Abstract

As the importance of human resource increases to the business, so does also the need to ensure its effective management. This study compared HR and line managers’ evaluation of the effectiveness of the HR department in terms of its roles and contributions to the firm using a multi-perspective view of effectiveness. Survey responses from 108 HR and 140 line managers from 108 large manufacturing and service firms in Malaysia showed significant differences in the ratings by HR and line managers. HR managers, quite unsurprisingly, rated higher both dimensions of the HR effectiveness as compared to line managers. For a comprehensive evaluation of HRM, the study reaffirms the need for a client-centered evaluation of effectiveness given that self-assessment is always exaggerated.

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