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Organizations can gain a clear understanding of their employees’ psychological contracts by offering a realistic view of their organization at the stage of recruitment, clearly defining the rights and benefits of employees, and opening the lines of effective communication. Organizations can maximize employee satisfaction by meeting the needs of the psychological contract.
Organizations are realizing that the knowledge residing in their intellectual capital is important in creating economic power and value.
The transfer of knowledge to or from individuals can be instrumental in enhancing the overall performance of an organization. Organizations can benefit from enhanced employee performance by realizing increased productivity and profitability.
Skill and knowledge acquisition are obviously useless unless they can be transferred to the job by the employee. It is even more advantageous if this knowledge can also be transferred to other parts of the organization to solve problems. Learning organizations not only encourage these practices but also have mechanisms or systems that encourage them to take place. Part of this knowledge transfer involves benchmarking, or learning successful practices from other organizations and competitors as well. Such benchmarking activities ensure that organizations are always learning to improve their management processes and their products or services.
Human resource development efforts are necessary for any organization so that the employees and managers of the organization are kept abreast of developments in their industry as well as the market forces at work that may present opportunities or threats.
The capabilities of the workforce directly impact the organization as they give the organization competitive edge. Due to internal and external changes, the organization must adapt to these changes to avoid revenue loss. To adapt to these changes, the HRD department conducts training with the goal of improving on the capabilities of the organization’s employees. This training is referred to as the HRD. The goal of HRD is to improve the skills and knowledge of the employees towards achieving the objectives of the organization.
Employees can remain interested in their jobs and become more valuable to the organization by being presented with new challenges and opportunities for growth. One of the most important retention tools that an organization can have is good training.
All organizations need good employees – employees who know how to perform their jobs and perform them with a positive attitude. Good employees are developed by organizations that are willing to invest in enhancing their KSA through OJT.