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The Organization Development And Human Resources Business Essay

Paper Type: Free Essay Subject: Business
Wordcount: 2606 words Published: 1st Jan 2015

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Staffs are always one of the most valuable assets of any organizations as they are the ones to work and contribute to the success of an organization. Now a day, an organization would like to exist and develop successfully it must be more proactive than ever to change continuously to keep pace with the world changing every single day. The existence and development of a company will not be taking place unless there is the agent of human resources which an organization takes a big challenge in terms of finding and preserving this asset with the interaction between Organization Development and Humane Resources that have recently become important roles in the development of an organization.

With this in mind, the researcher outlines the role of Organization Development (OD) and Human Resources (HR) in Attracting and Retaining Staff in an organization. These two elements are linked together to achieve the goal of an organization

The role of Organization Development and Human Resources

Prior to discussing the role of organization development (OD) and Human Resources (HR),we need to understand what are organization development and Human Resources and its roles? In An Experiential Approach to Organization Development, it is defined as the long-range efforts and programs aimed at improving an organization’s ability to survive by changing its problem solving and renewal processes. (Donald R. Brown & Don Harvey. 2006.p.3) in another word, Organization development is a planned, organization-wide effort to increase an organization’s effectiveness and viability. The organization needs to adapt the OD concept as it plays an important role in bringing about the change in organization and create an awareness of the changing environmental forces, and to provide the techniques, skills required for dealing with the change in organization. (Brown & Harvey,2006 p.3).For example, in 2009, the whole world was facing the economic downturn and all organizations have been affected more or less and to survive they needed to find ways to cut costs by downsizing, outsourcing or controlling on expenditures. In hotel industry, they closed some outlets or shifted full time staff from department to department so they could cut down the cost on casual staff .

While Human Resources can be described as a process that focuses on attracting, selecting, orienting, training, coaching, counselling, disciplining and mentoring, developing, evaluating the performance, and supporting and retaining an organization’s most important resources: the people.

“Human resources management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labours, and solving problems that arise”(Cherrington, 1995,p. 5).

In addition to recruiting, hiring, and training, several other functions are a part of human resources too such as creating job descriptions, developing job specifications, managing payroll and benefits, handling grievances, financial management, community involvement, and ensuring conformance to federal, state, and provincial legislation.(Walker, John R. 2004, p.586)

To remain competitive in today’s global marketplace, organizations must change. And the Change requires HR needs to attract great employees for the company by using one of the most effective tools to promote successful change is organization development (OD). As HR increasingly focuses on building organizational learning, skills and workforce productivity, the effective use of OD to help achieve company business goals in getting good employees and keep the staff turnover at lowest level as possible.

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As the basic purpose of organization development is to increase an organization’s effectiveness through managing the human resources effectively and efficiently in the human resources management environment, OD and human resources may be viewed by some as competing disciplines, in fact, the goal of these two fields is complementary: to promote and sustain organizational success, the link between OD and HR is the fact that organizational assessments typically is under the responsibility of HR and the principles and value of OD correspond with many aspects of the HR mission

Human Resources plays an important role in attracting and retaining staff in an organization, to operate a business they need people, and attracting great employees is the first challenge for Human Resources. This process will cut down on expensive turnover and hiring the right person for the right job initially is properly the most effective step Human resources Managers can take when it comes to creating a motivated, dynamic work place (Sommerville, 2006 p. 16)

Attracting and retaining employees

As Human resources system is defined as a set of distinct but interrelated activities, functions and processes that are directed at attracting, developing and maintaining human resources of an organization. It is possible and essential to join the Human Resources and Organization Development processes into strategy of attracting people as we know OD helps developing the approaches for change to ensure the proper human resources are available in order to achieve the goals.

So how OD/HR attracts people for the company?

To attract people to come to the organization, the first step that should be taken is to create or improve the image of the organization there fore the change is a must. and be honest about the job. Nothing will annoy an employee faster than finding that his or her job is something much different than what was advertised. Most won’t stay long once that’s happened to them.(Sangers, Tom 2009)

HR can send information package for applicants to help applicants focus on the job requirement, and to match the best person for the job. These also helps to promote the organization that may attract applicants (Banister & Harding, 2004.p.101).

In relation with attracting and retaining issues, Sheraton Perth Hotel for example, has attracted people from outside through their existing employees. If an employee of the hotel has friends or knows some one who is within industry experience, and recommend them to the organization, once they are successfully employed then the employee will get three hundred dollars as a reward for helping Human Resources Department to attract people.

it is not difficult to get people to work for but it is not always easy to attract the right and the talent employees for the company. The challenge of finding great employees has increased with in organizations. To overcome this challenge, OD/HR need to be more proactive and flexible in recruitment advertising.

In this competitive environment for attracting good talent, companies need to pay particular attention to the perception of the company on the part of candidates and new hires. A well thought out and extensive assimilation process often makes new employees more likely to stay. This process should start before the offer is made, and many companies have assimilation plans for at least the initial six months on the job. This is especially important in group and relationship cultures as it helps the new employees feel welcomed into the group and gives them time and structure to establish relationships that will be important to the employee as well as anchor their loyalty to the company.

After attracting people to work for an organization successfully, OD/HR ‘s responsibility also is to keep them stay with the company, as they are fully aware of how much it costs to attract one staff to work for an organization. In an email message to the author on March 5th 2010, Ms. Lea Pedelty-Human Resources Manager of Sheraton Perth Hotel-shown the figure of financial cost that Sheraton Perth Hotel needs to spend on one employee as below:

Advertising – e.g. posting the position on SEEK

(approx. $100 per ad) = $100.00

Orientation – 6 hours x casual hourly rate

6 x 19.26 = $115.56

On-the-job training- 7.5 hours x casual hourly rate x training days 7.5 x 19.26 x 5 = $722.25

Classroom training (e.g. Service Culture Training)

6 hours x 19.26 = $115.56

Total cost = $1053.37

Bear the cost in mind, OD/HR understands that an employee is a really valuable asset and their responsibilities are to keep the asset as long as possible.

So how to retain the employees for a company?

Why do HR/OD need to retain employees, specially the good ones? Because if one staff quit, the company will lose the profit in term of the cost of labour turnover increases and related to other cost such as: costs associated with leaving-personnel administration, payroll administration, costs associated with replacement- direct costs such as advertising and recruitment, selection processes including administration of applications, short listing and interviewing , agency commission if applicable, costs associated with Transition- direct and indirect costs such as relief cover and overtime payment, training costs, low productivity during training, possible wastage during training, induction time, selection and induction acitivities, and the potential loss in customer satisfaction and repeat business. (Bella. & Goss-Turner, 2005 p.187)

HR/OD need to understand this more than any body else and see motivation is as one of the tools to retain the employees. As employees are motivated by needs and most basic needs are inborn, having evolved over many years. Abraham Maslow’s Hierarchy of Needs helps to explain how these needs motivate people.

By motivation

What motivates people to work? Many managers still believe that money, because of what it can buy (including security and status), is a major motivator. Others tend to the more complex views of Maslow and Herzberg, arguing that people work for a composite package, including money, security, self-esteem, esteem of others, job satisfaction, etc. (Michael Bella. Steven Goss-Turner 2005,p.158)

Maslow’s Hierarchy of Needs shows that people must satisfy each need in turn, starting with the first, which deals with the most obvious needs for survival itself.

1.Biological and Physiological needs – air, food, drink, shelter, warmth…

2. Safety needs – protection from elements, security, order, law, limits, stability.

3. Belongingness and Love needs – work group, family, affection, relationships.

4. Esteem needs – self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc.

5. Self-Actualization needs – realising personal potential, self-fulfillment, seeking personal growth and peak experiences.( Chapman, Alan ,2009), if all the needs are met, HR/OD could motivate them and lead to the decrease of staff turnover .

By using humour

Retention of excellent employees is one of the most important challenges in organizations today. It is not only the responsibility of HR/OD , but also the responsibility of every individual working in its departments of an organization specially the managers or supervisors.

In today’s uncertain work environment, and stressful, so try to maintain team spirit high by with the effort to make work place a relaxed and fun , make people laugh, that may be the way to keep up morale.( David Granirer,2009 )

By training.

The researcher finds that the success of an organization will be achieved through the contribution of well trained staff as they can provide quality products, or amazing services, it is can be seen clearly in hospitality industry setting. Professional managers and supervisors are obligated to train their staff, help them become productive, and make them a key representative of the organization. This process will cut down on expensive turnover in return as staff feel more confident in what they are doing, and master in their trade, basically their esteem need has been met. (KerrL. Sommerville, 2006,p.16)

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Similarly, in an email message to the author on March 5th 2010, Ms. Lea Pedelty -Human Resources Manager of Sheraton Perth Hotel- said that to retain staff, it is necessary to provide a good start through orientation and induction, provide ongoing learning & development opportunities, Reward, recognition and benefits programs and provide regular opportunities for giving and receiving feedback.

In general, as a goal of an organization is to retain employees as long as possible, some points that can lead to increased employee retention as below:

1. Develop an employee retention program, and implement it. That will show the staff how much an organization appreciates and value them, and their contributions.

2. Have an interaction with employees frequently through a meeting to obtain updates, discuss job-related issues and concerns, and review performance goals and objectives.

4. Challenge the skills, and talents of employees by assigning them duties that are in their strengths and capacity.

5. Provide training opportunities for staff. Investing in them and they will recognize and appreciate it.

6. If salaries are low, it can be made up by providing other benefits, such as flexible working hours, or working from home.

7.Acknowledge the accomplishments of staff members ,outstanding performance.(e.g., completion of an important project, a promotion). Via announcements in newsletter, at events, or write to them personally. Like the F&B manager in Sheraton hotel, he would practise and when customers had several positive feedbacks and comments on the performance and services of his staff, he wrote email to the researcher with a thank you note for being a great brand ambassador of the organization. That made staff feel good not because of the great comments but the recognition came from the management.

8. Celebrate the milestones in the lives of staff members, their birthday .

9. Develop an annual employee recognition event (e.g. staff annual party) where the organization could present awards, such as Employee of the Year, Outstanding leadership, Caring for business, caring for employee awards.( Mikrut, Sharo)

And last but not least, empowerment is also a tool to motivate and that can help retain staff because it makes them feel proud and important in workplace.


Overall, Organizational change impacts not only the business but also its employees. In order to maximize organizational effectiveness, Human resource management works to attract the right person for the right position so that employees are able to meet the organization’s goals.

Developing and maintaining an employee retention program demonstrates that organization value the contribution of staff and want them to succeed. They will be happier, look forward to coming to work, and want to remain with the organization. Satisfied employees are more committed and loyal, resulting in a productive work environment that reflects on the organization effectiveness through the roles of OD/HR have been fulfilled. That would be more effective when every member has been trained how to behave each other, trained not to bully or discriminate in work place.


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