The paper "Why is Human Resource Development a “ Win-Win” Scenario for all Stakeholders" is a wonderful example of a report on human resources. The Temporary Work (Skilled) (Subclass 457), popularly referred to as Visa 457, is an Australian visa arrangement that allows Australian businesses to import specific skills that are lacking in the local labor force. Although the scheme has potential benefits to business and other stakeholders, it has been a subject of debate in the recent past. Much of the debate has focused not only on how the program has been managed but also on the general subject of the effect of human resource development (HRD) on all the stakeholders (the government, employers, and employees).
This paper critically analyses why HRD is of benefit to all the stakeholders involved. To do this, a brief examination of different perspectives of stakeholders on the process of HRD is given. This is followed by a detailed examination of points of conflict between perspectives of the government, businesses, and employees with regard to the Visa 457 scheme in Australia. An overview of the scheme and a detailed analysis of differences in opinion regarding issues of controversy in the scheme are also given. Stakeholder Perspectives on Training and Development Training and development of employees is a complex process that entails different perspectives by the different stakeholders involved.
Evans and Lindsay (2008, p. 270) note that HRM involves all activities which are designed to provide the HR needs of the organization, assisting in the design of work systems, training and development of the workforce and lastly, acting as a form of liaison with labor unions and the government agencies.
Since HRD (through training and other development programs) incorporates the interests of employees and the corporation on one hand and those of the employees through labor unions on the other, it follows that its practice is influenced by the perspectives of all the three stakeholders (the government, the management, and the employees). Garavan (1995, p. 15) identifies four key drivers of HRD from the perspective of businesses. These are the need to adapt to technological changes, challenges arising from new regulatory arrangements by government authorities, the effects of globalization upon mature and growing institutions, and lastly, the need to increase the supply of resources as a result of demographic changes.
These factors influence the approach of businesses towards the training and development of employees. Since businesses, governments, and employees pursue different interests in their operations, conflicts of interest are bound to occur in the course of their interaction. For instance, while businesses pursue their primary objective of making profits, regulatory agencies work for the good of the employees and the public. Evans and Lindsay (2008, p. 268) observe that the approach of businesses towards HRD is guided by cost-cutting measures.
Businesses view HR training and development as a means of achieving the strategic objectives of the organization both in the short- and long-term. This is contrary to what the government as well as employee organizations view as the primary benefit of HRD. For governments, training and development of employees by organizations is an important process that plays a key role in developing a competent and skilled workforce for the benefit of the economy in general (Garavan 1995, p.
12). For employees who form the major part of internal stakeholders, training is part of the necessary process of professional development.
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