merely the capacity to acquire and utilize new skills and knowledge, but also a hitherto untapped wealth of ideas about how the organization’s operations might be better ordered.’