Organizational development and change

Organizational Change

The Role of Human Resources Development in Organizational Change: A Literature Review

Human resources development is perceived as an increasingly important aspect of overall organizational development, as evidenced by current research and practice. The need for organizational adaptability and ongoing development is also increasingly pressing in today's business world, creating a need for a more refined and comprehensive understanding of the issues influencing overall organizational development. This literature review addresses research concerning the role of human resources development in overall organizational development and adaptability. Findings indicate that concrete frameworks for understanding human resources' role in the long-term strategic planning of most organizations is an ongoing process. Specific mechanisms of influence and suggestions for further research are described.

Introduction

The rapid changes brought to most industries through increasing globalization and the growing interconnectedness of international firms and economies, as well as the ever-increasing pace of business brought to the world through the advent and progress of certain technologies, require organizations to be adaptive. Change and development are the only effective responses to the continuing change in the world and environment in which businesses operate, and thus must become bywords of any effective business organization. Remaining static and steadfast, while perceived as a sign of security, is more likely to cause stagnation.

There are many different frameworks and theories that can be applied to an understanding of organizational development and change. Many different scholars and practitioners have developed different understandings regarding what is needed in the way of organizational development in the current business environment; many differences are based on differences in specific industries' needs and opportunities, while others are held to be more universal and applicable broadly to all business organizations, and indeed all social groups. These varying theories are sometimes in direct competition, coming to mutually exclusive conclusions and leading to varying recommendations that seem to run directly counter to each other, but for the most part many of these theories simply represent different perspectives on the same identified issues, suggesting different methods that can be used concurrently in the attempt to mold organizations into those that can develop and change most rapidly in response to changing business environments and organizational opportunities.

A great many of the approaches to understanding and influencing organizational development can be considered grand theories, covering all or almost all aspects of an organization's structure, culture, activity, and behavior at all levels. Other theories are more narrowly focused, dealing with specific aspects of organizational growth and/or change, and illuminating the mechanisms by which certain functions of the organization influence the structure and the organization as a whole. This literature review will focus primarily on theories that specifically address one area of business organization development.

Specifically, the area of human resources forms the focus of this literature review; the role of changing human resources perspectives and practices in sustaining organizational development, change, and growth is cited by many researchers as incredibly vital, and human resources development is also a major part of achieving overall organizational adaptability. The views on how human resources practices affect organizational development, as well as how the actual structure of power within the different levels of human resources in a given organization influences its overall adaptability, have not reached a consensus, but rather take many different forms that suggest different opportunities for growth and different challenges presented to organizations attempting to develop the potential for ongoing meaningful and effective change.

Many grand theories and frameworks for understanding organizational development and growth place human resources in a prominent position, acknowledging the fact that an organization is, ultimately and at its most basic, a collective of different individuals, each of whom necessarily provides certain benefits and certain challenges to the organization. Other theories have developed an understanding of human resources that places it in a more subordinate role, seeing it as primarily influenced by other aspects of the organizational structure and culture rather than as a primary influence over these other organizational aspects. Both of these broad understandings of the influence human resources have certain merits and certain shortcomings, many of which will be detailed herein.

It is the goal of this literature review to form a comprehensive understanding of prevailing theories in the area of human resources and organizational development, and to summarize current research into the area. In so doing, it is the hope of this researcher that a more comprehensive and at the same time a more detailed and more specific understanding of the role human resources plays in organizational development will be achieved. This will provide a clearer indication of the perceived challenges and opportunities facing organizations in their attempts to develop and change more effectively in response to changing environments, both through directly addressing human resources perspectives and practices and through other means that necessarily have an impact on human resources. Specific areas for future research into the role that human resources play in organizational development will also be suggested by an examination of current findings and conclusions.

Literature Review

The research examined in the course of creating this literature review was almost exclusively empirically based, with primary publications of direct research findings examined by the author before inclusion in this review. This ensures that current theoretical frameworks are being utilized in the research reviewed, but also provides for alterations and potential problems with these frameworks based on the more recent findings of the empirical research itself when compared to the development of the overarching theories. In this manner, the conclusions of this review are kept as current and as empirically based as possible.

One recent research study in Malaysia found that development activities and practices specifically focused towards human resources were an excellent predictor of improvements to overall work processes, as well as to individual and team efficacy and self-reported levels of cohesion and satisfaction within the organization (Haslinda 2009). At the same time, these development activities did not appear to have a statistically significant influence on overall organizational efficacy or development (Haslinda 2009). The human resource development activities implemented during the course of this study, however, were not strategically planned to align with organizational goals, and therefore do not provide a firm basis for conclusions regarding human resources' role in overall organizational development.

In addition to the strategic design of the human resource development practices implemented, the timing of these practices has also been shown to be hugely influential in affecting their overall impact on organizational development and increased adaptability. Implementing human resource development changes at a time of overall organizational change can be more effective; even the most consciously well-meaning and focused of organizational changes in regards to human resource development might fail to have their desired impact and widespread adoption if such changes are undertaken slowly, or at a time when other changes are less prevalent and looked for in the organization (Knill & Balint 2008). Organizational size also has some influence in this area, with larger organizations requiring more prominent and actively pursued development programs (Knill & Balint 2008).

At smaller organizations, on the other hand, especially somewhat decentralized organizations such as the volunteer and community-based organization Community Development Health Network in Northern Ireland, human resource development has proven a highly effective manner for streamlining operations, reducing costs while improving program efficacy and efficiency (Curran 2009). Essentially, recent developments and procedural changes within this organization focused on the creation of smaller yet more responsive and more individually-empowered teams and staffing networks to provide for the efficient operation of the organization (Curran 2009). These efforts have so far proven extremely successful, with individual reporting greater feelings of self-efficacy and higher performance ratings following purposeful development drives (Curran 2009).

A research study conducted some time ago devoted more to a broad study of human resources and its potential for influencing organizational development rather than towards specific instances of organizational and/or human resources development efforts found that human resources is increasingly being viewed as a strategic rather than a simply operational aspects of most business organizations (Hawthorne 2004). This changing perspective has been correlated with greater degrees of organizational efficacy and performance, reflecting not only a changing understanding of the role of human resources in organizations but also a fundamental change in the role itself (Hawthorne 2004). Strategic human resources development is suggested as a necessity for continuing competitiveness (Hawthorne 2004).

Another broad-ranging overview of organizational development and the means and mechanisms by which it can be achieved provides four distinct frameworks for approaching these issues. One of these frameworks is wholly devoted to the development of human resources; this perspective focuses on motivation and the ways in which teamwork and individual efficacy improve organizational performance, stressing more the managerial aspects of human resources but necessitating a long-term strategic view in the development of management procedures (Bolman & Deal 2009). The other three frameworks suggested by these authors, though not explicitly addressing human resources issues necessarily take them into account in order to present a comprehensive understanding of organizational development and change in the current era, showing the high degree of importance that such issues have in creating overall organizational adaptability and efficacy as well as individual productivity within the organization (Bolman & Deal 2009).

The larger social implications of successful human resources development practices and perspectives have not been lost on researchers in the area, either. Altering human resource management practices to better address labor issues faced by non-management employees both within the organization and in their lives at large creates both a more satisfied and a more productive workforce and can also lead to reduced levels of underemployment and improve the general quality of life of workers (Worrall et al. 2010). Thus increasing profitability through human resource development also creates benefits for society at large.

The wide array of different approaches, both theoretical and methodological, that have been brought to bear on an understanding of human resource development and its role in overall organizational development and adaptability provide both specific instances of mechanisms and practices that can be utilized for such development, as well as a general understanding of the role of human resource development in modern industry and organizations. Incorporating these general and specific views into a cohesive understanding of the issues facing human resources development and overall organizational development is useful for determining best practices in today's business organizations, and also suggests areas where further research is necessary in order to determine effective human resources development practices and the ways in which these practices can be modified and/or implemented to provide the greatest benefit to organizational development.

Discussion

Two studies found that human resource development is a key component in long-term strategic planning for most organizations, and that such perspectives are becoming more prevalent in many industries (Bolman & Deal 2009; Hawthorne 2004). Whether or not the strategic importance of human resources development is a prominent and acknowledged part of development plans, this research suggests, its effects on organizational development and long-term strategic operations is huge (Bolman & Deal 2009; Hawthorne 2004). When human resource development is ignored, however, the effects could just as easily be detrimental.