IMPERATIVES OF HUMAN RESOURCE MANAGEMENT FOR ORGANIZATIONAL DEVELOPMENT- A REVIEW (Pages 149-164) by Dr. R. Dayanandan in THE INTERNATIONAL MANAGER / ISSN: 2348-9413 (Online); 2348-9405 (Print)

This paper addresses the question whether the linkage between human resource management and organizational development can be explained by the effect of the internal and strategic fit of human resource management in cooperative organizations in Ethiopia. Recently, the study of the relationship between HRM practices and firms’ performance and development has shifted from studying individual practices and their influence on organizational performance. Expecting that the more HRM practices are aligned within themselves (internal fit) and the more HRM is aligned with an organization’s strategy (strategic fit), the better employees know what is expected from them, and the more they behave cooperatively towards their co-workers and their supervisors. The objectives are addressed through the perusal of various literatures and real history of cooperative organizations in Ethiopia. It is found that as employees equipped with the concept of cooperatives and managed well achieving the organizational goals and objectives or developing the organization will be realized. The development of the cooperatives through increase in number of members directly affects the amount of capital and improvement of activities. In other way, it also may affect the establishment of new organization because the performance and the care that previously existing organization practices affect the membership to organize new firm especially in the case of cooperatives. Further the cooperative behaviors of employees are positively related to the financial and non-financial development of the organization. Cooperation with co-workers is a better internal and strategic fit leads to more cooperative behavior on the part of employees. Finally it is concluded that there is strong relationship between cooperative’s human resource development and performance. Thus human resource management tools directly affect the organizational development.
Key words: Human Resource Management, Organizational Development, Strategic Alliance