International Journal of Commerce and Management Research 

International Journal of Commerce and Management Research

ISSN: 2455-1627, Impact Factor: RJIF 5.22
www.managejournal.com
Volume 2; Issue 7; July 2016; Page No. 89-92

Role of HR in Organizational Development and Innovation

Avjeet Kaur
Associate Professor Human Resource Management.

Abstract
Human resource is the backbone of every organization and it is also the main and an important resource of the organization. The
human resource department plays a very different and vital role in the success of an organization. In the recent years with the new
concepts of globalization and glocalization. Human resource department has made a shift from traditional human resource
management to a new perspective of Strategic HRM. Human Resources Managers are expected to be the leaders of organizational
change activities. HRD and OD the subsystems of HRM are practiced in the organization. The different organization uses their
human resources information systems (HRIS). The focus of this literature review is to summarize and synthesize the arguments and
ideas of other researcher about HR. In its inception definitions, different types/levels, goals, objectives, functions of HR have been
illustrated. In later stage of literature review it deals with how HR is different and more efficient and effective from traditional HR.

Keywords: Globalization, Human resource department, human resource management, Organizational development

Introduction strategic integration, forecasting and planning, human

In the recent years with the new concepts of globalization and resources analysis, and communication and integration do play
globalization Human resource department has made a shift a significant role within HR departments. Such factors improve
from traditional human resource management to a new the effectiveness of human resource departments which at the
perspective of Strategic HRM. New concept with broader end would have a positive reflection on the organization as a
meanings are added to HRM i.e more strategic, proactive, whole.
commercial and professional. In the current scenario HR Organizational development is a way to improve companies’
practitioners are expected to deliver short-term HR functional portfolio through the change process. Organizational
activity alongside equipping the organization for sustainable development focuses on the best use of the company's
performance in the long term – through its employees the main employees.
strength and resource of the organization. According to the current scenario, the role of Human Resource
Human Resources Managers are expected to be the leaders of Management and Organization Development is on attracting
organizational change activities. HRD and OD the subsystems and retaining staff and downsizing. Organizations are
of HRM are practiced in the organization on the principal of recognizing the importance of managing their human resources
self-renewal, where employees and organizations both are (HR) as effectively as possible. As all people and organizations
flexible and have adaptable capability. are constantly going through change, it is important to devote
The human resources department plays a vital role in the a more time, attention, skill and effort to have a competitive
development of organization by recruiting highly-skilled edge. Moreover, with the environment becoming more global,
people who fit into the culture of the company. The HR managing people also becomes more challenging, more
department also manages the growth of employees through unpredictable and uncertain and more subject to rapid change
training and fills employment gaps to help secure a competitive and surprise. Therefore, the need for a change process of
advantage. There are many factors which improves the work of organization development (OD) supports improvement of the
the employee such as flexible scheduling, training etc. It is very organization particularly its value in helping organizations
necessary for the organization to design the training program understand how to develop their capability and continuous
very carefully. The design of the training program should be adaptability to changing market and social conditions.
according to the needs of the employees. The human resource includes a wide range of computer based
Those organizations which develop a good training design applications, but comprehensive conceptual models of the
according to the need of the employees as well as to the needs human resource generate very useful information for the
of the organization always get good results. organizations individual managers. Human resource
Organizations now a days operate in an environment that is information systems (HRIS) have been used in HR
characterized by being dynamic and having a hyper departments for many years, but more recently their use has
competition. In order to face such a tough competition, changed to that of playing a more strategic role to support HR
organizations should invest in their human resources. The workers, in particular HR managers. Human resource reduces
different organizations use their human resources information the need for large number of HR employees by helping
systems (HRIS) and should benefit more from using it. employees to control their own personal information and by
Organizations should make sure that dimensions such as allowing managers to access relevant information and data,
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conduct analysis, make decisions, and communicate with Hendrickson (2003) [7] opinion about HR, ―As within other
others without consulting an HR professional. business functions, IT has become an important tool for
Modern HR needs to help organizations by automating most of supporting the processes of the HR function and the HR
the HR planning functions. HR becomes an important strategic function is now closing the gap in terms of applying new IT
tool since it collects, manages and reports information for capabilities to traditional functions.
decision-making. Fully integrated organizational HR ought to According to Lengnick-Hall and Moritz (2003) [3] ―Where
interface with other systems enabling and enhancing the HR were directed to support the HR professionals in
communication between departments such as payroll system performing their HR tasks, electronic HRM (HR) applications
with accounting system. are, besides directed to support HR professionals in performing
New HR trends seem to build important effect on HR planning their HR tasks, also directed to support managers and
embedding new technology with organizational objectives and employees performing their HR tasks. HR refers to conducting
goals. Enterprise Resource Planning System (ERP systems), business transactions - in this case HR - using the internetǁ.
when linked with the HR sub system, provides a competitive Kovach, Hughes, Fagan, and Magitte (2002) define HR as
advantage to organizations over their competitors. web-technology-based channels provide the managers and the
employees of the organization with information as well with
Literature Review the ability to complete HR-related transactions. A Watson
The gradual penetration of information and communication Wyatt (2002) [9] survey of 649 US companies adopted the
technology (ICT) in all facets of business is leading to definition of business to electronics (B2E) as the application of
multidimensional and often unpredictable changes and any technology, enabling managers and employees to have
advancements. ICT has led to rapid development of e-business direct access to HR and other workplace services for
and still emerging as a big force, In this view HR functions communication, performance, reporting, team management,
become critical partners in driving success, but to do so knowledge management, and learning in addition to
requires that HR changes its focus, its role, and its delivery administrative applications.
systems, thus in e-business, the application of internet Wright and Dyer (2000) [1] Propagates main reason of
technology for HR is inevitable (Wright and Dyer, 2000) [10]. evolution of HR is e-business. According to them e-business is
Electronic Human Resource Management (HR) is actually a emerging, and therefore HR and HR professionals are faced
strategic initiative to make the organization propel itself in the with the challenge of performing in ways that are in line with
information age, by freeing itself from daily operational, the business. In their view 'HR functions become critical
monotonous requirements and making it more in tune with the partners in driving success, but to do so requires that HR
decision making and better understanding of the employees. changes its focus, its role, and its delivery systems, thus in e-
In the words of Bondarouk & Ruel, (2009) [3] defined HR as business, the application of intranet technology for HR is
―An umbrella term covering all possible integration inevitable.
mechanisms and contents between HRM and information Lepak and Snell (1998) [11] used the term ‗virtual HR‘to
technologies, aiming at creating value within and across describe a ‗network-based structure built on partnerships and
organizations for targeted employeesand management. mediated by information technologies to help the organization
As per Strohmeier (2007) [4] HR is the planning, acquire, develop, and deploy intellectual capital.
implementation and application of information technology for Lengnick-Hall and Moritz (2003) [12] identified three forms/
both networking and supporting at least two individual or levels of e-HR, depending on the primary focus of e-HR,
collective actors in their shared performing of HR activities. Publishing of information (web-presence HR), Automation of
According to Voermans and Van Veldhoven (2007) [5] HR transactions (web-enabled HR) Transformation of the HR
could be narrowly defined as the administrative support of the function (Web-energized HR)
HR function in organizations by using Internet technology. Wright and Dyer (2000) [1] distinguished HR as Transactional
According to Looise, Ruël and Bondarouk (2004) [6] HR is a e- HRM, Traditional e- HRM, Transformational e- HRM.
way of implementing HR strategies, policies, and practices in Lepak and Snell (1998) [11] distinguish HR as Operational HR
organizations through a conscious and directed support of Relational HR Transformational HR For the operational type
and/or with the full use of web-technology-based channels. of HR, HRM activities that were offered face-to-face now will
The word implementing ‘has a broad meaning, such as making be offered through web-based technology. For relational HR,
something work, putting something into practice, or having most of HRM functions will have a support of internet
something realized. HR therefore is a concept- a way of doing technology rather using pen and paper.
‘HRM. Transformational HR creates a change-ready workforce
Bieasaliski (2003) presents the concept of HR as an integral through an integrated set of web-based tools that enables the
knowledge management part, describes several use cases for workforce to develop in line with the company‘s strategic
technological HR support, and sketches the integration of these choices. From literature survey this can be summarized in
use cases into a holistic HR approach; the HR-department can following terms. Finding shows that e-HR facilitates the
concentrate more on the qualitative tasks in personnel planning transformation of HRM role into a strategic one.
like coaching and consulting. By sharing information and Hussain, Wallace and Cornelius (2007) observed in their
being knowledgeable business partners are able to act more research ―The use and impact of human resources on human
productively to maintain the relationship overtime. That is, resource management professionals that, few differences
relationship intensity can create a competitive advantage existed between Small/Medium (SME) and large company HR
through the strategic sharing of an organization‘s key usage, and that specific use of HR for strategic collaboration
information. enhanced professional standing However, a note of caution
was that it was not as pronounced as that experienced by those
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International Journal of Commerce and Management Research 

other professions. For instance, using the semi-structured and organizational requirement. The term human resource can
interviews the organizational executives identified that HR use be thought of as ―the total knowledge, skills, creative abilities,
has not enhanced their professional standing within the talents and aptitudes of an organization‘s workforce as well as
organization, but they noted a substantial HR usage benefit to the value, attitudes and beliefs of the individuals involved. The
the company. Human Resource is assuming increasing significance in
This strategic role not only adds a valuable dimension to the modern organization. It is a well-known fact that majority of
HR function but also changes the competencies that define the the problems in an organizational setting are human and social
success of HR professionals. Wang (2005) [21] in his research rather than physical, technical or economic. Modern technology
paper titled―Organizational effectiveness through technology can be imported, national efficiency can be improved but
innovation and HRM strategies describes the need for without human factor it cannot be possible to run both of them
technology innovation and HRM integration. A three-strategy efficiently and effectively. It is the only human factor, which can
model for global technology innovation & organizational change the work ways and constitutes vibrantly the
development was adopted: personnel strategy, system strategy, organization. Therefore the need for development of human
and organizational strategy. The personnel strategy could play resources becomes inevitable. The failure to recognize this fact
a crucial role in enhancing the effects of human resources causes immense loss to the individuals, enterprise and the nation
management (HRM) and entrepreneurship by supporting the as a whole. Human Resource Management is defined as ―the art
main dimensions of HRM. The system strategy was used to of getting things done through people achievement of
facilitate technology innovation through knowledge organizational as well as individual goals. Training,
management while the organizational strategy was adopted to development and compensation are the most vital tool of human
create positive organizational culture and high performance resources development. The personnel manager formulates the
systems. following training, development and compensation objectives
Beckers and Bsat (2002) [14] pointed out at least five reasons with the company‘s goals and objectives.
why companies should use HR.Increase competitiveness by 1. To prepare the employee both new and old to meet the
improving HR practices produce a greater number and variety present as well as the changing requirement of the jobs and
of HR operations Shift the focus of HR from the processing of the organisation.
transactions to strategic HRM Make employees part of HR 2. To prevent obsolescence.
Reengineer the entire HR function. In the research paper Ulrich 3. To impart the new entrants the basic knowledge and skills
(1997) mentions, ―As technologyfrees up HR from some of they need for an intelligent performance of a definite job.
its routine tasks, there is a greater opportunity for HR 4. To prepare employees for higher level tasks.
professionals to become a strategicpartner. This means moving 5. To assist employees to function more effectively in their
beyond administrative expertise and becoming an expert in present positions by exposing them to the latest concepts,
areas such as strategic business partnership, change information and techniques and developing the skills they
management, and employee advocacy. will need in their particular field to build up a second line
In the research paper Ulrich (1997) mentions, ―As technology of competent officers and prepare them to occupy more
frees up HR from some of its routine tasks, there is a greater responsible positions.
opportunity for HR professionals to become a strategic partner. 6. To overhaul the management machinery.
This means moving beyond administrative expertise and 7. To improve the performance of the managers.
becoming an expert in areas such as strategic business 8. To give the specialist an overall view of the functions of
partnership, change management, and employee advocacy. an organisation and equip them to co-ordinate each other‘s
As per Boxall (1996) HRM practice are considered effective if efforts effectively.
they increase quality employee by promoting their skills, 9. To identify persons with the required potential and prepare
attitude competencies that are strategically planned to achieve them for senior positions.
and elicit from their valuable behavior which lead to unique 10. To increase morale of the members of the management
combination of human capital that is difficult competitors to group.
replicate. 11. To establish and maintain an equitable wage and salary
Lado and Wilson (1994) in their study ‗Human Resource structure.
Systems and Sustained Competitive Advantage: A
Competency-Based Perspectiveǁ, explored within a system‘s HR work as a key component of the organization and a good
perspective, the organizational competencies that might be HR will provide important information about human resources
sources of sustained competitive advantage. In addition, they needs and capabilities; this information will assist the
discussed how HR systems facilitated the development and management team in establishing the organizational mission
utilization of organizational competencies and how HR and setting goals and objectives in motion. HR is not limited to
systems could destroy those competencies or inhibit their the computer hardware and software applications that comprise
exploitation. The aim was also to examine the extent to which the technical part of the system: it also includes the people,
HR managers and professionals could enable or constrain the policies, procedures and data required to manage the HR
strategic decision-making process by providing or withholding function. Human Resource Development is a continuous
critical information concerning people-related business issues. process in organization. The nature of efforts and investments
develop resource may vary from organization to organization
Conclusion depending on its need, nature, size, etc. This may also vary
HRM is relatively new and developed part of management. It from time to time in the same organization depending on the
is the task of dealing with human relationships, molding and nature, change in the organization is going through or the
developing the human behavior and attitude towards the job nature of capabilities the organization wants to build within it.
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