The strategic value and transaction effectiveness of HRD

Abstract

PurposeThe purpose of this article is to outline the role of human resource development (HRD) in Lean strategy as the context for assessing interactions with internal customers. Identifying the perceived gap in role expectations and fulfillment emphasizes important priorities and offers tangible measures for assessing HRD contributions. A focus on business strategies such as Lean enhances HRD's strategic value. Central to the study is the proposition that HRD value and effectiveness revolves around the perceptions of key internal stakeholders in the organization.Design/methodology/approachThis study explores internal customer perceptions of HRD in a select organization using a qualitative case study method. Key stakeholders responsible for Lean implementation were identified as internal customers. Further, the focus on Lean helped to narrow the scope of the investigation. Interactions between key stakeholders and HRD professionals during Lean implementation were assessed.FindingsThe findings from the study suggest that effectively performing transactional responsibilities (reducing employee relations incidences, errors in processing routines) not only strengthen transactions effectiveness, but also enhance HRD's capacity for strategic involvement in the organization. Involvement in Lean strategy was considered critical as it highlights opportunities for increased strategic involvement for HRD. A new finding from the study suggests that a focus on HRD's strategic value also enhances transaction effectiveness. Further, ignoring, excluding or undervaluing HRD role and involvement in business strategy adversely affects organizational effectiveness.Practical implicationsCommunication of role expectations between organizational group members (HRD and internal customers) would reduce the level of disagreement, reduce potential conflict and enhance the value and effectiveness of HRD. In order to pursue this line of thinking in practice, the study recommends HRD practitioners to become intentional about the selection and development of potential business partners in the organization.Originality/valueThe study suggests that HRD's transactional responsibilities influence customers' perceptions of HRD's capacity for a strategic role in the organization. Effectively performing transactional responsibilities not only enhances HRD effectiveness but also offers opportunities for increasing HRD's added value to the organization. A new finding from the study also suggests that a focus on the strategic value enhances HRD effectiveness in organizations.