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Perspective on Practice
ABSTRACT The present article approaches the trends of HRD in the Finnish pulp and paper
industry. The recent two decades have introduced several major changes into this field of
industry. Technical breakthroughs have led to drastic changes in the competence requirements
of the personnel. On the other hand, the boom of mergers and acquisitions in this industry
segment has cut down the humber of corporations with world wide operations. Globalization
challenges the European labor market, social policy, vocational education as well as HRD
practices to develop high value jobs and competencies essential for survival in the labor cost
competition.
This article aims to describe HRD practices in a particular context and identify
future trends and challenges for human resource development (HRD) within the
Finnish pulp and paper industry. This is achieved by examining the changes in the
business environment, which are analysed in terms of organizational and job design,
and in terms of past, current and future trends in HRD. The article closes by
presenting challenges for future HRD research.
Even though the article focuses on HRD in pulp and paper industry, many of the
issues addressed here are as relevant in the other types of industry. In addition, this
particular industry is not limited to one nation, in this case Finland, as all the major
pulp and paper corporations are global.
The role of personnel is becoming more and more crucial for the success of the
companies in pulp and paper industry. That can be concluded especially in the
Western markets, where quality requirements are still on a considerably higher level
than in quantity-oriented low-cost continents. In Europe and North America, the
Correspondence Address: Dr. Ville Nurmi, Research Director, Aamu Consulting Ltd, Ketostenkatu 37,
FIN-33300 Tampere, Finland. Email: ville.nurmi@tamperelainen.org
of that. In the past, the situation was different, as both monitoring and manual
operations were implemented in those extreme conditions (Norros and Leppänen,
2000).
HRD Trends
Until the 1980s, and in some companies even today, the HRD function equated to
traditional training. A company’s quality system required the counting and good
documentation of training days and mere measurement of reactions towards training
without further analysis of the data gathered. Further examples of a traditional
approach involved annual employee reviews among staff members and fragmentary
opinion surveys without further analysis or improvement actions. A more accurate
term for describing those activities would be ‘Training and Development’. Neither
the organizational perspective nor future orientation was involved (Gilley and
Eggland, 1989). Participation in external training was part of the unpublished
incentive plan rather than action based on careful career planning or individual and
organizational training needs analysis.
In several heavy industry companies, these practices are still the everyday reality of
personnel development. As a matter of course, some improvements have been
achieved. In the last few years, the focus of HRD has changed from external training
into on-the-job learning activities. In the process industry, it has been realized that in
most of the cases the best way to improve performance is to place the HRD actions
within the natural units e.g. work shifts. Developing some operators or supervisors
externally can improve their understanding and skills, but it cannot change the way
of operating and guarantee the performance improvement without the support of the
entire shift. Perhaps the strongest boom of team building has already passed. There
was a remarkable team-building boom in the 1990s in Finland. Almost all types of
companies intended to make improvements through team organization. Consultants
were eager to advise on these experiments and the media also made team building
its focus area. Gradually, there were more and more experiences with team-
organizations. Understanding that teams do not fit to every kind of purpose was
supported and discussed widely. Teams or working groups are appropriate models
for some but not all type of jobs (Leppänen et al., 1996).
The systemized learning of automation of the machines is evidently one of the key
focus areas of pulp and paper HRD (Nurmi, 2000). In many work places annual
employee reviews are extended from staff members to front-line workers. However,
there is only one area in which heavy industry companies have been able to realize
the aspiration of becoming a learning organization. The concept of learning
organization was the next booming development trend after team building. Peter
Senge’s fifth discipline (Senge, 1994) became well known among developers and
educators. As a matter of course, the concept lost its origin quite soon, and it was
applied with very different meanings than it was meant originally. The area where the
concept of learning organization has been applied fairly well is occupational health
and safety, particularly safety issues, where there has been much more investment
and experimentation in learning than in any other activity area. ‘Zero-accident’
programmes and practices to learn from others’ mistakes, i.e. close-out situations,
are widely known. This suggests that learning organizations may also be extended to
Trends in Finnish HRD 111
Future Challenges
The future challenges companies, government and the HRD research community.
The Nordic welfare society needs profit-making companies and their personnel to
112 V. Nurmi
maintain high tax income. Employers’ social costs of the work force cannot be
lowered significantly. However, if some action is not taken, the industry will continue
moving its operations elsewhere. Soon this will not only affect basic production. In
pulp and paper this progress is fortunately slower, because of the size of the
production units, i.e. transfer of a paper production line is complex and expensive.
Yet, if Europeans are not able to prove their superiority, e.g. in terms of innovations
and new production models, more operations will be transferred to Asian countries
with lower employee costs.
Better and continuous co-operation between industry members and educational
policy makers is needed for future success. Educational institutes, i.e. universities, are
rewarded by the amount of graduates. Polytechnics and other colleges should gather
more knowledge about the labour markets and consider the employment of their
students as the first priority. Companies and their unions also need to be active in this
mutual discussion. One example of insufficient co-operation was the decision to stop
technician/technical education in Finland. The industry still had a need to attract and
employ shift supervisors, but government officers decided to end educational
provision at the level between workers and engineers. As an example of a response
to this action, the Finnish steel company Rautaruukki has started its own supervisor
programme, which provides a formal vocational certification for participants. The
Finnish National Board of Education is the monitoring body of the programme.
Future research in HRD needs to give up its HRD-specialist viewpoint. The
multiple viewpoints of stakeholders are needed in order to acquire deeper under-
standing of the organizational practices, not only HRD actions taken (Nurmi et al.,
2000). In Finland, there is a rather strong tradition to study all members of the
company. This is an advantage in comparison to the American HRD tradition,
where experts and managers are generally the only empirical research target. This
assumption is based on several years of observations of conference proceedings and
journals in the HRD field. HRD research also needs to give up the black-and-white
struggle between positivism (see e.g. Ellinger et al., 2002) and naturalistic construc-
tivism. There are needs for different views and for multiple methodologies. Overall,
the HRD field needs to overcome its focus on single programmes or the effectiveness
of a specific development method. Its vision should rather be analyzing and
understanding ‘real’ life as it is. Some kind of on-the-job research, where actions,
programmes and personnel are studied in their natural entities, would be the focus of
a future research agenda. There have already been some efforts towards this
direction, but it will require much more focus in order to gain material for general
discussion and analysis. This also supports the idea that development is seen and
studied as a continuous life cycle, not as a snapshot event.
Conclusions
This paper has described and analysed changes in the paper and pulp industry in
Finland, and considered the implications for HRD. Given globalization, these
findings could also be transferred to other similar industries, such as heavy
manufacturing, and to other countries beyond Finland. There are challenges for
HRD to develop internal relationships with HR and other organizational members
to enhance its credibility and attract investment. Here are also challenges to develop
Trends in Finnish HRD 113
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