Human resource development: key organisational process in a

knowledge economy
Rosemary Harrison and Joseph Kessels
Refereed track (4,982 words, excludin references!
"! Rosemary Harrison,
#8, Hallarth $treet,
%urham &ity,
%H" '(),
*+,-(+%.
/hone and fax0 1 "9" '84 2439
*mail0 m4rharrison5ntlworld.com
2! Joseph Kessels,
/rofessor of Human Resource %e6elopment,
7aculty of *ducational $ciences and 8echnoloy
9ni6ersity of 8wente,
/.:.;ox 2"<,
<233 *( *nschede,
+*8H*R-(+%$.
/hone0 1 '" 2' 489 '" #9
7ax0 1 '" '42 4#"'34
*4mail0 kessels5kessels4smit.nl
ABSTRACT
(n emerin knowlede economy creates ma=or challenes for human resource
de6elopment (HR%! in oranisations. 8he purpose of this paper is to identify some of
these challenes and explore their implications for HR% professionals. 8he paper takes
the form of a literature re6iew to contri>ute to the onoin de>ate a>out HR%?s
chanin role and tasks.
Ha6in set the oranisational process of HR% in the context of a knowlede economy
and of macro4le6el socio4economic policy, we explore notions of stratey, structure
and knowlede and their implications for those with HR% responsi>ilities in
oranisations. @e identify and discuss four ma=or challenes that confront the HR%
function, and conclude that a knowlede economy in6ites HR% professionals to play a
crucial role in the transformation of oranisations. (s workin, learnin and knowin
are closely related processes, HR% could >ecome the interatin 6ehicle for eneratin
human and social capital0 primary dri6in forces in a knowlede society.
KEY !R"S0 *thicsA human resource de6elopmentA knowlede economyA
knowlede processA knowlede producti6ityA knowlede workersA lifelon learninA
manaement competenciesA social capitalA strateisin and oranisin.
Human resource development: key organisational process in a knowledge
economy
HR" A#" THE E$R!%EA# A&E#"A '# A K#!(E"&E EC!#!)Y*
Competition and colla+oration in a knowledge economy
Bn an economic en6ironment where knowlede is >ecomin the main oranisational
currency, firms must >e a>le to learn fast, respond to recurrent unfamiliar challenes,
and ensure that their workers can construct and share strateically 6alua>le knowlede
as well as acCuire technical and interacti6e skill. 7or o6er a decade the ?diDDyin pace?
of technoloical chane (;ettis and Hitt, "992! has >een stimulatin lo>alisation 4 a
process directly linked with the Bnternet and the pricin and information re6olution that
it has made possi>le. ( ma=or conseCuence of the con=unction of an emerin
knowlede economy and increased lo>alisation is that inno6ation and flexi>ility
rather than efficiency ha6e >ecome the main dri6ers of 6alue. &ompanies that do not
Cuickly learn to co4create 6alue with their customers and capture the intellience that
illuminates what those customers 6alue will soon lose competiti6e ad6antae (/rahalad
and Ramaswamy, 2332!. Bn this tur>ulent en6ironment competiti6e ad6antae relies on
capa>ility to adapt to new and unfamiliar challenes >y eneratin and applyin new
knowlede to continuous impro6ement and radical inno6ation in work processes,
products and ser6ices and to customer relationships.
Bt is the purpose of this paper to identify and explore the ma=or implications of a
knowlede economy for those who ha6e core responsi>ilities for learnin and
de6elopment of people in oranisations. (t this point, therefore, it is rele6ant to
introduce the concept of HR% as an oranisational process.
2
HR": T,e organisational process
(lthouh the stratey literature has for some time contained a distincti6e strand on
oranisational learnin and on knowlede manaement, there is still surprisinly little
on HR% as a key process for oranisations operatin in a knowlede economy. :ne
ma=or 9nited Kindom (9K! report ($tewart and 8ansley, 2332! has re6iewed new
roles and tasks for trainers in such an economy, and a *uropean research pro=ect has
examined HR% strateies and practice in nearly 233 ?learnin oriented? oranisations
across *urope (8=epkema, $tewart, $am>rook, Eulder, 8er Horst and $cheerens,
2332!. Howe6er, much of the 9nited $tates (9$! and *uropean literature on HR% is in
reality primarily a>out trainin, and we arue that HR% comprises far more than that.
8he term has many interpretations, >ut in our 6iew0
HRD as an organisational process comprises the skilful planning and
facilitation of a variety of formal and informal learning and knowledge
processes and experiences, primarily but not exclusively in the workplace, in
order that organisational progress and individual potential can be enhanced
through the competence, adaptability, collaboration and knowledge-creating
activity of all who work for the organisation
Research pro6ides e6idence that, howe6er they are titled, HR% functions tend to >e
preoccupied with learnin inputs, with the impro6ement of indi6idual performance and
with trainin4dominated acti6ity (;ournois, &hauchat and Roussillon,"994A -arsen,
"994A (shton, $un, Raddon and /owell, 233"A $tewart and 8ansley, 2332A 8=epkema
et al. 2332!. :ur definition infers that if the HR% process is to add critical 6alue in a
knowlede economy, then there is a need for a fundamental shift from this
preoccupation with immediate performance impro6ement to a stron focus on lifelon
learnin and work4>ased learnin strateies. Bn a knowlede economy HR%
professionals need to turn their attention to learnin processes that can produce and
disseminate knowlede to enhance the oranisation?s capa>ility to continuously
impro6e and to radically inno6ate. 8he focus of HR% acti6ity needs to >e on learnin
outcomes and on makin an oranisational contri>ution ($te6ens, 233"!.
'
T,e European Agenda o- (i-elong (earning
:ur definition reflects a perspecti6e on HR% that is in accord with the current macro4
le6el policy emphasis on lifelon learnin and de6elopment. :ne of the main tasks of
pu>lic funded education is to in6est in the de6elopment of a hih le6el workforce.
(cross the *uropean &ommunity the need to in6est hea6ily in human capital has for
o6er a decade expressed itself in a dri6e for life4lon learnin. 8his dri6e informs
national 6ocational education and trainin policies in mem>er states (:*&% 233"aA
233">! and raises three issues rele6ant to this paper0
". T,e need -or t,e development o- ,uman capital to +e a s,ared responsi+ility *
w,et,er at macro or micro levels o- society
:*&% studies (233"a! stress the direct influence of >etter education and also of
ood healthcare, welfare, and social and political commitment in creatin a climate
for li6in and learnin in which knowlede de6elopment can occur. Bn a
knowlede economy co4operation and trust help to form the >asis for networks in
which the exchane of rele6ant information and colla>orati6e approaches to
enerate new knowlede thri6e (i>id!. Bn a knowlede economy the encouraement
of education, trainin and de6elopment is thus no loner the exclusi6e role of
o6ernment. 7irms, institutions and 6oluntary oranisations ha6e an eCually
important part to play in ensurin learnin opportunities for their mem>ers.
Bt follows that within oranisations the same principle holds true0 learnin, and the
de6elopment of knowlede on which economic and social well4>ein reatly
depend, should >e pursued throuh a enuine partnership process. 8his process is
essential particularly >ecause of the uniCue strateic 6alue of tacit knowlede 4
that is to say, of knowlede that is em>edded deep in the indi6idual or collecti6e
su>conscious, expressin itself in ha>itual or intuiti6e ways of doin thins that are
exercised without conscious thouht or effort (+onaka, "99"!. 8acit knowlede is
the property of indi6iduals and cannot >e wrested from them. 8he learnin that
produces it must therefore rest upon a reconition of mutuality of interest and of
responsi>ility >etween oranisation and indi6iduals.
4
./ T,e need to develop social as well as ,uman capital
8he *uropean aenda for lifelon learnin is underpinned >y concepts of human
and social capital0
Human capital0 ?the knowlede, skills, competencies an attri>utes em>odied in
indi6iduals that facilitate the creation of personal, social and economic well4
>ein? (:*&% 233"a0"8!. Human capital is de6eloped in the contexts of family,
early childcare settin, formal education and adult education, daily li6in and
ci6ic participation, as well as in formal trainin and informal learnin at work
and throuh acti6ities such as research and inno6ation or participation in
6arious professional networks.
Social capital0 ?networks toether with shared norms, 6alues and
understandins that facilitate co4operation within or amon roups? (i>id04"!.
8rust may >e 6iewed as >oth a source and an outcome of social capital as well
as >ein a close proxy for many of the norms, understandins and 6alues that
underpin social co4operation.
@e arue that in oranisations where the tacit dimension of knowlede and its
social construction form a 6ital source of competiti6e ad6antae the HR%
in6estment should >e focused stronly on the >uildin of social capital, which is to
do with the interactions of all workers in an oranisation. +ot only specialist
knowlede workers >ut also personnel such as ser6ice worker, data workers and
ood4producin workers all >elon to the networks of a knowlede acti6ity system
that ena>les continuous adaptation to a dynamic en6ironment throuh
impro6ement and inno6ation in work processes, products and ser6ices. $urely,
then, the HR% in6estment must encompass the entire workforceF
0/ T,e need to recognise organisational conte1t as t,e ma2or determinant o-
-irms3 HR" investment

:ranisations? in6estment in HR% is undou>tedly influenced >y a mesh of external
forces that include macro4le6el policies in the HR% field and country +G*8
2
systems. Howe6er, this influence 6aries reatly from one country to the next, and
indeed from one sector and oranisation to the next ($parrow and Hiltrop,"994A
(shton et al. 233"!. Research repeatedly shows that HR% policies within the firm
are most powerfully shaped >y its internal context, most nota>ly >y top
manaement?s 6ision and 6alues, >y manaement style and actions at different
oranisational le6els, >y human resource (HR! strateies and practice in the
workplace, and >y the employment system of the firm (,hoshal and ;artlett, "994A
Hendry, "992A /atterson, @est, -awthom and +ickell,"99<A 8erry and /urcell,
"99<!. 8his emphasises the need for HR% professionals interate their acti6ity with
wider HR and >usiness practice in order to achie6e HR% oals.
@e conclude from this section that0
in oranisations operatin in a knowlede economy it is 6ital to de6elop social
capital as well as indi6idual human competence
HR% professionals need to acCuire a deep understandin of internal oranisational
context as well as of the external >usiness en6ironment, and work in >usiness
partnerships in their oranisations.
STRATE&'S'#& A#" !R&A#'S'#& '# A K#!(E"&E EC!#!)Y
T,e drive -or -le1i+ility
9ntil the closin decades of the 23th century structure tended to >e a static concept,
primarily concei6ed of as policy 4 that is to say, the outcome of formal strateic
decisions (see, for example, &handler, "9#2, %rucker, "9<4, and &hild, "9<<!.
Howe6er in a knowlede economy reular structural reconfiuration of the firm must
>e interated with continuin chanes in stratey as current stocks and resources
within the firm are redeployed andHor new are acCuired (/ettirew, 8homas and
@hittinton, 23320"<! and as the firm interacts with the customer to co4create 6alue.
$tratey and structure ha6e to >ecome interacti6e processes that dri6e and support
continuous knowlede creation and the acCuisition and use of expertise across
#
>oundaries (@hittinton, 2332A Genkatraman and $u>ramaniam, 2332!. $kilful
strateisin and oranisin >uild two kinds of oranisational flexi>ility0 in producin
new strateic responses as old recipes >ecome o>solete, and in rapidly and reularly
redeployin and co4ordinatin the resources needed to implement those responses
($ancheD, "992!.
$trateisin needs to ensure that old ways of thinkin and doin do not to dominate,
lockin in customary ways of thinkin, inhi>itin inno6ation and pre6entin proress
(;ettis and Hitt, "992!. Bt must ena>le the creation of dynamic capa>ilities that rely on
the ?economies of expertise? ained >y le6erain intellectual capital and knowlede
flows in a network of internal and external relationships (Genkatraman and
$u>ramaniam, 2332A *isenhardt and $antos, 2332!.
9nderpinnin the search in the literature for new oranisin principles lie three
complementary notions of the oranisation0
as a reser6oir of knowlede (Hedlund, "994A Kout and Iander, "99#A
@hittinton, 2332!
as a portfolio of dynamic capa>ilities (8eece, /isano and $chuen, "99<!
as a network of relationships (Juinn, "992A Eiles and $now, "992A ;aum,
&ala>rese and $il6erman, 2333A Genkatraman and $u>ramaniam, 2332!.
Bnno6atory oranisational desins are characterised >y new manaement and
oranisin loics founded on principles of self4oranisin and trust in >ottom4up
processes (*lfrin and Gol>erda, 233"0282!. Howe6er, research re6eals that0
all knowlede4creatin enterprises face similar desin Cuestions (@hittinton and
Eayer, 2332!. 8hese are to do with the kinds of structure, routines and processes
that can facilitate knowlede construction, transfer and interation, with how to
ensure a producti6e interplay >etween explicit and tacit knowlede within and
>etween oranisations, and with how to oranise for >oth routine and inno6ati6e
acti6ity in the oranisation
<
there are no prescriptions for oranisin in an increasinly knowlede4>ased
economy. *ach firm must find its own structural response to the internal and
external knowlede4creation issues that it confronts, and must ensure in so doin
an effecti6e interplay of oranisin and strateisin processes (Genkatraman and
$u>ramaniam, 23320 4<"!.
8he primary resources for the oranisin process are hard4to4copy technoloies,
oranisational routines (such as >udetin, research and de6elopment arranements,
templates for oranisin work and control and plannin routines!, culture and
socialisation processes, and relational competencies that allow the oranisation to
com>ine its uniCue resource with those of other firms, particularly those >elonin to
its 6alue chain (/ennins, 233"0 24"!. 8he path4dependent nature of knowlede
creation raises a need to understand the historical roots of these resources. -e6els and
types of knowlede that already exist in the firm, its past record of inno6ation, of
inno6atory desin capa>ility and of leadership and manaement, its past HR policies
and their outcomes 4 all these contextual factors constrain or facilitate current strateic
and structural options.
@e conclude from this section that0
the new tasks for HR% professionals in a knowlede economy in6ol6e an onoin
couplin of HR% stratey and practices to the wider strateisin process at all
oranisational le6els, and a sensiti6ity to internal oranisational context
those professionals also need to ensure that learnin and knowlede processes
interact effecti6ely with structure and technoloy when new strateies or
oranisational forms are to >e introduced or em>edded.
;ut what exactly do we mean >y the? knowlede? processF
8
THE K#!(E"&E %R!CESS
#otions o- knowledge
8he notion of knowlede as a resource to which the oranisation has proprietary rihts
influenced corporate policy4makin, the manaerial role and HR% acti6ity throuhout
most of the twentieth century (*isenhardt and $antos, 2332!. ;y its turn, howe6er,
chanes in the competiti6e landscape of the firm and in the nature of the customer
relationship were drawin increasin attention to the tacit dimension of knowlede,
and to the importance of ?knowin? as a social, relational process.
Bn a knowlede4>ased economy the source of competiti6e ad6antae cannot >e
knowlede as oranisational commodity alone, since the 6alue of all commodities is
eroded >y o>solescence, imitation and poachin. @hat is needed is a new paradim of
the oranisation 4 one that presents it as a system of learnin and knowin processes
and acti6ity that are situated in workplace communities of practice. 8he concepts
underpinnin the paradim are not new (Gyotsky, "9<8A -a6e and @ener, "99"A
$tern>er, "994!. Howe6er, where once they were mainly de>ated in the educational
and social theory domains, now they are ainin prominence in the literature and
practice of >usiness stratey and HR% (@ener and $nyder, 2333!.
Bncreasin attention is >ein directed to ways of >rinin workplace communities of
practice toether in a shared oranisational purpose while not destroyin the uniCue
self4reulatin properties that make them so attracti6e to indi6iduals and so powerful
in dri6in the knowlede process. 8his suests that the emphasis in knowlede4
creatin oranisations should >e less on de6isin manaement systems to KcontrolL
learnin or to KmanaeL knowlede, more on findin Knew ways to encourae people to
think creati6ely and feed their thouhts >ack into the oranisationL (Russell and
/arsons, "99#0 '2! and to pro6ide the skills and support systems needed to manae the
pro=ects that arise from that creati6ity. Research into knowlede4intensi6e
oranisations confirms the need for this approach ($wart, Kinnie and /urcell, 233'!.
Bn increasinly technoloised workplaces employees? moti6ation to learn new tasks,
de6elop new work >eha6iours and master new work practices is 6ital, >ut new
9
technoloy cannot >uild that moti6ation. 8hat is a task in which HR% professionals
should >e takin a lead, especially >y promotin meaninful social interaction within
and across teams 4 includin 6irtual teams, whose di6erse participants need help to
acCuire the attitudes and capa>ilities for enain in 6irtual communities of practice
(Ealhotra, 2333!. (cross *urope ad6ances in information and communication
technoloy ha6e powerful implications for learnin and knowlede construction and
for the structural arranements that can support the knowlede process (Hansen,
+ohria and 8ierney, "999A Eulder and $waak, 233"!.
@e conclude from this section that0
when oranisational flexi>ility, the exploration of opportunities and the
in6ol6ement and reciprocal learnin of all oranisational mem>ers are essential to
competiti6e capa>ility, then sustained in6estment in a conduci6e work en6ironment
is not only likely to >e attracti6e to indi6iduals0 it is essential for the >usiness.
HR% professionals need the expertise and credi>ility to play a leadin role in
>uildin and sustainin ? knowlede4producti6e en6ironments? where0
knowlede is understood >oth a relational process and a type of indi6idual
attri>ute or Cuality. 8hat Cuality is to do with indi6idual conition as well
as with the a>ility to learn in communities of practice, >ut it oes >eyond
>oth. Bt in6ol6es a personal KskilfulnessL and sensiti6ity that is inextrica>ly
linked with the indi6idual concerned (Huysman and %e @it, 2332!

the creation, sharin and application of knowlede to continuous
impro6ement and radical inno6ation in products, ser6ices and processes is a
dominant concern throuhout the oranisation, with daily operations so
desined as to support that concern (Kessels, "99#!
"3
HR": SH'4T'#& %ERS%ECT'5ES
T,e et,ical dimension
8here is considera>le e6idence that the operation of the emerin knowlede
economy, far from heraldin a li>eratin new ae in the workplace, is perpetuatin old
la>our market di6isions and creatin new >arriers >etween the pri6ileed ?knowlede
workers? and the ?non4knowlede workers? (&appelli,"992A 7ield, 2333!. ,hoshal and
;artlett ("992, Cuoted in $parrow, "999! called for a new moral contract for all
employees in the new economy 4 one focused on the de6elopment of work methods
and the redesin of work processes that foster the creation of continuous self4
de6elopment. Howe6er, HR% professionals will strule to ain support for such a
transformation in oranisations where there are deep4rooted di6isions >etween
workers. 8hey will also face >arriers where they themsel6es are under pressure to >e
K6alue4addin >usiness partners? who concentrate their acti6ity mainly on the human
capital that is rearded as ha6in the most asset 6alue 4 knowlede workers.
@hat is at issue here is a need for new ways of thinkin a>out the oranisation and
a>out the HR% task. 8he traditional unitary perspecti6e, restin on a concept of
unifyin economic oals and rational >eha6iour of all stakeholders, cannot encompass
the radically chaned pressures and opportunities confrontin oranisations operatin
in a knowlede economy. ( pluralist perspecti6e, >y contrast, sees human >eha6iour
dri6en >y oals that, operatin at many oranisational le6els, are not necessarily
dominated >y any common loic, shared 6alues or compati>ility of interests, althouh
they are powerfully shaped >y external and internal oranisational context. Bn this 6iew
e6ery oranisation operates in a context that is to a reater or lesser deree uniCue to
itself, and can only proress throuh co4operati6e endea6our that reconises the
leitimacy of di6erse interests (;rewster, "999!.
Bf, in knowlede4creatin oranisations, it is accepted that the most 6alua>le >ase of
knowlede is enerated Kin hereL throuh a relational workplace process, then it should
>e clearly inappropriate for only one set of workers to >ecome the focus of HR%
in6estment. Knowlede that resides larely in social interactions represents a widely
distri>uted asset, and in its uniCuely 6alua>le tacit form it cannot >e wrested from
""
people. 8hey must want and aree to put it at the ser6ice of the collecti6e whole. 8his
cannot >e achie6ed in oranisations where0
for all the rhetoric of the learnin economy and the >reakdown of hierarchy, in
reality most employees face an experience of continued su>ordination
(7ield, 2333084!
T,e managerial role
,i6en that conclusion, one promisin de6elopment is that in many oranisations the
stereotype of the controllin manaer is >ein replaced, at least in title, >y the
coachin, uidin, facilitatin and entrepreneurial manaer and similar roles are
>ein proposed for HR%Htrainin manaers operatin in a knowlede economy
($tewart and 8ansley, 2332A 8=epkema et al. 2332!.
(ction, howe6er, counts more than title. Huysman and %e @it (2332! carried out a
sur6ey of ele6en oranisations in6ol6ed in knowlede manaement. 8hey found
scant reard there for sharin knowlede. 8hey criticised the use of a knowlede
manaement concept that disuised a unilateral manaement perspecti6e. 8hey
also criticised >oth a one4sided indi6idual learnin perspecti6e that demonstrated
little reard for collecti6e, oranisational learnin, and a one4sided information
and communications technoloy perspecti6e that reflected little concern for
social interaction. Ealhotra (2333! concluded that a manaement perspecti6e
cannot >e reconciled with the concept of knowlede de6elopment. He did not
deny the need to find ways of manain knowlede, >ut, like Gon Kroh, Bchi=o
and +onaka (2333!, he looked to the idea of self4steerin Kknowlede
intrapreneursL to achie6e that. $uch claims express a >elief that knowlede4
producti6e oranisations thri6e on emancipated learners who participate in
relati6ely self4reulated workplace communities of practice.
"2
@e conclude from this section that0
in a knowlede economy, HR% professionals need to work in partnership with
manaers, team leaders and other internal and external stakeholdersin order to
de6elop and sustain colla>orati6e knowlede4producti6e communities
those professionals should continuinly raise awareness of ethical issues in6ol6ed
in learnin and de6elopment processes, and stri6e to >reak down old and emerent
patterns of difference >etween learners within their oranisations ($olomon, "999!.
"'SC$SS'!#
T,e issues
Bn this paper we ha6e noted the awareness at international and national policy4makin
le6els that, in an emerin knowlede economy, addin 6alue >y means of knowlede
creation and knowlede application is more important than the a6aila>ility of the
traditional factors of capital, material and la>our. 8here is a reconition that to achie6e
this calls not only for the acCuisition and de6elopment of superior human capital, >ut
for social capital to >e skilfully oranised, de6eloped and sustained throuh time and
space.
(t oranisational le6el, an emphasis on process rather than on product in relation to
>oth stratey and structure can only increase in a world that is no loner ?firm4centred?
>ut where oranisation and customers must colla>orate in the 6alue4creation process
and where a tur>ulent en6ironment is reularly eneratin unfamiliar and complex
challenes. @here top manaementLs 6ision and 6alues focus con6incinly on
knowlede producti6ity as an oranisational capa>ility, and where manaement
actions, work practices and HR processes support that focus, then HR% acti6ity can
make a powerful contri>ution to 6alue creation. ;ut where context is unfa6oura>le
andHor where HR% and other HR professionals are passi6e, uninformed or >oth, the
necessary culture chane inter6entions are unlikely to take root.
"'
In a knowledge economy there is a need not only for visionary leadership and
facilitative management but for good leadership and management that goes about its
business in a manner respectful of certain values (Harrison and Smith, 2001).
Knowledge-productive organisations, where 'work has become the new classroom',
depend on a sense of community and an inclusive approach to learning (Rana, 2002).
This calls for workplace training and learning processes that are informed by concern
for an ethical approach and that respect and build on diverse value systems.
4our c,allenges -or HR" in a knowledge economy
:ur re6iew points to four ma=or challenes for oranisationally4>ased HR% in a
knowlede economy.
Challenge ! to achieve strategic thrust through integration of HRD strategies with
current business and HR strategies, coupled with a focus on building future
organisational capacity for superior speed, flexibility and knowledge creation"
8he real issue when considerin the relationship >etween human resource manaement
and HR% is not to do with structural positionin, or with the su>ordination of any one
specialist function to another. Bt is to do with interation. Bf HR% is not to >e impeded
>y >arriers of HR practice and policy as it stri6es to pro6ide a strateically focused
response at all oranisational le6els to the challenes of a more knowlede4>ased
economy, then HR% practitioners must work in close partnership with their other HR
colleaues. (s one HR% professional remarks0
@e must >e prepared to approach our =o>s in a different way, deployin our
skills in new directions. :ne ine6ita>le conseCuence is that we will >e effecti6e
only if we are interated with the o6erall human resource function. @e can no
loner operate in a silo
($loman, 233204'!
$hort4term trainin inter6entions ha6e their part to play in >uildin future
oranisational capacity, >ut only a part. 8he reater need is for dura>le HR% strateies
"4
that are well interated with current >usiness and HR strateies and are focused on
de6elopin and em>eddin a fast4responsi6e learnin culture.
Challenge #! to facilitate culture change and build a knowledge-productive learning
culture
8he effecti6eness of HR% in contri>utin to culture chane rests on its practitioners?
alertness and responsi6eness to new needs in the workplace, on their a>ility to raise
awareness of the importance of a culture of learnin and what that means in practice
for manaers and other employees, and on their production of rele6ant inter6entions
that can form part of culture?s new context. 8o do this, they reCuire a deep knowlede
of culture, of its historical roots, and of its typical impact on workplace >eha6iours and
performance. 8hey must >e a>le to identify aspects of oranisational context that may
interact neati6ely with HR% inter6entions aimed at chanin culture. 8hey must >e
effecti6e >usiness partners, skilled communicators, and proposers of strateies to
increase moti6ation to share and apply new knowlede across the oranisation.
Challenge $! to promote high %uality workplace learning processes that will enhance
the value of social as well as of human capital
@orkplace learnin has a lon history, >ut what is new is the extent to which it is
>ecomin reconised as a crucial source of competiti6e ad6antae that can produce the
hiher le6els of inno6ation and customisation needed as customers >ecome more
discriminatin and as competition >ecomes increasinly lo>alised ($te6ens, 233"!.
HR% professionals should place particular emphasis on technical competence and
closeness to the customers in oranisational scenarios where computerisation
facilitates lare increases in producti6ity, autonomous team4workin, flatter structures
and more accessi>le knowlede manaement and learnin systems (i>id!. Howe6er,
research across countries re6eals that much of the attention of fundin pro6iders,
manaers and trainers is on formally planned learnin ($tern and $ommerlad, "999A
(shton et al. 233"A Harrison, 2332!. 8here is also e6idence to show that trainers, for
whate6er reasons, are pro6in slow to maximise the potential of e4technoloy to
transform trainin and learnin (&B/% 2332!. HR% professionals need to take a lead in
ensurin a stroner focus on informal learnin processes and outcomes, and in
"2
interatin informal learnin with planned trainin and off4the4=o> 6ocational
education creati6ely and effecti6ely.
Challenge &! to develop managerial and leadership capability that will aid processes
of strategising, organising and HRD
Bn a knowlede economy manaers and team leaders increasinly ha6e to master
strateisin, oranisin and HR% processes rele6ant to inno6ati6e oranisational
forms. HR% professionals should >e desinin and helpin to implement manaement
de6elopment strateies to >uild three interactin types of core competence0
Strategic capability
an understandin of the stratey process that will produce challenes to
dominant loics that ha6e >eun to stifle inno6ation and oranisational
proress
skills to introduce and operate stratey process modes that are most rele6ant for
the particular oranisation, and to monitor utilisation and outcomes
a deep knowlede >ase and 6ariety of expertise in order to de6ise appropriate
responses to new challenes and opportunities ?out there?
'lexibility
a hih ?a>sorpti6e capacity? (&ohen and -e6inthal, "993! for reconisin the
need to chane. 8his in6ol6es reconisin the 6alue of new external
information, assimilatin it, and applyin it to impro6ement and inno6ation in
processes, products and ser6ices. 8his capacity can >e de6eloped particularly
throuh social networks and >oundary spannin and calls for hih4le6el skills
in those areas
the a>ility to work with others within and increasinly across oranisations to
increase the 6ariety of their firm?s dynamic capa>ilities >y identifyin and
supportin new ideas rather than =ust exploitin existin routines. 8his in6ol6es
"#
dou>le loop learnin skills and political a>ility to successfully challene
current operatin assumptions
(earning orientation
the moti6ation and a>ility to de6elop in the workplace a learnin culture that
will stimulate and support teams and indi6iduals in pro6idin the knowlede
needed to achie6e continuous impro6ement and radical inno6ation in oods,
products, ser6ices and processes
the moti6ation and a>ility to handle effecti6ely decentralised HR%
responsi>ilities, especially in new oranisational forms.
Responding to t,e c,allenges
8hese, then, are the four fundamental challenes that we >elie6e confront HR%
professionals in an emerent knowlede economy. )et there is little to show that at
present they are >ein reconised or tackled. *uropean research studies poro6ide
e6idence that, despite considera>le inno6ation in HR% practice, there is a eneralised
failure to promote a learnin culture in the workplace, to achie6e full strateic
interation for HR% and e6aluation of its oranisational impact, and to promote hih
Cuality workplace learnin >oth in informal and formal modes ($tern and
$ommerlad,"999A (shton et al. 233"A $tewart and 8ansley, 2332A 8=epkema et al.
2332!. 8he dominant HR% paradim e6en in oranisations stylin themsel6es as
?learnin oriented? appears still to >e that of ?trainin?, not of learnin in any >roader
sense. 8o rise to the challenes that confront them, HR% professionals schooled in
?trainin? and familiar in their oranisation for their ?trainin? role need to >ein to
promote a different perspecti6e0 one of learnin and actions that facilitate the sharin,
production and utilisation of knowlede in the day to day work en6ironment.
"<
C!#C($S'!#
@e explained at the start of this paper that our purpose was to identify and explore
some of the challenes that face oranisationally4>ased HR% in an emerin
knowlede economy. @e conclude >y reiteratin two >eliefs0
that in a knowlede economy the capa>ility to enerate and apply knowlede to
continuous impro6ement and radical inno6ation in work processes, products and
ser6ices is critical to oranisational proress.
that in such an economy the HR% process should focus on the expansion of
learnin capacity that can help to reenerate the oranisationLs knowlede >ase and
ensure continuin knowlede producti6ity.
@hen an oranisation is understood as an e6ol6in system of knowlede production
and application, HR% professionals ha6e the opportunity to >ecome strateic players.
8o do that, they will need mastery of expertise similar to that possessed >y the HR
professionals identified in recent research who are carryin strateic roles in
lo>alisin oranisations. 8hat expertise incorporates (;rewster, Harris and $parrow,
2332!0
a>ility to deal with social and cultural factors of learnin situated in workplace
communities of practice
skills in coachin, counsellin and mentorin indi6iduals and teams in knowlede
work
the a>ility to think strateically, to work in 6irtual contexts and to tolerate
am>iuities in new >usiness situations
the a>ility to work in many o6erlappin partnerships to create and sustain an
oranisational culture fa6oura>le to learnin that can dri6e impro6ement and
inno6ation.
"8
Bn knowlede4creatin oranisations HR% acti6ity should not primarily focus on
formal classroom trainin >ut on a 6ariety of forms of work4related learnin in order
that oranisational proress and indi6idual potential can >e enhanced throuh the
competence, adapta>ility, colla>oration and knowlede producti6ity of all
oranisational mem>ers.
@e conclude that the emerence of a knowlede economy offers excitin opportunities
to the HR% profession, and to those in6ol6ed in the education and continuin
de6elopment of its mem>ers. @e >elie6e that the primary task is to work with
oranisational stakeholders to create a synery >etween the learnin, de6elopment and
knowlede4creatin capa>ility of all oranisational mem>ers, the thrust of strateisin
and oranisin, and the proress of the oranisation as its >oundaries row e6er more
fluid in a tur>ulent world.
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