Organisations today face many challenges. Organisation must adopt a more strategic perspective for managing employees. This report highlights the key role played by human resource professionals using organisational development techniques to improve the overall organisational effectiveness.
Introduction
The role of Human Resource Management (HRM) seeks to maximise organisational competiveness and performance through the best practices in the management of people. Management research has also increasingly focused on identifying forms of HRM practices that can increase the performance of the firms (Arkin, 2001). Research had pointed out that a set of ‘Best-Practice’ HRM promises to improve firm performance, or financial outcomes, the closer the firms follow its prescription (Guest, 1997).
Armstrong (1992) strongly pointed out that the most valued resource in an organisation is its workforce and a coherent set of policies geared toward effective organisational performance is needed for the company to optimise its resources to gain a competitive edge.
Human resource (HR) managers nowadays undertake strategic role with management. HR managers must work with management to analyse and devise solutions the organisational problems. Usually it will involves in strategic planning and aligning HR with the organisation’s mission and strategic goals with the objective of maximising employee contributions to the overall performance of the organisation (Cieri and Kramar, 2007). Strategic management focuses on planning for producing and marketing goods and services. Swanson (2007, pg 331) defined Human Resource Development (HRD) as “a process of developing and unleashing human expertise through training and development and organization development for the purpose of improving performance”. The following section shall provide an overview of Human Resource (HR) practices.
Administration stage
• In the earliest stage, HR main function was keeping records of salary,
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