The efficiency and performance of staff, and their commitment to the objectives of the organization, are fostered by good human relationships at work. This demands that proper attention be given to HRM and employment relations. The manager needs to understand the importance of good managerial practices and how to make best use of people. The promotion of good human relations is an integral part of the process of management and improved organizational performance.
The human element plays a major part in the overall success of the organization. There must be effective management of human resources. The significance of human resources and people as the most important asset of any organization is emphasized Gratton (1999).
1. There are fundamental differences between people as an asset and the traditional asset of finance or technology
2. An understanding of these fundamental differences creates a whole new way of thinking and working in organizations, a shift in mind-set
3. Business strategies can only be realized through people
4. Creating a strategic approach to people necessitates a strong dialogue across the organization
Business environment has radically changed overtime. Companies are under great pressure to find new strategies to cope with a rapidly changing business environment. When the rate and quality of change exceed a certain threshold, the need for talented people to run the business will become a more critical success factor.
Organizations have come to realize that they must invest in their human resources to release true value. In all services, the competitive edge will come as much from people as from the product. As trends in the business environment reshape organizational life, human resource practitioners must respond with new strategies, competencies and practices.
The strategic use of human resources will help managers to contribute to the release of true value by the optimum use of people’s competencies.
Organization in the future will be different. Information will be at everyone’s fingertips. Because of the complexity of work and the need for autonomy, teams need a certain amount of freedom to accomplish their task.
If the effort to transform human resources practices is done well, HR practitioners can play a strategic role as managers that can leverage human capital and expert knowledge for competitive advantage. If HR practitioners cannot meet this challenge, they will play a more limited role in the future organization.
REFERENCE
ARMSTRONG, M. (2006) Handbook of human resource management practice. 10th edition. London: Kogan Page Limited. [Online] Available at: http://www.academia.edu/9026115/Michael_Armstrong_th_edition_10_HUMAN_RESOURCE_MANAGEMENT_PRACT_ICE [Accessed 14 December 2017]
Gratton, L. (1999) Strategic Human Resource Management: Corporate Rhetoric and Human Reality. 1st Ed, New york: Oxford university press [Online] Available at: http://www.lyndagratton.com/books/48/59/Strategic-Human-Resource-Management.html [Accessed 22 December 2017]
Mullins,L. (2009) Management & Organisational Behavior, 7th Ed, London: Pearson Education Ltd [Online] Available at: https://books.google.lk/books?isbn=8131709272 [Accessed 22 December 2017]