Best practice for Network password management

When managing a midsize company of about 50 users, is it best practice to manage Network passwords? What I mean is, should the IT Department know every employee’s NT password? This is a ongoing debate at my company. The current policy allows the IT Department (party of 2) to manage all employee password to make support more efficient by being able to access user’s computer when needed. We hired a new HR personnel and HR is trying to change this policy. The new policy allow users to be able to change their password, IT Department is not allow to know employee NT passwords, & IT Department is required to change employee password if given to IT personnel during a support call. This is a private firm, with 2 IT personnel, and about 50 employees.

What are your thoughts?