Today, the role of human resources has changed within public and non-profit organizations. This is a result of communication technology developments in the recent decades. According to Marquardt and Waddill, (2011), the approach of the company towards technological challenges determines its success rate.
Thesis statement: Human resource management has an important role in non-profit and public sector organizations. They are no longer separate departments, but their main role is to support the management in dealing with stakeholder demand and changes through adding value creating competency through training. Human resources should be analyzed in context. (Pynes, 2004, p. 3.)
The role of human resource management in organizations
- strategic role of human resource management
- operational role of human resource management
- administrative role of human resource management
Current Challenges of human resource management
Some public and nonprofit organizations are downsizing their human resource department due to its non-productive status. Indeed, human resources take part in the process of creating value, strategic resource planning and operations management, contributing towards the success of the organization.
The Importance of Creating Value through Training and Development
According to Tucker & Cofsky. (1994), added value management through human resources is an important tool of employee motivation and communication. Learning new skills according to public demand is a part of creating value for stakeholders. Supporting learning environment also promotes a positive culture within the organization. (Messnarz et al. 2008, p. 3)
Managing Added Value
According to a study by Yeung & Berman (1997), human resources can make a great impact on business results. In particular, the authors quote different studies concluded in various business environments, highlighting the impact of training programs on employee engagement, commitment and performance. Motivation can be addressed through life-long training programs and career progression paths developed. However, training creates added value and through high employee satisfaction, the cost of recruitment can be reduced.
Planning and managing change in an ever-changing environment is impossible without the support of human resources. Organizational planning needs to work alongside with training, development and human resources in order to become ready for challenges and changes of the environment. Human resources should be
Supporting Management through Training
Lifelong training and employability does not only mean that staff will be able to complete with day-to-day tasks. Several authors detail various benefits of training and managing talent. The capability of creating value within the organization impacts efficiency, competency, commitment of employees and the opportunities the organization is able to take advantage of through lifelong training programs. Further, Messnarz et al. (2009) confirms that learning organizations are created through value added by human resource planning and development. It impacts how the non-profit or public organization is able to respond to changing public demands.
Pynes (2004) discusses the challenges of a dynamic environment human resource management faces today. The social and cultural changes would be analyzed and the authors would attempt to answer the question: “Can modern human resource management react to a fast-paced environment and support the organization through training?”
The review of the different roles of human resources within non-profit and public organizations, its impact on operations management, culture and change management has been proven through the research above. Successful internal policies would be analyzed within this part of the research paper.
American Compensation Association’s Competencies Research Team. (1996) The role of competencies in an integrated HR strategy. ACA Journal. Summer 1996. Pages 5-21.
Corporate Leadership Council. (1997) Developing a strategic HR function: Aligning individual competencies. January 1997. Washington: The Advisory Board Company.
Farazmand, A. (2004) Innovation in strategic human resource management: Building capacity in the age of globalization. Public Organization Review: A Global Journal 4: 3–24 (2004)
Huselid, Mark (1995) The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal. June 1, 1995, 38:3 635-672
Marquardt, M., Waddill, D. (2011) The E-HR Advantage: The Complete Handbook for Technology-Enabled Human Resources. Nicholas Brealey Publishing
Messnarz, R., Ekert, D., Reiner, M. (2008) Human resources based improvement strategies—the learning factor. Software Process: Improvement and Practice. Volume 13 Issue 4, July 2008. 355-362 John Wiley and Sons.
Pynes, Joan (2004) Human resources management for public and nonprofit organizations. John Wiley & Sons
Tucker, Sharon A. & Cofsky, Kathryn (1994) Competency-Based Pay on a Banding Platform. ACA Journal. Spring 1994. Volume 3. Number 1.
United States Office of Personnel Management(1999) Looking to the Future: Human Resources Competencies. Part 1-2 Web. Retrieved from http://archive.opm.gov/studies/trans2.pdf
Yeung, Arthur, Berman, Bob (1997) Adding value through human resources: Reorienting human resource measurement to drive business performance. Human Resource Management, Fall 1997, Vol. 36, No. 3, Pp. 321–335