The paper "Strategic Human Resource Development and Organisational Performance" is a good example of a management literature review. Effective organizations have a workforce that is committed to contributing to organizational success. Strategic human resource development (HRD) is an essential component in organizations that makes such organizations successful. SHRD provides training and development opportunities to employees and organizations to achieve their business goals (Tseng and McLean 2008). It involves the use of training and development, career development and organizational development to improve individual and organizational performance (Agwu and Ogiriki 2014). Rani and Khan (2014) defined HRD as the practice of improving the learning ability of individuals, collectives, groups and organizations through the development and use of learning-based interventions, in order to make individuals and organization to growth and more effective.
Performance is the accomplishment of something or the act of working effectively. In an organizational context, performance is experienced at individual, process and organization levels (Tahir, Yousafzai, Jan and Hashim 2014). The impact of SHRD on individual and organizational performance have been broadly studied by researchers and they have found that SRHD has a positive effect on individual and organizational performance (Rizov and Croucher 2008; Agwu and Ogiriki 2014; Kesti 2012).
However, the organizations have been facing the challenge of implementing effective HRD strategies to promote performance. In this essay, we focus on how strategic HRD helps to improve individual and organizational performance. The literature argues that when organization experience confusion and changes at various levels, especially in the context of economic crisis, the strategic HRD may provide an important framework for the management of organizations in order to deal with the crisis at the institutional level (Manole, Alpopi, and Colesca 2011; Rani and Khan 2014).
According to Manole et al (2011), the strategic development of employees has to results to practices that can help improve the performance of individual employees and the organization in general. Because of emphasis on proactive management change, strategic HRD enables organizations to survive in an unstable and complex environment (Kesti 2012). Indeed, it is argued strategic HRD is a very important request aspect in this era of globalization. Therefore, strategic view, according to Rizov and Croucher (2008) entails developing and implementing HRD policies and practices which can contribute to the achievement of individual and organizational goals. In the era of liberalization, globalization and competitiveness companies emphasize on HRD and its contribution towards organizational performance and competitiveness (Sahoo and Sahoo 2012).
The success of developed countries’ companies like Japan is highly attributed to HRD. They have implemented HRD because they understand its importance (Rani and Khan 2014). To improve on performance, every organization needs the contribution of all levels of the organization including employees and top management. Appropriate HRD mechanism helps to employee improve their skills and competences and this positively affects their performance and the performance of the organization (Sahoo and Sahoo 2012).
In the Indian context, organizations develop HRD systems that enhance their performance and the performance of individuals through different subsystems of HRD such as performance appraisal, training and career development (Rani and Khan 2014). Rani and Khan (2014) argue that HRD has helped to promote an environment in which individuals are willing and committed to contributing to organizational success in most organizations in India.
Therefore, sustainable development of human resources helps to improve the quality of employee performance and this eventually contributes to organizational success.
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