Management Accounting: Human Resources and Organisational Growth

This essay discusses the critical relationship between human resource functions and organizational development within the context of management accounting. It highlights how human resources contribute significantly to an organization's success by adding value and facilitating adaptation to changing market conditions, regulations, and technologies. The integration of human resource management with organizational development is crucial for effectively utilizing organizational resources, enhancing workforce productivity, and achieving overall business objectives. The essay emphasizes the importance of aligning individual and organizational goals through a robust management system, ultimately leading to improved employee attraction, retention, and a sustainable competitive advantage. The role of both HR and OD departments are vital in business planning and strategy implementation.

Running Head: Management Accounting
Human resource function and
organisational development

Management Accounting 1
Every organisation aims to operate its business successfully and smoothly by effectively
deploying all the necessary and available resources. There are various kinds of resources that
a business organisation requires to carry out its basic operations such as capital, machine,
manpower etc. Each of the said resources contributes to the survival and growth of the firm in
the market.
Human resources are one of the most important resources without which an organisation
cannot survive. Their functions typically add value to the organisation. Organisational
development involves careful analysis of the present situation of the business and the future
expectations thereon with the motive of facilitating organisation success through successful
adoption of rapidly changing environment because of introduction of new markets,
competitors, regulations and technologies. Human resources help the organisation in
identifying the potential opportunities for their business so as to enable it to achieve its
objectives and goals (Kazlauskaitė & Bučiūnienė, 2008).
To have an overall positive impact on an organisation, the human resource functions and
organisational development must be interdependent and interactive all the time. A proper
human resource management must be blended with the organisational management so that all
the useful resources of the organisation are effectively and efficiently utilised and it can
generate profits itself and its stakeholders. The key function of human resource management
is to organise the human capital in such a way that they can perform their individual functions
in the best possible manner. Organisational development team are responsible for the strategy
formulation and its successful implementation (Bolden, 2016). Also, all the necessary
activities that are required to operate the business are carried out by the human resources of
an entity. Therefore, they are required to be provided adequate training and education to
execute the policies and strategies that contributes to the organisational development.

Management Accounting 2
The use of organisational development offers human resources a competitive advantage, it
also emphasises on the planned changes so as to promote organisational learning as well as
its effectiveness for the overall benefit of organisation. As there is a strategic link between the
organisational development and the human resource function, the integration of these two
functions enhances the total performance and efficiency of the organisation and also the
productivity of the workforce of the company also gets enhanced with their integration.
As the human resource management team which is excels in the areas of understanding the
human behaviour, it has the basic function of identifying and assessing the currently available
human resources and forecasting the need of human capital in future to achieve the desired
mission and goals as set by the organisational development practitioners who are primarily
involved in the business planning (Cascio, 2018). The personnel from both HR and OD
department must work in coordination to develop an adequate management system which has
the ability to align the goals of individuals and the organisation as a whole (Zaugg & Thom,
2002).
It can therefore be concluded that both human resource functions and organisational functions
are significantly important to attract and retain the employees in the organisation.

Management Accounting 3
References:
Bolden, R. (2016). Leadership, management and organisational development. In Gower
handbook of leadership and management development (pp. 143-158). Routledge.
Cascio, W. (2018). Managing human resources. McGraw-Hill Education.
Kazlauskaitė, R., & Bučiūnienė, I. (2008). The role of human resources and their
management in the establishment of sustainable competitive advantage. Engineering
economics, 5(60), 78-84.
Zaugg, R., & Thom, N. (2002). Excellence through implicit competencies: Human resource
management–organisational development–knowledge creation. Journal of Change
Management, 3(3), 199-211.