Human Resource Development continues to grow in importance within organisations due to the strategic priorities of competitiveness and change. The present study examined the role of the HRD function in a services organisation. The study specifically investigates the perceptions of key stakeholders on the alignment of the HRD function with the strategy of the organisation and the challenges faced by the organisation in moving from a more traditionally oriented function to one that is perceived to be strategically integrated. The study employed a combination of qualitative and quantitative methods to explore stakeholder perceptions. In general, the results indicated that senior management involvement in HRD is essential for perceived strategic integration. Respondents reported inconsistent practices concerning systems of learning transfer and the depth of evaluation. However, respondents overall perceive that HRD adds value. Implications for the management of HRD and management involvement in HRD activities are discussed.