The significance of the challenges of a profession human resources can be summed up in these words “In addition to managing traditional human resource functions, HR is expected to contribute to such key organizational challenges as facilitating mergers and acquisitions, improving productivity and quality, improving the ability of an organization to bring new products to market, and to continuously improve the companys return on its greatest asset." (The Human Resource Profession).Even within its original role of hiring people there is a fundamental change in this function that it goes beyond just hiring, but hiring the right human element required for the organisation, training and developing this human resource as a productive element of the organisation and then ensuring retention of this extremely valuable human resource. This makes the human resource function more demanding and more strategic in nature. Innovation is a part of the modern organisation and machines are playing a larger role in many functions within an organisation. The human element still remains a requirement within an organisation because it is capable of going beyond what machines can do and the significant part is that these new kinds of work all emanate from within the human resource itself. This is a far different scenario from when employees were expected just to follow orders and not deviate from them in the factories and work places. In short the human element at the factory floors were more representative of machines than human beings. Today the employees are expected to be more creative and flexible. The role of human resources with its capacity to understand the direction in which the organisation is moving is to find employees that are willing to bring their whole selves to work, and then motivate them to employ their creative skills in the work environment to enable the organisation to progress in the required direction at the required pace.In the new millennium it is the role that human resources will play that would make organisations innovate and through that make them competitive and effective to take on the new challenges that business enterprises will face. To understand this development that is required of human resources it is necessary to understand the meaning of competitiveness and innovation with respect to business
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