The Value Of Human Resources

1780 WordsJun 19, 20168 Pages
Introduction The importance of human resources over the last decade or so has received immense attention. From a macro-level, endogenous theories of growth have recommended that the accumulation of what is also referred to as human capital constitutes the core engine of the growth of macro-economics. On the micro-economic side, resource-based theory looks at the human capital that employees provide as a primary cradle for competitive advantage for companies. Nonetheless, as a result of the growing importance of human capital and which is largely related to information and communication technologies’ growth, modern western economic are today describes as being knowledge-based economies (Proefschrift, 2003, p.1). Human resources has also had its share of criticism. With resources being at the core of organizations, weaknesses emerge in that the possibility to adapt human resources strategies is largely limited. There becomes the risk of competition between programs or departments for human resources, making human resources as a role become diluted (Talwar, 2006, p. 137). The Value of Human Resources Departments as a Strategic Partner Many senior leaders do not understand the potential value that HR departments can contribute to their organizations. It is vital for these senior leaders to view the human resource departments in their organizations as a strategic partner. In as much as many human resources functions have in the recent past started to play a strategic part in the
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