The Problem
The Global Financial and Economic Crisis1 starting in 2007 and its resultant impact
has called into question the contribution of Human Resource Development (HRD) strategies
and practices to the crisis. With its primary focus on the development of human
resources, it could be argued that HRD aligned itself too closely with the strategic
goals of organizations, often times profit centric, and failed to provide leaders with
the skills, knowledge, and values required to question the decisions made by
organizations in the pursuit of profit goals and the development of a culture of risk
taking.
The Solution
Utilizing Cognitive Appraisal Theory (CAT), this article draws on the official reports
and public inquiry hearings in the United States, United Kingdom, and Ireland into the
financial crisis and finds that HRD strategies, practices, and processes are factors
which may have contributed to a culture of excessive risk taking and ineffective
decision making. We outline the implications for HRD theory and practice.
The Stakeholders
The research findings inform a multiplicity of stakeholders including organizational
behaviorists, social psychologists, government bodies, educational organizations, and
scholars researching strategic HRD in organizations.