Human Resource Development in a Knowledge Economy

Citation

Alexopoulos, A. (2007), "Human Resource Development in a Knowledge Economy", Personnel Review, Vol. 36 No. 1, pp. 155-158. https://doi.org/10.1108/00483480710716777

Hailed as the key factor that would enable the further development of contemporary, mainly advanced economies, knowledge has undoubtedly escalated into a top research priority within the wider management and organisation theory over the last decade. There is also an increased realisation that people management issues are inextricably linked with the successful implementation of knowledge management (KM) objectives. Paradoxically though, relatively little attention has been paid to the human resource (HR) implications of managing knowledge (Storey and Quintas, 2001).

Hence, Human Resource Development in a Knowledge Economy is a welcomed contribution to the growing, yet limited volume of textbooks available on HR issues of managing work within knowledge‐intensive organisations (e.g. Evans, 2003; Lengnick‐Hall and Lengnick‐Hall, 2002). Throughout its twelve chapters, the book's overarching aim is to shift the HR dialogue towards a practice‐oriented but also critical approach to human resource development's (HRD's) transforming identity and future potential for organisational advantage in the realm of a knowledge‐driven economy and learning society. The book draws on a well‐represented number of theoretical and empirical studies illustrating the differences and similarities between HRD practice in UK, Continental Europe, the US, and Japan. Accordingly, Harrison and Kessels stress the importance of reconceptualising the notion of HRD as an embedded organisational process which can add strategic value to the firm through contributing to its “knowledge productivity”. Inherent in this view is an integrated approach to working, organising and learning as an essential prerequisite for transforming the daily workplace into a truly knowledge‐productive environment.

Preceded by an overview of the book's thematic territories, the reader is presented with a rather cursory macro‐level analysis of the nature and causes of the emerging knowledge economy. In the same scene‐setting chapter, definitions of both knowledge and non‐knowledge workers are also provided, constituting the basis on which a new role for HRD is identified as an inclusive process focusing on the enhancement not only of human but also of social capital. Finally, chapter 1 raises questions on whether traditional HRD systems can function satisfactorily within new organisational landscapes characterised by rapid changes in their strategic priorities and structural characteristics, issues that are examined in more detail in chapters 2 and 3 respectively.

By questioning the assumptions that underpin dominant strategy theories, such as the resource‐based view of the firm and agency theory, chapter 2 views strategy as a process resulting from ongoing learning and action across the organisation. Furthermore, drawing on data from ESRC 2000 and ISR 2002 surveys, it discusses the competitive pressures on the employment relationship, pointing out “that the traditional psychological contract is in its death throes” (p. 26). It also highlights the importance of a pluralist HR paradigm that recognises “the value of social capital … that can enhance trust across the organisation and build knowledge‐productive relationships” (p. 38). Chapter 3 first examines various perspectives on structure and then identifies appropriate organisational forms for implementing successfully KM objectives including innovation and economies of expertise. These are best exemplified by a case study of a globalised firm experimenting with radical business strategies. Similarly to chapter 2, this chapter calls for a non‐universalistic, contextualised approach to organisational design in order to understand how knowledge is organised within and across organisational boundaries.

Chapter 4 centres on the issue of life‐long learning, which is seen as key to enable greater labour market flexibility across Europe. The reader is informed that the provision of life‐long learning opportunities in many EU counties “suffers from a lack of coherence in policy at national, regional and local levels” (p. 63). Next, the various features of, and differences among national vocational education and training systems (NVETs) in four western European countries, the US and Japan are outlined, with a particular focus on the links between education and training, funding and provision of training, and vocational standards and qualification frameworks. The chapter concludes with an assessment of NVETs and their influence on HRD practice, followed by an illustrative case study of life‐long learning policies in Singapore.

Chapter 5 aims first to clarify the HRD field and then to identify the key challenges that HRD faces in knowledge‐intensive organisations. The discussion here involves the performance‐learning debate, issues of fit between HRM, HRD and wider business strategies, the concept of the learning organisation, and the promotion of workplace learning as a competitive organisational resource. Integral to those themes is the role of leadership in promoting a learning culture and in developing managerial capabilities that will facilitate the strategic implementation of HRD initiatives relevant to today's changing organisational paradigms. In chapter 6, the above challenges are empirically examined based on the findings from the 2002 European HRD research project, which provide support for a general failure to promote a learning culture in the workplace, and also to achieve strategic integration for HRD and evaluation of its organisational impact.

In the light of those findings, the second part of the book (chapters 7‐10) examines the requirements to build knowledge‐productive organisations, the new tasks involved for HRD professionals, and practices that can enable them to develop their expertise in order to take the HRD function forward. Chapter 7 frames four notions of knowledge in organisational metaphors (i.e. control, intelligence, relationships, and commodity). Distinguishing between a positivist and a constructionist view of the world, it favours clearly a relational approach to knowledge and focuses on the salient role of communities of practice as self‐regulated properties in driving the knowledge process in organisations. The chapter closes with a summary of key issues for strategising, organising and knowledge processes, preparing the reader for the following two chapters that constitute the major contributions of this book.

Chapter 8 expands on the concept of “knowledge productivity”. This entails the creation of new knowledge at the individual, team and business unit levels, which in turn can harness the organisation's product and process innovation capabilities. Next, it identifies the links between knowledge productivity and personal skilfulness. Of particular interest is the discussion of practical judgement. Based on Aristotle's distinction between episteme, techne and phronesis, the key features of practical judgement are outlined and their salient role in facilitating the implementation of beneficial learning outcomes for individuals, for the business and for wider society are also highlighted. The “corporate curriculum” construct is then introduced. This essentially concerns an organisational plan which focuses on the informal aspects of workplace learning situated in self‐controlled communities of practice. After unfolding its eight pillars, the chapter concludes with a brief discussion of more applied aspects of the corporate curriculum concept and also suggests a number of principles to guide good HRD practice.

The concepts of knowledge productivity and corporate curriculum are further examined in chapter 9. However, the focus here is on formulating research questions, identifying research strategies, and providing empirical evidence of their actual utility. For example, a series of studies in the health and welfare sector in the Netherlands, although exploratory in nature, reveal a strong correlation between five of the eight corporate curriculum's pillars and organisations' ability to improve and innovate – that is, to engage in knowledge productivity (pp. 167‐168). In contrast, reflecting on research findings from the 2002 European HRD research project, HRD is not seen as a viable mechanism for achieving competitive advantage nor has gained the necessary support from top management that would enhance its status and legitimacy within the wider organisation and its stakeholders.

Chapter 10 provides an overview of the role of information and communication technology (ICT) in supporting learning, training, and knowledge sharing processes. Based on research examples describing the absorption rate of e‐learning initiatives in the UK and also the impact of ICTs on the effective collaboration of virtual teams, it is made clear that ICT, while useful for learning, cannot itself create the motivation to learn, as this is essentially embedded in the organisation's social architecture. Therefore, the chapter suggests HRD practitioners “to act as human process mediators, who facilitate and motivate, reinforcing the group's and the individual's sense of identity and purpose” (p. 197).

Chapter 11 sheds light on the ethical dimensions of HRD in a knowledge economy. Specifically, following a general overview on business ethics (e.g. corporate citizenship, codes of ethics), the discussion is shifted on three issues, namely, the dark side of workforce flexibility, the ethical dilemmas between performance and learning, and finally, inequalities in the coverage of training and development opportunities. Building on the “model of action patterns” framework, the chapter then underlines the significance of viewing ethics as a reflective dialogue between parties that can inform practical judgement. The chapter closes by recommending that “unless HRD professionals develop their own understanding of business ethics and apply that understanding to their professional activity, they will find it difficult to respond appropriately to ethical dilemmas” (p. 221).

The last chapter provides a summary of the main themes covered in the book placing special interest in a number of salient themes including the interrelationships between work and learning, the problems inherent in the simultaneous development of both knowledge and non‐knowledge workers, and the constructive tensions between life‐long learning and financial short‐termism confronting contemporary businesses. It also offers a non‐prescriptive set of core tasks for HRD professionals to perform.

The book is well written and provides the reader with a critical understanding of the role of HRD in knowledge‐intensive business environments. Its major advantage and its derived pedagogical value, particularly helpful for business students of both undergraduate and postgraduate levels, lies in its design, as each chapter includes moments of reflection which allow the reader to absorb and assess in a constructive manner a previous section of text. In addition, given the inclusion of a sufficient number and variety of up to date research examples, case studies, and assignments, the book encourages the reader, especially HRD professionals as well as general managers, to reflect on their own experiences, and therefore to develop their research and management skills. Overall, the book is recommended to all of those who are interested in advancing their theoretical knowledge and practical skills in the rapidly changing domain of HRD.