Personnel Management And Human Resource Management
Personnel Management
Is a specialist function of management and is not directly involved with business strategy it is a collection of people-related activities.
• Setting general and specific management policy for employment relationship.
• Administration: writing job descriptions, managing the appraisal process.
• Policing: ensuring the personnel policies are followed.
• Collective bargaining and industrial relations.
• Staffing and organisations i.e. providing and retaining personnel.
• Implementing downsizing and redundancy programmes.
• Aiding self development of employees at all levels.
• Reviewing and auditing manpower and management in the organisation.
Human Resource Management (HRM)
is a strategic and coherent approach to the management of an organisation’s most valued assets. The people working there who individually and collectively contribute to the achievement of its objectives for sustainable competitive advantage (Armstrong). It aims at integrating personnel issues with the company’s strategy.
It is the process of managing people so as to contribute to organisational performance and change.
Aims and goals of HRM
• Serve the interests of management as opposed to employees.
• Suggest a strategic approach to personnel issues.
• Link mission to HR strategies.
• Enable human resource development to add value.
• Gain employees commitment to the organisations value and goals.
HRM is managing people for results. It is the responsibility of every manager. It involves every person who is responsible for the work of others.It is about building a very competitive organisation around highly committed employees.
Features (Distinctive) Of HRM
• Top management: - Personnel was a staff function with limited impact. Top managers set direction and they must be involved.
• Performance and delivery of HRM: Line managers are responsible for the implementation of HRM. They do not carry out specialised instructions but manage within the context of the organisation’s HRM strategy.
• Strategic fit: The right people in every respect must be chosen.
• Cultures and values: HRM tires to inaucate the organisations values into its employees.
• Employee behaviour and commitment: HRM seeks to win heart and minds rather than mere consent to management decisions.
• Reward systems that recognise good performance e.g. Performance related pay.
• Employees and assets people are a resource to be deployed. Assets need to be maintained through training. Degradation of human assets will harm competitiveness.
Differences Between Staffing And HRM
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HRM
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Personnel
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1. Purpose of activity
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Strategic development of the business
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Operations, policies and procedures eases management
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2. Expertise
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Serves the business strategy and is spread through the organisation.
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A professional specialisation in one department.
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3. Responsibility
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It is everybody’s although HR department still has an administrative and ‘teaching’ role
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The personnel department
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4. Work focus
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Employees roles in furthering the mission
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Job description.
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HR strategy has to be related to the business strategy. Below is a demonstration of how the HR strategy and business strategy are related. The example relates an airline business.
BUSINESS STRATEGY
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HR IMPLICATIONS
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AIRLINE EXAMPLE
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1. What business are we in?
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What people do we need?
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Air transport requires pilots, cabin crew, ground crew.
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2. What products/markets level of output and competitive strategy now and in future
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Where do we need people?
What are they expected to do how many people?
Location and size of workforce
Productivity expected and output?
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The airline is going global and therefore needs cabin crew who are skilled in languages and are sensitive to cultural differences.
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3. What is the culture and value systems. Is it the right one?
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The need to change culture and value
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A cultural change programme; recruiting people to fit in with the right value system attitudal assessment.
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4. Tomorrow’s strategies, demands and technologies
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Tomorrow’s personnel needs must be addressed now, because lead times. New technology requires training in new skills.
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Recruitment, training and education.
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5. Critical success factors
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How far do these depend on staff
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Service levels in an aircraft depend very much on the staff so HRM is crucial.
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