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Researchers Huselid (1997) and Rao (1999) claim that an employee with strong self-esteem, innovative knowledge and skills is an integrative part of company success. Therefore there is a strong motivation for HRD in any company.
What is HRD and what role does it play in development and success of any company? Actually, it is a pivotal question and before evaluation of external partners’ role in SHRD of PowerCo, it is desirable to define SHRD referring to the outer sources.
Thus Garavan (1991) claims that HRD deals with management of human resource development with focus on long-term company business goals and corporate strategy. Furthermore companies are thought to have interdependent and connecting relationships among employees. The works of other researchers underline that the main goal of strategic HRD brings closer objectives of the company. Furthermore in strategic context of HRD employees of the company through mission and strategic goal trainings increase both organisational and individual development.
SHRD creates a learning culture of the company, involves corporate strategy in every aspect of the life of the company (McCracken and Wallace, 2000, p.288). Nevertheless, HRD deals not only with training, but goes far beyond it. Thus HRD should be considered as a broader concept which involves not only training of employees, but a proactive tool of strategic improvement of the company. Furthermore SHRD can transform corporate culture involving strategic planning unlike HRD which responses to specific problems through efficient and relevant responses to specific problems. In the book by Walton (1999) it is underlined that human resources are the most important organizational resources which can shape all other business resources.
PowerCo tends to correspond to this statement, because it ensures constant positive working experience, which improves
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