Difference between personnel management and HRM Essay

Difference amid humankind Resource instruction and forcefulness concern Human option c ar involves all concern decisions and practices that directly affect or influence the bulk, or human alternatives, who fit for the organization. In other words, Human resourcefulness way is refer with plurality centric issues in anxiety.The Human Resources recognisement (HRM) aim includes a variety of activities, and key among them is deciding what mental facultying needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and rearing the best employees, ensuring they be high per deviseers, dealing with performance issues, and ensuring your forcefulness and counseling practices conform to various(a) regulations. Activities also include managing your forward motion to employee benefits and compensation, employee records and military group policies. Usually small livestockes (for- value or nonprofit) have to carry out the se activities themselves because they domiciliatet besides undergo office staff- or full-time help. However, they should always delay that employees have and be certain of force play policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.DIFFERENCES BETWEEN HRM AND PERSONNEL MANAGEMENTALTHOUGH both(prenominal) human resource management (HRM) and power management boil down on battalion management, if we take critically, there are m both differences amidst them. Some are listed belowi) Nature of relations The nature of relations bottom be seen with two different prospect views which are Pluralist and Unitarist. There is a work out distinct difference between both because in forcefulness management, the steering is more than on item-by-itemistic where individual lay to restest is more than theme interest. The relationship between management and employees are merely on contractual basis where one hires and the others perform. Whereas, HRM focuses more on Unitarist where the word uni refers to one and together. Here, HRM through and through a divided up vision between management and staff progress to a corporate vision and mission which are linked to business goals and the fulfillment of mutual interest where the organizations needs are satisfiedby employees and employees needs are well-taken care by the organization.Motorola and Seagate are good examples of organizations that belief in this Unitarist mount which also focuses in police squad management and sees employees as partners in an organization. Relation of power and management The statistical distribution of power in personnel management is centralized where the top management has full authority in decision-making where even the personnel managers are non even allowed to give ideas or take part in any decision which involves employees. HRM, on the other hand, sees the decentralization of power where the power between top management is shared with middle and lower management groups. This is cognise as empowerment because employees play an important portion together with line and HR managers to make collective and mutual decisions, which can benefit both the management and employees themselves.In fact, HRM focuses more on TQM feeler as part of a team management with the involvement and participation of management and employees with shared power and authority. The nature of management is focused more on bottom-up approach with employees giving feedback to the top management and then the top management gives support to employees to achieve mutually agreed goals and objectives.ii) Leadership and management role Personnel management emphasizes much on drawship style which is genuinely transactional. This style of leadership merely sees the leader as a delegate-oriented person. This leader focuses more on procedures that essential be followed, punishment form non-performance and n on-compliance of rules and regulations and arrogate figures and task accomplishments ahead of human factors much(prenominal) as personal bonding, social relationship, trust, understanding, tolerance and care. HRM creates leaders who are transformational. This leadership style encourages business objectives to be shared by both employees and management. Here, leaders only focus more on people-oriented and importance on rules, procedures and regulations are eliminated and replaced withShared vision corporate culture and missionsTrust and flexibility andHRM needs that integrates business needs.iii) Contract of fight In personnel management, employees contract of employment is clearly written and employees must observe strictly the agreed employment contract. The contract is so nonindulgent that there is no room for changes and modifications. There is no compromise in written contracts that stipulates rules, regulations, business line and obligations. HRM, on the other hand, does non focus on one-time life- bulky contract where working hours and other terms and conditions of employment are seen as less rigid. Here, it goes beyond the normal contract that takes place between organizations and employees.The saucily flexible approach encourages employees to choose various ways to keep bring their skills and knowledge to the organization. HRM, with its new approach, has created flexi-working hours, work from home policies and not forgetting the creation on open contract system that is currently practiced by around multinational companies such as Motorola, Siemens and GEC. HRM today gives employees the opportunity and emancipation to select any type of working system that can sheath them and at the same time benefit the organization as well. Drucker (1996) calls this approach a win-win approach.iv) Pay policies and vocation practice Pay policies in personnel management is merely based on skills and knowledge required for the perspective jobs only. The val ue is based on the ability to perform the task and duties as per the employment contract requirement only. It does not encourage value-added incentives to be paying out. This is also because the job design is very utilitarian, where the expires are more departmentalized in which each job falls into one functional department. This is merely know as division on tire based on job needs and skill possessions and requirement. HRM, on the contrary, encourages organizations to boldness beyond pay for functional duties.Here, the pay is designed to encourage continuous job performance and utility which is linked to value-added incentives such as gain sharing schemes, group profit sharing and individual incentive plans. The job design is no more functional based but teamwork and cyclical based. HRM creates a new approach towards job design such as job rotation which is inter and intra-departmental based and job enlargement which encourages one potential and capable individual to take on more tasks to add value to his/her job andin return enjoy added incentives and benefits.Human resource management is the new interpretation of personnel management. There is no any watertight difference between human resource management and personnel management. However, there are more or less differences in the following matters.1. Personnel management is a traditional approach of managing people in the organization. Human resource management is a modern font approach of managing people and their strengths in the organization.2. Personnel management focuses on personnel administration, employee welfare and labor relation. Human resource management focuses on acquisition, victimisation, motif and maintenance of human resources in the organization.3. Personnel management assumes people as a input for achieving desired output. Human resource management assumes people as an important and valuable resource for achieving desired output.4. Under personnel management, personnel functio n is undertaken for employees satisfaction. Under human resource management, administrative function is undertaken for goal achievement.5. Under personnel management, job design is make on the basis of division of labor. Under human resource management, job design function is done on the basis of group work/team work.6. Under personnel management, employees are provided with less schooling and using opportunities. Under human resource management, employees are provided with more training and development opportunities.7. In personnel management, decisions are do by the top management as per the rules and regulation of the organization. In human resource management, decisions are made collectively after considering employees participation,authority, decentralization, competitive environment etc.8. Personnel management focuses on increased production and satisfied employees. Human resource management focuses on effectiveness, culture, productivity and employees participation.9. Per sonnel management is pertain with personnel manager. Human resource management is concerned with all train of managers from top to bottom.10. Personnel management is a routine function. Human resource management is a strategic function.Human resource management bygone and presentHuman resource management has changed a lot in the past 100 years. Previously, HRM was called personnel administration or personnel management, that is, it had to do with the staff or workers of an organisation. It was mainly concerned with the administrative tasks that have to do with organising or managing an organisation, such as record keeping and dealing with employee wages, salaries and benefits. The personnel officer (the person in charge of personnel management) also dealt with labour relations.such as problems with trade unions or difficulties between employers (those who employ workers) and their employees. Before we look at the role of HRM in organisations today, we will examine the way people were managed in organisations in the past.DefinitionPersonnel Management Personnel Management is thus basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organisational success. Facts +The U.S. Office of Personnel Management (OPM) is the worlds largest HR department. OPM provides HR services for the federal governments workforce of nearly 2.8 million workers. Its staff carry out the tasks to recruit, interview, and promote employees oversee merit pay, benefits and retirement programs and ensure that all employees and applicants are treated fairly and according to the law.To set the boob cost-of-living allowances rates, t he Office of Personnel Management (OPM) surveys the prices of over 300 items, including goods and services, housing, transportation, and miscellaneous expenses. OPM conducts these surveys in each of the COLA areas and in the Washington, DC, area.Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, value and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.HRM is concerned with carrying out the SAME functional activities traditionally performed by the personnel function, such as HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development etc. But, the HRM approach performs these functions in a qualitatively translucent way, when compared with Personnel Management.M ain Differences between Personnel Management and HRMHRM has a long history of growing from a simple welfare and maintenance function to that of a board level activity of the companies. In recent years, the focus on people management from human cracking/intellectual capital perspective is also shaping firmly. However, the hard fact is that this growth can be generally witnessed in management literature and rarely in practice. Peripheral observation of people management in organization can mislead the observers since, hardly there could be any organization that isyet to rename its old fashioned title of industrial relations/personnel/welfare/administration department into HRM department. But, in practice, these organizations continue to handle the people management activities the way they had been handling earlier. The springs for this could be many and varied. Among them, the potential reason is lack of clear understanding about the differences between personnel/IR and HRM.Professo r John Storey brilliantly portrayed these differences in 27 areas of people management in 1992 in his book titled Developments in the Management of Human Resources. These differences are illustrated in TableDimensionsPersonnel and IRHRMBeliefs and assumptions1. ContractCareful delineation of written contractsAim to go beyond contract2. RulesImportance of devising clear rules/mutuallyCan-do panorama Impatience with rule3. Guide to management actionProceduresBusiness-need4. Behaviour referentNorms/custom and practiceValues/mission5. Managerial task vis-a-vis labourMonitoringNurturing6. Nature of relationsPluralistUnitarist7. ConflictInstitutionalizedDe-emphasizedstrategic aspects8. hear relationsLabour managementCustomer9. InitiativesPiecemeal corporate10. Corporate planMarginalCentral11. Speed of decision delayFastLine management12. Management roleTransactionalTransformational leadership13. Key managersPersonnel/ IR specialistsGeneral/business/line managers14. Communication indire ctDirect15. StandardizationHigh (e.g. parity an issue)Low (e.g. parity not seen as relevant)16. Prized management skillsNegotiationFacilitationKey levers17. SelectionSeparate, marginal taskIntegrated, key task18. PayJob evaluation (fixed grades)Performance-related19. ConditionsSeparately negotiated harmonization20. Labour-managementCollective bargaining contractsTowards individual contracts21. Thrust of relations with stewardsRegularized through facilities and trainingMarginalized (with exception of some bargaining for change models)22. Job categories and gradesMany fewer23. CommunicationRestricted flowIncreased flow24. Job designDivision of labourTeamwork25. Conflict handlingReach temporary trucesManage climate and culture26. Training and developmentControlled access to coursesLearning companies27. Foci of wariness for interventionsPersonnel proceduresWide ranging cultural, structural and personnel strategies