1.Integration with organizational missions and goals According to Garavan (1991), integration into business planning in order to contribute to corporate goals and missions of the organization are very crucial. One of Human Resource Development’s functions is to help in formation of business strategies for the organization and it is seen as a responsive and reactive role for strategic human resource development (McCracken & Wallace, 2000). Furthermore, the role of SHRD is to shape the organization strategy instead of simply supporting role.
Another role of Human Resource Development is to implement or form the corporate strategy. These tasks require them to link the corporate strategy with the organization’s missions and goals. According to Legnick-Hall and Legnick-Hall (1988) and Butler (1988), besides integrating the corporate strategy with the organizational missions and goals, strategic human resource development also plays an important role in shaping and influencing the missions and goals (as stated in McCracken and Wallace, 2000).
2.Top management support In strategic human resource development, top management support is very important in order to implement the corporate strategy. The corporate strategy that has been formed need to be led actively by the top management people rather than just simply supported by them (Harrison, 1997). Active leadership from the top management will help the managers to adopt strategic thinking in achieving the targeted goals (McCracken and Wallace, 2000).
3.Environmental scanning In SHRD, environmental scanning is very important to develop the strategic planning. HRD professionals and others senior managers need to conduct the SWOT and PEST analysis. These analyses will help the organization to respond or react to any changes in the internal or external environment (Rainbird, 1995; Peery and Salem, 1993). However, environmental scanning alone is not enough because HRD terms and top management need to implement it (McCracken and Wallace, 2000).
Level of Strategic Human Resource Development The first level of contexts that are crucial in order to understand the contribution of strategic human resource development is global environment. By analyzing and understanding the global environment is very important for an organization in order to be more flexible. Being flexible helps an organization to control and respond quickly to its surrounding, especially the external environment. This level focuses on a multiplicity of external factors that explain the role of SHRD in crisis management and generate particular SHRD initiatives (Wang, Hutchins & Garavan, 2009). There are three sets of component that must be understood in the context of global environment which are local conditions, national conditions and multinational conditions. Local conditions basically focus on laws and protocol.
For example, the organization might need to devise emergency planning processes to tackle potential crisis regarding the safety and health law (Wang, Hutchins & Garavan, 2009). Local conditions can be divided into two parts which are economic and political trends as well as industry characteristics. The organization must alert with the economic and political conditions within the country. For the industry characteristics, the organization must ensure that their products and services have its own uniqueness. They need to master the products and services very well where all information need to be in their fingertips. They also need to know the targeted audiences for every of the product and services provided. The national conditions which can be divided into four parts. The first part is technology change.
The organization must provide adequate training to its employees to increase the productivity of the employees in operating the latest technology. Since technology is rapidly change, so the employees need to be trained from time to time. The second part is the characteristics of the labor market. An organization must be flexible in terms of planning about the resources of the organizations especially when it comes to human resources. The management needs to hire more expertise. The third set is national culture. The organization need to learn and understand about the culture in order to provided the right products and services.
For example, the food industry in Malaysia, they need to ensure that most of the foods are halal in order to fit it with the Muslim culture. The last part is regarding the national HRD systems. Some countries use the “soft” interventions rather than the “hard” approaches such as codes and protocols (Wang, Hutchins & Garavan, 2009). It may appear as a component of partnership planning between the government, employers and trade unions. The last set of components is the multinational conditions which are cross-culture difference and international laws and regulations.
Cross-cultural differences such as cultural assumptions towards planning and risk may also operate by some organizations. According to Tierney,Lindell & Perry (2001), Asian countries are slow to react to disasters and they do not understand the important of systems and processes to deal with these disasters. Meanwhile, according to Caudron (2002), global terrorist events and international criminal acts have alert the national government regarding the important of providing the security education and professional education of human resources involved in security management. Certain multinational corporations may also pose some policies on individual companies within the corporation’s (Wang, Hutchins & Garavan, 2009).